HAMMER METALS LIMITED — Interim / Quarterly Report 2008

Oct 29, 2007

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

MIDAS RESOURCES LIMITED

	ABN 87 095 092 158 Consolidated statement of cash flows		Quarter ended (“current quarter”) 30 September 2007	Quarter ended (“current quarter”) 30 September 2007
			30 September 2007
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other - net movt. in GST receivable/(payable) Net Operating Cash Flows			Current quarter $A’000	Year to date (3months) $A’000
			- (290) - - (282) - 11 - - -	- (290) - - (282) - 11 - - -
			(561)	(561)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects – Stamp Duty (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			- - (12) - - - - - -	- - (12) - - - - - -
			(12)	(12)
			(573)	(573)

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(573)	(573)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – costs of capital raising Net financing cash flows	1,000 - - - - (60)	1,000 - - - - (60)
	940	940
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash atend of quarter	367 1,633 -	367 1,633 -
	2,000	2,000

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A’000
		$103
		None.
1.25	Explanation necessaryfor anunderstanding of thetransactions
	Director’s salary, payment of accrued directors’ fees and payments in relation to exploration and management services on normal commercial terms.

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assetsandliabilities butdidnot involve cash flows
	None.
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhasan interest
	None.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1	Loan facilities
3.2	Credit standby arrangements

Amount available	Amount used
$A	$A

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Acquisition of interests	$A’000
	500
	-
	-
Total	500

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	2,000 - - -	1,633
		-
		-
		-
Total: cash at end of quarter(item 1.22)	2,000	1,633

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note(2))	Interest at beginning of quarter	Interest at end of quarter
	EPM14490	Direct	100%	0%

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,etc.
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Shares released from escrow (c) Decreases through returns of capital, buy-backs	174,457,797	174,457,797
	11,363,628	11,363,628
7.5 +Convertible debt securities 7.6 Changes during quarter (a) Increases (b)Decreases
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired/lapsed during quarter	50,091,056 1,500,000 1,500,000 1,450,000 600,000	50,091,056 - - - -	Exercise price 10 cents 10 cents 20 cents 18.5 cents 23 cents	Expiry date 30 September 2009 29 November 2011 29 November 2011 2 January 2011 19 May2011
		-
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Phillip MacLeod Company Secretary

Date: 30 October 2007

Print name: Phillip MacLeod

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

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Appendix 5B Page 5