HAMMER METALS LIMITED — Capital/Financing Update 2021

Mar 8, 2021

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ASX RELEASE 9 March 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 (08/03/2021) $0.105 Shares on Issue 750m Market Cap $79m Options Unlisted 27m Performance Rights 6.5m

HAMMER TO ACCELERATE MOUNT ISA EXPLORATION ACTIVITIES

Hammer’s 100% Mount Isa Project Area

• Multiple exploration programs being initiated to accelerate Hammer’s 100% owned Mount Isa copper and gold interests

• Drilling program expected to commence in April including prospects at:

• Lakeview , located ~ 7km along trend from Trafalgar and has historical artisanal mining shafts and outcropping copper/gold mineralisation ;

• Kings and Charlotte , surface copper and gold anomalism with key structural targets defined through mapping, located at Malbon; and

• Serendipity (south of Kalman) situated in a similar structural position to Hammer’s Kalman deposit

• Second phase drill program considered for H2 2021 to potentially explore prospects at Black Rock, Sunset, Smoko Gossan, Tiny Boot and the Neptune group of prospects

• Review of historical exploration activities near the Trafalgar discovery has unearthed several high-ranking priorities including the Neptune prospects (previously referred to as “The Ladies”) only 2km south-west of Trafalgar

• Previous owner’s last drilling in 2014 at the Neptune project , which have not been followed up , include[1] :

• 15m at 2.0% Cu and 0.34g/t Au from 17m (oxide) including 2m at 11% Cu and 1.85g/t Au in LKTPDM001 at the Lady Kate prospect

• 28m at 0.70% Copper and 0.14g/t Au from 72m (sulphide) including 6m at 1.5% Cu and 0.28g/t Au from 90m in LMTPD005 at the Lady Rose prospect

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

• Further on-ground prospecting and field mapping of the Trafalgar trend has identified several highly prospective targets with historical workings including multiple pits and shafts over a 3km zone corresponding with anomalous soils and magnetics. Maximum rock chip grades of 20.9% Cu and 1.12g/t Au recorded along strike to the south

• Phase 2 of the JV has been completed with final assays from drilling conducted on the Mt Philp JV area in January 2021. Intercepts include:

• 1m at 0.3% Cu, 49g/t Ag and 0.3% Zn from 50m in HMCHRC001 at Charlie; and

• 5m at 0.18% Cu and 0.11g/t Au from 106m in HMTBRC003 at Alpha

• The Joint Venture is developing a follow up drilling program to extend the known copper and gold mineralisation at Trafalgar with the potential aim of delineating a JORC compliant resource in 2021

• A continuation of the broader JV Exploration program is also being examined by the JV with plans expected to be finalised by the end of the month

1 The Neptune Group of prospects (formerly known as “The Ladies”), was drilled by Paradigm Metals Limited in 2014. 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 JORC Table 1 for details of this drilling.

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’s Managing Director, Daniel Thomas said:

“After a tremendous start to our year in Mount Isa, the team is eager to return and aggressively explore the trends surrounding the Trafalgar discovery. The magnetic trends that extend from the northern extent of our JOGMEC Joint Venture area continue through to Hammer’s JORC defined resources at Jubilee and Elaine. Further copper prospectivity is illustrated in various surface copper expressions along this trend and continue up through to our Sunset and Blackrock prospects. These areas have the potential to contribute resources to the Trafalgar discovery and set the company for an aggressive and exciting exploration program in Mount Isa in 2021. Ready to drill prospects at Lake View, Kings, Charlotte and Alice will be tested in a program commencing in April whilst we continue to evolve our exploration targets through a combination of historical data reviews and on ground reconnaissance along and around the prospective Trafalgar trend.”

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Figure 1. View of Hammer’s Mount Isa Northern Hub Copper Resources and Prospects

Hammer Metals Ltd ( ASX:HMX ) (“ Hammer ” or the “ Company ”) is pleased to provide an update on exploration at the Mt Isa Copper Project which includes the Mt Isa East Joint Venture area (“ JOGMEC JV ”). Following the discovery of the Trafalgar Copper gold deposit, the company has accelerated its review of the mineral potential surrounding Trafalgar. Several field visits and a historical data review has highlighted several targets in the region and planning for upcoming drill testing has advanced.

