HAMMER METALS LIMITED — Capital/Financing Update 2012

Jul 3, 2012

ASX Announcement ASX Code: MDS ABN 87 095 092 158 4 July, 2012

Company Facts

Diversified mining and metals company Midas Resources (ASX: MDS ) is a gold and copper focussed company with an advanced gold project at Lake Carey south of Laverton where the Company is carrying out a scoping study on the Fortitude gold deposit. Midas also has an active gold exploration program at Lake Carey testing various targets. In the Leonora-Kookynie area the Company has a number of gold tenements while in the multi-metal Paterson Province Midas is preparing to diamond drill-test two key geophysical targets.

Key Projects:

• Lake Carey (100%)

• Leonora Gold Project (100%)

• Paterson Province (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

Terry Streeter Non-Executive Director

Company Secretary Mark Pitts

Sale Agreement Executed

Highlights:

• A formal Share Sale and Purchase Agreement has been executed for Mulga Minerlas Pty Ltd

• The consideration for Mulga is for a total of $600,000 in cash, 4 million fully paid 20 cent shares and 4 million 20 cent options

• Mulga Minerals Pty Ltd is a wholly owned subsidiary of Midas and it holds Midas’ iron ore tenements

Resources developer, Midas Resources Limited (“Midas” or “the Company”) (ASX:MDS), is pleased to announce that it has executed a binding conditional share sale (“Sale”) and purchase agreement for all the issued shares in Mulga Minerals Pty Ltd (“Mulga”) with unlisted company Pilbara Commodities Limited (“Pilbara”). The execution of the agreement follows an ASX release made on 30 April concerning acceptance of a conditional sale and purchase offer:

The consideration involves:

• $200,000 in cash

• $400,000 in cash upon admittance to the Official List of the ASX.

• 4.0 million fully paid 20 cent shares and 4.0 million 20 cent options expiring 30/6/2017 upon admittance to the Official List of the ASX.

• Pilbara to be responsible for maintenance of the tenements as of the date of the initial payment of $200,000.

Settlement of the Sale will occur upon admission of Pilbara to the Official List of the ASX. Commenting on the Sale CEO Geoff Balfe said that the sale of Mulga has a number of positive outcomes for Midas including:

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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1. Initial cash to Midas of $200k with further payment of $400k on IPO of Pilbara

2. Monetises the iron ore assets at $1.2 million

3. Exposure to share price upside through issue of shares to Midas

4. Leverage to Pilbara share price through issue of long dated options to Midas

5. Contributes to working capital and allows Midas to increase its focus on its gold projects in the Leonora and Lake Carey areas and the copper-gold tenements in the Paterson Province.

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

G D Balfe Managing Director/CEO

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

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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