HAMMER METALS LIMITED — Capital/Financing Update 2021

Jul 25, 2021

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ASX RELEASE 26 July 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 (23/07/2021) $0.087 Shares on Issue 813m Market Cap $71m Options Unlisted 27m Performance Rights 6.5m

COPPER-GOLD INTERSECTED AT NEPTUNE AND KINGS-CHARLOTTE

• Copper and gold mineralisation confirmed at Hammer’s 100% owned Neptune Prospect . Significant results include:

• 100m at 0.48% Cu and 0.18g/t Au from 173m (HMLRRC002) including o 3m at 2.23% Cu and 0.2g/t Au from 185m

  • 3m at 3.09% Cu and 1.4g/t Au from 198m; and

  • 5m at 2.21% Cu and 0.37g/t Au from 234m

• 66m at 0.32% Cu and 0.07g/t Au from 33m (HMLRRC003) including o 2m at 1.92% Cu and 0.42g/t Au from 33m

• Copper, gold and cobalt mineralisation identified at Kings-Charlotte prospects in the Malbon region. Significant results include:

• 3m at 3.89% Cu and 0.56g/t Au from 18m (HMAKRC004) including

  • 1m at 10.12% Cu and 1.52g/t Au

• 10m at 0.58% Cu and 0.12% Co from 19m and 1m at 1.59% Cu from 36m (HMAKRC005)

• Both areas have the potential to host multiple repeats of the identified mineralisation style

• Additional field mapping and review of historical geophysical surveys have defined a series of targets at Neptune for follow-up drill testing later in the year

• Down Hole Electro Magnetic (“DHEM”) surveys to be completed at Lakeview, Neptune, Overlander and Serendipity

• A rock chip sample from a quartz vein at the Hammer Metals 100% owned Kalman West Prospect has assayed at 4.48% Au

• Hammer completed a costean across the strike of the vein , two metres from the occurrence. The costean sampling delineated an 8m wide zone grading at 0.6g/t Au (0.1g/t Au cut-off) including a 2m wide zone grading at 1.25g/t Au

• An additional two drill holes were added to the program to further test this anomalous zone

• The drilling program, including the extensional testing at Lakeview has now been completed. Assays are awaited from the Company’s 100% owned projects and the Trafalgar copper gold discovery within the JOGMEC Joint Venture (JOGMEC earning 60% interest)

Hammer’s Managing Director, Daniel Thomas said:

“The continued successful delineation of copper and gold mineralisation at different prospects throughout the Hammer portfolio highlights the copper endowment within the Mount Isa district. Hammer will look to build upon these initial drill results at the Neptune and Kings-Charlotte prospects with follow up drilling to be undertaken in the second half of this year. The Neptune area which is in the immediate vicinity of the Trafalgar trend is encouraging as Hammer looks to build upon our mineral inventory in the region. The exceptional rock chip gold result at Kalman West is a subtle reminder of the gold potential in the region.”

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 provide an update on the now completed drilling program at the Mount Isa Project. The planned 4,000m RC drill program tested several high priority, 100% owned Hammer targets whilst also completing further drilling at the Mount Isa east JOGMEC Joint Venture (“JV”) Trafalgar copper gold discovery.

As part of this drilling program, results have been reported for an initial 4-hole program at the Company’s 100% owned Lakeview prospect (Refer to ASX announcement dated 22 June 2021). Results reported herein relate to drilling conducted at the Kings-Charlotte and Lady Rose Prospects in addition to reporting of a high-grade gold analysis from a sample collected at the Kalman West prospect.

Results are pending for the Trafalgar, Serendipity, Kalman West and Overlander Prospects. The drilling program was extended to complete infill and extensional drilling at the Lakeview prospect following the early success of the drilling program. The additional drilling was recently completed with samples being dispatched for assays.

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Figure 1. Example of visible gold samples obtained from a vein at Kalman West. Lab Analysis of a sample from this vein reported 4.48% Au and in excess of 96oz per tonne Ag . Photograph width is 6cm. Refer to Figure 8 and Table 3. The location of the sample is 391940E, 7671541N (GDA94).

