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HAMMER METALS LIMITED Interim / Quarterly Report 2021

Oct 28, 2021

65065_rns_2021-10-28_e59fb38e-4603-4ca3-8165-a9f733f09c8d.pdf

Interim / Quarterly Report

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QUARTERLY ACTIVITIES REPORT

ASX RELEASE 29 October 2021

FOR THE PERIOD ENDING 30 SEPTEMBER 2021

MOUNT ISA COPPER-GOLD PROJECTS

DIRECTORS / MANAGEMENT

Hammer’s 100% Mount Isa Project Area

  • Follow up drilling at Lakeview delivered high grade copper intercept [1]

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 (28/10/2021) $0.06 Shares on Issue 813m Market Cap $49m Options Unlisted 27m Performance Rights 6.5m

  • 18m at 1.70% Cu and 0.49g/t Au from 61m in HMLVRC005, including: o 5m @ 4.17% Cu and 1.04g/t Au from 62m

  • Drilling at Overlander defined a thick copper bearing breccia over a broad width with significant assay results of 78m @ 0.26% Cu from 75m in OVRC035 [1 ]

  • Field mapping has defined several prospective zones for copper and gold mineralisation surrounding Lakeview . Rock chip results from these areas have delivered peak assays of 19% Cu and 24g/t Au

  • Detailed mapping of the Neptune IOCG prospect defines further highly prospective targets. Peak rock chip assays of 27% Cu, 10g/t Au[1]

  • New target zones defined in Neptune area at Sirius, Australian Flag and Lady Kate. New prospects to be targeted in upcoming drilling program

Mount Isa East JV (SMMO earning 60% interest)

  • Japan Oil, Gas and Metals National Corporation (“JOGMEC”) sold their position in the Mount Isa East Joint Venture (“JV”) to Sumitomo Metal Mining Oceania Pty. Ltd. (“SMMO”), a subsidiary of Sumitomo Metal Mining (“SMM”)

  • SMM’s demonstrated capabilities in exploration, project development and finance are a significant boost to the JV in its pursuit to delineate and develop a large-scale iron oxide copper-gold project

  • SMMO and Hammer have developed a rigorous exploration program for the remainder of 2021 with various activities concentrated on the further development of the Trafalgar trend

  • Restricted drilling program at Trafalgar extended mineralisation to the north with new zones of mineralisation to the west of the deposit. Intercepts include[2] :

  • 16m at 0.88% Cu and 0.34g/t Au from 192m in HMTRRC006, including : o 9m @ 1.28% Cu and 0.5g/t Au from 195m;

  • 19m at 0.70% Cu and 0.17g/t Au from 117m in HMTRRC007, including o 6m @ 1.58% Cu and 0.38g/t Au from 126m ; and

  • 35m at 0.42% Cu and 0.07g/t Au from 175m in HMTRRC008; including: o 6m @ 1.15% Cu and 0.2g/t Au from 185m

  • Detailed geological mapping along the Trafalgar trend has identified the presence of an extensive red rock-magnetite alteration zone which spans the central mineralised trend and extends along strike for 2.7km

1 See ASX Announcement 14 October 2021

2 See ASX Announcement 24 September 2021

T (08) 6369 1195 E [email protected]

ASX:HMX

ABN 87 095 092 158 P Unit 1, 28-30 Mayfair Street, West Perth, WA 6005

hammermetals.com.au

BRONZEWING SOUTH GOLD PROJECT

Bronzewing South

  • Detailed gravity survey has been completed over the Bronzewing South Project to aid in the targeting of cross cutting structures

  • Utilising Hammer’s evolving geological model for the area, three main untested priority targets have been identified

  • Reverse Circulation drilling program within 300m of the Bronzewing Gold Mine Discovery Pit scheduled to commence imminently

North Orelia

  • Aircore drilling program of a 9,700m, 309-hole testing soil geochemical anomalies at North Orelia was completed

  • This program, partly funded by a WA Government EIS grant, tested Targets 2, 3 and 4 in addition to the Eastern Granite Target. Significant results include[3] :

