Credit Approval for £55m Project Finance

5 March 2012

Wolf Minerals Limited

Wolf receives credit approval for £55m of project finance for Hemerdon Tungsten Project

Specialty metal exploration and development company Wolf Minerals Limited (ASX: WLF) (AIM: WLFE) (Wolf, the Company) is pleased to announce that it has received credit approval from UniCredit Bank AG (UniCredit Corporate & Investment Banking), ING Bank N.V. and Caterpillar Finance SARL for £55 million (AU$80.1 million) in senior debt finance facilities to fund the commercial development of its Hemerdon Tungsten and Tin project in Devon, in Southwest England.

The support of three globally recognised leaders in mining project finance is a significant milestone for Wolf and a strong endorsement of the Company's confidence in the technical and financial strength of the Hemerdon project.

The funding will support the planned construction of the project, based on the Definitive Feasibility Study completed in May 2011. The study confirmed the robust economic viability of the project and estimated a post-tax, ungeared net present value of £74 million1.

Negotiations with potential off take partners to provide subordinated debt have advanced and this, along with the senior debt funding, will enable Wolf to minimise the equity component of the funding package required to put the Hemerdon project into production.

The Company is delighted to have received credit approval for the senior debt component of Hemerdon's project funding. Provision of the senior debt facilities is now subject to completion of the project finance documentation and conditions precedent customary for a financing of this nature.

UniCredit Bank AG, ING Bank N.V. and Caterpillar Finance 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.

1Based on assumptions detailed in the announcement released to the market on 16 May 2011

Commenting on the receipt of credit approval Wolf Managing Director Humphrey Hale said:

"This represents a major milestone in the Company's funding plans for the Hemerdon project, and is the first of several significant announcements that Wolf expects to make over the coming months as Hemerdon moves into the development stage. Having the support of three such high calibre mining finance providers is a further recognition of the project's potential to become a major specialty minerals mining operation."

Wolf is also pleased to provide the following update on other recent progress at the Hemerdon project.

Plant & Infrastructure EPC Contract

Following a pre-qualification process, Wolf has issued tender documents to international engineering contractors to competitively bid for an EPC contract to design, construct, and commission the new processing plant and associated infrastructure. Tenders are due for submission in late March and will be evaluated thereafter.

Construction starts at the Hemerdon project as the Link Road construction gets underway 

A contract was recently awarded to Bardon, a subsidiary of Aggregate Industries to construct the "Link Road". It is a requirement of the project's planning permission that the 600m Link Road is constructed to remove a long-term constriction in the local traffic network. The Company is pleased to advise the construction of the link road has now commenced and is scheduled to be completed in June this year.

Please click on the following link for images of the link road construction work on site this week.

http://www.rns-pdf.londonstockexchange.com/rns/6442Y_-2012-3-4.pdf

ENDS

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About Wolf Minerals

Wolf Mineral is an ASX listed and AIM listed specialty minerals company focused on developing the world class Hemerdon Tungsten and Tin Project, in Devon, in the south-west of the UK. The Hemerdon project is 100% owned by Wolf and is 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 released a positive Definitive Feasibility Study for the Hemerdon project in May 2011, and it has updated planning permission for mining until 2021.