HAMMER METALS LIMITED — Capital/Financing Update 2016

Oct 13, 2016

ASX Announcement (ASX: HMX)

September 14[th] 2016

Millennium and Scalper Cobalt-Copper

Drilling Results

Hammer Metals Limited (ASX: HMX) wishes to update shareholders on progress with its 100% owned Millennium and Scalper Projects.

Hammer drilled a total of 23 RC holes and extended two previous holes at Millennium. The results build on previous drilling conducted in the area and 38 drill-holes can now be used in the first JORCcompliant mineral resource estimate for the project.

Significant results from Millennium are listed below with peak cobalt results including 8 metres at 0.35% Co in MIRC023 and 4 metres at 0.51% Co in MIRC013.

Also of interest was a new zone of highly anomalous silver from MIRC019 with 10 metres at 40g/t Ag including 1 metre at 337g/t Ag.

Results for holes MIRC001 to MIRC 016 were reported by Hammer on the 13[th] of September. Significant results from this release reported at a nominal 0.3% CuEq* cutoff include:

• 24 metres from 73 metres at 0.15% Co , 0.23% Cu and 0.09g/t Au (1.17%CuEq) including o 4 metres from 73 metres at 0.51% Co , 0.46% Cu and 0.16g/t Au (3.64% CuEq) in MIRC013

• 13 metres from 98 metres at 0.10% Co , 0.41% Cu and 0.10g/t Au (1.12% CuEq) in MIRC007

• 12 metres from 149 metres at 0.19% Co , 0.57% Cu and 0.19g/t Au (1.85% CuEq) including

• 4 metres from 157 metres at 0.30% Co , 0.44% Cu and 0.14g/t Au (2.33% CuEq) in MIRC014

• 18 metres from 62 metres at 0.11% Co , 0.40% Cu, and 0.17g/t Au (1.23% CuEq) in MIRC015

Significant intercepts from the balance of the drill holes (MIRC017-MIRC023) at a nominal 0.3% CuEq* cutoff include:

• 40 metres from 56 metres at 0.07% Co, 0.32% Cu and 0.13g/t Au (0.82% CuEq ) in MIRC017 including

• 5 metres from 60 metres 0.15% Co, 0.82% Cu, 0.21g/t Au and 0.32g/t Ag (1.90% CuEq) and

• 8 metres from 84 metres at 0.11% Co, 0.79% Cu, 0.24g/t Au and 0.44g/t Ag (1.64% CuEq)

• 6 metres from 50 metres at 39g/t Ag and 1.63% Pb and 2 metres at 1.02g/t Au and 180g/t Ag from 101 metres in MIRC019

• 5 metres from 173 metres at 0.17% Co, 0.21% Cu, 0.03g/t Au and 0.55g/t Ag (1.24% CuEq) in MIRC021

• 33 metres from 115 metres at 0.16% Co, 0.22% Cu, 0.1g/t Au (1.29% CuEq) in MIRC023 including

• 5 metres from 116 metres at 0.19% Co, 0.66% Cu, 0.34g/t Au and 3.84g/t Ag (2.11% CuEq) and

• 8 metres from 128 metres at 0.35% Co , 0.08% Cu (2.19% CuEq)

At Scalper 4 RC holes were drilled and one hole extended. Significant results include:

• 12 metres from 20 metres at 1.2% Cu and 0.38g/t Au in SCRC005

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Millennium Drilling Summary

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Millennium

Hammer Metals Limited acquired the Millennium leases in May 2016. Since that time, Hammer has conducted geological mapping and has recently completed a 23 hole, 3857 metre RC drilling program. Assaying of umpire samples, preliminary metallurgical studies and three-dimensional geological modelling is currently in progress prior to undertaking a maiden mineral resource estimate for the project.

Millennium is located close to the regional-scale Pilgrim Fault Zone which also hosts Hammer’s Kalman Copper-Gold-Molybdenum-Rhenium Deposit, 50 kilometres to the south.

Geological mapping has identified two settings for mineralisation. The southern portion of the deposit is hosted by carbonaceous shales whilst the northern portion of the deposit is hosted by a fractured and ferruginous quartzite unit. Mineralisation is expressed differently within these two host lithologies. In the south, two separate zones of strongly mineralised material are present, whilst in the northern portion of the mineralised zone, which is hosted by quartzite, the true width of mineralised envelope can be up to 80 metres in thickness.

The mapping has also identified that potential lies at the northern end of the leases in a very similar structural and geological situation with strongly anomalous copper and cobalt soil geochemistry that has not yet been drill tested – the “Northern Target”. In addition, there is potential along strike from the old Federal Mine with reported historical production of approximately 10,000 tonnes at 26% Cu. These targets will be pursued in subsequent drilling programs.

