HAMMER METALS LIMITED — Capital/Financing Update 2021

Jun 21, 2021

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ASX RELEASE 22 June 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

HIGH-GRADE COPPER AND GOLD CONFIRMED AT LAKEVIEW (100% HMX)

• Copper and gold intersections confirm near surface high-grade mineralisation over a 350m strike length and remains open along strike and at depth at the 100% owned Lakeview Project

• All four holes drilled at Lakeview have intersected copper and gold mineralisation at shallow depths. Significant intersections include:

• 10m at 1.97% Cu and 0.42g/t Au from 23m including 2m at 4.58% Cu and 0.95g/t Au from 26m in HMLVRC003; and

• 8m at 1.97% Cu and 0.24g/t Au from 42m including 5m at 2.9% Cu and 0.32g/t Au from 43m in HMLVRC001;

• 17m at 1.05% Cu and 0.39g/t Au from 29m including 8m at 1.82% Cu and 0.76g/t Au from 38m in HMLVRC004.

• Initial results highlight the potential at Lakeview as well as along the extensive magnetic trend, which runs for 14km from Trafalgar to the copper and gold deposits at Elaine (100% HMX) and Jubilee (51% HMX)

• Sulphide mineralisation, including chalcopyrite, has also been observed in drilling at the Lady Rose (Neptune area) and Kings/Charlotte prospects . Samples from drilling have been submitted to the laboratory with assays expected to be completed in early July

• The current drilling program will be extended with a return to Lakeview scheduled towards the end of the program to test for extensions of the mineralised zone

CAPITAL STRUCTURE

ASX Code: HMX

Share Price (21/06/2021) $0.097 Shares on Issue 807m Market Cap $78m Options Unlisted 27m Performance Rights 6.5m

• The Company is approximately halfway through its planned 4,000m RC drilling program of 24 holes across the Company’s 100% owned projects, together with the Trafalgar copper gold discovery within the JOGMEC Joint Venture

Mount Isa East JOGMEC JV (JOGMEC earning 60% interest)

• Drilling at the Trafalgar project has now commenced, concentrating on testing extensions to previously reported significant intersections:

• 55m at 1.12% Cu and 0.30g/t Au from 119m including 16m at 1.77% Cu and 0.49g/t Au from 149m; and

• 60m at 1.04% Cu and 0.25g/t Au from 64m including 6m at 2.38% Cu and 1.45g/t Au from 91m.

Hammer’s Managing Director, Daniel Thomas said:

“This is a great result from the first four holes targeted at a 100% HMX prospect on the broader Trafalgar trend. To see mineralisation over a 350m strike extent at Lakeview is an extremely encouraging start to the current drilling program. A follow up program at Lakeview has been designed with drilling to be completed towards the conclusion of the current program – likely end June. The team is also encouraged by the copper mineralisation observed at the Lady Rose and Kings/Charlotte prospects. Whilst assays are awaited, follow up programs for both prospects are also being considered.”

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 initial results from its reverse circulation drilling program in our Mount Isa east project area. The program is drilling 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.

Results have been reported for an initial 4-hole program at its 100% owned Lakeview prospect. The aim of the initial program was to test the nature of mineralisation adjacent to historical workings. Further drilling along the mineralised trend and at depth is planned.

Significant results include:

• 8m at 1.97% Cu and 0.24g/t Au from 42m including 5m at 2.9% Cu and 0.32g/t Au from 43m in HMLVRC001;

• 10m at 1.97% Cu and 0.42g/t Au from 23m including 2m at 4.58% Cu and 0.95g/t Au from 26m in HMLVRC003; and

• 17m at 1.05% Cu and 0.39g/t Au from 29m including 8m at 1.82% Cu and 0.76g/t Au from 38m in HMLVRC004.

Lakeview

The Lakeview prospect is marked by workings along an approximate 350m strike length. Production records indicate that the former prospect was worked in the 1960’s and early 1970’s with 1,213 tons of ore extracted at a 16% Cu grade. The lode forms a distinctive sigmoidal shape with shafts being present on the long limbs of the prospective structure.

The prospect remains largely untested with one hole being drilled at the prospect by Pimex in 1988 (ATP4304M). Reconnaissance rock chip sampling previously conducted by Hammer at the prospect yielded maximum individual grades of 1.5% Cu and 1.48g/t Au. (See ASX announcement dated 20 April 2018). The rock chip results highlight that the Lakeview prospect has a strong gold response in relation to copper. A total of four holes were drilled totalling 300m to initially test this prospect.