  • Target 4 - 16m @ 0.47g/t Au from 52m, including 4m @ 0.84g/t Au from 56m in BWSAC0585 and 8m @ 0.35g/t Au from 72m in BWSAC0828; and

  • Target 3 – 4m @ 0.55g/t Au from 24m in BWSAC0653 and 4m @ 0.52g/t Au from 32m in BWSAC0638A

  • Multiple holes at separate targets finished in anomalous zones of gold mineralisation – including[3] :

  • Target 4 – 0.32g/t Au from 56m in BWSAC0839;

  • Eastern Granite - 0.16g/t Au from 47m in BWSAC0674, 0.11g/t Au from 32m BWSAC0621 and 0.1g/t Au from 30m in BWSAC0622; and

  • Target 3 – 0.15g/Au from 8m in BWSAC0736, 0.11g/t Au from 14m in BWSA0800, and 0.12g/t Au from 45m BWSAC0640

  • A zone of anomalous Zinc mineralisation of up to 70m in width associated with sulphidic shale units was confirmed at Target 4

CORPORATE

  • Cash balance at the end of September is $9.0 million , which includes $0.15 million held on behalf of the Company’s Joint Venture s

  • Hammer divested it’s early-stage Iron Ore project in the western Pilbara region for a total consideration of $325,000 and a future NSR royalty of 0.5% on all Iron Ore sales

3 See ASX Announcement 25 August 2021

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MOUNT ISA COPPER-GOLD PROJECTS

Hammer’s 100% Projects – Mount Isa

The company completed 5,303m of reverse circulation (“RC”) drilling for 35 holes completed across the Company’s 100% owned projects and the recent Trafalgar copper gold discovery, within the Mount Isa East Joint Venture. The following table summarises the status of further drill results from Lakeview, Overlander North, Kalman West, and Serendipity in the Mount Isa region with results for six of the nine Lakeview drill holes still pending.

Table 1. Mt Isa Project – Drilling Status. For location of prospects see Figure 1

Mt Isa Project Drilling status of October 12th 2021 Mt Isa Project Drilling status of October 12th 2021 Mt Isa Project Drilling status of October 12th 2021 Mt Isa Project Drilling status of October 12th 2021 Mt Isa Project Drilling status of October 12th 2021 Mt Isa Project Drilling status of October 12th 2021
Prospect Holes Metres Assays DH EM Conducted Comment
Kings-Charlotte 6 660 383 Not undertaken Refer to ASX release dated 26 July2021
Lakeview 4 300 288 Not undertaken Refer to ASX release dated 22 June 2021
Lakeview follow-up 9 1080 570 Complete Results PartlyReported
LadyRose 3 728 482 Complete Refer to ASX release dated 26 July2021
Trafalgar^ 5 970 796 Complete Refer to ASX release dated 24 September 2021
Serendipity 2 344 139 Complete Refer to ASX release dated 14 October 2021
Kalman West 1 299 264 Planned
Kalman West follow-up 2 188 128 Not undertaken
Overlander 3 734 312 Planned
Total 35 5303 3362
Note
^ - Mt Isa East Joint Venture

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Figure 1. Project Overview showing areas of activity and reported results

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Lakeview Update

The initial four-hole (300m) program was successful in delineating mineralisation and a second nine-hole (1080m) program was completed to further investigate mineralisation at depth (refer to ASX announcement dated 22 June 2021 and 14 October 2021).

After considerable delays in receiving results from the assay laboratory, the results for 3 of the 9-hole followup program have been received. Significant intercepts from these three holes include:

  • 18m at 1.7% Cu and 0.49g/t Au from 61m in HMLVRC005, including; o 5m at 4.17% Cu and 1.04g/t Au from 61m;

  • 13m at 0.59% Cu and 0.15g/t Au from 66m in HMLVRC007, including; o 1m at 1.42% Cu and 0.46g/t Au from 77m; and

  • 4m at 1.73% Cu and 1.42g/t Au from 147m in HMLVRC007

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Figure 2. Lakeview long section looking north. (ASX announcement 14 October 2021)

Preliminary assessment of the drilling results indicates that the higher-grade zones of mineralisation plunge steeply. Down-hole EM was undertaken on two of the holes drilled during this program to determine whether any off-hole conductors were present. The data generated from this program is currently being modelled by Hammers’ geophysical consultants – Newexco.