Significantly the recent drilling in MIRC019 has identified a high grade silver-lead zone which requires further follow-up. Grades of 39g/t Ag and 1.63% Pb from 50 to 56 metres and 180g/t Ag from 101 to 103 metres were intersected in MIRC019 within altered quartzite.

Scalper

Hammer Metals has also recently completed a 5-hole (506 metre) reverse circulation drilling program at its Scalper prospect within EPM25486. The aim of the program was to test a combined gravity and magnetic anomaly which exhibited alteration consistent with IOCG mineralisation, and a nearby copper-bearing gossanous zone.

Significant intersections from this program include:

• 8 metres from 34 metres at 0.95% Cu in SCRC003

• 12 metres from 20 metres at 1.2% Cu and 0.38g/t Au in SCRC005

This drilling has not yet fully tested the geophysical anomaly or the extents of the gossanous zone to the north. It is anticipated that this area will be investigated further in 2017.

Hammer is currently drilling at the Overlander IOCG target (ASX release dated 10[th] August 2016) within the Hammer - Newmont Farm-in and Joint Venture area. The purpose of this program is to test for a large, bulk-tonnage copper-gold (IOCG) system in the vicinity of the gravity and magnetic anomaly immediately to the west of the current Overlander copper resource. It is anticipated that the first phase of drilling at Overlander will be complete by the end of November.

(Copper Equivalent Calculation - CuEq_% = Cu_%+(Co_%5.9)+(Au_ppm0.9)+(Ag_ppm0.01))

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- ENDS -

For further information, please contact:

Alex Hewlett | Executive Director alex@hammermetals.com.au

Russell Davis | Executive Chairman M: +61 0 419195087

or visit our website www.hammermetals.com.au

Hammer Metals Limited (ASX:HMX), is an advanced exploration company with a major land position (2600km[2] ) in the Mount Isa Mineral Province in NW Queensland. The tenement package is sandwiched between several large resource houses including Glencore, BHP and Chinova. Hammer is focused on developing base and precious metal resources in the district through well-targeted exploration and project acquisition activities.

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ASX Announcement (ASX: HMX)

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Millennium Cross Section 7722730mN
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Millennium Cross Section 7722800mN

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Millennium Cross Section 7723370mN

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Millennium Cross Section 7723535mN

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Millennium Cross Section 7723650mN

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Scalper Drillhole Location Plan

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Scalper SCRC001 Cross Section

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Millennium Hole Locations	Millennium Hole Locations	Millennium Hole Locations	Millennium Hole Locations	Millennium Hole Locations	Millennium Hole Locations	Millennium Hole Locations
Hole ID	E(GDA94)	N(GDA94)	RL	Dip	Azi(GDA94)	Depth(m)
Q-010(1)	416088	7723597	252	-60	112	192
Q-011(2)	416042	7723604	247	-60	106	240
MIRC001	416163	7723702	235	-55	90	120
MIRC002	416031	7723315	269	-55	89	138
MIRC003	415988	7723120	267	-55	88	228
MIRC004	415990	7722967	258	-55	88	78
MIRC005	415953	7722861	251	-55	89	100
MIRC006	415975	7722791	249	-60	89	48
MIRC007	415902	7722782	257	-60	89	160
MIRC008	415940	7722734	253	-55	89	84
MIRC009	415921	7722671	253	-55	87	66
MIRC010	415790	7722440	258	-55	88	168
MIRC011	415779	7722347	264	-55	88	144
MIRC012	416114	7723704	246	-55	88	186
MIRC013	416051	7723528	247	-55	88	204
MIRC014	416003	7723542	250	-60	88	265
MIRC015	415890	7722676	250	-65	88	120
MIRC016	415767	7722442	247	-70	88	120
MIRC017	415897	7722736	249	-60	90	132
MIRC018	416420	7724251	239	-55	90	160
MIRC019	416089	7723646	247	-55	90	198
MIRC020	416030	7723452	252	-55	90	132
MIRC021	415980	7723451	253	-55	90	204
MIRC022	416008	7723368	257	-55	85	160
MIRC023	415983	7723371	255	-67	90	210
23 holes + 2 extensions						3857 m
Note
Location data to GPS accuracy
Datum GDA94 Zone54
1.Q-010 Extended from 144m to 192m
2. Q-011 Extended from 180m to 240m

