HAMMER METALS LIMITED — Capital/Financing Update 2021

Dec 12, 2021

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DRILLING COMMENCES AT KALMAN

ASX RELEASE 13 December 2021

DIRECTORS / MANAGEMENT

Russell Davis Chairman

Daniel Thomas Managing Director

Ziggy Lubieniecki Non-Executive Director

David Church Non–Executive Director

Mark Pitts Company Secretary

Mark Whittle Chief Operating Officer

CAPITAL STRUCTURE

ASX Code: HMX

Share Price (10/12/2021) $0.045 Shares on Issue 813m Market Cap $36.6 Options Unlisted 27m Performance Rights 6.5m

• Drilling has commenced at Hammer’s Kalman copper/gold/molybdenum and rhenium project

• Kalman is the first target in Hammer’s drilling program which will also include drilling on the Mount Isa East JV along the Trafalgar trend, and at Hammer’s 100% owned prospects Neptune, Sunset and near Lakeview

• Drilling will continue up until the Christmas break with a return planned on 5th January 2022 (weather dependant)

• Drilling at Hammer’s Bronzewing South project has now been completed . 13 holes for 3,554m of reverse circulation drilling was completed in a target corridor immediately south of the Bronzewing Gold mine

• All samples have been submitted to the laboratory for analysis. Results from this program are expected later this month

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Figure 1. Kalman Drilling Commenced

Hammer’s Managing Director, Daniel Thomas said:

“Hammer’s return to drilling at Kalman is highly anticipated given the historical high grade copper, gold and molybdenum drilling results. The sustained high commodity prices for copper and molybdenum are encouraging and there has never been a better time to re-invigorate our evaluation of the potential of the mineralised system at Kalman. Drilling aims to further test and extend known areas of shallow mineralisation at the Northern end of the Kalman deposit.

There are several other compelling targets in the program with a number of zones to be tested at Neptune where our first drilling program intercepted 100m at 0.48% Cu and 0.18g/t Au from 173m in hole HMLRRC002 (See ASX 26 July 2021).

This program will also include our first drilling with our Joint Venture partner, Sumitomo Metal Mining Oceania. This drilling will step out along the Trafalgar trend and test a number of priority areas with historical copper workings.

T (08) 6369 1195 E info@hammermetals.com.au

ASX:HMX

ABN 87 095 092 158 P Unit 1, 28-30 Mayfair Street, West Perth, WA 6005

hammermetals.com.au

Hammer Metals Ltd ( ASX:HMX ) (“ Hammer ” or the “ Company ”) is pleased to advise that drilling at its Mount Isa projects has commenced. The program will test 100% prospects at Sunset, Lakeview, Neptune and notably a return to drilling at the copper, gold, molybdenum and rhenium JORC resource at Kalman. The program will also complete additional drilling on the Trafalgar trend within the Mount Isa East Joint Venture with Sumitomo Metal Mining Oceania.

Detailed description of targets of the programs are contained in the ASX announcement from 2 November 2021.

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Figure 2. Hammer Metals Mount Isa Targets

This announcement has been authorised for issue by the Board of Hammer Metals Limited in accordance with ASX Listing Rule 15.5.

For further information please contact:

Daniel Thomas Managing Director T +61 8 6369 1195 E info@hammermetals.com.au

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About Hammer Metals

Hammer Metals Limited (ASX: HMX) holds a strategic tenement position covering approximately 2,200km[2] 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 and the Elaine (Cu-Au) deposit. Hammer also has a 51% interest in the emerging Jubilee (Cu-Au) deposit. Hammer is an active mineral explorer, focused on discovering large copper-gold deposits of Ernest Henry style and has a range of prospective targets at various stages of testing. Hammer has recently acquired a 100% interest in the Bronzewing South Gold Project located adjacent to the 2.3 million-ounce Bronzewing gold deposit in the highly endowed Yandal Belt of Western Australia.

Competent Person Statements

The information in this report as it relates to exploration results and geology was compiled by Mr. Mark Whittle, who is a Fellow of the AusIMM and an employee of the Company. Mr. Whittle, who is a shareholder and optionholder, has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities 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.

Where the Company references Mineral Resource Estimates previously announced, it confirms that it is not aware of any new information or data that materially affects the information included in those announcements and all material assumptions and technical parameters underpinning the resource estimates with those announcements continue to apply and have not materially changed.

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