HAMMER METALS LIMITED — Capital/Financing Update 2017

Sep 18, 2017

ASX Announcement (ASX: HMX)

19 September 2017

Non Renounceable Entitlement Issue

Hammer Metals Limited (“ Hammer” or “the Company” ) (ASX: HMX), is pleased to confirm that it has today sent a Notice letter (as attached) to all Shareholders outlining the terms for its fully underwritten entitlement issue to raise approximately $1.17 million (“ the Offer ”).

Prospectus and timetable

The Prospectus is currently being prepared. Hammer has revised the timetable and expects to despatch the Prospectus on 27 September 2017.

Event	Date*
Announcement of Offers	6 Sept 2017
Lodgement of Appendix 3B with ASX	15 Sept 2017
Prospectus lodged at ASIC and ASX	15 Sept 2017
Notice sent to Shareholders	19 Sept 2017
"Ex" Date (date Shares are quoted ex-rights)	21 Sept 2017
Record Date to determine Entitlements	5.00pm (WST) 22 Sept 2017
Prospectus (together with Entitlement and Acceptance Form) despatched to Shareholders	27 Sept 2017
Opening Date	27 Sept 2017
Closing Date**	12 Oct 2017
Shares quoted on a deferred settlement basis	13 Oct 2017
Notification to ASX of under subscriptions	17 Oct 2017
Allotment date with respect to Shares and Options	19 Oct 2017

* These dates are indicative only. The Directors reserve the right to vary the key dates without prior notice, subject to the Listing Rules.

** The Directors may extend the Closing Date by giving at least three Business Day’s notice to ASX prior to the Closing Date. As such, the date the Shares are expected to commence trading on ASX may vary.

For further information, please contact:

Mark Pitts Company Secretary

markp@endeavourcorp.com.au

Hammer Metals Limited (ASX:HMX): Hammer Metals holds a strategic tenement position covering approximately 3,200km[2] within the Mount Isa mining district, with 100% interests in the Kalman (CuAu-Mo-Re) deposit, the Overlander North and Overlander South (Cu-Co) deposits, the Millennium (CuCo-Au) deposit as well as the recently acquired Elaine-Dorothy (Cu-Au) deposit. Hammer is an active mineral explorer, focused on discovering large copper-gold deposits of the Ernest Henry style and has a range of prospective targets at various stages of testing.

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19 September 2017

Dear Shareholder

Hammer Metals Limited – pro-rata non-renounceable rights issue

As announced on 6 September 2017 Hammer Metals Limited (ACN 095 092 158) ( Hammer ) is undertaking a 1:7 pro rata non-renounceable rights issue ( Rights Issue or Offer ) of approximately 33,437,096 fully paid ordinary shares ( New Shares ) to raise approximately $1.17 million. The price of New Shares under the Offer is $0.035 each ( Issue Price ). The Company lodged a prospectus for the Offer ( Prospectus ) with ASIC and ASX on 15 September 2017.

The Offer if fully underwritten by DJ Carmichaels ( Underwriter ). The Company must pay the Underwriter a fee of 5% of the total amount raised pursuant to the Offer, 2,412,798 unlisted options and 1,428,571 fully paid ordinary shares. The Company must also reimburse the Underwriter for costs incidental to the Offer.

The Company will use the net proceeds from the Offer together with funds from a recent placement to supplement working capital and to accelerate concurrent work on copper-gold target generation and drill hole planning, with a focus on continuing drilling at the Company’s Kalman West and Revenue projects. In addition new field programs including drilling at Hammertime, Elaine and selected VTEM targets along the Pilgrim Fault zone, will provide Hammer with a strong level of news flow over coming months.

The Offer is being made to all shareholders of the Company ( Shareholders ) named on its register of members at 5.00pm (WST) on 22 September 2017, whose registered address is in Australia, New Zealand, Germany or Hong Kong. ( Eligible Shareholders )

New Shares will rank equally with all fully paid ordinary shares in the capital of the Company ( Shares ) already on issue.

Following completion of the Offer, the Company will have issued approximately 33,437,096 New Shares resulting in total Shares on issue of approximately 267,406,770.

A copy of the Prospectus is available on ASX’s and Hammer’s website. Eligible Shareholders will be mailed a Prospectus together with an Entitlement and Acceptance Form no later than 27 September 2017. Your entitlement will be set out on the personalised Entitlement and Acceptance Form accompanying the Prospectus.

For the purposes of calculating each Eligible Shareholders’ entitlement, fractions of entitlements have been rounded down to the nearest whole number of New Shares.

Actions required of Eligible Shareholders

There are a number of actions Eligible Shareholders may take:

• You may wish to accept all of your rights to subscribe for New Shares pursuant to the Prospectus ( Entitlement ). To take up all or some of your Entitlements you will need to ensure your application money for the Entitlements you wish to take up is received by Advanced Share Registry ( Share Registry ) by no later than 5.00pm (WST) on 12 October 2017, making a payment by BPAY in accordance with the instructions on your Entitlement and Acceptance Form OR by completing and returning your Entitlement and Acceptance Form together with your cheque, drawn on an Australian bank or bank draft made payable in Australian currency, for the appropriate application monies.

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• You may wish to accept part of your Entitlement. To take up part of your Entitlement you will need to ensure your application money for the Entitlements you wish to take up is received by the Share Registry by no later than 5.00pm (WST) on 12 October 2017, by making a payment by BPAY in accordance with the instructions on your Entitlement and Acceptance Form (at $0.035 per New Share) OR by completing and returning your Entitlement and Acceptance Form by filling in the number of New Shares you wish to accept in the space provided on the Entitlement and Acceptance Form together with your cheque, drawn on an Australian bank or bank draft made payable in Australian currency, for the appropriate application monies.

• You may do nothing. If you choose to do nothing with your Entitlements, while you will continue to hold the same number of Shares, your interest in the Company will be diluted and you will receive no value for your Entitlement.

Eligible Shareholders will be given the option to subscribe for shares above their entitlement, those who wish to subscribe for Shares above their Entitlement are invited to apply for additional Shares under the Shortfall Offer by completing the appropriate section on their Entitlement and Acceptance Form or by making payment for such Shares using BPAY®.

Key dates for the Offer

Event	Proposed Date
Prospectus and Appendix 3B lodged with ASX	15 September 2017
Notice of Rights Issue sent to security holders	19 September 2017
Existing shares quoted on an ‘ex’ basis	21 September 2017
Record date	5.00pm (WST) 22 September 2017
Despatch of Rights Issue Documents to Eligible Shareholders Offer Period Opens	27 September 2017
Offer Period Closes	12 October 2017
Securities quoted on a deferred settlement basis.	13 October 2017
Notification of under-subscriptions to ASX (if any)	17 October 2017
Shares Issued Holding statements despatched	19 October 2017

If you have any queries concerning the Rights Issue, or the action you are required to take to subscribe for New Shares, please contact your financial adviser or Mark Pitts, Hammer’s Company Secretary, on +61 8 9316 9100.

Yours sincerely

Russell Davis Executive Chairman

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