Scalper Hole Locations	Scalper Hole Locations	Scalper Hole Locations	Scalper Hole Locations	Scalper Hole Locations	Scalper Hole Locations	Scalper Hole Locations
Hole ID	E(GDA94)	N(GDA94)	RL	Dip	Azi(GDA94)	Depth(m)
SCRC001	383735	7663420	419.8	-64.9	53.4	324
SCRC002	383740	7663410	418.9	-55	106	138
SCRC003	383686	7662987	412.0	-55	90	60
SCRC004	383693	7662925	413.7	-55	90	66
SCRC005	383750	7663482	416.4	-55	87	54
4 holes,1 extension						506 m
Note
Location data to GPS accuracy
Datum GDA94 Zone54
1. SCRC001 Extended from 136m to 324m

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	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **
Hole ID		From (m)	To (m)	Interval (m)	Cu Eqv (%)	Cu (%)	Co (%)	Au (g/t)	Ag (g/t)
Q-010 (1)		2	12	10	0.36	0.10	0.04	0.02	0.03
		18	30	12	0.63	0.23	0.05	0.08	0.33
	incl.	19	20	1	1.09	0.66	0.03	0.26	0.80
		46	63	17	0.58	0.17	0.05	0.14	0.03
	incl.	53	54	1	1.34	0.09	0.05	1.08	0.20
	and	62	63	1	1.77	0.13	0.27	0.05	0.20
		80	86	6	0.59	0.25	0.05	0.07	0.42
	incl.	81	82	1	1.03	0.58	0.04	0.19	1.40
		117	118	1	0.52	0.04	0.06	0.08	2.50
		124	163	39	1.12	0.34	0.11	0.09	1.12
	incl.	124	144	20	1.75	0.51	0.019	0.14	2.08
	incl.	125	139	14	2.17	0.65	0.23	0.17	2.76
	and	142	143	1	1.28	0.19	0.17	0.09	0.40
Q-011 (2)		25	26	1	0.71	0.00	0.11	0.09	0.00
		66	69	3	1.14	0.33	0.11	0.15	0.03
		81	82	1	0.60	0.22	0.05	0.05	3.90
		90	91	1	0.50	0.33	0.02	0.04	1.20
		100	134	34	0.74	0.29	0.04	0.24	0.65
	incl.	102	104	2	1.51	1.02	0.03	0.31	2.50
	and	108	113	5	1.02	0.30	0.10	0.13	0.32
		129	134	5	1.35	0.54	0.03	0.67	1.78
		160	192	32	0.87	0.45	0.05	0.16	0.64
	incl.	160	174	14	1.03	0.64	0.03	0.21	1.30
	and	184	188	4	1.67	0.58	0.14	0.28	0.25
MIRC001		47	64	17	0.62	0.25	0.05	0.04	0.50
	incl.	47	50	3	1.20	0.05	0.11	0.06	0.40
MIRC002		25	45	20	0.39	0.17	0.03	0.05	1.12
MIRC003		90	93	3	0.99	0.03	0.16	0.00	0.07
	incl.	90	91	1	2.34	0.02	0.39	0.00	0.03
		203	209	6	0.67	0.02	0.11	0.00	0.04
	incl.	204	205	1	1.86	0.02	0.31	0.01	0.03
MIRC004		15	30	15	0.41	0.20	0.03	0.02	1.12
	incl.	17	18	1	1.11	0.86	0.03	0.01	9.31
MIRC005		36	37	1	0.32	0.21	0.02	0.00	0.07
MIRC006		6	10	4	0.38	0.13	0.03	0.04	0.05
MIRC007		65	72	7	0.78	0.30	0.06	0.12	0.10
	incl.	67	68	1	1.21	0.28	0.13	0.18	0.10
		98	111	13	1.12	0.41	0.10	0.10	0.33
	incl.	98	106	8	1.51	0.63	0.12	0.17	0.51
		110	111	1	1.16	0.08	0.18	0.00	0.10
MIRC008		10	16	6	0.72	0.15	0.09	0.05	0.03
	incl.	10	11	1	1.77	0.03	0.29	0.02	0.02
	and	14	15	1	1.12	0.33	0.11	0.19	0.05
		44	47	3	0.48	0.20	0.04	0.03	0.10
	incl.	45	46	1	0.76	0.35	0.06	0.05	0.16
MIRC009		20	38	18	0.95	0.23	0.10	0.17	0.41
	incl.	28	34	6	1.77	0.29	0.19	0.38	0.70
	incl.	28	30	2	3.73	0.51	0.38	1.10	1.46

