£55 million project finance for Hemerdon project

19 December 2011

Wolf Minerals Limited

Wolf to raise GBP£55 million project finance for Hemerdon project

Credit approval for finance expected February 2012

Wolf Minerals Limited (ASX: WLF) (AIM: WLFE) ("Wolf") the specialty metal exploration and development company is pleased to announce that ithas appointed UniCredit Bank AG (UniCredit Corporate & Investment Banking), ING Bank N.V. and Caterpillar Financial SARL to provide senior debt finance facilities totalling GBP£55 million (AUD$80.1 million) to fund the commercial development of the Hemerdon Tungsten and Tin Project in Southwest England.

The funding will support the planned construction of the Hemerdon project, based on the recently completed Definitive Feasibility Study. The study confirmed the robust economic viability of the project and estimated a net present value of GBP£74 million1.

All three lenders are recognised global leaders in mining project finance.

Wolf also advises that discussions are continuing with potential off-take partners to provide subordinated debt. The total debt facilities will enable Wolf to minimise the equity component of the funding package required to put the Hemerdon project into production.

UniCredit Bank AG, ING Bank N.V. and Caterpillar Financial SARL were appointed following the completion of a competitive process facilitated by Optimum Capital Pty Ltd. This process incorporated a technical due diligence review undertaken on behalf of the financiers by Micon International and a further independent marketing study by Roskill Consulting Group.

This review process supported the findings of the Definitive Feasibility Study and the robust economics of the project.

Provision of the senior debt finance facilities is subject to completion of the project finance documentation and the usual credit approvals and conditions precedent customary for a financing of this nature.

The current timetable is for the lenders to obtain credit approval for the facilities in February 2012.

1 Based on the assumptions as announced to the market on 16 May 2011.

Commenting on the appointment of the debt financing providers Wolf Managing Director Humphrey Hale said:

"The appointment of UniCredit, ING Bank and Caterpillar Financial to provide senior debt finance facilities for the Hemerdon project represents a major milestone for the Company and the development of the project. All three are leading providers of finance to the mining sector and their appointment provides further strong validation of the Hemerdon project's potential to become a major specialty minerals mining operation."

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About Wolf Minerals

Wolf Mineral is an ASX listed and AIM listed specialty metals company focused on developing the world class Hemerdon Tungsten and Tin Project, in Devon, in the south-west of the UK. The Company holds an option over 100% of the Hemerdon project, which the Directors consider to be one of the largest undeveloped tungsten and tin resources in the western world. It is ranked as the fourth largest tungsten deposit in the world in terms of contained tungsten metal, by The British Geological Survey. The Company aims to develop the project into a large scale, open pit mining operation, which will position it as a world class tungsten and tin producer. Wolf recently released a positive Definitive Feasibility Study for the Hemerdon project, and it has updated planning permission for mining until 2021.