Lady Rose (Neptune Project Area)

The Lady Rose prospect is part of our Neptune project area and is located approximately 2km to the west of Trafalgar in an area of complex magnetic anomalism with multiple copper prospects. Mineralisation is associated with magnetite alteration, displaying strong similarities to mineralisation at Trafalgar, Black Rock and the Jubilee Cu-Au resource. This style of mineralisation and alteration has similarities with other IOCG systems in the Mt Isa region.

Lady Rose was drilled by Paradigm Metals Limited in 2014 with two zones of mineralisation intersected (see Hammer ASX announcement dated 9 March 2021):

• 16m at 0.51% Cu and 0.04g/t Au from surface (oxide) in LKTPDM005

• 56m at 0.44% Cu and 0.1g/t Au from 44m in LKTPDM005, including.

• 28m at 0.70% Cu and 0.14g/t Au from 72m (sulphide); and

• 6m at 1.5% Cu and 0.28g/t Au from 90m.

Hammer drilled three holes for 728m at Lady Rose to confirm and extend known mineralisation. HMLRRC002 and HMLRRC003 have been cased with PVC to enable a future down hole electromagnetic survey (“DHEM”). (Figure 3 and 4)

Significant intercepts from the Hammer drilling include:

• 100m at 0.48% Cu and 0.18g/t Au from 173m (HMLRRC002) including

• 3m at 2.23% Cu and 0.2g/t Au from 185m

• 3m at 3.09% Cu and 1.4g/t Au from 198m; and

• 5m at 2.21% Cu and 0.37g/t Au from 234m

• 66m at 0.32% Cu and 0.07g/t Au from 33m (HMLRRC003) including

• 2m at 1.92% Cu and 0.42g/t Au from 33m

Significantly there is a wide halo of low-grade mineralisation surrounding the higher-grade zones in similar fashion to other large-scale IOCG systems found throughout the Mount Isa region. Geological mapping highlighted multiple alteration zones and associated mineralisation which up to this point had not been previously recognised. Hammer Metals will be modelling mineralisation within the region and conducting a downhole electromagnetic survey. It is anticipated that the area will be drilled again in the follow up program planned for later this year.

Page 3 of 20

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Figure 2. Drill rig on site at Lady Rose

Table 1. Neptune Significant Intercepts primarily utilising a 0.2% Cu and/or 0.1g/t Au cut-off

	MT ISA PROJE	MT ISA PROJE	MT ISA PROJE	CT - Lady Rose - Significant Cu Intercepts(0.2% Cu and/or 0.1g/t Au Cut-Off Grade)	CT - Lady Rose - Significant Cu Intercepts(0.2% Cu and/or 0.1g/t Au Cut-Off Grade)	CT - Lady Rose - Significant Cu Intercepts(0.2% Cu and/or 0.1g/t Au Cut-Off Grade)	CT - Lady Rose - Significant Cu Intercepts(0.2% Cu and/or 0.1g/t Au Cut-Off Grade)	CT - Lady Rose - Significant Cu Intercepts(0.2% Cu and/or 0.1g/t Au Cut-Off Grade)	CT - Lady Rose - Significant Cu Intercepts(0.2% Cu and/or 0.1g/t Au Cut-Off Grade)	CT - Lady Rose - Significant Cu Intercepts(0.2% Cu and/or 0.1g/t Au Cut-Off Grade)
Target	Hole	E_GDA94	N_GDA94	RL	TD	Dip	Az_GDA		From	To	Intersected Width			Cu % ^		Au g/t ^
Lady Rose	HMLRRC001	393261	7688062	396.2	241	-55	311		12	13	1			0.01		0.12
									14	15	1			0.08		0.18
									18	19	1			0.10		0.10
									36	40	4			0.05		0.19
									56	58	2			0.58		0.27
									121	125	4			0.01		0.27
									170	173	3			0.28		0.15
									223	224	1			0.33		0.09
	HMLRRC002	393123	7687876	421.2	289	-56	300		28	29	1			0.28		0.09
									53	57	4			0.44		0.10
									63	64	1			0.37		0.10
									165	166	1			0.28		0.07
								Envelope	173	273	100			0.48		0.18
								incl.	173	216		43		0.65		0.27
								incl.	177	178	1			0.12		1.71
								&	185	188	3			2.23		0.20
								&	198	201	3			3.09		1.40
								&	215	216	1			0.29		0.28
								&	234	239	5			2.21		0.37
	HMLRRC003	393276	7688168	408	198	-55	128	Envelope	33	99	66			0.32		0.07
								incl.	33	35	2			1.92		0.42
								&	65	69	4			0.75		0.14
				Note
	^ -			Average analysis utilised where more than one readingconducted.
Coordinates	and azimuth relative to GDA 94 Zone 54			. RL Derived from a Drone DTM. Both coordinates and RL to be resurveyed usingDGPS							at the conclusion of theprogram