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	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **
Hole ID		From(m)	To(m)	Interval(m)	Cu Eqv(%)	Cu(%)	Co(%)	Au(g/t)	Ag (g/t)
MIRC010		39	61	22	0.67	0.18	0.08	0.02	0.62
	incl.	39	42	3	1.13	0.15	0.16	0.02	1.01
	and	45	47	2	1.14	0.32	0.13	0.03	1.64
	and	59	61	2	1.70	0.25	0.24	0.05	0.56
MIRC011		115	116	1	0.50	0.25	0.04	0.01	0.78
MIRC012		45	49	4	0.73	0.55	0.16	0.08	1.30
	incl.	45	46	1	1.26	1.00	0.03	0.09	1.90
		137	140	3	0.77	0.37	0.06	0.03	1.10
MIRC013		35	42	7	0.72	0.08	0.10	0.03	0.03
	incl.	36	37	1	1.37	0.05	0.22	0.01	0.02
		53	97	44	0.82	0.17	0.10	0.07	0.13
	incl.	53	56	3	0.75	0.14	0.10	0.04	0.20
	incl.	60	62	2	0.93	0.26	0.09	0.11	0.30
	incl.	68	70	2	0.52	0.17	0.04	0.12	0.30
	incl.	73	97	24	1.17	0.23	0.15	0.09	0.10
	incl.	73	77	4	3.64	0.46	0.51	0.16	0.20
	incl.	95	97	2	2.02	0.76	0.17	0.28	0.30
		114	120	6	0.51	0.14	0.04	0.12	0.30
		132	146	14	1.33	0.55	0.11	0.14	1.95
	incl.	133	139	6	2.12	0.68	0.21	0.20	2.70
	incl.	143	144	1	161	1.17	0.03	0.24	3.10
MIRC014		98	100	2	0.90	0.00	0.14	0.05	0.30
		149	211	62	0.64	0.17	0.07	0.09	0.40
	incl.	149	161	12	1.85	0.57	0.19	0.19	0.89
	incl.	149	154	5	2.21	0.88	0.18	0.31	1.40
	and	157	161	4	2.33	0.44	0.30	0.14	0.60
		193	194	1	1.10	0.11	0.16	0.06	0.25
MIRC015		38	81	43	0.63	0.22	0.06	0.08	0.45
	incl.	62	80	18	1.23	0.40	0.11	0.17	0.72
	incl.	63	65	2	2.66	0.88	0.14	0.11	0.25
	and	70	80	10	1.42	0.47	0.15	0.04	1.10
MIRC016		69	86	17	0.34	0.15	0.03	0.00	1.57
	incl.	78	79	1	1.49	0.12	0.23	0.01	2.90
		56	96	40	0.82	0.32	0.07	0.13	0.3
	incl.	60	65	5	1.90	0.82	0.15	0.21	0.32
MIRC017	and	70	73	3	1.15	0.18	0.08	0.57	0.25
	and	84	92	8	1.64	0.79	0.11	0.24	0.44
MIRC018		No intercepts of significance
		33	36	3	0.66	0.21	0.03	0.3	0.52
		50	107	57	0.67	0.15	0.04	0.19	11.56
	incl.	50	63	13	0.81	0.2	0.03	0.28	18.81
	incl.	50	56	6	0.88	0.17	0.02	0.26	39.12
MIRC019	and	80	81	1	1.08	0.01	0.01	1.08	5.60
	and	87	92	5	1.37	0.49	0.12	0.17	0.25
	and	101	103	2	3.07	0.1	0.04	1.02	179.90
		126	157	31	0.56	0.26	0.04	0.07	1.36
	incl.	138	140	2	1.71	1.09	0.04	0.35	5.00
MIRC020		40	43	3	0.48	0.06	0.04	0.05	10.18
		46	47	1	0.69	0.39	0.03	0.11	0.80
		51	64	13	0.42	0.06	0.02	0.27	0.33
		75	83	8	0.67	0.28	0.05	0.11	0.28
	incl.	81	83	2	1.32	0.46	0.12	0.17	0.38
		87	89	2	0.52	0.15	0.06	0.04	0.25
		111	112	1	0.43	0.07	0.06	0.02	0.25
		117	118	1	0.62	0.29	0.05	0.03	0.25

