HAMMER METALS LIMITED — Capital/Financing Update 2012

Apr 11, 2012

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ASX Announcement ASX Code: MDS ABN 87 095 092 158 12 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%)

Midas signs Joint Venture with Cazador Resources to Expand Leonora Project Tenements

Highlights:

• Joint Venture with Cazador Resources Limited expands Leonora Project from 219km[2] to 375km[2]

• Midas may earn a 75% interest by expenditure of $500,000 over three years with a minimum commitment of $100,000 in Year One.

• Cazador tenements contain significant strike lengths of several key structures which are believed to control the distribution of gold deposits in this area.

• Paterson Province (100%)

• West Pilbara Iron Ore (100%)

Corporate Structure

Shares on issue	493.4m
Listed Options	48.0m
Performance Options	4.05m
52 week high	A$0.0411
52 week low	A$0.01
Cash at bank	A$1.6m

Company Directors

John Hopkins Chairman

Geoff Balfe Managing Director

Terry Streeter Non-Executive Director

Company Secretary Mark Pitts

• Midas is currently permitting a systematic augur drill program over the Dahlia Structure.

Resources developer, Midas Resources Limited (“Midas” or “the Company”) (ASX: MDS ), is pleased to announce that it has entered into a farm-in and Joint Venture agreement (“Agreement”) with Cazador Resources Limited (“Cazador”). Midas may earn a 75% interest in the exploration tenements E40/284 and E40/288 which are adjoined to Midas’ Leonora Gold Project tenements, located in Western Australia

The Cazador tenements are contiguous with Midas’ existing Leonora Project tenements (figure 1) and cover significant sections of several key faults that are believed to be important controls on the distribution of gold deposits in the Leonora South area. These structures are known locally as Dingo-Kelpie and Dahlia.

The structures continue from the Midas tenements into the Cazador tenements. However, in the Cazador ground they are covered by soil which is suited to augur geochemistry. Midas is currently permitting a systematic program of augur drilling involving 500 holes over a strike length of 12 kms (figure 2) focussing initially on the Dahlia structure. The drilling will be carried out in May once heritage and DMP permitting is completed.

Midas has also identified an RC drill target in Midas tenement E40/295 on the Dingo shear zone (figure 3), which extends into Cazador’s tenements. RC drill testing of this target is planned in May pending completion of heritage surveys and DMP permitting.

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 FARM-IN AND JV AGREEMENT

Under the terms of a farm-in and joint venture agreement signed on 12 April (“Commencement Date”), Midas can acquire a 75% interest in the tenements by spending at least $500,000 on exploration within three years of the Commencement Date. Midas’ minimum obligation is to maintain the tenements in good standing by meeting annual Form 5 expenditure requirements, and to spend a minimum of $100,000 on exploration in the first year.

ABOUT MIDAS AND CAZADOR

Midas is a gold and base metals exploration and development company with an advanced gold project at Fortitude in the Lake Carey region south of Laverton where pre-feasibility studies are underway into an open pit mining development. Midas is exploring gold tenements in the Leonora area while in the Paterson Province the Company is exploring for copper-gold and uranium on recently granted tenements. Cazador is a privately owned exploration company based in Perth.

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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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.

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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Figure 1. Midas ‐ Cazador Tenements in Leonora Project Area

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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Figure 2. Drill Targets on Cazador and Midas tenements

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Figure 3. RC Drill Target at Dingo Prospect

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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