HAMMER METALS LIMITED — Capital/Financing Update 2012

Jun 14, 2012

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

Company Facts

Diversified mining and metals company Midas Resources (ASX: MDS ) is a gold and copper focussed company with significant gold projects at Lake Carey, south of Laverton, and in the LeonoraKookynie area. The Company is also exploring for copper-gold deposits in the multi-metal Paterson Province.

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$0.07
52 week low	A$0.008

Company Directors

John Hopkins Chairman

Geoff Balfe Managing Director

Terry Streeter Non-Executive Director

Company Secretary Mark Pitts

Paterson Project Exploration Update

Highlights:

Three Exploration Licences now granted covering 795km[2]

• Helicopter VTEM survey completed over geophysical target in E45/3468 – drill target confirmed

Midas qualifies for $122,000 of government EIS funding towards the cost of drilling a 650m diamond hole in E45/3768 to test an IOCG target

• Heritage surveys being organised for key tenements

• Diamond drill rig availability confirmed for testing the target in E45/3468.

Resources developer, Midas Resources Limited (“Midas” or “the Company”) (ASX:MDS), is pleased to provide an update on exploration at its Paterson Project in the East Pilbara district of Western Australia (fig 1).

E45/3468

The target consists of a coincident magnetic and EM anomaly within the Broadhurst Formation in the southwest corner of tenement E 45/3468 (figs 2 & 3). The Company is exploring for the same style of mineralisation as the Nifty copper deposit situated to the North West. A second, weaker but broader anomaly occurs immediately east of this anomaly. The main anomaly is situated in Broadhurst Formation sediments, on the south limb of an anticline that is cored by Coolbro Sandstone. The anomaly coincides with several faults that have been mapped by the Geological Survey of Western Australia and which are supported by the VTEM survey results. In the Nifty area similar north east faults are considered to be important feeder structures to copper mineralisation.

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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Midas has completed a helicopter VTEM (Versatile Time-domain EM) survey which has confirmed the presence of a coincident magnetic and EM-conductive body. Midas’ consultant geophysicist has modelled the results of this survey so that one or more diamond drill holes can be planned to test the target(s).

The magnetic body is interpreted as being convex and relatively flat lying (figure 4), sitting directly on a conductive, less magnetic body, about 200m wide and about 500m depth extent. The top of the magnetic body is interpreted to be at a depth of 100m. The conductive body dips to the north.

A drilling company that is already operating in the area has advised that they are interested in providing a drill rig in Q3 2012. Heritage surveys are currently being organised with Martu Traditional Owners and these must be completed before access to the drill area can be prepared.

E45/3768 Throssel Range IOCG Target

The Throssel Range Target comprises a sharp point magnetic anomaly and a broader but weaker magnetic anomaly to the east (Figure 5). The magnetic anomaly has been interpreted as a possible oxidised (Crofton Suite) intrusion by Dr W K Witt, and Dr Witt’s technical report can be downloaded from Midas’ website www.midasresources.com.au (news and reports).

The interpreted intrusion lies close to the intersection between the Vines Fault and a northnortheast striking fault that has been interpreted from magnetic and gravity data (Figure 6). Oxidised, I-type intrusions of the Crofton Suite display a strong magnetic character on aeromagnetic imagery and are common further east in the Telfer area, where they have been linked to Cu-Au porphyry and skarn mineralisation.

Oxidised, I-type intrusions in some other copper-gold metallogenic provinces have also been linked to iron-oxide copper-gold (IOCG) mineralisation. The magnetic character of the Throssel Range Target may in part be caused by hydrothermal magnetite related to porphyry, skarn or IOCG styles of Cu-Au mineralisation.

Midas has applied for WA government EIS funding to drill a 650m deep diamond drill hole (figure 7) to test this target and the Company has received confirmation that it will receive a grant of $122,000 towards the cost of this hole.

Prior to drilling, ground geophysics needs to be carried out in order to improve the target model. Appropriate heritage surveys are currently being organised with Martu and it is the Company’s objective to drill this target in August/September, following the drilling in E45/3468.

E45/3467: Stratiform Pb-Zn-Ag and Telfer Style Gold deposit

Midas has not yet started work on this tenement which is considered to have potential for Mt Isa style stratiform Pb-Zn-Ag mineralisation in carbonaceous shales and dolomites of the Yeneena Group. A second target is Telfer style gold mineralisation in folded quartzites of the Lamil Group. A helicopter VTEM survey will be scheduled over selected parts of the tenement.

About Midas

Midas is a West Australian based exploration and development company with an advanced gold project at Lake Carey, south of Laverton, where the Company is evaluating a number of

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potential development options for its Fortitude Gold Resource including heap leach and toll treatment. In the Leonora area the Company has a significant tenement holding which includes a number of gold prospects and former mines. The Company is exploring the key structures that are believed to control gold mineralisation in the area and it has an aggressive program of augur drilling and RC drilling on various prospects in the current Quarter.

In the Paterson Province Midas has three exploration Licences granted and the Company has already completed an initial helicopter VTEM geophysical survey over a key target. Diamond drilling programs are being planned to test this and other targets throughout 2012. The grant of a fourth tenement is expected in the September Quarter.

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

G D Balfe Managing Director/CEO

Competent Person:

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.

Forward Looking Statements

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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Figure 1. Location Map

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Figure 2. Midas Paterson Tenements

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Figure 3. VTEM Conductors in E45/3468 (Note Location of Encounter BM-1)

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Figure 4. Section, viewed from the east, showing a modelled interpretation of the primary magnetic and VTEM target in E45/3468

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Figure 5. IOCG Target and Planned Diamond Drill Hole in E45/3768

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Figure 6 Magnetic Anomaly in E45/3768 (IOCG Target).

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Figure 7. Conceptual IOCG Target and Drill Hole in E45/3768

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