HAMMER METALS LIMITED — Capital/Financing Update 2011

Oct 10, 2011

11 October, 2011

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ASX RELEASE

DRILLING TO COMMENCE ON GOLD TARGET SOUTH OF INTREPID

HIGHLIGHTS

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

• All necessary approvals have been obtained and drilling is to commence later this week.

Resources developer, Midas Resources Limited (“Midas” or “the Company”) (ASX:MDS), is pleased to announce that aircore drilling will commence on a gold target south of the Intrepid Prospect at the Company’s Lake Carey Project in Western Australia:

Intrepid Prospect

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, including a gold Resource at Midas’ nearby Gallant prospect, and high-grade gold mineralisation at the Bindah open pit which was operated by WMC in the 1980’s.

A drill target had previously been identified south of Intrepid on the Bindah Shear (fig 1.). Key structures in this area were not well defined by drilling and anomalous results were encountered in earlier drilling at Intrepid which needed to be followed-up. Two east-west lines of Aircore drilling (for a total of 1,150m) are being drilled immediately south of Intrepid to test the Bindah Shear in order to locate any mineralised structures and facilitate the planning of grid RC drilling on this structure (fig. 2).

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.

ABN 87 095 092 158

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

Investor Information

Principal Office Level One 282 Rokeby Road Subiaco WA6008

Capital Structure

Ordinary Shares (MDS): 328.9 million Listed Options 3c (MDSOC): 48.1 million Unlisted Options: 4.3 million

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

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

ABN 87 095 092 158

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Figure 2. Aircore Drill Program Lake Carey – Intrepid area.

ABN 87 095 092 158