HAMMER METALS LIMITED — Board/Management Information 2019

Sep 30, 2019

HAMMER APPOINTS MANAGING DIRECTOR

ASX RELEASE 1 OCTOBER 2019

DIRECTORS / MANAGEMENT

Russell Davis Chairman

• Mining executive, Mr Dan Thomas, to be appointed as Managing Director of Hammer Metals effective 21 October 2019

• Extensive background in project management, corporate development, business improvement and mergers & acquisitions across the resources sector

• Appointment will complement Hammer’s existing Board and Management team as exploration progresses at Hammer’s Bronzewing South and Mt Isa projects

Nader El Sayed Non–Executive Director

Overview

Ziggy Lubieniecki Non-Executive Director

Mark Pitts Company Secretary

Mark Whittle Chief Operating Officer

CAPITAL STRUCTURE

ASX Code: HMX

ASX Code: HMX
Share Price (30/9/2019)	$0.032
Shares on Issue	439m
Market Cap	$14m
Options Listed	190m
Options Unlisted	32m

Significant Shareholders

Directors	11.0%
Deutsche Rohstoff	7.5%

Hammer Metals Limited (ASX: HMX) (“Hammer” or the “Company”) is pleased to announce the appointment of Mr Dan Thomas as Managing Director. Dan will assume responsibility for the ongoing exploration activities across Australia applying his extensive technical, operational and corporate expertise to deliver continued value for the Company’s shareholders. Hammer also intends on leveraging Dan’s corporate development expertise in unlocking the latent value in the Company’s extensive Mt Isa portfolio in Queensland and investigating new opportunities.

Dan has 20 years of industry experience in operations, corporate development, project management and project finance having completed undergraduate studies in Chemistry and Geology as well as attaining an MBA from the Melbourne Business School. During his career, Dan has worked across Australia, North America, Asia and Africa, in a wide range of commodities, including base and precious metals.

In Dan’s most recent role as Business Development Manager at Sandfire Resources (ASX: SFR), he was instrumental in utilising the cash-flows generated by the DeGrussa Copper-Gold Mine to grow the Company both organically through exploration and through business development initiatives, including several acquisitions, investments and Joint Ventures across Australia, North America, Europe and Africa.

Prior to Sandfire, Dan has held roles with Wesfarmers, PTT Asia Pacific Mining and Mitsui E&P Australia.

Hammer’s Chairman, Russell Davis said: “Dan has the strong combination of mining and commercial experience necessary to unlock the latent value in the Company’s existing asset portfolio. His technical foundations and more recent experience in corporate development will complement the existing team’s strengths in geology and exploration as the Company continues to explore in both Western Australia and Queensland.”

Summary of Managing Director Terms & Conditions

Hammer has entered into an Executive Services Agreement with Mr Thomas which will see him commence as Managing Director on 21 October 2019 for an indefinite term (subject to either party giving three months’ notice).

Mr Thomas will be entitled to remuneration of $220,000 per annum exclusive of statutory superannuation and, subject to shareholder approval, the Company will grant Mr Thomas performance shares and unlisted options to acquire fully paid ordinary shares in the capital of the Company, on the terms set out in the tables below.

Option Terms

Tranche	Number of Options	Exercise Price	Vesting Conditions	Expiry Date
One	3,000,000	A$0.050	12 month anniversary of commencing employment	4 years from the date of commencing employment
Two	4,000,000	A$0.060	24 month anniversary of commencing employment	4 years from the date of commencing employment

Performance Share Terms

Tranche	Number of Performance Shares	Vesting Conditions 12 month anniversary of commencing employment with half subject to share price	Expiry Date 4 years from the date
One	1,500,000	hurdle of a 30% premium to the 15 day	of commencing
		VWAP on the date of issue for a minimum of 30 days.	employment
Two Three	1,500,000 5,000,000	24 month anniversary of commencing employment with half subject to share price hurdle of a 50% premium to the 15 day VWAP on the date of issue for a minimum of 30 days. Completion (to the Board’s satisfaction) of a material transaction to the value of a minimum of 30% of HMX’s market capitalisation	4 years from the date of commencing employment 4 years from the date of commencing employment

For further information please contact:

Russell Davis Chairman T +61 8 6369 1195 E info@hammermetals.com.au

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About Hammer Metals

Hammer Metals Limited (ASX: HMX) holds a strategic tenement position covering approximately 2,200km[2] 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 (Cu-Au) deposit. Hammer also has a 51% interest in the emerging Jubilee (Cu-Au) deposit. Hammer is an active mineral explorer, focused on discovering large copper-gold deposits of Ernest Henry style and has a range of prospective targets at various stages of testing. Hammer has recently acquired a 100% interest in the Bronzewing South Gold Project located adjacent to the 2.3 million-ounce Bronzewing gold deposit in the highly endowed Yandal Belt of Western Australia.

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