HAMMER METALS LIMITED — Capital/Financing Update 2012

Apr 2, 2012

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ASX Announcement ASX Code: MDS ABN 87 095 092 158

3 April, 2012

Company Facts

Tenements Granted in Paterson Province

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%)

Corporate Structure

Shares on issue	493.4m
Listed Options	48.0m
Performance Options	4.05m
52 week high52 week low	A$0.07A$0.016
Cash at bank	A$2.0m

Company Directors

John Hopkins Chairman

Geoff Balfe Managing Director

Terry Streeter Non-Executive Director

Company Secretary Mark Pitts

Highlights:

• Exploration Licences E45/3467 and E45/3468 granted in the Paterson Province Tenements contain key sections of the Broadhurst Formation which is the favourable stratigraphy for Nifty style copper mineralisation

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• A magnetic anomaly identified in SW corner of E45/3468, in Broadhurst Formation, 15km southeast of Encounter Resources’ BM-1 copper prospect

• Plans for access, geophysics and drilling being advanced

• More tenements expected to be granted Q2 2012

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

Two tenements covering a total of 67 graticular blocks or 213km[2] have been granted to Midas.

The tenements E45/3467 and E45/3468 (figures 1 & 2) cover key parts of the Broadhurst Formation, which is the preferred stratigraphic host for Nifty style copper mineralisation.

Midas has identified an exploration target in E45/3468 (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 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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Prospective stratigraphy is present, which is represented by the transition from oxidised (aerobic) Coolbro Sandstone to reduced (anaerobic) Broadhurst shale. Mapping by the Geological Survey of Western Australia has also identified a number of faults in the prospect area including what may be a key northeast fault that is coincident with the magnetic anomaly.

The Company has also entered into a Land Access Agreement with the Martu Native Title holders (“Martu”) and clearance heritage surveys can now be scheduled in cooperation with the Martu. This will facilitate access for geophysical crews to carry out surveys, which are essential for reliable modelling of the target prior to drilling. Preliminary indications based on regional magnetic data are that this is a shallow drill target.

Midas has been in discussion with a drilling company and has received a quotation for diamond drill testing of this and other targets in the Paterson Province. Midas would prefer to drill test a number of targets rather than a single target so movement of a rig to site will be coordinated in line with work on other tenements.

More information on the timing of drilling will be released when clearance surveys are completed and the scheduling of other drill targets is more advanced.

Applications E45/3768 and E45/3896

Exploration licence E45/3768 has been submitted for the Expedited Procedure for assessment of Native Title however Midas, Martu and the Department of Mines and Petroleum (“DMP”) have recently entered into a State Deed for Grant of a Mining Tenement because Native Title has already been determined in favour of Martu. Midas has identified a discrete magnetic anomaly in E45/3768 which is being modelled for drill testing as an intrusion related copper-gold system or an iron oxide copper-gold system.

Midas has commissioned Dr W K Witt to write an independent report assessing this target and Dr Witt’s report is available on Midas’ website www.midasresources.com.au. The report provides important technical justification for the concept behind the drill testing of this target. More information on the target and plans for drilling will be released following the grant of the tenement, which is expected in the June Quarter.

E45/3896 is located within Rudall River National Park. The DMP has submitted the tenement for the Expedited Procedure and the Company has been advised by the DMP that the tenement will be granted with a “No Mining” condition and that it would be up to Midas to negotiate with the DMP and the Department of Environment and Conservation for removal of this condition. The Company is aware of the challenges that this presents and is seeking further advice on the likelihood of a successful outcome. The Company has already identified exploration targets in the tenement so a full assessment by Midas of the environmental conditions that would be attached to grant is justified.

Chief Executive Officer Geoff Balfe commented that following the achievement of a number of key milestones including execution of the Land Access Agreement with Martu, the execution of a State Deed in respect of E45/3768 and the grant of E45/3467 and E45/3468, that Midas was well positioned in the Paterson Province to move rapidly from research work to field surveys and drilling.

Mr Balfe added that the Company expected to be in a position to commence diamond drill testing of a number of its targets early in the second half of 2012.

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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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. E45/3468, Magnetic Anomaly Target and Geology

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.

MIDAS RESOURCES LTD | ASX ANNOUNCEMENT

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