HAMMER METALS LIMITED — Capital/Financing Update 2012

Apr 23, 2012

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ASX Announcement ASX Code: MDS ABN 87 095 092 158

24 April, 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%)

• Paterson Province (100%)

• West Pilbara Iron Ore (100%)

Helicopter VTEM Survey Completed in Paterson Province

Highlights:

• A helicopter VTEM survey completed over a magnetic anomaly in SW corner of E45/3468

• Anomaly is in Broadhurst Formation, 15km southeast of Encounter Resources’ BM-1 copper prospect

• Interpretation and modelling of results proceeding

• Plans for access for drilling being advanced

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

Corporate Structure

Shares on issueListed OptionsPerformance Options52 week high52 week low	493.4m48.0m4.05mA$0.07A$0.01
Cash at bank	A$1.5m

Company Directors

John Hopkins Chairman

Geoff Balfe Managing Director

Terry Streeter Non-Executive Director

Company Secretary Mark Pitts

PATERSON PROJECT (Midas 100%) Granted Tenements: E45/3467, E45/3468; Applications: E45/3768, E45/3895

A helicopter VTEM survey has been completed in the Throssell Range area over a magnetic anomaly in the SW corner of E45/3468 (figures 1 & 2).

The survey data has been forwarded directly to the Company’s consultant geophysicist for interpretation.

The magnetic anomaly is of interest to Midas because it is located within the Broadhurst Formation, a key stratigraphic unit in the Paterson region which hosts copper deposits at Nifty, Maroochydore, and at Encounter Resources BM-1 and BM-2 prospects.

The target is a discrete magnetic anomaly coincident with Broadhurst Formation within a restricted basin or synclinal structure on the south limb of a regional anticline that is cored by Coolbro Sandstone. The Nifty copper deposit is associated with a northeast fault zone that is considered to be a feeder structure, while northeast faults at Encounter’s BM-1 prospect are also considered to be genetically linked to copper sulphide 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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Mapping by the GSWA has identified a number of faults in E45/3468 including what may be a key northeast fault that is coincident with the targeted magnetic anomaly.

Base metal mineralisation in the Broadhurst Formation is characteristically associated with conductive (sulphide-rich) zones adjacent to magnetic anomalies produced by hydrothermal alteration. Broadhurst sediments occurring within the southern part of Midas tenement E 45/3468 host a discrete magnetic anomaly. The VTEM survey, flown by Geotech Airborne Pty Ltd, was designed to identify conductive zones in the Broadhurst, associated with the magnetic anomaly. The VTEM or Versatile Time Domain Electro Magnetic system delivers exceptionally low-noise levels resulting in high resolution 3D conductivity imaging to depths of over 400m penetration in resistive rock types. The VTEM survey was flown on a linespacing of 100m, which is close enough for direct drillhole targeting of discrete EM anomalies. Detailed aeromagnetic data was also acquired.

Land Access and Drilling

The Company has a Land Access Agreement with the Martu Native Title holders and clearance heritage surveys will be scheduled in cooperation with Martu following modelling of the VTEM results and a decision to proceed to drilling.

More information on the results of the VTEM and plans for drilling will be released when the geophysical report is received.

Comment

Commenting on the results to-date CEO Geoff Balfe said that the VTEM survey will enable the Company to bring forward its plans for drilling because the information collected by VTEM was sufficiently detailed to model the target and to plan one or more initial diamond drill holes. As a result, ground geophysical surveys are not required for follow-up. Mr Balfe added that it was the Company’s objective to be in a position to commence diamond drill testing of this target early in the second half of 2012, following the results of the consultant geophysicist’s report and heritage clearance surveys.

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

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MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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

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Tenement E 45/3468 showing Magnetic Anomaly and VTEM Flight Lines.

Figure 2.

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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