Finance News Network interview

17 February 2014

Wolf Minerals

Finance News Network interview with Managing Director Russell Clark

Specialty metals development company, Wolf Minerals Limited (ASX: WLF, AIM: WLFE) (Wolf, the Company) is pleased to announce that the Company's Managing Director, Mr Russell Clark was this week interviewed by Finance News Network.

The interview provided an update on recent and planned activities at the Company's world class Hemerdon Tungsten and Tin Project in the southwest of England.

The interview can be viewed on the Wolf Minerals Company website, and a transcript of the interview is attached to this announcement.

ENDS

For further information please contact:

Russell Clark

Managing Director

Wolf Minerals

Email: [email protected]

Or

James Moses

Media & Investor Relations

Ph: +61 (0) 420 991 574

Email: [email protected] 

Transcription of Finance News Network Interview with Wolf Minerals Limited (ASX: WLF, AIM: WLFE) Managing Director and CEO, Russell Clark

Lelde Smits: Hello I'm Lelde Smits for the Finance News Network and joining me from metals developer, Wolf Minerals Limited (ASX:WLF, AIM:WLFE) is its Managing Director and CEO, Russell Clark. Russell welcome back to FNN.

Russell Clark: Thanks Lelde, it's great to be back.

Lelde Smits: When we last spoke at the end of 2013, you detailed your Hemerdon tungsten and tin project in the UK. What has occurred since?

Russell Clark: So we've achieved a lot Lelde. The Environmental Permit was granted in early December, the first of its type in England ever. We finished purchasing properties that were a condition precedent to us actually starting to build this project. We signed the lease with the landowners and just recently, we've announced that GR Engineering Services Limited (ASX:GNG) will start construction of the project.

Lelde Smits: Wolf has just started construction at Hemerdon, as you mention. What has to occur at the project for it to be production ready?

Russell Clark: We plan to be production ready by early next year (2015). We've already started clearing the site of trees and bushes and old stone walls. We'll start earth works very shortly, then the concrete, then the steel and we should be in a position where the plant can start to be commissioned at the end of this year. And then bring it into production in the middle of next year.

Lelde Smits: What do you expect will be the next milestone for Hemerdon?

Russell Clark: So we have to get the EPC contractor onto site to start building the project. And shortly after that, the mining contractor, Blackwells, will start mining the pit in March.

Lelde Smits: Recapping the resource, what is the size of the project and could you put it into perspective for us relative to other tungsten resources?

Russell Clark: This is the third largest global resource of tungsten, over 400 million tonnes of resource. We have 117 million tonnes of measured and indicated resource. And that converts into 26 million tonnes of reserves, which is sufficient for around 10 years of production. We do see a great opportunity to extend that by three or four years, so another 30 or 40 per cent of reserves on top of what we already have.

Lelde Smits: And as the next phase of development ramps up, what are the anticipated capital costs?

Russell Clark: The project has senior debt; we have 75 million pounds of debt in place with ING, UniCredit and Caterpillar Finance. And for the time being, we're using a bridging finance loan from Resource Capital Funds for US$75 million, which has enabled us to start the construction of this project.

Lelde Smits: When we last spoke you mentioned Wolf's funding package is broadly in place. How do you plan to cover the current construction costs?

Russell Clark: The current construction costs are being managed through this bridging finance that we have. That will need to be replaced by June of this year and then we can access the senior debt, which will complete the construction of the project.

Lelde Smits: And Russell, with regard to potential customers, where have you sought off-taker support?

Russell Clark: So part of the debt funding structure that we've got required us to have off-takers, and we've secured two off-takers. One in the United States of America, Global Tungsten & Powders and one in Austria, Wolfram Bergbau und Hutten who will take 80 per cent of our tungsten production for five years.

Lelde Smits: Finally Russell, as the project goes towards production next year what trends have you noted in the tungsten market?

Russell Clark: So an independent review by tungsten market research has suggested that the demand for tungsten is going to increase at about 4,000 to 5,000 tonnes per year. That's the equivalent of one of these projects, the Hemerdon project every year coming on stream. And they're just not there. So the prediction is that demand will outstrip supply in the next three or four years, with a result that the price of tungsten is forecast to rise reasonably significantly.

Lelde Smits: So when do you expect this high price environment to peak and what is your long term outlook for tungsten?

Russell Clark: The demand for tungsten gets driven by global growth. There aren't a lot of projects in the pipeline and we see the price peeking at about the time this project comes online, so perfect. Going forward, growth in the world will require more tungsten. It's not substitutable and as a result of that, we see the opportunity to perhaps expand this project whilst prices remain high.

Lelde Smits: Russell Clark, thank you for the update on Wolf Minerals and outlook on tungsten.

Russell Clark: Thanks Lelde.

End of transcript

Competent Persons Statement

The information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources is based on information compiled by Phil Jankowski, who is a Member of the Australasian Institute of Mining and Metallurgy. Phil Jankowski is a full-time employee of SRK Consulting (Australasia) Pty Ltd ("SRK"), and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Phil Jankowski consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The Ore Reserve estimate is based on work completed by Mr Quinton de Klerk, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr de Klerk is a full time employee of Cube Consulting and has sufficient experience which is relevant to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr de Klerk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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 is developing the third largest global tungsten resource at its Hemerdon project, located in the South West of England (see Project location map).The Company has strong cornerstone investors and project finance and environmental permitting in place. Wolf has also secured all major contracts for the project, with GR Engineering appointed the EPC contractor and CA Blackwell being awarded the Mining contract. Production is expected to commence in mid-2015, and the project will produce approximately 3,500 tonnes of tungsten in concentrate and 450 tonnes of tin in concentrate per annum. Offtake contracts are also in place.