Page 4 of 20

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Figure 3. Plan of the Neptune area showing the Hammer Metals drilling at Lady Rose and recent geological mapping. Gravity shells and soil sampling conducted by Paradigm Metals Limited is also shown. See ASX release 9 March 2021 and JORC Table 1 for details the work conducted by Paradigm Metals Limited.

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Figure 4. Cross section through HMLRRC002

Kings/Charlotte

The Kings and Charlotte region is characterised by zones of outcropping copper, cobalt and gold mineralisation with numerous anomalous soil geochemical responses. The majority of this project area has a thin layer of cover masking potential mineral systems. The prospects tested outcrop and consists of two main structural directions.

The north-south Kings trend is evident in an elevated Cu-Au soil geochemical response over approximately 800m. Quartz vein hosted mineralisation at the Kings Prospect is related to the intersection between east-west trending structures and the main north-south trend. Rock chip anomalism indicates that mineralisation extends for over 300m in multiple parallel shoots, which are individually up to 40m in thickness.

The Charlotte trend is evident as a quartz vein zone which has been tracked over a distance of 600m. This structure has a strong Cu-Co soil geochemical signature. Recent rock chip results from south of the Charlotte area highlight the potential of this prospect to host significant high-grade Cu-Co-Au mineralisation with individual copper and gold grades in rock chips of 15.1% Cu, 12.3g/t Au and 0.34% Co.

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For information on both prospects refer to Hammer Metals ASX announcement dated 9 March 2021.

In the current program, Hammer drilled six holes for 660 meters. Holes 1, 5 and 6 tested the Charlotte structure and holes 2, 3 and 4 tested the Kings structure. All holes intersected anomalous responses and significantly the prospects have a strong gold response relative to copper. Elevated cobalt was intersected at Charlotte.

Significant results include:

• 3m at 3.89% Cu and 0.56g/t Au from 18m in HMAKRC004 including

• 1m at 10.1% Cu and 1.52g/t Au;

• 1m at 2.13g/t Au from 9m in HMAKRC003; and

• 10m at 0.58% Cu and 0.12% Co from 19m and 1m at 1.59% Cu from 36m in HMAKRC005.

The Malbon region contains multiple repeats of this structural regime. Hammer intends to delineate and rank these zones through use of surface prospecting and geophysical methods such as Sub-audio Magnetics (“SAM”) during the current field season.

Table 2. Kings-Charlotte Significant Intercepts primarily utilising a 0.2% Cu and/or 0.1g/t Au cut-off

