Investor Update - August

Wolf Minerals Limited

("Wolf" or "the Company")(ASX: WLF AIM: WLFE)

Investor Update

ISSUE 11: August 2012

Welcome to the next issue of the Wolf Minerals Investor Update for 2012.

As we pass the half way point of the year, I am pleased to report that, despite the ongoing challenging conditions in investment markets, Wolf has continued to make strong progress in its development plans for the Hemerdon tungsten and tin project. 

Since our last Investor Update, the Company has completed the first major piece of infrastructure work at the project, with the completion of the project's link road. Construction of the link road commenced in the first quarter and it was officially opened last month.

We also recently completed a A$5 million capital raise from two of the Company's longstanding senior shareholders, Resource Capital Fund and Traxys Projects. We welcome their continued support, which is a further validation for our plans to bring the Hemerdon project into production as a large scale, long term source of tungsten supply.

Moving forward, we are focused on finalising the funding requirements to bring Hemerdon on-line.

As has previously been announced, to date, we have secured credit approval for GBP£55 million in senior debt finance for the project and have signed a Heads of terms for an offtake agreement for the project's tungsten production, which also includes an additional GBP£20 million funding facility.

We look forward to providing further information on progress of the Company's funding requirements, to take the project into production, in due course.

Details of all our recent activities are provided in this Investor Update, and I look forward to keeping you updated on our continued progress at the Hemerdon project in the second half of the year.

Humphrey Hale

Managing Director

FIRST MAJOR PIECE OF PROJECT INFRASTRUCTURE COMPLETE

HEMERDON LINK ROAD OFFICIALLY OPENED

Last month the Company completed the first major piece of infrastructure work at the Hemerdon project, with construction of the Hemerdon project Link Road completed.

Construction of the Link Road began in January this year and formally marked the commencement of construction at the Hemerdon project. It is a 600 metre public access road, required as part of Wolf's planning permission to develop the Hemerdon project.

The completion of the Hemerdon Link Road is another step in Wolf's goal to develop Hemerdon into a world class tungsten and tin mining operation which will deliver significant employment and economic benefits to the local area.

The road was officially opened on Friday, 27 July, by Councillor John Hart, Leader of Devon County Council, Wolf Managing Director Humphrey Hale, MP for Devon South West Gary Streeter plus representatives of local communities.

Please click on the following link to see Wolf's Managing Director Humphrey Hale and Leader of Devon County Council, Councillor John Hart, at the opening of the Hemerdon Link Road.

http://www.rns-pdf.londonstockexchange.com/rns/4304J_-2012-8-6.pdf 

The Link Road will remove a long-term constriction in the local traffic network, and will also benefit other local mining operations and create a long term piece of road infrastructure to support safe and efficient transportation in the local area.

SUCCESSFUL A$5 MILLION CAPITAL RAISE

In May, the Company announced a successful A$5 million equity placing raising via a placement to two of its major shareholders, Resource Capital Fund V LP and Traxys Projects LP.

The funds raised will be used by Wolf to provide additional working capital as it continues to finalise its financing arrangements at the Hemerdon Project. The funds raised will also help the Company maintain its development schedule at Hemerdon, as well as cover costs associated with construction of the project's link road.

Wolf is delighted with the continued support of Resource Capital Fund and Traxys, and values the strong working relationship it has with its senior shareholders.

WOLF STRENGTHENS THE HEMERDON PROJECT TEAM

Wolf recently made a significant new addition to its on-site project team at Hemerdon with the appointment of Gillian Hall as the project's Process Plant Manager.

This is a key appointment for the project. Gillian has developed a significant amount of experience across a variety of commodities globally, including tin, gold and industrial minerals, over the last 30 years.

In particular, she has excellent experience in gravity separation techniques, which will be key to the successful operation of the Hemerdon plant.

Gillian has previously worked for Intertech and was involved in the design, procurement and shipping of complete processing plant packages for customers in Russia and the CIS. Following the acquisition of Intertech by Bateman, in 2008, she then worked with FLSmidth in the global process technology and systems group.

Gillian graduated from the University of Leeds in 1978 with a degree in mineral processing.

The team at Wolf looks forward to working with Gillian as the Company advances the Hemerdon project towards production.

ABOUT THE HEMERDON PROJECT

Wolf has received credit approval for £55 million in senior debt finance for the development of the project, and has also signed a Heads of Terms agreement for an offtake agreement for the project's tungsten production, which includes an additional £20 million in project finance.

Production at Hemerdon will position Wolf as a world class tungsten and tin producer. The project has updated planning permission for mining until 2021.

Tungsten, which is the main commodity at the Hemerdon project, has been identified by the EU as one of 14 'critical' minerals.

WOLF MINERALS RESOURCE CENTRE

Further Information on Wolf Minerals is available via the below links, or at the Company website, http://www.wolfminerals.com.au/:

§ Facts and background on tungsten

http://www.wolfminerals.com.au/tungsten/tungsten

§ Wolf Minerals latest press coverage

http://www.wolfminerals.com.au/investor-relations/press-releases

§ Latest Company presentations

 http://www.wolfminerals.com.au/asx-announcements/presentations

For further details, please contact:

Notes to Editors

The Hemerdon Ball Project is one of the largest tungsten and tin resources in the western world. It is Wolf Minerals' core project and the Company is focused on developing the project into a large scale, open pit mining operation.

The Company released a positive Definitive Feasibility Study for the Hemerdon project in May 2011, and will now move forward to bank the project.

This will position Wolf as a world class tungsten and tin producer. The project has updated planning permission for mining until 2021.

The British Geological Survey ranks the Hemerdon project as the fourth largest tungsten deposit in the world, in terms of contained tungsten metal, and says that the project has the potential to be a major new global-scale mine.

Tungsten, which is the main commodity at the Hemerdon project, has been identified by the EU as one of 14 'critical' minerals.