In combination with this follow-up drilling, geological mapping and rock chip sampling was conducted to define extensional targets. The mapping indicated that vein mineralogy is consistent with the peripheral expression of an IOCG system and there are two main follow up targets within the general Lakeview area.

Page 4 of 28

Recent field mapping and rock chip sampling undertaken highlighted the relationship between mineralised structures and the margin of zones of magnetite alteration (ASX announcement 14 October 2021). Maximum individual grades of 18.9% Cu, 23.6g/t Au and 0.17% Co were obtained by this sampling. New target zones at Orion (North) and Ajax (South) have been defined. Both Orion and Ajax have not previously been drilled. Orion is located on the margin of a magnetite alteration zone in a similar position to Jubilee, Black Rock and the Neptune group of prospects. Carbonate dominant veins are present on the margin of the quartzite over a strike length of 300m and gossanous quartzite has been mapped within the alteration zone.

Based on previous drilling results, downhole electromagnetics, mapping and sampling, Hammer has designed a follow-up drilling program to test this highly prospective area. In addition, an extensive soil sampling program is underway with the aim of improving the geochemical coverage of the Trafalgar to Jubilee trend within the Lakeview region.

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Figure3. Lakeview region showing rock chip Copper (%) and Gold (g/t) results (ASX announcement 14 October 2021)

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Figure 4. Lakeview Plan view showing the location of the initial and follow-up drilling program (ASX announcement 14 October 2021)

Page 6 of 28

Table 2. Mt Isa Project – Lakeview Prospect – Significant intercepts (ASX announcement 14 October 2021)

MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off Grade) MT ISA PROJECT - Lakeview - Significant Cu Intercepts(0.2% Cu Cut-Off 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 1 0 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 3.6 8 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
HMLVRC005 398551 7696071 336.0 106 -55 172 36 40 4 0.02 0.11
Envelope 61 79 18 1.70 0.49
incl. 62 67 5 4.17 1. 04
& 69 71 2 1.51 1. 05
& 75 76 1 1.36 0.17
HMLVRC006 398513 7696039 333.0 95 -57 180 Envelope 36 45 9 0.25 0.05
incl. 36 38 2 0.70 0.06
& 39 40 1 0.17 0.11
50 51 1 0.56 0.20
HMLVRC007 398596 7696066 336.0 200 -65 162 14 15 1 0.36 0.01
Envelope 66 79 13 0.59 0.15
incl. 77 78 1 1.42 0.46
87 88 1 0.59 0.10
98 105 7 0.48 0.12
128 129 1 0.33 0.14
134 135 1 0.15 0.10
146 150 4 1.73 1.42
HMLVRC008 398761 7696200 337.0 196 -60 170 Results Pending
HMLVRC009 398803 7696167 336.0 88 -55 172
HMLVRC010 398713 7696162 337.0 76 -60 180
HMLVRC011 398675 7696174 337.0 95 -72 180
HMLVRC012 398638 7696163 337.0 76 -60 150
HMLVRC013 398610 7696058 337.0 148 -60 130
Note
^ - Average analysis utilised where more than one readingconducted.
^^ - Average analysis utilised where more than one readingconducted. High variabilityin Au repeat analyses indicates thepossiblepresenc e of coarse Au
Coordinates and azimuth relative to GDA 94 Zone 54. RL Derived from a Drone DTM. Both coordinates and RL to be resurveyed using DGPS at
conclusion of theprogram		 the

Overlander Update

Three holes for 734 meters were drilled at the Overlander North Prospect. Two of these holes (OVRC033 and OVRC034) were designed to test the southern margin of the Overlander IOCG alteration zone. Both holes intersected favourable alteration, however failed to intersect significant mineralisation. (ASX announcement 14 October 2021)

The third hole, OVRC035 was designed to test a rhyolitic crackle breccia on the eastern margin of Overlander North. The hole intersected 78m @ 0.26% Cu from 75m . Notably the Cu intersection is accompanied by anomalous Zn levels with an individual maximum grade of 0.21% Zn.

