HAMMER METALS LIMITED — Capital/Financing Update 2012

May 3, 2012

ASX Announcement ASX Code: MDS ABN 87 095 092 158

4 May, 2012

Company Facts

Diversified mining and metals company Midas Resources (ASX: MDS ) is West Australian based with a significant gold projects at Lake Carey, south of Laverton, and in the Leonora-Kookynie area. The Company also has a significant tenement position in the multimetal Paterson Province where it is exploring for copper, gold and other metals.

Key Projects:

• Lake Carey (100%)

• Leonora Gold Project (100%)

Additional Tenement Granted in Paterson

Highlights:

Grant of third tenement E 45/3768 in the Paterson Province brings total granted tenement area to 795km[2]

• E 45/3768 covers key parts of the Vines Fault and Yeneena Group sediments and it includes a significant magnetic anomaly target.

• The magnetic anomaly is being evaluated as a possible IOCG copper-gold system associated with a granitic intrusion

• Paterson Province (100%)

• Plans for access, geophysics and drilling being advanced

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$0.01 Cash at bank A$2.0m

Company Directors

John Hopkins Chairman

Geoff Balfe Managing Director

Terry Streeter Non-Executive Director

Company Secretary Mark Pitts

Resources developer, Midas Resources Limited (ASX:MDS) (“Midas” or “the Company”), is pleased to provide an update on the Paterson Project, located in the Paterson Province in Western Australia.

PATERSON PROJECT (Midas 100%) E45/3467, E45/3468, E45/3768, E45/3895

Tenement E 45/3768 has been granted, bringing Midas’ total to three granted tenements (E 45/3467, E 45/3468 and E 45/3768) covering a total of 255 graticular blocks or 795km[2] ; with a fourth tenement (E 45/3895) still under application (figures 1 & 2).

Newly granted tenement E45/3768 (figures 1 & 2) covers Yeneena Group sediments, including Broadhurst and Coolbro formations. The Broadhurst formation is the preferred stratigraphic host for Nifty style copper mineralisation. The sediments are intruded by an interpreted Crofton suite granite.

Midas has identified an exploration target in E45/3768 (figure 3) by analysis of regional geophysical data sets and a thorough review of geology and historical exploration in the area. The target is a discrete magnetic high close to the intersection between the Vines Fault and a NNE-striking fault interpreted from magnetic and gravity data (figures 3 & 4).

The target magnetic high is interpreted as being due to an oxidised I-type (Crofton Suite) granite. Such I-type granitic intrusions have been linked to CuAu porphyry and skarn style mineralisation in the Paterson Orogen, as well as IOCG-style Cu-Au mineralisation in other metallogenic provinces.

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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The Company is currently planning a 650m deep diamond drill hole to test for IOCG-style hydrothermal alteration and mineralisation associated with the magnetic anomaly. A secondary target that could be encountered in drilling is unconformity-related uranium mineralisation at the base of the host Coolbro Formation.

Prior to drilling, ground EM and gravity surveys are planned over the magnetic anomaly in order to model the target and refine the drill hole design.

Midas has submitted an application for co-funding under the West Australian State Government’s Exploration Incentive Scheme (EIS) to assist with the direct drilling costs of this program. More information on the timing of drilling will be released after heritage surveys have been completed and geophysical survey results are at hand.

In addition to the work on E 45/3768, Midas has already conducted an airborne VTEM survey over a prominent magnetic anomaly in the prospective Broadhurst formation in the southern part of E 45/3468. The EM data is currently being processed and interpreted, and drill targets are expected to follow from this work in the coming weeks. Planning is underway with the Martu Native Title holders to progress heritage surveys and facilitate access to planned work areas.

Chief Executive Officer Geoff Balfe commented that the grant of E 45/3768 has set a record in Western Australia for the shortest time required for processing of Native Title and grant of a tenement. This can be attributed to the work already achieved by the Martu Native Title holders and Midas in the successful conclusion of the Land Access Agreement. Mr Geoff Balfe also commented that the board was very encouraged by the progress to date and that the company expected to continue to develop targets in its tenements as geophysical surveys are progressed.

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

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.

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Figure 1. Tenements, Exploration Targets and Geology – Paterson Province

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Figure 2. Tenements, Exploration Targets and Magnetic Image

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Figure 3. Magnetic Anomaly and Drill Target on E 45/3768

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Figure 4. NE-SW Conceptual Cross Section of Drill Target

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