	MT ISA PROJECT - Kings & Charlotte - Significant Cu Intercepts(0.2% C	MT ISA PROJECT - Kings & Charlotte - Significant Cu Intercepts(0.2% C	MT ISA PROJECT - Kings & Charlotte - Significant Cu Intercepts(0.2% C	MT ISA PROJECT - Kings & Charlotte - Significant Cu Intercepts(0.2% C	MT ISA PROJECT - Kings & Charlotte - Significant Cu Intercepts(0.2% C	MT ISA PROJECT - Kings & Charlotte - Significant Cu Intercepts(0.2% C	MT ISA PROJECT - Kings & Charlotte - Significant Cu Intercepts(0.2% C	MT ISA PROJECT - Kings & Charlotte - Significant Cu Intercepts(0.2% C	u Cut-Off Grade)	u Cut-Off Grade)
Target	Hole	E_GDA94	N_GDA94	RL	TD	Dip	Az_GDA		From	To	Intersected Width			Cu % ^		Au g/t ^		Co % ^
Charlotte	HMAKRC001	428898	7675084	266.2	120	-60	335		7	20	13			0.23		0.03		0.08
Kings	HMAKRC002	428814	7675974	276.6	102	-60	258		25	26	1			0.59		0.11		0.01
	HMAKRC003	428762	7675993	274.9	72	-60	270		9	10	1			0.03		2.13		0.00
									25	26	1			3	.90	0	.82	0.01
	HMAKRC004	428839.8	7675903.9	276.9	120	-60	285		18	21	3			3	.89	0.56			0.04
								incl.	19	20	1			10.12		1.52		0.06
Charlotte	HMAKRC005	428928	7675086	266	160	-70	335		19	38	19			0.58		0.04		0.09
								incl.	19	29	1	0		0.58		0.04		0.12
								&	36	37	1			1.59		0.04			0.03
	HMAKRC006	429384	7675137	263.6	90	-60	330		25	27	2			0.34		0.02		0.00
									53	54	1			0.31		0.02		0.02
	Note
	^ - Average analysis utilised where more than on							e readingco	nducted.
Coord	inates and azimuth relative to GDA 94 Zone 54. RL Derived from a Drone DTM. Both coordinat							es and RL to	be resurveyed usingD		GPS at the co			nclusion o		f theprogr		am

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Figure 5. Rig on site at HMAKRC001

Page 7 of 20

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Figure 6. Drill Plan for the Kings Structure with significant intercepts.

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Figure 7. Drill Plan for the Charlotte Structure showing significant intercepts.

Page 8 of 20

Kalman West

Recent prospecting in the area delineated a thin (<5cm) quartz vein zone with visible gold. A 44,800g/t Au analysis of this vein indicates the area has the potential to host a high-grade gold deposit. The sample also contained more than 96 ounces / tonne Ag which is the upper detection limit for the method utilised. A definitive silver analysis is in progress.

A single costean was put in across the visible gold occurrence. Sampling at metre intervals along the cistern delineated an 8m wide zone grading at 0.6g/t Au (0.1g/t Au cut-off). Within this 8m zone there was a 2m wide zone grading at 1.25g/t Au. The lack of repeatability is expected in areas hosting thin high tenor gold veins. Historic rock chip sampling at the Kalman West Prospect has identified other similar high tenor quartz veins with previous rock chip Au grades up to 24.5g/t. Similarly, drilling has intersected up to 1m at 46.2g/t Au from 101m in HKWSRC001 (Refer to HMX announcements dated 1 October 2015 and 28 August 2017).

In a further test of this anomalous zone, Hammer added two holes (for 188m) to the drilling program. This drilling was completed in addition to the initial planned program which completed a 299m hole drilled targeting a deeper Magneto-telluric (“MT”) and Versatile Time Domain Electromagnetic (“VTEM”) response.

The Tick Hill Deposit, which produced 513,000 ounces at an average grade of 22.5g/t, is hosted in a similar geological setting as Kalman West.

Table 3. Kalman West Prospect – Location of costean samples

MT ISA PROJECT - Kalman West - Costean Sampling Au Results	MT ISA PROJECT - Kalman West - Costean Sampling Au Results	MT ISA PROJECT - Kalman West - Costean Sampling Au Results	MT ISA PROJECT - Kalman West - Costean Sampling Au Results	MT ISA PROJECT - Kalman West - Costean Sampling Au Results	MT ISA PROJECT - Kalman West - Costean Sampling Au Results	MT ISA PROJECT - Kalman West - Costean Sampling Au Results
**Costean **	**E_GDA94 **	N_GDA94	RL	TD	Dip	Az_GDA
HKWCS01	391933	7671541	415	10	0	103

