HAMMER METALS LIMITED — Capital/Financing Update 2021

Jan 24, 2021

ASX RELEASE 25 January 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

ADDITIONAL DRILLING APPROVED AT TRAFALGAR

Hammer Metals Ltd ( ASX:HMX ) (“ Hammer ” or the “ Company ”) is pleased to provide an update with respect to planned field activities on the Mount Isa East JOGMEC Joint Venture.

To take advantage of rig availability, the Joint Venture has approved an extension to the current drilling program with an additional holes to follow up the copper and gold discovery at the Trafalgar prospect in Hammer’s Mount Isa East Joint Venture (see ASX announcement: 20 January 2021)

Significant intercepts reported and released in the ASX announcement on 20 January 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 ; and

• 32m 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.

The additional holes are planned to be drilled from the opposite direction to confirm the width and continuity of mineralisation; whilst an additional hole will be drilled approximately 80m to the north of HMTRRC001. The additional drilling at Trafalgar will bring the current program to a close in line with the expected wet season in Mount Isa.

The Trafalgar prospect forms part of an extensive copper-gold soil anomaly and magnetic trend which extends 2.7km with little previous exploration. Numerous minor surface workings including small pits and shafts are observed along this trend.

ASX Code: HMX

Share Price (22/01/2021) $0.075 Shares on Issue 749m Market Cap $56.2m Options Unlisted 28m Performance Rights 6.5m

The current Mount Isa East Joint Venture drilling program recommenced on 12 January, 2021 with drilling to be completed at the Shadow, Toby East, Alpha, Charlie and Juliett prospects.

Post the completion of this drilling program, the Joint Venture will interpret the results and plan to return with a follow up field program in April. The Trafalgar prospect is part of Hammer’s Mount Isa East Joint Venture where JOGMEC is earning a 60% interest in the joint venture area by expending $6million in funding on the exploration activities (see ASX announcement 25 November 2019).

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

For further information please contact:

Daniel Thomas Managing Director

T +61 8 6369 1195 E info@hammermetals.com.au

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About Hammer Metals

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

Competent Person Statements

The Company refers to the ASX announcement on 20 January 2021 and the exploration results noted therein and it confirms that it is not aware of any new information or data that materially affects the information included in that market announcement and all the material assumptions and technical parameters continue to apply and have not materially changed.