Drill ready targets at Kings, Charlotte, Serendipity and Lakeview are expected to be tested in the drilling program commencing in April 2021. Targets at Blackrock, Sunset and Neptune will be considered for a second phase drilling program later this year.

In the Mount Isa East JOGMEC Joint Venture, final assays for drilling conducted in December 2020 and January 2021 have been received. This program included the first holes drilled into the Trafalgar copper gold discovery announced to the ASX on 20 January and 9 February 2021. The Joint Venture is examining the best path forward for the prospect. Additional drilling was conducted at the Alpha, Charlie, Juliett, Shadow, and Toby East prospects with results reported herein.

This drilling program completes the second-year program (Program Year End - 31 March 2021) for the JOGMEC JV. Under the terms of the Joint Venture, Japan Oil, Gas and Metals National Corporation (“JOGMEC”) is required to expend a minimum of $1m in exploration expenditure in the third year of the program. JOGMEC does not earn an interest in the project until it has incurred $6 million in exploration expenditure (see ASX announcement 25 November 2019). The Joint Venture is in active discussion in relation to the third-year work program.

Hammer’s 100% Mount Isa Project Area – Trafalgar Trend and Surrounds

The Trafalgar mineralised trend is defined by extensive copper-gold soil anomalism, strong magnetic responses and multiple historic workings over a significant strike length. Based on Hammer’s review the trend has been subject to little systematic exploration. The scale of the mineralised system and the nature of the alteration and mineralisation present provides encouragement for locating new copper-gold zones along the trend.

Within the Mt Isa East Joint Venture this trend is exposed for 6.5km. The trend extends into 100% Hammer controlled tenements where it is marked by the historical workings at Pearl, Lakeside and Smoko Gossan. (See Figure 6). The zone then passes through the Lakeview Prospect before trending up to the Jubilee Deposit. Hammer intends to drill test this trend in April.

Lakeview

The Lakeview prospect is marked by workings along an approximate 500m strike length. Three shafts are present with depths of 24m, 30m and 28m. Production records indicate that the former prospect was worked in the 1960’s and early 1970’s with 1213 tons of ore extracted at a 16% Cu grade.

The prospect remains largely untested with one hole being drilled at the prospect by Pimex in 1988 (ATP4304M). In 2015, Hammer conducted reconnaissance rock chip samples at the prospect with maximum individual grades of 1.5% Cu and 1.48g/t Au. (Refer to ASX announcement dated 20 April 2018)

Hammer has planned 4-8 holes to test this prospect in a drilling program expected to commence in April.

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Figure 2. Lakeview Overhead View of Southern Shafts

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Figure 3. Lakeview prospect showing shafts (with depth) and the schematic lode position

The Neptune Group of Prospects

The prospects are located approximately 2km to the west of Trafalgar in an area of complex magnetic anomalism with multiple copper prospects (Figure 1). The northern portion of the anomaly is within the Mt Isa East Joint Venture whist the southern portion is within Hammer’s 100% held tenement EPM26904 (Figures 4 and 5).

This zone is part of a 16km magnetic trend that marks the contact between the Corella Formation and the Ballara Quartzite. In the north the contact hosts mineralisation at Black Rock, Sunset, Mountain View and Roseberry.

The southern portion of the Neptune aeromagnetic anomaly is located within Hammer tenements at Neptune and Secret. Further to the east a similar magnetic anomaly marks the position of mineralisation at Trafalgar, Pearl, Lakeview and in the north of the area it is associated with the Jubilee Cu-Au resource (see ASX announcement dated 20 December 2018).

The group of prospects formerly called The Ladies (Lady Kate, Lady Amy and Lady Rose) was drilled by Paradigm Metals Limited in 2014.[2] Mineralisation is associated with magnetite alteration and this shows strong similarities to mineralisation at Trafalgar, Black Rock and the Jubilee Cu-Au resource. This style of mineralisation and alteration is typical of IOCG systems in the Mt Isa region.