Page 7 of 28

The rhyolitic breccia outcrops sporadically over a 1.6km strike length and is tested by only four holes (including OVRC035). The unit can be up to 100m in true thickness (ASX Announcement 15 June 2015). The other three holes have similar thick copper intersections including:

  • 117 metres at 0.35% Cu from 43m in OVRC024;

  • 71m at 0.31% Cu from 61m in OVRC032; and

  • 137m at 0.27% Cu from 105m in K-11.

The rhyolitic crackle breccia at Overlander is considered to have the potential to host a large tonnage Cu-Co resource. A review of the previous IP survey completed at Overlander is underway with a view to optimizing future drill targeting of this large target.

Table 3. Mt Isa Project – Overlander Prospect – Significant intercepts (ASX announcement 14 October 2021)

MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) MT ISA PROJECT - OVERLANDER - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade)
Target Hole E_GDA94 N_GDA94 RL TD Dip Az_GDA From To Width Au g/t ^ Cu % ^
Overlander
North		 OVRC033 386505 7673429 394 257 -55 90 0 4 4 0.02 0.10
10 12 2 0.04 0.22
56 60 4 0.04 0.16
64 68 4 0.03 0.10
144 145 1 0.19 0. 65
147 148 1 0.02 0.16
152 154 2 0.03 0.27
172 176 4 0.05 0 .51
240 244 4 0.02 0.10
OVRC034 386392 7673397 409 250 -55 90 115 116 1 0.05 1.31
OVRC035 386866 7673609 398 227 -55 90 58 60 2 0.01 0.14
Envelope 75 153 78 0.03 0.26
incl. 102 103 1 0.02 0 .53
& 125 127 2 0.07 0.99
Note
^ - Average analysis utilised where more than one reading conducted.
Coordinates and azimuth relative to GDA 94 Zone 54. Both coordinates and RL to be resurveyed using DGPS a t the conclus ion of the program

OVRC033 will be subject to a downhole electromagnetic survey later in 2021. A full geophysical and geological review of the Andy’s Hill and Overlander IOCG prospects is currently being undertaken with a view to optimising future drill targeting.

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Figure 5. Overlander North Prospect plan (ASX announcement 14 October 2021)

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Kalman West

Three holes for 487m were drilled at Kalman West targeting both a MT/VTEM anomaly and a zone of surface quartz veining with visible gold. (ASX announcement 14 October 2021)

HKWRC009 (299m TD) was drilled to test the shallow expression of an MT anomaly beneath the Kalman West Shear Zone. This hole intersected a copper bearing hanging wall zone on the western margin of the Kalman West Shear Zone followed by anomalous Pb-Zn-Ag mineralisation with induvial assays of up to 1.86% Pb, 0.95% Zn and 18.1g/t Ag hosted by graphitic metasediments. Anomalous Au was intersected in structures interpreted to be along strike of several significant gold intersections encountered 200m to the north.

Significantly the anomalous Pb-Zn-Ag mineralisation occurring at Kalman West was associated with anomalous Sb and Cd. This element association displays hallmarks of large sediment-hosted, Mt Isa style, mineralised systems highlighting the prospectivity of the area.

Significant intercepts from HMKWRC009 include:

  • 37m at 0.14% Cu from 8m (including 1m @ 1.86% Pb and 0.31% Zn);

  • 10m at 0.19% Cu from 84m (including 1m @ 0.42% Pb and 0.65% Zn); and

  • 7m at 0.19g/t Au from 120m.

Two further holes were designed to intersect a zone of visible gold. HMKWRC010 and HMKWRC011 intersected zones of significant gold and base metals anomalism including:

  • 2m at 0.15g/t Au from 24m in HMKWRC010; and

  • 6m at 0.27g/t Au from 68m including 1m at 0.95g/t Au from 70m in HMKWRC011;

As with HMKWRC009, both HMKWRC010 and HMKWRC011 intersected anomalous zones of Ag, Pb and Zn with individual maximum responses of 44.5g/t Ag, 0.67% Pb and 0.66% Zn respectively.