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**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **	**Millennium - Significant Intercepts(cont). **
Hole ID		From(m)	To(m)	Interval(m)	Cu Eqv(%)	Cu(%)	Co(%)	Au(g/t)	Ag (g/t)
		87	92	5	0.40	0.1	0.03	0.07	6.57
	incl.	90	91	1	1.04	0.23	0.06	0.26	21.9
		108	188	80	0.42	0.14	0.04	0.04	0.40
MIRC021	and	108	109	1	1.18	0.81	0.01	0.31	0.8
	and	126	129	3	1.00	0.44	0.06	0.20	0.63
	and	144	145	1	1.02	0.48	0.07	0.12	0.60
	and	173	178	5	1.24	0.21	0.17	0.03	0.55
	and	186	188	2	0.96	0.45	0.07	0.09	1.65
		13	14	1	0.32	0.12	0.03	0.01	0.25
		18	21	3	0.61	0.06	0.07	0.17	0.25
		26	29	3	0.89	0.38	0.05	0.23	0.25
MIRC022	incl.	27	28	1	1.46	0.67	0.07	0.44	0.25
		39	79	40	0.59	0.26	0.04	0.12	0.83
	incl.	70	77	7	1.31	0.61	0.06	0.38	0.73
		61	63	2	0.46	0.14	0.05	0.04	0.25
		71	72	1	0.92	0.36	0.05	0.27	0.25
MIRC023		115	148	33	1.29	0.22	0.16	0.1	1
	incl.	116	121	5	2.11	0.66	0.19	0.34	3.84
	and	128	136	8	2.19	0.08	0.35	0.04	0.33
23 holes,2 extensions
Note
1. Q-010 Extended from 144m to 192m
2.Q-011 Extended from 180m to 240m
Intercepts selected based on visual estimation at approximately0.3% CuEqv with included intercepts at 1% CuEqv Cut-Offs
Copper Equivalent Calculation - CuEq_% = Cu_%+(Co_%5.9)+(Au_ppm0.9)+(Ag_ppm*0.01)
Price assumptions used for Equivalence calculation in $US - Au ($1330/oz, Ag ($20/oz), Co ($27000/t), Cu ($4600/t)

	Scalper - Significant Intercepts	Scalper - Significant Intercepts	Scalper - Significant Intercepts	Scalper - Significant Intercepts	Scalper - Significant Intercepts	Scalper - Significant Intercepts	Scalper - Significant Intercepts	Scalper - Significant Intercepts	Scalper - Significant Intercepts
Hole ID		From (m)	To (m)	Interval (m)	Cu Eqv (%)	Cu (%)	Co (%)	Au (g/t)	Ag (g/t)
SCRC001		77	128	51		0.65		0.15	2.16
		87	100	13		1.81		0.42	5.62
SCRC002		No intercepts of significance
SCRC003		29	42	13		0.73	0.04	0.08	0.25
	incl.	34	42	8		0.95	0.05	0.08	0.25
SCRC004		24	26	2		1.8	0.02	0.06	0.25
SCRC005		20	43	23		0.67	0.04	0.21	0.25
	incl.	20	32	12		1.2	0.07	0.38	0.25
	4 holes,1 extension
1. SCRC001 Ex	tended from 136m to 324m
Intercepts sel	ected based on visual estimation at approximately0.3% CuEqv with included intercepts at 1% CuEqv Cut-Offs

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Project Locations

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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. Mark Whittle, who is a Member of the AusIMM, a consultant to the Company and a shareholder and option holder. Mr. Mark Whittle 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Whittle consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

JORC Code, 2012 Edition

Table 1 report – Millennium Project

• This release outlines final results of reverse circulation drilling conducted at Hammer’s Millennium Project – located approximately 19km to the west of the Rocklands Cu-Co deposit in the Cloncurry District of Northwest Queensland.

• The release also outlines the results from a reverse circulation drilling program at Hammers’ Scalper Prospect – Located approximately 60km southeast of the city of Mount Isa in northwest Queensland. Unless specifically stated the type of drilling, analytical and sampling methods are the same as those utilized in the Millennium drilling.

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections in this information release.)

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (eg cut	•	Samples were selected using
techniques	channels, random chips, or specific		geological criteria (visual
	specialised industry standard		inspection) and portable XRF
	measurement tools appropriate to the		analysis.
	minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and	•	The entire length of each hole was submitted for assay either as a 1 metre sample or a 4 metre composite. The decision on the sample length was based on the Copper-Cobalt response and visual appraisal.
	the appropriate calibration of any	•	All samples submitted for assay
	measurement tools or systems used.		underwent a fine crush with 1kg
	• Aspects of the determination of		riffled off for pulverising to 75
	mineralisation that are Material to the		micron. Drilling samples were
	Public Report.		submitted for 4 acid digest
	• In cases where ‘industry standard’		followed by fire assay for gold
	work has been done this would be		(50-gram charge) and ICP
	relatively simple (eg ‘reverse		analysis for a range of elements
	circulation drilling was used to obtain 1		includingcopper,silver,cobalt

