Quarterly Report

Wolf Minerals Limited

Quarterly Activities Report

For the period ended 31 March 2014

Specialty metals exploration and development company, Wolf Minerals Limited (ASX: WLF, AIM: WLFE) ("Wolf" or "the Company") is pleased to provide the following update on the Hemerdon Project in Devon, UK, for the three month period to 31 March 2014.

Highlights from the March quarter include:

· Successful A$182.7 million (£99.2 million) Fundraise to complete funding requirements for Hemerdon Project, subject to shareholder approval.

· Share Purchase Plan launched subsequent to end of quarter to raise up to A$2 million.

· Ground-breaking ceremony to mark commencement of the Hemerdon Project.

· EPC contractor, GR Engineering Services Ltd, commenced construction of the Hemerdon Project.

· Company awarded Mine Project Finance European Deal of the Year for the Hemerdon Project.

The Company's Hemerdon Project (tungsten and tin) is located in Devon's traditional mining area in south west England, close to major ongoing china clay operations, and is the third largest tungsten resource in the world. When complete, the mine will feature an 850m x 450m open cast pit extending to a depth of 200 metres, plus a state-of-the-art processing plant and integrated mine waste facility.

Production is expected to start in 2015 and the mine is scheduled to produce approximately 3,500 tonnes of tungsten in concentrate annually - equivalent to approximately 3.5 per cent of forecast global demand.

Successful A$182.7 million Fundraise

In March (ASX announcement, 19 March 2014) Wolf announced the successful completion of a Fundraise of approximately A$182.7 million (£99.2 million), subject to shareholder approval.

Under the Fundraise, 608,588,957 shares would be issued at a price of A$0.30 (16.3p) per share, which represented a 33% discount to the volume weighted average price for the 20 day period up to and including 11 March 2014 (the day immediately prior to the Company's trading halt on the ASX for the Fundraise).

The Company also advised that it would be undertaking a Share Purchase Plan ("SPP") to raise up to A$2.0 million at the same issue price as the Fundraise.

The proceeds of the Fundraise and the SPP will allow the Company to complete construction of the Hemerdon Project and support it through to positive cashflows.

Specifically, the funds raised will be used by the Company to;

· Repay the outstanding balance of the US$75 million Bridge Finance Facility provided by Resource Capital Fund V L.P. ("RCF");

· Provide the capital expenditure required by the Hemerdon Project to complete construction and make the project production ready;

· Provide funds to service bonding obligations, over-run facilities, debt service reserve account and producer shortfall guarantees; and

· Provide ongoing working capital.

The Fundraise comprises a placing and subscriptions, including subscriptions by Wolf's major shareholders, RCF and TTI (NZ) Limited ("TTI"), a wholly owned subsidiary of Todd Corporation Limited ("Todd").

Numis Securities Limited, Patersons Securities Limited and Investec Bank plc acted as joint Lead Managers to the Fundraise, with Azure Capital acting as corporate advisor to Wolf.

Commenting on the Fundraise Wolf managing director Russell Clark said:

"We are delighted with the success of the Fundraise and thank all participants for their support. The funds raised will be primarily utilised to complete construction of our world class Hemerdon Project which, on completion, will be the first new metal mine in the UK in 45 years providing approximately 200 direct new jobs and establishing a new industry in the southwest of the UK."

Completion of the Fundraise is conditional upon shareholder approval at an Extraordinary General Meeting ("EGM"), to be held on 13 May 2014.

Share Purchase Plan to raise up to A$2 million launched

Subsequent to the end of the quarter (ASX announcement, 9 April 2014), the Company launched an SPP offer to eligible shareholders, to raise up to A$2 million.

Under the SPP eligible shareholders are entitled to purchase up to A$15,000 worth of new shares at A$0.30 per share, free of brokerage and commission. This is the same price as the price of shares under the Fundraise.

Funds raised under the SPP will be used in conjunction with the Fundraise to complete construction of the Hemerdon Project and support the project through to positive cashflows.

The SPP Offer opened on 14 April 2014 and is scheduled to close on 2 May 2014.