Significant intercepts at the Lady Kate prospect included:

• 15m at 2.0% Cu and 0.34g/t Au from 17m (oxide) including 2m at 11% Cu and 1.85g/t Au in LKTPDM001

2 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 JORC Table 1 for details of this drilling. The data was also submitted to the Queensland Government and reports are accessible through CR82817, CR89860 and CR95871.

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Drilling at the Lady Rose prospect intersected two zones of mineralisation including:

• 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% Copper and 0.14g/t Au from 72m (sulphide) and

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

A full intercept listing is present in Table 1.

Table 1. The Neptune Group - Significant intercepts at a 0.2% Copper cut-off

THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	THE LADIES - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)
Target	Hole	**E_GDA94 **	N_GDA94	RL	TD	Dip	Az_GDA		From	To	Width				Au(g/t)^		Cu(%)^
Lady Kate	LKTPDM001	393909	7688442	410	78	-60	96		17	32		15			0.34		2.01
								incl.	22	24	2				1.85		11.00
Lady Kate	LKTPDM002	393929	7688430	411	132	-57	294		27	45		18			0.10		1.03
								incl.	38	41	3				0.	84	2.07
									85	122	37				0.03		0.23
LadyKate	LKTPDM003	393948	7688515	408	162	-60	146		43	45	2				0.17		0.72
LadyAmy	LKTPDM004	393692	7687699	453	114	-60	226		No Significant Intercepts
Lady Rose	LKTPDM005	393269	7688119	405	150	-60	116		0	16		16			0.04		0.51
									44	100	56				0.10		0.44
								incl.	72	100	2		8		0.14		0.7
								incl.	90	96	6				0.28		1.5
Lady Rose	LKTPDM006	393249	7688045	405	180	-60	116		50	66		16			0.15		0.33
									82	86	4				0.14		1.99
Note
Data Sourced from Paragim ASX release dated 7/1/2014,released under the JORC 2012 Code
Determination of true width notpossible from information currentlyavailable
Coordinates and azimuth relative to GDA 94 Zone 54

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Figure 4. The Neptune Group of prospects on an Aeromagnetic RTP Image

Page 5 of 27

Black Rock and Sunset

At the northern end of the aeromagnetic anomaly are the Sunset and Black Rock prospects. These also occur on a mineralized trend termed the Wonga detachment surface with mineralisation appearing on or close to the surface. This trend is largely located along lithological boundaries and has been an important channel-way for hydrothermal fluids during mineralising events in the Mary Kathleen Fold Belt. (See ASX Announcement 30 October 2018).

The Sunset Prospect occurs in a shear zone typified by the presence of remobilized carbonate. Mineralisation occurs as multiple stacked lenses which were mined by narrow vein methods. Drilling has delineated mineralisation over a 700m strike length. Significant intercepts include:

• 24m at 1.41% Cu and 0.49g/t Au from 10m including 4m at 4.57% Cu and 2.74g/t Au from 16m in CAMC004;

• 17m at 1.40% Cu and 0.38g/t Au from 35m including 8m at 2.66% Cu and 0.18g/t Au from 40m in CAMC015; and

• 14m at 2.57% Cu from 21m in CR07002.

The Black Rock Prospect is hosted within a magnetite-hematite altered fractured quartzite. Mineralisation occurs as quartz stockwork veining with pyrite-chalcopyrite (+ hematite-magnetite). Mineralisation has been delineated by wide spaced drilling over a 1.2km strike length with a mineralised envelope true width of up to 60m. Detailed examination of this mineralisation indicates it is possibly of IOCG style. Significant intercepts include:

• 78m at 0.54% Cu and 0.13g/t Au from 140m in CAMD003;

• 94m at 0.44% Cu from 159m in DDH-PN1 (no gold assays); and

• 98m at 0.30% Cu including 3m at 4.05% Cu and 0.59g/t Au from 85m in CAMC033.

Hammer acquired these projects in late 2018 and is yet to recommence exploration. However, a detailed plan to verify historical exploration work and test extensions of mineralisation is currently being developed and is likely to feature in a second phase drilling program in the second half of 2021.