HMKWRC009 will be subject to a downhole electromagnetic survey late in 2021. Select gold-bearing samples will be subject to screen fire assays as coarse gold associations may not be readily apparent in conventional analyses of reverse circulation drill chips.

Table 4. Mt Isa Project – Kalman West Prospect – Significant intercepts (ASX announcement 14 October 2021)

MT ISA PROJECT - KALMAN WEST - Si MT ISA PROJECT - KALMAN WEST - Si MT ISA PROJECT - KALMAN WEST - Si MT ISA PROJECT - KALMAN WEST - Si MT ISA PROJECT - KALMAN WEST - Si MT ISA PROJECT - KALMAN WEST - Si MT ISA PROJECT - KALMAN WEST - Si gnificant Cu I ntercepts (0.2% Cu or 0.1g/t Au Cut-Off Gra ntercepts (0.2% Cu or 0.1g/t Au Cut-Off Gra ntercepts (0.2% Cu or 0.1g/t Au Cut-Off Gra de) de) de) de) de)
Target Hole E_GDA94 N_GDA94 RL TD Dip Az_GDA From To Width Au g/t ^ Cu % ^ Comment
Kalman
West		 HKWRC009 391837 7671408 397 299 -57 90 2 3 1 0.01 0. 18
8 45 37 0.01 0. 14 44-45m, 1.86% Pb, 0.31% Zn
84 94 10 0.02 0. 19 84-87m, 0.42% Pb and 0.65% Zn
99 100 1 0.03 0.27
120 127 7 0.19 0.02
161 164 3 0.09 0.00
179 183 4 0.19 0.01
190 192 2 0.24 0.00
196 197 1 0.10 0.01
HKWRC010 391909 7671545 412 91 -60 90 24 26 2 0.15 0.01
62 63 1 0.19 0.00 64-78m, 0.3% Pb
65 66 1 0.14 0. 13
HKWRC011 391915 7671498 412 97 -60 90 7 8 1 0.17 0.02
25 26 1 0.22 0.04
28 29 1 0.12 0.03
38 42 4 0.11 0.03 54-55m, 44.5g/t Ag and 63-65m, 16g/t Ag
68 74 6 0.27 0. 13
incl. 70 71 1 0.95 0.33
Note
^ - Average a nalysis utilised where more than one reading conducted.
Coordinates and azimuth relative to GDA 94 Zone 54. Both coordinates and RL to be resurveyed using DGPS a t the conclus ion of the program

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Figure 6. Plan of the Kalman West Prospect (ASX announcement 14 October 2021 )

Page 11 of 28

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Figure 7. HKWRC009 Cross section looking north showing the Kalman West shear zone, zones of graphitic metasediment, Pb+Zn >0.1%, zones of quartz veining, significant Au assays and modelled VTEM plates. (ASX announcement 14 October 2021)

Neptune IOCG Target Area

Lady Rose Drilling

Results from the initial 3-hole program (728m) confirmed the nature of copper-gold mineralisation at Lady Rose and the overall potential of the Neptune region (refer to ASX announcement dated 26 July 2021) for large IOCG deposits. Significant results from this first exploration program were:

  • 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

o 2m at 1.92% Cu and 0.42g/t Au from 33m Holes HMLRRC002 and HMLRRC003 have been subject to a downhole Electromagnetic Survey and the data from this survey is currently being processed by Hammer Geophysical consultants – Newexco.

Page 12 of 28

Neptune Rock Chip Sampling and Geological Mapping

Geological mapping, three-dimensional gravity modelling, geological modelling, follow-up rock chip sampling and downhole electromagnetic surveying have been conducted over the Neptune region since drilling has been completed. This work has highlighted four follow-on targets within the area for the next drilling phase. Maximum individual rock chip analyses of 27% Cu, 9.95g/t Au and 0.1% Co were obtained from this sampling. (ASX announcement 14 October 2021)

Drill planning is underway to test the Morning Star and Lady Kate trends in the upcoming drilling project. These targets are located on the same geological contact but exhibit different styles of alteration.

