HAMMER METALS LIMITED — Capital/Financing Update 2017

Jun 8, 2017

ASX Announcement (ASX: HMX)

9th June 2017

Update on Millennium Cobalt-Copper Project

GEMC Completes Technical Due Diligence and Moves to Complete Definitive Agreement

Hammer Metals Limited ( ASX:HMX ) (“Hammer” or “the Company”) wishes to provide an update on the proposed agreement with Global Energy Metals Corporation (GEMC) whereby GEMC can earn a up to 75% interest in Hammer’s Millennium cobalt-copper project located near Mount Isa in Northwest Queensland. (Refer to ASX release dated 1 May 2017.)

GEMC announced to the TSXV on June 8 that it has successfully completed its technical due diligence and site visit to the Millennium project.

Both parties are now moving to complete a definitive agreement that will outline the final terms for the transaction and partnership to advance the project.

GEMC noted in the release that “Based on the findings from the visit and meetings with Hammer's senior management and technical team, Millennium could become a very significant regional opportunity for Global Energy Metals.”

Paul Sarjeant, VP Projects said the following regarding the successful site visit:

" This trip confirmed that quality exploration work has recently been undertaken at Millennium by Hammer's highly qualified technical personnel. This visit strengthened our view that Millennium is an advanced cobalt project with significant potential and further upside in extending the known mineralized structure through exploration work. All these opportunities will need to be investigated once we hit the ground. The Hammer team is second to none when it comes to their technical abilities, we look forward to working with them closely on the development of Millennium. "

Alex Hewlett, Hammer’s CEO said:

“We welcome the completion of the due diligence by GEMC and look forward to working with the GEMC team to finalise the definitive agreement and recommence work on this exciting cobalt project.”

For further information, please contact:

Alex Hewlett

Executive Director & CEO

Hammer Metals Limited

alex@hammermetals.com.au

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Hammer Metals Limited (ASX: HMX)

Hammer Metals holds a strategic tenement position covering approximately 3,200km2 within the Mount Isa mining district, with 100% interests in the Kalman (Cu-Au-Mo-Re) deposit, the Overlander North and Overlander South (Cu-Co) deposits, the Millennium (Cu-Co-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.

Global Energy Metals Corporation (TSXV:GEMC)

Global Energy Metals is focused on offering security of supply of cobalt, a critical material to the growing rechargeable battery market, by building a diversified global portfolio of cobalt assets including project stakes, projects and other supply sources. GEMC anticipates growing its business by acquiring project stakes in battery metals related projects with key strategic partners. Global Energy Metals currently owns and is advancing the Werner Lake Cobalt Mine in Ontario, Canada.

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Figure 1: Project Location

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