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Figure 5. Black-Rock and Sunset Deposits

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Figure 6 . Trafalgar Trend extending into Hammer’s 100% owned project areas showing the location of Pearl, Lakeside, Smoko Gossan and Lakeview prospects approximately 7km to the north of Trafalgar.

Page 7 of 27

Hammer’s 100% Mount Isa Project Area – Malbon Area

Kings-Charlotte Region

The Kings and Charlotte region is characterised by outcropping copper and gold mineralisation with numerous anomalous soil geochemical responses (See Figure 7, 8 and 9). Quartz vein hosted mineralisation at the Kings Prospect is related to the intersection between east-west trending structures and a main north-south trend. Rock chip and soil anomalism indicates that mineralisation extends for over 300m in multiple parallel shoots, which are individually up to 40m in thickness. Historic soil sampling identified broad zones of copper, gold, cobalt, phosphorous and iron levels in soil and high-grade copper and gold in rock chip samples. This prospect has not been previously drilled.

Towards the southern extent of the 700m long Kings trend, the structure intersects with the east-west trending Charlotte zone. The Charlotte trend shows similar structural controls in the form of intersecting northeast trending quartz veins however the controlling structure is a prominent east-west trending silicified shear zone which extends for over 1km. Mineralised quartz-chalcopyrite veins occur on the southern margin of the shear zone and are associated with strong chlorite-epidote alteration. Historic soil sampling defined coincident Co, As, Fe and P anomalies associated with the Charlotte trend. Additionally, recent mapping by Hammer highlights evidence of ductile shearing and anomalous gold in rock chip samples (of up to up to 0.63g/t) associated with the centre of the structure away from the main copper mineralisation.

The Hammer Metals and historic exploration results were previously reported to the ASX on dated 8 May 2019. Hammer has validated the historic exploration results and the company believes the data are valid.

The Kings-Charlotte region has not been drilled by former explorers and Hammer believes the structural setting at Kings and Charlotte is repeated at prospects such as Speculation and Pioneer Prince. Hammer has planned 5-10 holes to test this prospect during an expected April drilling program.

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Figure 7. Oblique view of the Kings Trend above the intersection zone with the Charlotte trend. The intersection is marked by a southeast plunging mineralised shoot.

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Figure 8. Soil anomalism from the Kings-Charlotte region

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Figure 9. Rock Chip anomalism from the Kings-Charlotte region

Mt Isa East JOGMEC Joint Venture

Trafalgar

The Trafalgar Cu-Au prospect is located on the regional scale Fountain Range Fault. No previous drilling is known to have been done at Trafalgar.

The Joint Venture has drilled four holes with results previously reported to the market on 20 January and 9 February 2021. This first pass drilling has delineated Cu-Au mineralisation of up to 30m in true width.

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Significant intersections in this first program included:

• 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 in HMTRRC001 with maximum individual grades of 1.96g/t Au and 3.2% Cu; 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 in HMTRRC002 with maximum individual of 3.22g/t Au and 7.58% Cu.

This drilling has highlighted the potential of Trafalgar and an examination of magnetic and electromagnetic datasets indicates that the mineralised trend continues for over 2.7km to the north and 1km to the south. Recent reconnaissance rock chip sampling along strike to the south has reported individual maximum rock chip grades of 20.9% Cu, 1.12g/t Au and 0.05% Co (Figure 13). Strongly elevated levels of rare earth elements such as Ce and La indicate that the mineralisation may have genetic links to IOCG deposits such as Ernest Henry. The occurrence of both pyrrhotite and magnetite associated with mineralisation indicates that the aeromagnetic and electromagnetic survey data will aid in target definition.

The Joint Venture will thoroughly review the exploration results at Trafalgar with a view to developing a thorough exploration program to extend the Trafalgar deposit in addition to testing the potential along the greater Trafalgar trend.

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Figure 10. Aerial view of the Trafalgar prospect looking south.

Shadow, Toby and Charlie

Drilling was also conducted at the Shadow (2 holes), Alpha, Juliett, Bravo and Charlie Prospects (see Figure 11).

