HAMMER METALS LIMITED — Capital/Financing Update 2013

Jun 5, 2013

ASX Announcement ASX Code: MDS ABN 87 095 092 158

6 June, 2013

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, where the Company has the Fortitude gold deposit. The Company has a significant tenement position in the multi-metal Paterson Province where it is exploring for IOCG and Nifty style copper mineralisation.

Key Projects:

• Lake Carey/Fortitude (100%)

• • Paterson Province IOCG (100%) • West Pilbara Iron Ore (100%)

The Iron Ore tenements are subject to a Sale agreement with Pilbara Commodities Pty Ltd; Midas will receive a further $400k in cash and 4.0 million 20 cent shares subject to the IPO of Pilbara prior to July 23.

Corporate Structure

Shares on issue 2706.9m (on completion of Rights Issue) Employee Options 2.7m 52 week high A$0.0153 52 week low A$0.001

Geophysical Program to Start in Paterson Province Targeting IOCG deposits

Highlights:

Stage-one gravity geophysical surveys to commence over 279km[2 ] IOCG target corridor.

Stage-two geophysical surveys for the final definition and modeling of drill targets to follow later in 2013

• Number of holes and type of drilling to be determined following Stage-two.

• Additional potential for Nifty type copper targets seen in south of E45/3768

Resources explorer, Midas Resources Limited (“Midas” or “the Company”) (ASX:MDS), is pleased to provide an update on its exploration plans for the Paterson Project:

PATERSON PROJECT

Diamond drilling completed in 2012 identified IOCG style copper mineralisation in E45/3768 (see ASX release dated 20/12/2012). The results confirm that copper mineralisation is associated with quartzcarbonate-hematite veins above a magnetic anomaly target that is interpreted as being caused by a granite intrusion at depth. The presence of native copper and hematite mineralisation increasing with depth and associated with quartz-carbonate veining supports the IOCG model.

Company Directors

Planned Program – IOCG Targets

John Hopkins Chairman

Geoff Balfe Managing Director

Derek Fisher Non-Executive Director

In May an additional exploration licence (E45/4091) (fig 2) was granted which secures an additional 25km of prospective strike. The gravity survey program is planned to cover a 46km long corridor (fig 3) along the east side of the Vines Fault including the magnetic anomaly that is associated with the IOCG target that was drill tested in 2012.

Two Stage Geophysical Program

Company Secretary Mark Pitts

Stage-one involves a systematic helicopter supported gravity survey on a 500m x 500m grid pattern. The survey has been designed to cover an extensive wedge of conglomerate and breccia on the eastern

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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side of the Vines Fault. There is a regional gravity anomaly associated with the conglomerate wedge (fig 3).

The Company has developed a strategy to use gravity surveys to “map” zones of hematite enrichment on the basis of hematite having relatively higher density than the surrounding rocks. There are a number of gravity anomalies evident in the regional gravity data for this area and the planned surveys will enable these anomalies to be properly modelled.

Stage-two will involve discrete VTEM or airborne magnetic surveys over selected anomalies to assist with 3D modelling prior to drilling. The very strong correlation between hematite and copper mineralisation in PADD002 plus the fact that hematite is concentrated at shallower depths than magnetite in IOCG systems is the basis of the strategy.

Nifty Type Targets

In addition to IOCG the Company is targeting Nifty type copper deposits in the Broadhurst formation. Prospective areas are shown in fig’s 2 & 3. The Company is aware that Encounter Resources and Antofagasta PLC have entered into a funding agreement for the advancement of copper exploration in Encounter’s tenements, which are largely contiguous with Midas’ tenements. There is a strong NE-SW alignment of copper prospects in the Encounter tenements that project into the southern part of E45/3768.

Midas will evaluate the south of E45/3768 for potential Nifty type targets and determine the most effective geophysical methods to evaluate them and generate drill targets. The Stagetwo geophysical program can be expanded to cover priority targets in the prospective area.

Drilling

The number of holes and type of drilling to be carried out will depend on the results of modeling the Stage-two geophysical data. It is the Company’s objective to carry out drilling in Q4 2013, depending on the time required for DMP 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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Competent Person’s Statement

The information in this report as it relates to exploration results and geology was compiled by Mr John Downing, who is a Member of the Australian 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.

Forward Looking Statements

Statements made in this material, particularly those regarding possible or assumed future performance, costs, production levels or rates prices, reserves or potential growth of Midas Resources Limited, industry growth or other trend projections are or may be “forward looking statements”. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors and potential investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company’s business are more fully disclosed in the Company’s disclosure documents filed from time to time with Australian securities authorities.

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Fig 1. Location of Midas Projects

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Fig 2. Paterson Project area showing IOCG and Nifty-type target areas.

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Fig 3. Regional gravity image showing Midas’ Stage One IOCG detailed gravity survey area. Nifty-type copper target areas are also shown. EM inset shows Encounter Resources’ copper prospects overlying EM/ VTEM image (with permission).

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