The Morning Star trend consists of a series of shafts and pits observable over approximately 500m. This trend occurs on the northern margin of the Argylla Formation. Drilling by Placer in the 1980’s and Paradigm Metals in the 2000’s indicated that mineralization is present at depth however this drilling did not test the entire width of the mineralized system.

The second new target is Lady Kate. This target consists of a 600m long zone of magnetite alteration within the Ballara Quartzite. Soil sampling undertaken by Paradigm Metals outlined a strong Copper anomaly. No historic drilling has tested this target. (See ASX announcement 14 October 2021)

The third target is at Lady Amy. This target consists of a zone of mineralisation hosted within Amphibolite n the contact between the Argylla Formation and Ballara Quartzite. Structural readings taken from artisanal workings in the area suggest that the mineralisation is plunging to the northwest. The final target has been called Sirius. This target consists of a bullseye magnetic anomaly with surface indications of carbonate associated Cu-Au mineralisation.

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Figure 8. Plan of the Lady Rose Prospect within the Neptune IOCG target area. Gravity shells and soil sampling conducted by Paradigm Metals Limited is also shown. See ASX release 9 March 2021

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Figure 9. Neptune IOCG target area overview showing follow-on targets on magnetic image (ASX announcement 14 October 2021)

Serendipity

Two holes for 244m were drilled into a silica alteration zone with anomalous surface Cu and Au anomalism. The drilling indicated that the area has the potential to host Au mineralization however the low gold values returned downgrade the prospect. (ASX announcement 14 October 2021)

Table 5. Mt Isa Project – Serendipity Prospect – Significant intercepts

MT ISA PROJECT - SERENDIPITY - MT ISA PROJECT - SERENDIPITY - MT ISA PROJECT - SERENDIPITY - MT ISA PROJECT - SERENDIPITY - Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade) Significant Cu Intercepts (0.2% Cu or 0.1g/t Au Cut-Off Grade)
Target Hole E_GDA94 N_GDA94 RL TD Dip Az_GDA From To Width Au g/t ^ Cu % ^
Serendipity HSRC005 391286 7665675 500 196 -55 90 44 48 4 0.01 0.00
52 53 1 0.05 0.10
56 57 1 0.02 0.11
60 61 1 0.01 0.00
61 62 1 0.01 0 .17
129 133 4 0.16 0.00
HSRC006 391295 7665539 500 148 -55 90 76 82 6 0.02 0 .16
85 86 1 0.06 0.43
Note
^ - Average analysis utilise d where more than one reading conducted.
Coordinates and azimuth r elative to GDA 94 Zone 54. B oth coordinates and RL to be resurveyed using DGPS a t the conclus ion of the prog ram

Mount Isa East Joint Venture (SMMO earning 60% Interest)

Following early exploration success at the Trafalgar Prospect, JOGMEC has successfully completed a tender process to monetise its interest in the JV to the highly credentialed successful subsidiary of mining company Sumitomo Metal Mining Co Ltd.

Exploration activities including drilling at Trafalgar continued during the tender process with results discussed further in this report.

Following the sale of the interest in the Joint Venture, Sumitomo Metal Mining Oceania (SMMO) and Hammer Post the have recently approved an expanded work program and budget and has initiated detailed work programs on all areas within the Joint Venture. The current program includes:

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  • Extensional drilling at the Trafalgar Prospect

  • Downhole Electromagnetics at Trafalgar

  • Geological mapping and soil sampling in each of the joint venture areas of interest

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Figure 10. Drilling of HMTRRC006 at Trafalgar

Trafalgar

The Joint Venture originally drilled four holes with results reported to the ASX on 20 January and 9 February 2021. Drilling indicated that the lode has a mineralised envelope of approximately 15-30m in true thickness with a peripheral magnetite alteration halo associated with elevated light rare earths (cerium and lanthanum).