At Shadow two holes for 399m were drilled approximately 180m north of HMSHDD001. The aim of the holes was to test the northern extent of the Shadow Prospect in the area with the highest magnetic response. The drilling encountered low levels of Cu and Au anomalism with the most elevated response of:

• 3m at 0.43% Cu and 0.14g/t Au from 104m in HMSHRC001

Page 11 of 27

The Shadow prospect occurs at the northern end of a 4.7km long anomalous trend marked by elevated Cu, Au and magnetic responses. The Joint Venture will now progress to test drill targets further south along this trend.

Three holes were drilled for 792m at the Alpha, Bravo and Juliett prospects. At the Bravo prospect HMTBRC002 tested a subvertical EM plate defined in mid-2020. This hole intersected graphite rich carbonaceous metasediment which is likely the source of the conductive response. HMTBRC001 and HMTBRC003 were designed to test anomalous soil responses at the Juliett and Alpha prospects. HMTBRC003 intersected:

• 5m at 0.18% Cu and 0.11g/t Au from 106m and 1m @ 0.21% Cu and 0.14g/t Au from 131m

At Charlie, the Joint Venture drilled one hole (HMCHRC001) to test beneath a Cu-Zn-Ag gossanous zone. The hole intersected a weakly mineralised zone of sulphide mineralisation from 51m with a significant result of 1m at 0.3% Cu, 48.7g/t Ag and 0.3% Zn over 1m.

The Joint Venture is currently interpreting these results.

Table 2. Significant intercepts at a 0.2% Copper cut-off

	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)	MOUNT ISA PROJECT - SIGNIFICANT INTERCEPTS(UTILISING A 0.2% Cu CUT-OFF)
Target	Hole	**E_GDA94 **	N_GDA94	RL	TD	Dip	Az_GDA		From	To	Width		True Width Estimate*	Au (g/t)^	Cu (%)^
Trafalgar	HMTRRC001	396225	7689417	335	187	-70	310		79	80	1			0.19	1.05
								Envelope	103	176	73		18	0.24	0.90
								incl.	103	113	10			0.09	0.29
								incl.	104	105	1			0.17	0.70
								&	112	113	1			0.15	0.63
								Incl.	119	174	55		14	0.30	1.12
								incl.	149	165	16			0.49	1.7		7
	HMTRRC002	396167	7689316	352	181	-55	329	Envelope	64	124	60		32	0.25	1.04
								incl.	88	107	19		10	0.56	2.12
								incl.	91	97	6			1.45	2.38
									127	129	2			0.10	0.38
	HMTRRC003	396141	7689426	339	136	-60	129		0	4	4			0.18	0.25
								Envelope	29	44	15		10	0.15	0.63
								incl.	29	30	1			0.21	1.01
								&	40	43	3			0.29	1.7		1
									47	48	1			0.04	0.21
									51	52	1			0.05	0.49
								Envelope	92	107	15		10	0.35	1.15
								incl.	95	97	2			1.33	3.17
								&	101	107	6			0.36	1	.44
	HMTRRC004	396224	7689518	340.1	120	-60	123		28	29	1			0.05	0.31
									37	38	1			0.06	0.31
									39	40	1			0.06	0.20
									45	46	1			0.05	0.23
									58	59	1			0.07	0.43
								Envelope	64	74	10		6	0.18	0.59
								incl.	64	65	1			0.11	1.03
								&	68	69	1			0.50	1.15
									104	106	2			0.50	0.32
Shadow	HMSHRC001	390105	7678810	406	199	-60	87		12	13	1		^^	0.16	0.13
									104	107	3		^^	0.14	0.43
								incl.	104	105	1		^^	0.31	0.85
	HMSHRC002	389992	7678847	432	200	-60	87		124	125	1		^^	0.05	0.20
Toby Juliett	HMTBRC001	394551	7680400	353	292	-60	105				No Significant Intercepts
Toby Bravo	HMTBRC002	394990	7679881	351	300	-55	95				No Significant Intercepts
Toby Alpha	HMTBRC003	394086	7678977	374	200	-55	96		106	111	5		^^	0.11	0.18
									131	132	1		^^	0.14	0.21
Charlie	HMCHRC001	394318	7680793	395	200	-60	120		10	11	1		^^	0.07	0.29
									47	48	1		^^	0.01	0.23
									51	52	1		^^	0.02	0.30
								incl.	5		1-52 includes 48.7g/t Agand			0.3% Zn
Even Steven South	HMESRC001	396525	7685654	369	300	-55	105		120	124	4		^^	0.14	0.23
	Total				2315
	Note
	^ - Average analysis utilised w here more t							han one readingconducted
	^^ - Determination of true w idth notpossible fro							m information currentlyavailable
	* - Note that true w idths are an estimate onlyand are subject to change as a result of further										drilling
	Coordinates and azimuth relative to GDA 94 Zone 54. Default RL Utilised. Both coordinates and RL to be updated at end ofprogram