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Figure 1. Comparison of quartz-sulphide mineralisation from Lake View surface dumps (left) with sieved chips from HMLVRC001, interval 44-45m assayed at 4.65% Cu and 0.52g/t Au (right)

Table 1. Lakeview Significant Intercepts primarily utilising a 0.2% Cu cut-off

	MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0	MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0	MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0	MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0	MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0	MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0	MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0	.2% Cu Cut-Off	Grade)	Grade)
Target	Hole	E_GDA94	N_GDA94	RL	TD	Dip	Az_GDA		From	To	Width				Cu % ^	Aug/t ^^
Lakeview	HMLVRC001	398774	7696152	342.5	78	-55	180		13	14	1				0.24	0.05
								Envelope	42	50			8		1.97	0.24
								incl.	43	48		5			2.90	0.32
									57	58	1				0.22	0.08
									73	74	1				0.07	0.11
	HMLVRC002	398675	7696159	336.2	66	-55	188		15	17	2				0.00	0.17
									19	24		5			0.43	0.12
	HMLVRC003	398560	7696029	338.4	60	-55	180	Envelope	23	33	10				1.97	0.42
								incl.	26	28	2				4.58	0.95
								incl.	27	28	1				6.60	1.61
	HMLVRC004	398600	7696048	339.5	96	-55	166		14	15	1				0.28	0.01
								Envelope	29	46	17				1.05	0.39
								incl.	38	46			8		1.82	0.76
								incl.	44	45	1				3.68	2.10
									53	54	1				0.22	0.04
									66	67	1				0.24	0.03
									85	87	2				0.62	0.06
									90	92	2				0.44	0.06
Note
^ - Average analy	sis utilised where more than one readingconducted.
^^ - Average ana	lysis utilised where more than one readingconducted. High variabilityin Au repeat analyses indicat							es thepossibl	epresence of coarse Au
Coordinates and	azimuth relative to GDA 94 Zone 54. RL Derived from a Drone DTM. Both coordinates and RL to be re							surveyed usin	gDGPS at the conclusion of t		heprogram

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Figure 2. Lakeview eastern shaft which records indicate is approximately 28m deep

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Figure 3 . Trafalgar Trend extending into Hammer’s 100% owned project areas showing the location of the Lakeview prospect approximately 7km to the north of Trafalgar. (Note: the HMX Mineral Resource Estimates shown are all inferred)

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Figure 4. Plan view of the Lakeview Prospect

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Figure 5. Long section looking north through the Lakeview Prospect

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Figure 6. HMLVRC001 Cross Section. The follow up site Lv7 is currently being considered.

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Figure 7. HMLVRC003 Cross Section. The follow up site Lv6 is currently being considered.

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Lady Rose (Neptune)

Drilling has been completed at Lady Rose with three holes drilled at the prospect for a total of 728m. Sulphide mineralisation (including chalcopyrite) was observed in all three holes with samples now dispatched to the laboratory for assay. The southern and northern holes at the prospect have been cased with PVC to enable a future down hole electromagnetic survey (“DHEM”) (see Figure 8).

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Figure 8. Drilling at Lady Rose Extended

Kings/Charlotte/Alice

Six holes for 660m were completed at these prospective targets on the Malbon tenement. Visual sulphides including chalcopyrite were observed in four of the holes. Samples have been submitted to the laboratory with assays likely to be completed in early July. (see Figure 9)

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Figure 9. Mt Isa Project tenements

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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 in 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 EPM26775, a tenement held by Mt Dockerell Mining Pty Ltd, a 100% owned subsidiary of Hammer Metals Limited.

• 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.	• 4 reverse circulation holes for 300m 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. • The average sample length and weight for the assays reported herein is 1.3m and 2.8kg 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.
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 four holes were drilled by the reverse circulation method. The reverse circulation technique which uses a face sampling hammertoreduce contamination.

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Criteria	JORC Code explanation	Commentary
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/gainof fine/coarse material.	• 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. _	• 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.
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.	• 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.	• 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 25 sample intervals. SGS alsomaintained a comprehensive QAQC

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Criteria	JORC Code explanation	Commentary
	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. _	regime, including check samples, duplicates, standard reference samples, blanks and calibration standards.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. _Discuss any adjustment to assay data. _	• All assays have been verified by alternate company personnel. • Assay files were received electronically from the laboratory.
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. _	• 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.	• 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 per 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.

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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, 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.	• The Mt Isa Project consists of 28 tenements. • The drilling reported herein was conducted on EPM26775 which is 100% owned by 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.
Geology	Deposit type, geological setting and style of mineralisation.	• The Lakeview Prospect is located on the Trafalgar to Jubilee trend approximately halfway between the two prospects. • Mineralisation along this trend is associated with magnetic highs and is located close to the boundary between the Ballara Quartzite and the Corella Formation. • Copper is present as Chalcopyrite. There is a Cu-Au association at Lakeview and this is also seen at the Jubilee Cu-Au deposit located along this trend to the north.
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	• See the attached tables.

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Criteria	**JORC Code explanation **	Commentary
	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 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 cut- off with included intercepts highlighting zones of increased Copper and/or Gold 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’). _	• The relationship between intersected and true widths for Lakeview 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.	• Intercepts are quoted at a 0.2% Cu cut- off with included intercepts highlighting zones of increased Copper and/or Gold grade. • Portions of a drillhole that are not quoted in the intercept table contain grades less that the quoted cut-off.
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	• All relevant information is disclosed in the attached release and/or is set out in this JORC Table 1.

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Criteria	**JORC Code explanation **	Commentary
	results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating _substances. _
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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