Hammer to Acquire Sunset & Black Rock Copper-Gold Projects

HAMMER METALS TO ACQUIRE SUNSET AND BLACK

ROCK COPPER-GOLD PROJECTS

•  Mt Dockerell Mining Pty Ltd (a wholly owned subsidiary of Hammer Metals Limited) has executed a Sale and Purchase Agreement to purchase two exploration permits that cover the Sunset and Black Rock copper‐gold prospects located 5km northwest of Hammer's Jubilee and Elaine‐Dorothy copper‐gold deposits near the Mary Kathleen Mine.

•  The Sunset Prospect has potential for Jubilee‐style copper‐gold deposits. Selected drill intersections include 24m @ 1.41% Cu and 0.49g/t Au and 14m at 2.57% Cu.

•  Black Rock returned broad drill intersections of up to 78m at 0.54% Cu and 0.13g/t Au and 94m at 0.44% Cu. The prospect extends over a strike length of 1.2km with true widths of the mineralised zone of up to 60m, indicating good potential to host a large tonnage copper‐gold deposit similar to Hammer's Elaine‐Dorothy deposit.

•  The rock sequence that hosts the Black Rock and Sunset Prospects also hosts the Mary Kathleen, Jubilee and Elaine‐Dorothy deposits as well as several other copper occurrences for over 20km along strike and is considered to have substantial exploration potential.

Hammer's Executive Chairman said: "The acquisition is an opportunity for Hammer Metals to acquire highly prospective exploration tenements that augment Hammer's Mount Isa project. With further drilling the tenements have good potential to add additional copper and gold resources to the existing inventory, and specifically complement Hammer's Elaine‐Dorothy and Jubilee copper‐gold deposits located nearby."

Oblique view of the Sunset and Black Rock trends looking south

SUNSET AND BLACK ROCK PROSPECTS

The Sunset and Black Rock Prospects occur on a mineralized trend termed the Wonga detachment surface. This trend is largely located along lithological boundaries and has been an important channel‐way for hydrothermal fluids during mineralising events in the Mary Kathleen Fold Belt. The Hammer Prospects at Jubilee and Lakeview also occur on or close to the surface.

The Sunset Prospect occurs in a shear zone typified by the presence of remobilized carbonate. Mineralisation occurs as multiple stacked lenses which were mined by narrow vein methods. Drilling has delineated mineralisation over a 700m strike length. Significant intercepts include:

•  24m at 1.41% Cu and 0.49g/t Au from 10m including 4m at 4.57% Cu and 2.74g/t Au from 16m in CAMC004

•  17m at 1.40% Cu and 0.38g/t Au from 35m including 8m at 2.66% Cu and 0.18g/t Au from 40m in CAMC015

•  14m at 2.57% Cu from 21m in CR07002

The Black Rock Prospect is hosted within a magnetite‐hematite altered fractured quartzite. Mineralisation occurs as quartz stockwork veining with pyrite‐chalcopyrite (+ hematite‐magnetite). Mineralisation has been delineated by wide spaced drilling over a 1.2km strike length with a mineralised envelope true width of up to 60m. Significant intercepts include:

•  78m at 0.54% Cu and 0.13g/t Au from 140m in CAMD003

•  94m at 0.44% Cu from 159m in DDH‐PN1 (no gold assays)

•  98m at 0.30% Cu including 3m at 4.05% Cu and 0.59g/t Au from 85m in CAMC033

•  70m at 0.33% Cu including 5m at 1.08% Cu and 0.23g/t Au from 206m in CAMC028

Together with existing Hammer tenements the Wonga Detachment surface is now covered for a distance of over 20km along strike. Along this trend, mineralisation is present at multiple locations, many of which have not been drill tested. This acquisition also completes Hammer Metals coverage over the core and surrounds of the Mount Philp Breccia IOCG target, specifically the northern strike extension of the Prince of Wales workings.

Consideration for the acquisition is $25,000 cash and a 1.5% NSR royalty. Completion remains subject to the satisfaction of several conditions precedent.

Example of copper mineralisation consisting of chalcopyrite, chalcocite, malachite and chrysocolla from the Sunset prospect

For further information contact:

Russell Davis | Executive Chairman T: +61 8 6369 1195info@hammermetals.com.auwww.hammermetals.com.au

About Hammer Metals

Hammer Metals Limited (ASX: HMX) holds a strategic tenement position covering approximately 3000km2 within the Mount Isa mining district, with 100% interests in the Kalman (Cu‐Au‐Mo‐Re) deposit, the Overlander North and Overlander South (Cu‐Co) deposits and the Elaine‐Dorothy (Cu‐Au) deposit. Hammer also has a 75% interest in the Millennium (Cu‐Co‐Au) deposit and a 51% interest in the emerging Jubilee (Cu‐Au) project. Hammer is an active mineral explorer, focused on discovering large copper‐gold deposits of the Ernest Henry style and has a range of prospective targets at various stages of testing.

Competent Person's Statement:

Exploration Results

The information in this report as it relates to exploration results and geology was compiled by Mr. Mark Whittle, who is a Member of the AusIMM and a consultant to the Company. Mr. Whittle who is a shareholder and option‐holder, 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Whittle consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Location of EPM 11919 and EPM 25165 relative to the Hammer Metals Mount Isa Project Area.

Drill hole location plan for Sunset and Black Rock Prospects

Long section through Black Rock

Cross section through Black Rock