The aim of the recent program at Trafalgar was to test along strike from previous intersections and to test for the presence of hanging wall mineralised zones. A limited drilling program of five holes for 970m were undertaken during this program. Significant intersections from this program includes:

  • 16m at 0.88% Cu and 0.34g/t Au from 192m in HMTRRC006, including:

  • 9m @ 1.28% Cu and 0.5g/t Au from 195m;

  • 19m at 0.70% Cu and 0.17g/t Au from 117m in HMTRRC007, including

  • 6m @ 1.58% Cu and 0.38g/t Au from 126m ; and

  • 35m at 0.42% Cu and 0.07g/t Au from 175m in HMTRRC008; including:

  • 6m @ 1.15% Cu and 0.2g/t Au from 185m

HMTRRC006 confirmed that the main mineralised zone if open along strike to the north. On the southern margin of the Trafalgar open pit the presence of a fault zone has been confirmed with surface mapping indicating an offset in the region of 70m to 100m with the Trafalgar mineralised zone being displaced to the east.

HMTRRC005 was designed to intersect the lode on the southern end of Trafalgar however direction was lost and the hole was terminated prior to intersecting the anticipated position of the displaced lode. An opportunity for further testing of this zone was not possible with the finite budget and drilling program agreed during

Page 15 of 28

JOGMEC’s sales process of their interest in the Joint Venture. The southern extension will be considered as a potential target zone in the upcoming drilling program.

Trafalgar Trend

Recent field mapping has identified outcropping copper mineralisation within the 4km trend with coincident magnetic and soil anomalies. Numerous workings occur along this trend which is composed of multiple subparallel vein zones. With the exception of Trafalgar, this trend is not tested by drilling.

Alteration, the presence of magnetite and elevated light rare earth elements (with individual maximum grades of 0.20% Ce and 0.16% La in HMTRC006) (ASX 4 September 2021) are all indicative of an IOCG system. Geological mapping indicates the presence of a red rock-magnetite alteration zone which encompasses the central mineralised trend and extends along strike.

At a broader scale the Trafalgar trend is marked by magnetic and conductive highs which highlight the target zones for immediate exploration and future drill testing.

==> picture [385 x 437] intentionally omitted <==

Figure 11. Trafalgar Trends and Prospects (background is RTP magnetic map) (ASX 24 September 2021)

Page 16 of 28

Next Steps at Trafalgar

The joint venture has recently commenced work programs across the Trafalgar trend including geological mapping, downhole/ground electromagnetic, gravity and geochemical soil surveys. The extent of the ground electromagnetic survey is shown in Figure 11 and will focus on a zone of several historical workings which were developed in the early 1900’s exploiting localised zones of high-grade copper ore.

Several high priority targets exist along the Trafalgar trend including old workings at The Springs, Lady Northcote and Victory. The current field programs will aid targeting and further define prospects along this mineralized trend with drilling at these prospects expected to commence in early November this year.

==> picture [353 x 475] intentionally omitted <==

Figure 12. Plan of the Trafalgar Prospect trends (ASX 24 September 2021)

Page 17 of 28

Table 6: Mt Isa East Joint Venture – Trafalgar Prospect – Significant Intercepts. (ASX 24 September 2021)

