Wolf Commences Development of Hemerdon Project

11 June 2013

Wolf Minerals

Wolf Commences Development of Hemerdon Project

Specialty metal exploration and development company Wolf Minerals Limited (ASX: WLF, AIM: WLFE) ("Wolf" or the "Company") is pleased to announce that it has commenced development of the Hemerdon tungsten and tin project in Devon, in southwest England.

The initial project development activities include:

1. First drawdown from the US$82 million funding package provided by Resource Capital Fund V L.P. ("RCF");

2. Commencement of the £75 million (~A$123 million) Engineer Procure Construct contract ("EPC Contract") with GR Engineering Services Limited (ASX: GNG) ("GR Engineering"); and

3. Continuation of property purchases around the project site.

The RCF funding package was finalised last month (see ASX announcement, 10 May 2013). It comprises:

·; A 12 month secured Bridge Finance Facility of US$75 million (~A$79 million); and

·; US$7M (~A$7 million) consideration for the purchase of a 2% Royalty by RCF on gross revenues from all metals and minerals produced from the Hemerdon project.

Wolf now advises that it has received the first drawdown of US$10 million from the Bridge Finance Facility, plus the US$7 million consideration for the 2% Royalty.

The funds will be utilised by Wolf to commence the EPC Contract, continue the purchase of properties (required to be purchased under the terms of the Hemerdon project's planning permission), to support owner's development costs and to provide general working capital.

The fixed price, fixed term EPC Contract is for the design, construction and commissioning of a 3 million tonnes per annum ("Mtpa") tungsten and tin mineral processing plant plus associated infrastructure, forming the key component of the Hemerdon project. The Contract term is 24 months from the commencement date.

Wolf has already purchased a number of properties required to develop the site and has negotiated options to purchase with the majority of the remaining landowners. Wolf will now exercise all of the options to purchase with the landowners on the site and finalise option agreements with the remainder.

Wolf Minerals managing director Humphrey Hale said:

"We are delighted to formally commence development at the Hemerdon project. The first draw-down of the funding package provided by RCF represents a major milestone for the Company and our plans to bring the project in to production as a world class tungsten and tin mining operation. The funds will allow our EPC contractor GR Engineering to commence the EPC contract at Hemerdon, and we look forward to providing updates on development progress at the project in the months ahead."

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