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Figure 11. Location of Mt Isa East Joint Venture prospects drilled in late 2020 and early 2021.

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Figure 12. Plan view the Trafalgar Prospect showing the location of Joint Venture Drilling.

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Figure 13. Plan view of the Trafalgar trend showing Cu in soil response ( left), Au in soil response (right)

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Figure 14. Mt Isa Project tenements

Page 16 of 27

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.

The information in this report that relates to exploration results for the Neptune Project was prepared and first disclosed by Paradigm Metals Limited (PDM) under the 2012 JORC code.

It is the opinion of Hammer Metals that the exploration data is reliable. Nothing has come to the attention of Hammer Metals that causes it to question the accuracy or reliability of the exploration results.

In the case of the prior exploration results, they have not been updated on the basis that the information has not materially changed since it was last reported. All information pertaining to the results is presented in Table 1 JORC Code 2012.

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JORC Code 2012 Edition - Table 1 report – Mount Isa Project Exploration Update

• This table is to accompany an ASX release updating the market with drilling and rock chip sampling from areas within the Mt Isa East Joint Venture Area. The current drilling program was initiated on 16/12/2020 and after a short hiatus the program restarted on 12/01/2021 and was completed on 28/1/2021. All results have now been reported.

• This drilling was conducted on tenements which form part of the Mt Isa East Joint Venture between Hammer Metals Limited and the Japan Oil, Gas and Metals National Corporation (“JOGMEC”).

• At Alice, historic exploration data noted in this and previous releases has been compiled and validated. The Hammer Metals CP has reviewed the data and is of the opinion that the exploration data are reliable.

• In relation to drilling results of Paradigm Metals Limited in their former tenement EPM19016, these results were released to the ASX under stock code PDM on 7 January 2014. The release was conducted in accordance with JORC Code 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.

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.	• Drill chip samples were taken at dominantly four metre intervals, with a riffle split from each drilled metre 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 2.35m and 3.37kg 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. •Reconnaissance rock chip sampling is reported in this release. The nature of sampling is termed grab sampling. Samples are collected across the strike of the zone of mineralisation, but sampling is not via the continuous chip method.

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Criteria	JORC Code explanation	Commentary
		•This style of sampling enables general grade and metal content to be established however it is not as representative as continuous chip sampling, costean sampling or drilling to establish grade continuity across a structure. Paradigm Metals Limited – EPM19016 Historic Drilling Data •The sampling was carried out using a reverse circulation (RC) drilling rig with 1 m samples bagged directly off the rig using a 1/8 riffle splitter with each sample weighing approximately 3 kg. Sampling intervals varied between 2m and 7m composite intervals, obtained by spearing the 1 metre riffle split sample so that the final samples weighed approximately 3 kg. Samples were split and then speared to make composites. The composite samples were pulverised to produce a 30 g charge for fire assay with an AAS finish. Other elements such as copper, iron, cobalt were obtained via ICP-AES following an aqua regia digest.
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 reverse circulation technique which uses a face sampling hammer to reduce contamination. Paradigm Metals Limited – EPM19016 Historic Drilling Data •Reverse Circulation method with drill rig unknown.
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.	• Sample recoveries were generally in excess of 80%. Recoveries are typically low in the first 5m of each hole. • In zones where recovery was compromised holes were terminated. • No sample recovery bias has been noted. Paradigm Metals Limited – EPM19016 Historic Drilling Data •Recovery of samples were visually estimated andrecordedinthelogs.