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Criteria	JORC Code explanation	Commentary	Commentary
	m samples from which 3 kg was		and molybdenum. The samples
	pulverised to produce a 30 g charge		were also analysed for rare earth
	for fire assay’). In other cases, more		elements.
	explanation may be required, such as
	where there is coarse gold that has
	inherent sampling problems. Unusual
	commodities or mineralisation types
	(eg submarine nodules) may warrant
	disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation,	•	Reverse Circulation Drilling (nominal
techniques	open-hole hammer, rotary air blast,		5.5” diameter holes).
	auger, Bangka, sonic, etc) and details
	(eg core diameter, triple or standard
	tube, depth of diamond tails, face-
	sampling bit or other type, whether
	core is oriented and if so, by what
	_method, etc). _
Drill	• Method of recording and assessing	•	Recovery of RC samples were visually
sample	core and chip sample recoveries and		estimated. Average recovery of the
recovery	results assessed.		samples was estimated to be in the
	• Measures taken to maximise sample		range of 80-90%.
	recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and	•	The RC was drilled dry using a booster and auxiliary compressor. Care was taken to avoid sample contamination.
	whether sample bias may have	•	No sample recovery bias was
	occurred due to preferential loss/gain		observed through mineralised zones.
	of fine/coarse material.
Logging	• Whether core and chip samples have	•	All drill chips were geologically logged
	been geologically and geotechnically		in detail by Hammer Metals geologists
	logged to a level of detail to support		recording lithology, alteration and
	appropriate Mineral Resource		mineralisation, weathering, colour,
	estimation, mining studies and		structure, and any other features of the
	metallurgical studies.		sample to a level of detail to support
	• Whether logging is qualitative or		appropriate studies.
	quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	•	Small washed samples from each one metre RC interval were collected and stored in a chip tray.
		•	The hole was logged in full.
Sub-	• If core, whether cut or sawn and	•	Sample collection and size is
sampling	whether quarter, half or all core taken.		considered appropriate to the target-
techniques	• If non-core, whether riffled, tube		style and laboratory analytical
and	sampled, rotary split, etc and whether		methods employed.
sample preparation	sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique.	•	RC field duplicates were collected by splitting 1 metre sample returns on- site.
	• Quality controlprocedures adopted for	•	Standard reference samples and

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Criteria	JORC Code explanation	Commentary	Commentary
	all sub-sampling stages to maximise		blanks were each inserted into the
	representivity of samples.		laboratory submissions at 25 sample
	• Measures taken to ensure that the		intervals. ALS applied industry-
	sampling is representative of the in situ		standard QAQC procedures
	material collected, including for		throughout the sample stream.
	instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	•	The 1 metre 3kg riffle split samples, 3kg four metre composites and the sample preparation procedures used by ALS are appropriate for the material being sampled.
Quality of	• The nature, quality and	•	All reverse circulation samples were
assay data	appropriateness of the assaying and		analysed by ALS for a range of
and	laboratory procedures used and		elements by ME-ICP61 or ME-MS62r
laboratory	whether the technique is considered		after a 4-acid digest. Gold was
tests	partial or total.		analysed by Au-AA26. Cu values
	• For geophysical tools, spectrometers,		greater than 1% were re-analysed by
	handheld XRF instruments, etc, the		ME- OG62. Any other elements which
	parameters used in determining the		exceeded their maximum analytical
	analysis including instrument make		limits were re-analysed by the relevant
	and model, reading times, calibrations		over-grade methods tailored for the
	factors applied and their derivation,		element.
	etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	•	Standard reference samples and blanks were inserted at 25 sample intervals. ALS Laboratories also maintained a regime of check samples, duplicates, standard reference samples, blanks and calibration standards.
Verification	• The verification of significant	•	All results were checked by alternative
of	intersections by either independent or		company personnel.
sampling and	alternative company personnel. • The use of twinned holes.	•	These holes have not been twinned.
assaying	• Documentation of primary data, data	•	All field logging is done into laptops on
	entry procedures, data verification,		site and later checked and entered into
	data storage (physical and electronic)		the company database.
	protocols. • Discuss any adjustment to assay data.	•	Assay files are received electronically from the laboratory. Repeat results are
			kept independent and are not
			averaged. Below-detection limit (BDL)
			results are saved in the database as -
			BDL values. BDL results are converted
			to half the detection limit value on
			export from the database.