Sample	From	To	Intersected Width	Au g/t	Au g/t	Au g/t
MJB1039	0	1	1	0.21
MJB1040	1	2	1	0.21
MJB1041	2	3	1	0	.58
MJB1042	3	4	1	0	.56
MJB1043	4	5	1	0	.63
MJB1044	5	6	1	1.46
MJB1045	6	7	1	1.03
MJB1046	7	8	1	0.10
MJB1047	8	9	1	0.01
MJB1048	9	10	1	0.01

Page 9 of 20

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Figure 8. Kalman West shear zone showing gold-in-soil geochemical response with the location of the 4.48% Au and >96oz Ag rock chip response . Previous Hammer Metals drilling and holes from the current program are also shown. For information on past work on this prospect please refer to ASX announcements dated 3 June 2015 and 28 August 2017.

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Figure 9. Mt Isa Project tenements

Page 11 of 20

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

- END -

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.

About the Mount Isa East Joint Venture

Japan Oil, Gas and Metals National Corporation (“JOGMEC”) has the right to earn a 60% interest by expending $6,000,000 by 31 March 2024. No proportional ownership change occurs until such time as the $6,000,000 is expended and the current JOGMEC interest is 0%

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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JORC Table 1 report – Mount Isa Project Exploration Update

• This table is to accompany an ASX release updating the market with drilling from multiple areas within the Mt Isa Project Area. The current drilling program was initiated in early May and is ongoing.

• The drilling reported herein was conducted on EPM26130 (Kings-Charlotte) and 26904 (Lady Rose). The high-grade gold-bearing rock chip location is located on EPM13870 (Kalman West). These tenements are held by Mt Dockerell Mining Pty Ltd, a 100% owned subsidiary of Hammer Metals Limited. None of these tenements are located within any joint ventures.

• All ancillary information presented in figures herein has previously been reported to the ASX.

• Historic exploration data noted in this, and previous releases has been compiled and validated. It is the opinion of Hammer Metals that the exploration data are reliable.

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the 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 appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more 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 • 9 reverse circulation holes for 1388m are reported herein. • Drill chip samples were taken at dominantly 1m intervals. When multiple metre intervals were sampled, a riffle split of each metre interval was conducted with the split portions then being combined to produce a composite sample. • Where mineralisation was anticipated or encountered, the sample length was reduced to 1m with lab submission of the 1m samples. • For Lady Rose, the average sample length and weight for the assays reported herein is 1.6m and 3.3kg respectively. • For Kings-Charlotte, the average sample length and weight for the assays reported herein is 1.7m and 3.1kg respectively. • All samples submitted for assay underwent fine crush with 1kg riffled off for pulverising to 75 microns. • Samples were submitted to SGS in Townsville for: • Fire Assay with AAS finish for gold. • 4 acid digest followed by ICP-MS and ICP- OES for a 49 element suite. • Portable XRF analysis was conducted in the field on each 1m interval. • Reanalyses will be conducted as required to investigate element repeatability.

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Criteria	JORC Code explanation	Commentary
Drilling techniques	Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, 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).	• Holes were drilled by DDH1 drilling using a Sandvik DE840 (UDR1200) drilling rig. • The holes were drilled by the reverse circulation method. The reverse circulation technique which uses a face sampling hammer to reduce contamination. KALMAN WEST ROCK CHIP SAMPLING • The high gold grade rock chip sample was located through the use of a metal detector. • 110 grams was collected from the auriferous portion of the vein and submitted to ALS for analysis via fire assay with gravimetric finish. The sample was also subject to ICP analysis for multiple elements including Silver. The maximum detection limit of 3000ppm for the ICP method was exceeded, and the sample remnant has been shipped to Vancouver for final determination. • Follow up sampling was undertaken in a costean put in at right angles to the strike of the quartz vein. • Sampling at meter intervals along the costean delineated a 8m wide zone grading at 0.6g/t Au (0.1g/t Au cut-off). Within this 8m zone there was a 2m wide zone grading at 1.25g/t Au. • The costean samples were analysed via FireAssaywith AASfinish for Au.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	DRILLING • Sample recoveries were generally in excess of 80%. Recoveries are typically low in the first 5m of each hole. • In holes where recovery or significant sampling bias was observed, the hole was terminated. • No sample recovery bias has been noted.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	DRILLING • All drilling was geologically logged by Hammer Metals Limited Geologists. • Quantitative portable XRF analyses were conducted on metre intervals on site. • All metres were drilled were analysed by the lab methods listed above.