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Criteria	JORC Code explanation	Commentary
		Average recovery of the samples estimated to be 90-100%. Rarely wet samples returned lower recoveries of 50%. Holes were drilled dry with a booster. No sample biaswas observed.
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 geologists or consultants. • Quantitative portable XRF analyses were conducted on metre intervals on site. • All metres drilled were analysed by the lab methods listed above. Paradigm Metals Limited – EPM19016 Historic Drilling Data • All drill chips were geologically logged in detail by Paradigm geological consultants recording lithology, mineralogy, alteration and mineralisation, weathering, colour, and any other features of the sample to a level of detail to support appropriate studies. Small, washed samples from each one metre interval were collected and stored in a chip tray. All holes were logged in full
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 four metre intervals with samples being 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 a rate of 1 per 25 samples. •Rock chip sample weight was between 3 and 5kg per site. •No standard samples were submitted with the rock chip samples.

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Criteria	JORC Code explanation	Commentary
		Paradigm Metals Limited – EPM19016 Historic Drilling Data •All RC, 1 m samples were riffle split and bagged. The composite samples were submitted to ALS laboratory in Townsville for analysis. At least 95% of the samples were dry and easy to split in the field. In the laboratory the entire 3kg sample was pulverized so that at least 85% of the sample passes 75 microns. Sample sizes were standard for the grain size of the material being sampled.
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.	• 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 analysed 4-acid multielement ICP OES and MS. • Standard reference samples and blanks were inserted at 25 sample intervals. SGS also maintained a comprehensive QAQC regime, including check samples, duplicates, standard reference samples, blanks and calibration standards. Paradigm Metals Limited – EPM19016 Historic Drilling Data •Gold was assayed using a 30g fire assay and AAS finish by method Au-AA25 at ALS laboratories. Copper and other elements were assayed using aqua regia digestion and by ICP-AES finish by method ME- ICP41. Samples assaying over 1 % Cu by this method were re-assayed for ore grade copper method Cu-OG46. QC samples were inserted independently into the batch approximately every 10 samples. These included blanks, standards, and duplicates.
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. Paradigm Metals Limited – EPM19016 Historic Drilling Data • Significant results were checked by other seniorcompany personnel. Noholeswere

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Criteria	JORC Code explanation	Commentary
		twinned. All logging is done by hand and entered into a company database. Assay files are received electronically from the laboratory. • Hammer Metals Personnel cross checked allassayresults.
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 UTM GDA 94 Zone 54. • RL information will be merged at a later date utilising the most accurately available elevation data. •Rock chip sample locations are captured via GPS. Paradigm Metals Limited – EPM19016 Historic Drilling Data •Drill hole collars were located using a handheld GPS with an estimated accuracy of 5m. Datum used is MGA94-zone54. A down hole survey tool was used at bottom of hole to determine hole deviations.
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. Paradigm Metals Limited – EPM19016 Historic Drilling Data •The density of Paradigm drilling is insufficient to establish grade continuity •Composite sampling has been applied down the drill holes, the samples have been split and are considered representative. Drill hole spacing is not sufficient to establish a Mineral Resource.
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	• Drill holes were oriented as close to perpendicular as possible to the orientation of the targets based on interpretation of previous exploration. •Rock chip sampling is typically conducted at right angles to the strike of the host

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Criteria	JORC Code explanation	Commentary
	introduced a sampling bias, this should be assessed and reported if material.	structure. Paradigm Metals Limited – EPM19016 Historic Drilling Data •Drill holes were orientated approximately perpendicular to the strike of the mineralised structures. No sampling bias was knowingly introduced.
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. Paradigm Metals Limited – EPM19016 Historic Drilling Data Samples were bagged up at site and delivered by the company directly to the laboratory in Townsville.
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 external audits have been conducted. Paradigm Metals Limited – EPM19016 Historic Drilling Data •Paradigm undertook no audits or reviews. •Hammer Metals Personnel have cross checked all assay data utilised in the calculation of downhole intercepts.