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Criteria	JORC Code explanation	Commentary
Location of	• Accuracy and quality of surveys used	•Drill hole collars were measured using
data points	to locate drill holes (collar and down-	a hand-held GPS unit with an
	hole surveys), trenches, mine workings	estimated positional accuracy of
	and other locations used in Mineral	approximately 5 metres.
	Resource estimation. • Specification of the grid system used.	•Datum used is UTM MGA 94 Zone 54.
	• Quality and adequacy of topographic	•RL’s for the drill hole collars are initially
	control.	captured by GPS and subsequently
		adjusted using local digital elevation
		models (created using the most
		accurate RL information available).
		•Hole positions will be re-surveyed with
		DGPS. At this time higher quality
		elevation data will be generated.
Data	• Data spacing for reporting of	•The drilling along the Millennium
spacing	Exploration Results.	mineralised zone averages at
and	• Whether the data spacing and	approximately 50 metre spacing. This
distribution	distribution is sufficient to establish the	spacing is sufficient to establish
	degree of geological and grade	geological and grade continuity
	continuity appropriate for the Mineral	however further drilling will be required
	Resource and Ore Reserve estimation	to define high grade shoots within the
	procedure(s) and classifications	mineralised zone.
	applied.	•In the situation where visual inspection
	• Whether sample compositing has been	and portable XRF suggested an
	applied.	interval was not mineralised then a
		four metre composite was created
		using a riffle splitter.
		•The drilling at Scalper was drilling
		multiple targets and the drill-hole
		spacing was not sufficient to establish
		geological and grade continuity.
Orientation	• Whether the orientation of sampling	•Holes are oriented as close to
of data in	achieves unbiased sampling of	perpendicular as possible to the
relation to	possible structures and the extent to	interpreted orientation of
geological	which this is known, considering the	mineralisation.
structure	deposit type.	•At Scalper drill-holes were designed to
	• If the relationship between the drilling	test both linear targets (expressing as
	orientation and the orientation of key	gossan zones at surface) and one hole
	mineralised structures is considered to	was designed to test a geophysical
	have introduced a sampling bias, this	target. The holes drilling the gossan
	should be assessed and reported if	target (SCRC002-005) were oriented
	material.	perpendicular to the strike direction of
		the target horizon. SCRC001 - which
		was designed to test the geophysical
		target was oriented to test
		perpendicular to the geophysical target
		orientation.

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Criteria	JORC Code explanation	Commentary
Sample	• The measures taken to ensure sample	•Pre-numbered bags are used and
security	security.	transported by company personnel to
		the ALS Laboratory in Mount Isa. ALS
		transports samples to its laboratories
		in Townsville or Brisbane as required.
Audits or	• The results of any audits or reviews of	•No audits or reviews have been
reviews	sampling techniques and data.	undertaken, however an audit will be
		conducted as part of an upcoming
		resource estimation processes

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number,	•The Millennium mineralisation is
tenement and	location and ownership including	located on ML’s 2512, 2761, 2762,
land tenure	agreements or material issues with	7506 and 7507, all held by Element
status	third parties such as joint ventures,	Minerals Australia Pty Ltd, a 100%
	partnerships, overriding royalties,	owned subsidiary of HMX.
	native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any	•In the event of production, a royalty is required to be paid to the Queensland State Government (Mineral Resources regulation 2013)
	known impediments to obtaining a	•Scalper is located within EPM25486
	licence to operate in the area.	– an Exploration Licence 100%
		owned by Hammer Metals Australia
		Pty Ltd.
		•EPM25486 and the Millennium
		Mining Leases are located within the
		Kalkadoon Native Title claim area.
		•These Mining Leases are in good
		standing with the Queensland
		Department of Mines.
Exploration	• Acknowledgment and appraisal of	•Between 1964 and 1990, a number of
done by other	exploration by other parties.	companies completed exploration
parties		activities over the mining leases
		(including Carpentaria Exploration
		Company, Tasman Minerals NL,
		Strategic Resources and Diversified
		Mineral Resources NL).
		•Diversified Mineral Resources NL
		conducted extensive trenchingacross

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Criteria	JORC Code explanation	Commentary
		the mineralised zone.
		•Limited Metallurgical testing was done
		by these parties, however float test-
		work in 1980 indicated that
		concentrates could be produced.
		•In 2009, Elementos Limited
		conducted geological mapping and
		rock chip sampling.
		•In 2013, Chinalco Yunnan Copper
		Resources Limited (ASX:CYU). CYU
		drilled 16 reverse circulation drill-
		holes (Q-001 to Q-016) and
		conducted portable xrf soil sampling
		over the area.
		•Three historic holes have been drilled
		at Scalper however records for this
		drilling have not been found.
Geology	• Deposit type, geological setting and	•Mineralisation is hosted by the
	style of mineralisation.	Corella Formation on a structure
		related contact between
		metasediments (variably graphitic)
		and quartzite. This structure is likely
		to be associated with the Pilgrim
		Fault – a large regional structure
		which hosts the Kalman Cu-Mo-Re-
		Au deposit.
		•Mineralisation is controlled by the
		regional scale fault, a fractured
		limonitic quartzite to the east and
		cross-cutting northeast and northwest
		trending faults.
		•The mineralisation presents as
		disseminated bornite, chalcopyrite
		with cobaltiferous pyrite and cobaltite.
		These sulphide minerals are
		associated with elevated gold and
		silver. The metals are associated with
		zones of increased carbonate veining
		and fracture related limonite
		alteration.
		•Scalper is hosted by altered calc-
		silicates of the Corella Formation,
		located close to the eastern margin of
		the Overlander Granite.
Drill hole	• A summary of all information material	•See the attached tables. The reader
Information	to the understanding of the	should note that the location data is
	exploration results including a	subject to change as a result of a

