HAMMER METALS LIMITED — Capital/Financing Update 2011

Nov 10, 2011

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ASX Announcement ASX Code: MDS ABN 87 095 092 158

11 November, 2011

Company Facts

Diversified mining and metals company Midas Resources (ASX: MDS ) is West Australian based with significant gold project at Lake Carey, south of Laverton, and in the Leonora-Kookynie area. The Company also has a significant tenement position in the Multi-metal Paterson Province.

Key Projects:

• Lake Carey (100%)

• Leonora Gold Project (100%)

• Paterson Province (100%)

• West Pilbara Iron Ore (100%)

Corporate Structure

RESULTS OF DRILLING ON GOLD TARGET AT INTREPID

Highlights:

• Aircore Drilling successfully completed on a target south of the Intrepid Prospect in the Company’s Lake Carey Project area.

• Highly anomalous gold results obtained from four of 17 drillholes into the Bindah Shear.

• The shear zone is relatively untested for 2.5km to the south.

Resources developer, Midas Resources Limited (“Midas” or “the Company”) (ASX:MDS), is pleased to announce results of the limited aircore drilling program undertaken in October at the Intrepid Prospect at the Company’s Lake Carey Project in Western Australia:

Intrepid Prospect

Shares on issueListed OptionsPerformance Options52 week high52 week low	493.4m48.0m4.05mA$0.07A$0.014
Cash	A$2.3m

Company Directors

John Hopkins Chairman

Geoff Balfe Managing Director

Terry Streeter Non-Executive Director

Company Secretary Mark Pitts

The Intrepid prospect covers an area of widespread gold anomalism in aircore drill holes situated on the Bindah Shear zone in the northwest part of Midas’ Lake Carey project. The Bindah shear is a known target for polymetallic gold mineralisation, and it includes a gold Resource at the nearby Gallant prospect, and high-grade gold mineralisation at the Bindah open pit which was operated by WMC in the 1980’s.

Two east-west reconnaissance lines of Aircore drilling (17 drillholes totalling 1532m) were drilled to blade refusal immediately south of Intrepid to locate the mineralised structures and to facilitate the planning of more systematic RC drilling on this structure as justified by results. The aircore drillholes were drilled at a dip of -60 degrees towards the west.

Mineralised shears were located on both drill lines, with highly anomalous intersections in four drillholes within the shear zone. These intersections ranged between 4m @ 0.20g/t gold from 76m and 2m @ 0.57g/t gold from 100m depth. Results exceeding 100ppb Au are in the table below: Base metal anomalies occur in the shear zone in the vicinity of the gold.

Assay results are quoted as down-hole intervals, not true width. As the Bindah shear is interpreted to dip steeply to the north-east, the quoted down-hole gold intercepts are expected to be slightly longer than the corresponding true-width mineralised intervals.

MIDAS RESOURCES LIMITED | ABN 87 095 092 158 Level 1 282 Rockeby Road Subiaco WA 6008 | PO Box 356 Subiaco WA 6904 T +61 8 9388 2211 | F +61 8 9388 2600 | www.midasresources.com.au

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Table 1 Drillhole intercepts greater than 0.1g/t gold

Hole ID	MGA East	MGA North	RL	From	To	Interval	Au ppm	Cu ppm	Zn ppm
INAC143	452192	6759344	406	84.00	85.00	1.00	0.25	48	105
INAC146	452285	6759387	406	60.00	64.00	4.00	0.209	120	35
INAC146	452285	6759387	406	64.00	68.00	4.00	0.124	86	29
INAC146	452285	6759387	406	88.00	92.00	4.00	0.119	43	259
INAC146	452285	6759387	406	96.00	100.00	4.00	0.247	81	196
INAC146	452285	6759387	406	108.00	112.00	4.00	0.322	171	97
INAC146	452285	6759387	406	112.00	115.00	3.00	0.373	137	91
INAC151	452340	6759385	409	76.00	80.00	4.00	0.197	238	242
INAC151	452340	6759385	409	84.00	88.00	4.00	0.155	93	236
INAC151	452340	6759385	409	88.00	92.00	4.00	0.129	33	113
INAC156	452478	6759160	406	100.00	102.00	2.00	0.565	N/A	N/A

The anomalous intercepts occur up to 450m south along the shear zone from gold intercepts in previous aircore drilling, which ranged up to 43m @ 0.43g/t (incl. 7m @ 2.37g/t gold). The recent aircore drilling demonstrates that the Bindah Shear is well-developed in this area and carries polymetallic mineralisation over significant strike length.

Drill-testing of the shear zone is not systematic between the recent drill lines and the Gallant gold deposit located 2.5km to the south. Systematic reconnaissance aircore drilling is required to adequately test the extent of the shearing and mineralisation in this area. RC infill drilling would then be carried out to test the tenor of any gold mineralisation.

The recent drilling produced anomalous gold results and it has confirmed the location and improved the understanding of the mineralised Bindah Shear zone in this area. Intrepid is a high-quality exploration target and it requires further drilling to locate significant gold mineralisation.

The Company plans further drilling in the Lake Carey tenements in the March and June Quarters in 2012.

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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Figure 1. Lake Carey Project area, showing the location of the Intrepid prospect.

Further drilling is expected to be carried out in the March and June Quarters in 2012.

For and on behalf of the Board of Midas Resources Limited,

G D Balfe Managing Director/CEO

The information in this report is based on information compiled by Mr John Downing, who is a Member of the Australasian Institute of Geoscientists and a full time employee of the Company. Mr Downing 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'. Mr Downing consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Media and Investor queries: Warrick Hazeldine/Karen Oswald Purple Communications +61 8 6314 6300

Principal Office

Level One 282 Rokeby Road Subiaco WA6008

Web: www.midasresources.com.au Tel: 61 8 9388 2211 Fax: 61 8 9388 2600

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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Figure 2. Intrepid target showing recent aircore drilling (squares) and previous drilling (circles)

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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