HAMMER METALS LIMITED — Capital/Financing Update 2011

Aug 9, 2011

10 August, 2011

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ASX RELEASE

EXPLORATION UPDATE - LEONORA GOLD PROJECT

HIGHLIGHTS

• RC Drilling underway at the Reach Gold prospect in E40/294

• Encouraging rock-sample results from old mine workings at the Blue Bell Prospect in E40/295

Resources developer, Midas Resources Limited (“Midas” or “the Company”) (ASX: MDS), is pleased to announce the commencement of RC drilling at the Reach Prospect and encouraging rock samples at the Bluebell Prospect at the Company’s Leonora Gold Project in Western Australia.

The Leonora Project (fig 1, below) comprises mining lease M 37/1297 over gold mineralisation at the Sunset Well group of tenements and Exploration Licences E 40/294, E 40/295 and E 37/1104 (M37/1297 and E40/295 and E37/1104 are applications).

Reach Prospect (E40/294

The RC drill rig is on site and drilling has commenced today. The program involves between six and eight RC drill holes for 600 to 800m of total RC drilling. This is the first drill test of a line of old mine workings at Reach. The Company has previously reported strongly anomalous gold values from sampling of these old workings and the current drilling is designed as a first test of this prospect; (ASX:MDS 25 July).

Blue Bell Prospect (E40/295)

The Blue Bell prospect comprises a significant number of shallow prospecting pits along a generally north-south structural corridor. During July the Company collected six samples of quartz vein material from old mine dumps around several of the mine shafts. All samples have reported strongly anomalous gold values:

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ABN 87 095 092 158

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Significance

Midas Managing Director Geoff Balfe commented that the recent sample results further supported the Company’s strategy of consolidating its tenement holdings in the highly prospective structural corridor between Leonora and Kookynie. “It is surprising that there has not been more recent exploration in this area considering the presence of highly mineralised quartz on the mine dumps and the large area covered by the old workings at Bluebell . Only a few old drill holes have been observed”, Mr Balfe said.

E40/295 is in the application stage and cannot be recommended for grant before the completion of Native Title proceedings on October 1.

In addition to the targets discussed above, the Company has a number of additional gold anomalies in the Leonora tenements that have been identified by the review of historic exploration and these anomalies are actively being followed up with the objective of establishing a pipeline of drill targets.

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/Ryan McKinlay Purple Communications

+61 8 6314 6300

Investor Information

Principal Office Capital Structure Level One Ordinary Shares (MDS): 328.9 million 282 Rokeby Road Subiaco WA6008 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

ABN 87 095 092 158

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Figure 1 – Leonora Project Tenements

ABN 87 095 092 158

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Old Mine Workings – Blue Bell Prospect

ABN 87 095 092 158