Page 14 of 20

Criteria	JORC Code explanation	Commentary
Sub- sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the insitu material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.	DRILLING • Samples consist of RC drill chips. • Samples from the hole were collected by a three-way splitter with A and B duplicates taken for every sample. • Samples were taken at dominantly one metre intervals however when 2 or 4 metre composites were created, samples were composited by riffle splitting material from each one metre sample bag. • Where evidence of mineralisation was encountered or anticipated, the sample length was reduced to 1m. • Sample collection methodology and sample size is considered appropriate to the target-style and drill method, and appropriate laboratory analytical methods were employed. • Standard reference samples and blanks were each inserted into the laboratory submissions at arate of 1per 25 samples.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, 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.	DRILLING • Each metre drilled was subject to site portable XRF analysis. • All samples were analysed for gold by flame AAS using a 30gm charge. • Each sample was also analysed by 4-acid multielement ICP OES and MS. • Standard reference samples and blanks were inserted at 20 sample intervals. SGS also maintained a comprehensive QAQC regime, including check samples, duplicates, standard reference samples, blanks and calibration standards. KALMAN WEST ROCK CHIP SAMPLING • The initial sample was submitted to ALS for analysis via fire assay with gravimetric finish. The sample was also subject to ICP analysis for multiple elements including Silver. The maximum detection limit for the ICP (3000ppm Ag) method was exceeded and the sample remnant has been shipped to Vancouver for final determination. • Follow up sampling was analysed via Fire Assaywith AASfinish for Au
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes.	• All assays have been verified by alternate company personnel. • Assay files were received electronically from the laboratory.

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Criteria	JORC Code explanation	Commentary
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. _Discuss any adjustment to assay data. _
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.	• Datum used is GDA 94 Zone 54. • RL information will be merged at a later date utilising the most accurately available elevation data.
Data spacing and distribution	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been _applied. _	DRILLING • The drill density is not sufficient to establish grade continuity. • The average grade has been utilised where multiple repeat analyses have been conducted on a single sample.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	DRILLING • Drill holes were oriented as close to perpendicular as possible to the orientation of the targets based on interpretation of previous exploration, however true width estimations will not be conducted until there are two drill hole intersections present on each section.
Sample security	The measures taken to ensure sample security.	• Pre-numbered bags were used, and samples were transported to SGS in Townsville by a commercial carrier. Samples were packed within sealed bulka bags.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	• The dataset associated with this reported exploration has been subject to data import validation. • All assay data has been reviewed by two company personnel. • No externalauditshave beenconducted.

Section 2 Reporting of Exploration Results

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

Criteria	**JORC Code explanation **	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites,	• The Mt Isa Project consists of 28 tenements. • The drilling reported herein was conducted on EPM26130 (Kings-

