Establishment of £25m equity facility with RCF

29 January 2016

Wolf Minerals Limited

Wolf to establish £25m equity facility with Resource Capital Funds

Highlights

· £25m (A$51m) equity facility to be established with Resource Capital Fund VI L.P.

· Equity to be issued at premium to current share price

· Proceeds to be used to strengthen balance sheet

Specialty metals producer, Wolf Minerals Limited (ASX: WLF, AIM: WLFE) ("Wolf" or "the Company") is pleased to announce that it has executed a binding term sheet with Resource Capital Fund VI L.P. ("RCF VI") to provide a standby equity facility to strengthen the Company's balance sheet during the ramp-up of the processing plant at the Drakelands open pit mine ("Drakelands").

The terms of the standby equity facility provide that RCF VI, an associate of current major shareholder Resource Capital Fund V L.P. ("RCF V"), will subscribe for a maximum amount of £25 million (approximately A$51 million) at 9.19p (approximately A$0.19) per share ("Issue Price"), an approximate 13% premium to the share price as at close on 28 January 2016 on the ASX (also an approximate 13% premium to the share price as at close on 28 January 2016 on the LSE) (the "Facility").

The Facility enables the Company to request RCF VI to subscribe for fully paid, ordinary shares at the Issue Price at any time during the six month period following establishment. Drawdowns from the Facility will be used to support operations at Drakelands and facilitate the Company's debt repayments.

Wolf's Managing Director, Russell Clark, said:

"The Company welcomes the high-value support from RCF VI. The offer to subscribe for shares at a premium to the current share price indicates its confidence in the project and positive view on the long-term tungsten market dynamics.

The establishment of the Facility will enable the Company to focus on ramping-up the processing plant at Drakelands at a time when the tungsten price has fallen almost 50% since construction of the plant commenced in March 2014."

The Facility is conditional, amongst other things, upon RCF VI obtaining FIRB approval and upon finalisation of draft amendments to the Company's senior debt finance facilities. Under the Facility the Company has given RCF VI certain warranties and indemnities and RCF VI has certain limited rights of termination.

Completion of the Facility is also conditional upon shareholder approval at an Extraordinary General Meeting, for which the relevant documentation and meeting information will be circulated as soon as practicable.

Related Party Transaction

RCF VI is deemed to be a Related Party as defined in the AIM Rules as it is considered to be an associate of RCF V, which currently holds approximately 41.7% of the Company's issued share capital. As a result, entering into the Facility is deemed to be a Related Party Transaction under the AIM Rules (the "Related Party Transaction").

The Company's board of directors (excluding Chris Corbett, who is a representative of RCF V) considers, having consulted with the Company's Nominated Adviser, that the terms of the Related Party Transaction are fair and reasonable insofar as shareholders are concerned.

ENDS

About Wolf Minerals

Wolf Minerals is a dual listed ("ASX: WLF", "AIM: WLFE") specialty metals company. With global demand for tungsten rising and future global production expected to be constrained, Wolf Minerals has recently completed the development of a large tungsten resource at its Drakelands Mine, located at Hemerdon, in southwest England.