HAMMER METALS LIMITED — Capital/Financing Update 2012

Oct 14, 2012

ASX Announcement ASX Code: MDS ABN 87 095 092 158 15 October, 2012

Company Facts

Diversified mining and metals company Midas Resources (ASX: MDS ) is a copper and gold focussed company with a multi-metal project in the Paterson Province where diamond drill-testing is underway on a number of geophysical targets for IOCG and Nifty style copper deposits. Midas has an advanced gold project at Lake Carey, south of Laverton, where the Company is carrying out a scoping study into development of the Fortitude gold deposit. Midas also has an active gold exploration program at Lake Carey testing various targets.

Key Projects:

• Paterson Province (100%)

• • Lake Carey (100%) • Leonora Gold Project (100%)

Corporate Structure

Shares on issue	493.4m
Listed Options	48.0m
Performance Options	4.05m
52 week high	A$0.03
52 week low	A$0.006

Company Directors

John Hopkins Chairman

Geoff Balfe Managing Director

Drilling Operations Update Paterson Project

Resources explorer and developer, Midas Resources Limited (“Midas” or “the Company”) (ASX:MDS), is pleased to provide an update on drilling operations that are underway at its Paterson Project in the East Pilbara district of Western Australia.

PAD001 testing the VTEM geophysical target in E45/3468 has been completed at 350m and the drill rig is currently moving to the IOCG target in E45/3768.

PAD001 intersected a sequence of carbonaceous pyritic shales of the Broadhurst Formation coinciding with the VTEM conductor. At 300m the rock type becomes sandy and the hole was stopped at 350m. A zone of pyrrhotite veining between 160m and 190m coincides with the magnetic anomaly. No significant base metals were present.

Commenting on the result CEO Geoff Balfe said that the drill hole had confirmed the presence of prospective carbonaceous shales of the Broadhurst Formation. Geochemical assays would be carried out to determine of fine-phase base metals are present as these could provide a vector to mineralisation.

The drill rig is currently moving to the second target in the current program, which is the IOCG target in E45/3768.

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

G D Balfe Managing Director/CEO

Terry Streeter Non-Executive Director

Company Secretary Mark Pitts

Forward Looking Statements

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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This document may include forward looking statements. Forward looking statements include, but are not limited to, statements concerning Midas Resources Limited’s planned exploration and targets and other statements that are not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “target”, “intend”, “may”, “potential”, “should” and similar expressions are forward looking statements. Although Midas Resources Limited believes that the expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward looking statements. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource in relation to the targets mentioned in this document.

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More Information:

Midas Resources Limited – Geoff Balfe T: 08 9388 2211

Endeavour Corporate – Mark Pitts T: 08 9316 9100 Cannings Purple - Karen Oswald T: 08 6314 6300

Figure 1.Location Map

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Figure 2. Midas Paterson Tenements, Targets and Geology

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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