HAMMER METALS LIMITED — Capital/Financing Update 2012

Feb 19, 2012

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ASX Announcement ASX Code: MDS ABN 87 095 092 158

Landmark Access Agreement Executed With Martu for the Paterson Province Tenements

20 February, 2012

Company Facts

Diversified mining and metals company Midas Resources (ASX: MDS ) is a gold focussed company with 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.

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 high	A$0.07
52 week low	A$0.011
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:

An Access agreement covering Midas’ tenement applications in the Paterson Province has been executed with the Martu People, who hold Native Title in the area

The Agreement provides conditions for access to the tenements for all stages of exploration

 The Department of Mines and Petroleum is expected to complete processing of the tenement applications within weeks

• Midas is planning an active program of geophysics and drilling on a range of copper and gold targets in 2012

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

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

The Company has four exploration licences under application in the mineral rich Paterson Province covering 1,101km[2] . The execution of the Access agreement with Martu, who hold Native Title (NT) in this region, enables the Department of Mines and Petroleum (DMP) to complete the processing of the applications and grant the tenements. The statutory period for processing of Native Title for E45/3467, E45/3468 and E45/3768 will expire on February 27 after which the DMP is expected to grant the tenements within two to three weeks. Processing of E45/3895, which is in Rudall River National Park, has not commenced and the Company is seeking advice as to avenues to expedite the processing of this tenement.

FORWARD PROGRAM

CEO Geoff Balfe said that the pending grant of three key Paterson tenements was a watershed for the Company’s exploration plans. The Company was pleased to have had the opportunity to forge new relationships with Martu and its administrative body Western Desert Lands Aboriginal Corporation (WDLAC). Mr Balfe emphasised that a close working relationship was essential, not only to avoid damage to the cultural environment, but for the efficient conduct of

ABN 87 095 092 158

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operations on the tenements. Midas had made use of the period during which the tenements were in the application stage to review historical exploration reports and data and to commence the selection and ranking of various exploration targets. The exploration program for 2012 would first require access to selected target areas for ground geophysics and geochemical sampling. The Company has already identified at least one high priority diamond drill target but ground geophysics was still necessary in order to model the depth and physical characteristics of the target.

Mr Balfe said that the Company would release more information about its exploration targets and the exploration program for 2012 in the coming months. The 2012 program will be based on geophysical surveys over key targets selected from magnetic imagery and these will be tested by RC and diamond drilling as appropriate. The Company will also be applying for WA government Exploration Incentive Scheme (EIS) funding for the testing of certain drill targets.

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

G D Balfe Managing Director/CEO

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