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Criteria	**JORC Code explanation **	Commentary
	wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Charlotte) and 26904 (Lady Rose). The high-grade god-bearing rock chip location is located on EPM013870 (Kalman West). These tenements are held by Mt Dockerell Mining Pty Ltd, a 100% owned subsidiary of Hammer Metals Limited. • Some drilling from the current program will be conducted on the Mt Isa East Joint Venture with JOGMEC, however none is reported herein. • JOGMEC has the right to earn a 60% interest by expending $6,000,000 by 31 March 2024 with a minimum expenditure commitment of $1,000,000 by 31 March 2020. No proportional ownership change occurs until such time as the $6,000,000 is expended and the current JOGMEC interest is 0%. • See ASX announcement dated 25 November 2019, for details of the Joint Venture.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	• Previous holders held title either covering the tenement in part or entirely and previous results are contained in Mines Department records. • At Neptune, Hammer Metals has reported work conducted by Paradigm Metals Limited. • The Neptune Group of prospects (formerly known as “The Ladies”), was drilled by Paradigm Metals Limited in 2014. The drilling conducted on EPM19016 was reported to the ASX on 7 January 2014 under ASX code PDM. The reporting was conducted under JORC 2012. Hammer Metals has reviewed Paradigm Metals ASX releases, and the underlying data and it is the opinion of the Hammer Metals CP that these data are reliable. Please refer to HMX ASX announcement dated 9 March 2021 for details of this drilling. • Paradigm also conducted soil sampling which has been shown on figures illustrating the location of Hammer Metals Drillholes. The primary date relating to this survey was provided to the Queensland Government (see below). Hammer has reviewed this data and it is the opinion of the Hammer metals CP that this data is reliable.

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Criteria	**JORC Code explanation **	Commentary
		• Paradigm also conducted a ground gravity survey over the Neptune area and as with the soil survey data, the gravity data was provided to the Queensland Government. Hammer has reviewed this data, processed and presented the modelled gravity on the Neptune geological plan. It is the opinion of the Hammer metals CP that this data is reliable • The data was submitted to the Queensland Government and reports are accessible through CR82817, CR89860 and CR95871.
Geology	Deposit type, geological setting and style of mineralisation.	• The Kings-Charlotte Prospect is located in the Malbon region close to the northern boundary of the Williams-aged Wimberu Granite. Mineralisation is hosted in association with structurally controlled quartz vein zones. Cobalt is a significant ancillary mineral in the mineral system in the region. The Lady Rose Prospect is located in the Mary Kathleen fold belt approximately 4km to the west of the Trafalgar Prospect. Mineralisation is hosted in association with Quartz- Carbonate vein zones on lithological contacts displaying strong rheological contrast. • The Kalman West Prospect is located approximately 50m to the west of the Kalman Cu-Au-Mo-Re Deposit. The Kalman West Prospect is located in a west dipping shear zone which has formed as a splay structure to the Pilgrim Fault. The shear contains abundant graphitic metasediments which are anomalous in Pb-Zn. This zone is also the site of abundant quartz- dominant veining which can be gold- bearing.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length.	• See the attached tables.

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Criteria	**JORC Code explanation **	Commentary
	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 aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly _stated. _	• Intercepts are quoted at a 0.2% Cu and/or 0.1g/t Au cut-off with included intercepts highlighting zones of increased copper and/or gold and cobalt grade.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole _length, true width not known’). _	DRILLING • The relationship between intersected and true widths for both prospects drilled is not known with certainty until further drilling has been conducted.
Diagrams	Appropriate maps and sections (with 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. _	• See attached figures.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced avoiding misleading reporting of Exploration Results.	DRILLING • Intercepts are quoted at a 0.2% Cu and/or 0.1g/t Au cut-off with included intercepts highlighting zones of increased copper and/or gold and cobalt grade. • Portions of a drillhole that are not quoted in the intercept table contain grades less that the quoted cut-off. KALMAN WEST ROCK CHIP SAMPLING • In this release Hammer Metals notified the market in relation to an exceptionally high-grade rock chip result atKalman West.

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Criteria	**JORC Code explanation **	Commentary
		• Follow up sampling is also documented in the release, and this noted that the occurrence was in a quartz vein type which was <5cm in thickness. Costean sampling across this vein in close proximity to the gold occurrence failed to repeat the high grades encountered in the initial sample. • This style of nuggetty gold occurrence shows an extremely high variation in tenor and the lack of repeatability is to be expected. The follow up drilling underneath the occurrence will be a further check of the vein tenor and extent.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): 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. _	• All relevant information is disclosed in the attached release and/or is set out in this JORC Table 1.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• Drilling is ongoing.

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