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Criteria	JORC Code explanation	Commentary	Commentary
	tabulation of the following information		higher accuracy survey planned to be
	for all Material drill holes:		conducted prior to any resource
	o easting and northing of the drill		estimates being conducted.
	hole collar
	o elevation or RL (Reduced Level –
	elevation above sea level in
	metres) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception
	depth
	o hole length.
	• If the exclusion of this information is
	justified on the basis that the
	information is not Material and this
	exclusion does not detract from the
	understanding of the report, the
	Competent Person should clearly
	explain why this is the case.
Data	• In reporting Exploration Results,	•	Intervals quoted in this release are
aggregation	weighting averaging techniques,		reported primarily on their copper
methods	maximum and/or minimum grade		equivalent grades.
	truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts	•	Lower grade intervals are based on a 0.3% CuEqv cut-off whilst higher grade intervals are based on a 1% CuEqv cut-off.
	incorporate short lengths of high	•	The copper equivalent calculation is
	grade results and longer lengths of		as follows: CuEq_% = Cu_%+
	low grade results, the procedure used		(Co_%5.9) +(Au_ppm0.9) +
	for such aggregation should be stated		(Ag_ppm*0.01)
	and some typical examples of such aggregations should be shown in detail. • The assumptions used for any	•	Price assumptions are in $US - Au ($1330/oz, Ag ($20/oz), Co ($27000/t), Cu ($4600/t)
	reporting of metal equivalent values should be clearly stated.	•	Scalper grades are not quoted in Coper Equivalent grades but they
			are also based on 0.3% CuEqv cut-
			off whilst higher grade intervals are
			based on a 1% CuEqv cut-off.
Relationship	• These relationships are particularly	•	In both plan and section drill-holes
between	important in the reporting of		are oriented between 10-20 degrees
mineralisation	Exploration Results.		off an ideal perpendicular
widths and	• If the geometry of the mineralisation		intersection.
intercept	with respect to the drill hole angle is	•	This deviation indicates that true
lengths	known, its nature should be reported.		widths should be between 85% to
	• If it is not known and only the down		95% of quoted downhole widths.
	hole lengths are reported, there	•	At Scalper orientations of the Gossan
	should be a clear statement to this		target holes are within 20 degrees of
	effect(eg ‘down hole length, true		an idealperpendicular intersection

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Criteria	JORC Code explanation	Commentary	Commentary
	width not known’).		approach.
Diagrams	• Appropriate maps and sections (with	•	See attached figures
	scales) and tabulations of intercepts
	should be included for any significant
	discovery being reported These
	should include, but not be limited to a
	plan view of drill hole collar locations
	and appropriate sectional views.
Balanced	• Where comprehensive reporting of all	•	Intersections have been quoted at 2
reporting	Exploration Results is not practicable,		cut-off grades (0.3% and 1% Copper
	representative reporting of both low		equivalent) to illustrate the
	and high grades and/or widths should		distribution of mineralisation.
	be practiced to avoid misleading	•	Where a hole does not have a
	reporting of Exploration Results.		tabulated intersection then the reader
			must assume that all grades in that
			hole are below the 0.3% cut-off
			mentioned above.
Other	• Other exploration data, if meaningful	•	Refer to the release.
substantive	and material, should be reported
exploration	including (but not limited to):
data	geological observations; geophysical
	survey results; geochemical survey
	results; bulk samples – size and
	method of treatment; metallurgical
	test results; bulk density,
	groundwater, geotechnical and rock
	characteristics; potential deleterious
	or contaminating substances.
Further work	• The nature and scale of planned	•	At Millennium, it is envisioned that the
	further work (eg tests for lateral		area will be subject to a resource
	extensions or depth extensions or		estimation in the near future. Also
	large-scale step-out drilling).		further drilling is planned to test
	• Diagrams clearly highlighting the		targets along strike and also to
	areas of possible extensions,		further define higher grade shoots
	including the main geological		within the mineralised envelope.
	interpretations and future drilling	•	At Scalper there is along strike
	areas, provided this information is not		potential for the mineralisation
	commercially sensitive.		outlined in holes SCRC002-005.
			SCRC001 tested a geophysical
			target. This target requires further
			testing to determine its prospectivity.

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