High Grade Uranium Resource Confirmed at Expanded Wiluna Project

Key highlights1

• 27% increase in the previously reported high grade Lake Maitland U3O8 resource to 15.7 Mlb (at 500 ppm cut-off).
• Lake Maitland adds scale and quality to pre-acquisition Resources at Wiluna. The total Resource base is reported as:
  • 42.3 Mlb at 898 ppm (500 ppm cut-off) including 36.7 Mlb at 930 ppm from the first four planned mines - Centipede, Lake Way, Millipede and Lake Maitland; and
  • 76.5 Mlb at 479 ppm (200 ppm cut-off).
• Higher grade mine development able to be pursued at the Centipede, Lake Way, Millipede and Lake Maitland deposits - 97% of resource from these deposits is now categorised as Measured or Indicated.

The Wiluna Uranium Project now comprises six deposits - the already approved Centipede and Lake Way deposits, as well as Millipede, Lake Maitland, Dawson Hinkler and Nowthanna.

This resource update incorporates all drilling data and re-interpretation of previous resource models at Lake Maitland and the results of the Company's 2013 drilling campaign at the Dawson Hinkler deposit.

The results confirm high grade inventory is contained within at least four of Wiluna's deposits - Centipede, Lake Way, Millipede and Lake Maitland - and is of sufficient scale to suggest the potential to pursue a high grade mining strategy for the first 10-13 years of operations at Wiluna at a             1.3 million tonne per annum processing rate. Total Measured and Indicated Resource at a 500 ppm cut-off is 17.6 Mt @ 930 ppm for 36.0 Mlb.

Figure 1, in the attached announcement, shows the resource shells for the Lake Maitland deposit, which highlight the continuity of the high grade mineralisation that significantly improves the scale and quality of the Wiluna Resource.

"The acquisition of Lake Maitland is a critical step in the development of the Wiluna Project. Toro Managing Director, Dr Vanessa Guthrie, said today. The potential for a higher grade mining operation at 800+ ppm head grade may now be realised from the initial four mines at Wiluna (the already approved Centipede and Lake Way deposits, as well as Millipede and Lake Maitland).

With the addition of lower grade stockpiled material from these mines, as well as the resources at Dawson Hinkler and Nowthanna deposits, we have the resource base capable of supporting mining operations at Wiluna for more than 20 years."

Toro has commenced initial mining studies and economic modelling to provide a basis for design for a definitive feasibility study on the new enlarged and improved Wiluna Project.

The 2013 drilling program at Dawson Hinkler has resulted in a small increase in total resource whilst converting at least two thirds of the Resource into the Indicated category.

Figure 1 and Tables 1 and 2, in the attached announcement, provide details of the resource estimates.

Vanessa Guthrie
Managing Director

MEDIA CONTACT:
Vanessa Guthrie, Toro Energy, 08 9214 2100
Kevin Skinner, Field Public Relations, 08 8234 9555 / 0414 822 631