Participation in the SPP is optional and is available to shareholders of fully paid ordinary shares in Wolf as at the Record Date, 5.00pm (WST) 17 March 2014, with a registered address in Australia or New Zealand.

Shareholder approval for the issue of shares under the SPP will be sought at the EGM to be held on 13 May 2014.

The full details of the SPP offer have been sent to eligible shareholders.

EPC contractor commenced construction of the Hemerdon Project

In February (ASX announcement, 11 February 2014) Wolf reported that construction of the Hemerdon Project had commenced, with EPC contractor, GR Engineering Services Limited (ASX: GNG) ("GRES"), being authorised to commence the construction phase of the £75 million EPC contract.

This represented another key milestone in the development of the Hemerdon Project, and set the project on a definitive timeline for construction, commissioning and first production, which is scheduled for 2015.

GRES was awarded the fixed price, fixed term EPC contract for the design, construction and commissioning of the 3 million tonnes per annum tungsten and tin mineral processing plant at Hemerdon, including associated infrastructure, in June 2013 (ASX announcement, 12 June 2013). GRES are contracted to complete the construction and commissioning in Q3, 2015.

Prior to being authorised to commence construction, GRES had conducted detailed design of the plant and facilities, and had procured key pieces of equipment.

The commencement of construction followed the finalisation of the purchase of requisite residential properties around the project site (required by the project's planning permission), the issue of the environmental permit required for the mining waste facility, and the signing of a 40 year lease with the project's landowners.

Ground-breaking ceremony to mark commencement of Hemerdon Project

In March (ASX announcement, 17 March 2014) the Company hosted an official ground-breaking ceremony at the Hemerdon Project site to mark the commencement of construction at the project.

The Hemerdon Project will be the first new metal mine in the UK for 45 years, and the ground-breaking event marked a significant milestone for the Company and the project.

The ceremony was carried out by representatives of the two planning authorities, John Hart, Leader of Devon County Council and Tudor Evans, Leader of Plymouth City Council; Gary Streeter, MP for South and West Devon; Anthony Cobbold, Chairman of the Hemerdon Mine Association; and Jeff Harrison, Operations Manager for Wolf.

Over 60 local stakeholders attended the event emphasising the local community support for the Hemerdon Project which will generate approximately 200 direct new jobs and provide a significant economic stimulus into the Plymouth, Devon and UK economies.

Company awarded Mine Project Finance European Deal of the Year for Hemerdon Project

During the quarter the Company was awarded the prestigious European Mining and Metals 2013 Mine Project Finance Deal of the Year for its funding package for the Hemerdon Project.

At the time of the award, Wolf had put in place a funding package totalling approximately A$222.6 million for the development and construction of the Hemerdon Project, comprising £75 million in Senior Project Finance Facilities from ING, Unicredit and CAT Financial, plus a US$75 million Bridge Finance Facility from RCF.

The award recognises outstanding achievement and best practice in the financing of infrastructure projects each year, and is sponsored by Project Finance Magazine.

Wolf's nomination and success in winning the award was significant recognition for the Company and its successful fund raising endeavours.

Planned upcoming activities

In the June 2014 quarter, Wolf will continue to progress its development of the Hemerdon Project and supporting activities, including:

· Holding an EGM on 13 May 2014 to approve the Fundraise.

· Demolition of the existing processing plant infrastructure.

· Completion of the mine access road construction.

· Completion of the plant site earthworks.

· Commencement of concrete foundations for the main processing plant building.

· Completion of the mine haul road to allow haulage of waste from the pit to the mine waste facility.

· Commencement of the construction of the mine waste facility by the mining contractor.

Promotion and Marketing

The Company has a corporate video, which provides an update on the Hemerdon Project and it is available to view on the home page of the Wolf company website, at www.wolfminerals.com.au.

The latest Investor Presentation is also available from the Company's website.

Mining Tenements

As at 31 March 2014, the Company has an interest in the following projects:

All tenements are held by Wolf Minerals (UK) Limited, a wholly owned subsidiary of the Company. No farm-in or farm-out agreements are applicable. No mining or exploration tenements were acquired or disposed of during the quarter.

ENDS

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. 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 Services contract. Production is expected to commence in 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.