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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 30 tenements. • The drilling reported herein was conducted on EPM26775 and EPM26776. Portions of these tenements form part of the Mt Isa East Joint Venture with Japan Oil, Gas and Metals National Corporation (“JOGMEC”). • 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. •The Malbon region (including the Kings Prospect) is located on granted licence EPM26130 held by Mulga Minerals Pty Ltd (a 100% subsidiary of Hammer Metals Limited). Paradigm Metals Limited – EPM19016 Historic Drilling Data • The drilling conducted by Paradigm Metals is located on a current tenement EPM25165 and EPM26904. These tenements are both held by Mt Dockerell Mining Pty Ltd, a 100% owned subsidiary of Hammer Metals Limited. • This are is outside of the Mt Isa East Joint Venture area.
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. Paradigm Metals Limited – EPM19016 Historic Drilling Data •Some previous small-scale mining during the early20thcentury, and

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Criteria	**JORC Code explanation **	Commentary
		exploration including 2 RC drill holes by Placer in the 1990s. (DME report number CR 25033). •The drilling conducted by Paradigm Metals Limited was conducted on the expired tenement EPM19016. This tenement was live between 11/2/2013 until 10/2/2018.
Geology	Deposit type, geological setting and style of mineralisation.	• The Shadow Prospect is composed of a linear alteration system, 4km in length located on the western margin of the Mt Philp Breccia. The alteration system comprises a central breccia zone with a marginal quartz-magnetite alteration zone. This is expressed on regional aeromagnetic datasets as a linear magnetic anomaly. • The Trafalgar Prospect is located on the regional scale Fountain Range Fault. The prospect is located on a magnetic and conductive trend and is typified at surface by an elevated gold and copper soil response. • The Even-Steven South Prospect is located on the Pilgrim Fault zone and the target area is typified by an increased gravity and magnetic signature with a surficial gold and copper soil geochemical anomaly. •The Kings and Charlotte Prospects are hosted by the Timberoo Member (fine grained variably calcareous metasediments) and the Cone Creek Metabasalt Member. Within these lithologies mineralisation is associated with quartz-carbonate beings within north-south and east-west trending shears. •The Neptune group of prospects are hosted by the Ballara Quartzite in close proximity to the Corella Formation contact. Exploration by Hammer Metals and other parties has identified widespread mineralisation along this contact in the northern portion of the Mary Kathleen Fold Belt. The mineralisation style is consistent with possible proterozoic shear hosted mineralisation or Iron Oxide copper gold (IOCG) association.

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Criteria	**JORC Code explanation **	Commentary
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. 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. _	• See the attached tables.
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.	• Drill intercepts are quoted at a 0.2% Cu cut-off with included intercepts highlighting zones of increased Copper and/or Gold grade. • All reconnaissance sampling conducted at the Trafalgar prospect is shown on Figure 5. Paradigm Metals Limited – EPM19016 Historic Drilling Data •Drill intercepts are quoted at a 0.2% Cu cut-off with included intercepts highlighting zones of increased Cu and/or Au 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 drilling at Shadow and Even Steven South are not currently known with any certainty. • The relationship between intersected and true widths for Trafalgar is noted in the intercept table. Paradigm Metals Limited – EPM19016 Historic Drilling Data • The relationship between intersected and true widths are not currently known with any certainty.
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	• See attached figures

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Criteria	**JORC Code explanation **	Commentary
	collar locations and appropriate sectional _views. _
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.	All drilling reported in this release • Intercepts are quoted at a 0.2% Cu cut- off with included intercepts highlighting zones of increased Copper and/or Gold grade. • The reader can therefore assume that any portions of a drillhole that are not quoted in the intercept tables 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 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.	•Further drilling is planned at Trafalgar. •Initial drilling is proposed at Lakeview, Alice-Charlotte and at the Neptune group of prospects.

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