MT ISA EAST JOINT VENTURE - Trafalgar - Signifi MT ISA EAST JOINT VENTURE - Trafalgar - Signifi MT ISA EAST JOINT VENTURE - Trafalgar - Signifi MT ISA EAST JOINT VENTURE - Trafalgar - Signifi MT ISA EAST JOINT VENTURE - Trafalgar - Signifi MT ISA EAST JOINT VENTURE - Trafalgar - Signifi MT ISA EAST JOINT VENTURE - Trafalgar - Signifi **cant Intercept ** s(at 0.2% Cu and/or 0.1g/t A s(at 0.2% Cu and/or 0.1g/t A u Cut-Off Grade) u Cut-Off Grade) u Cut-Off Grade) u Cut-Off Grade) u Cut-Off Grade)
Hole E_GDA94 N_GDA94 RL TD Dip Az_GDA From To Width Cu % ^ Aug/t ^ Comment
HMTRRC005 396109.5 7689260.0 357.1 150
(abandoned)		 -55 100 3 7 4 0.27 0.07
incl. 3 4 1 0.15 0.10
Envelope 25 40 1 5 0.20 0.05
86 88 2 0.26 0.06
94 95 1 0.31 0.03
97 98 1 0.32 0.04
100 102 2 0.20 0.02
117 118 1 0.22 0.04
HMTRRC006 396173.4 7689584.0 355.7 236 -55 120 12 13 1 0.22 0.04
37 41 4 0.24 0.03
48 49 1 0.25 0.06
88 91 3 0.19 0.10
129 130 1 0.11 0.19
131 132 1 0.29 0.05
133 134 1 0.03 0.10
152 153 1 0.37 0.14
179 181 2 0.52 0.05
Envelope 192 208 1 6 0.88 0.34
incl. 195 204 9 1.28 0.50
incl. 202 204 2 2.33 1.38
229 231 2 0.31 0.10
HMTRRC007 396150.0 7689491.5 350.7 184 -55 119.6 15 16 1 0.21 0.07
27 28 1 0.83 0.17
39 47 8 0.65 0.15
incl. 42 43 1 1.89 0.35
73 76 3 0.55 0.17
Envelope 117 136 1 9 0.70 0.17
incl. 126 132 6 1.58 0.39 incl. [email protected]%Co from 126m
161 162 1 0.09 0.97
165 169 4 0.02 0.13
HMTRRC008 396097.7 7689429.7 345.8 258 -62 130 1 5 4 0.19 0.04
9 10 1 0.26 0.07
13 14 1 0.27 0.11
19 21 2 0.26 0.06
42 43 1 0.44 0.09
126 132 6 0.20 0.08
151 152 1 0.28 0.02
Envelope 175 210 35 0.42 0.07
incl. 175 191 1 6 0.68 0.10
incl. 185 191 6 1.15 0.20 incl. 2m@ 0.14% Cofrom 185m
Envelope 222 228 6 0.59 0.12
incl. 223 224 1 1.19 0.41
HMTRRC009 396087.0 7689308.3 347.1 142 -55 120 35 36 1 0.23 0.01
39 42 3 0.39 0.03
67 68 1 0.41 0.02
Envelope 111 117 6 0.57 0.12
Note
^ - Average analysis utilised where more than one readingconducted.
Coordinates and azimuth relative to GDA 94 Zone 54. Location derived from a GNSS Survey

Page 18 of 28

==> picture [497 x 536] intentionally omitted <==

Figure 13. Project Overview showing areas of activity

YANDAL GOLD PROJECTS (100% Hammer)

North Orelia

At the North Orelia project, Hammer completed an air core drilling program, drilling 308 holes for 9768m to test previously undrilled targets on the Orelia trend. (See Figure 14).

Four prospects were tested as part of the recently completed Aircore program, highlighting several anomalous zones that warrant follow-up exploration.

Target 2

The northern portion of Target 2 was tested by 47 holes for 745m. This drilling targeted the southern margin of a fractionated granite. The best result from this target was 4m at 0.19g/t Au from 8m in BWSAC0794 which was overlain by a plus 5ppb Au-in-soil anomaly. (ASX announcement 25 August 2021).The target area is significant as granite margins can provide prospective structural positions for gold mineralisation such as Northern Star’s Julius Deposit 60km to the north.

Target 3

Drilling at Target 3 extended the strike length of known mineralisation up to 3.2km. The 76 holes (2418m) targeted a shear zone with significant intercepts of (ASX announcement 25 August 2021):

  • 4m at 0.52g/t Au from 32m in BWSAC0638A;

  • 8m at 0.21g/t Au from 40m in BWSAC0641; and

  • 4m at 0.55g/t Au from 24m in BWSAC0653.

The zone is located on the eastern margin of the Orelia mineralisation trend and is associated with elevated Arsenic, Antimony and Tellurium. Drilling at three holes at Target 3 finished in anomalous zones of gold mineralisation – including (ASX announcement 25 August 2021):

  • 0.15g/Au from 8m in BWSAC0736, 0.11g/t Au from 14m in BWSA0800, and 0.12g/t Au from 45m BWSAC0640.

Target 4

Target 4 is located immediately along strike to the north of Northern Star’s Orelia Deposit. Mineralisation encountered to date within this target is often associated with sulphidic shale units which contain an anomalous Zinc zone of up to 70m in width and up to 1.2km in length (with maximum downhole individual analyses of 6520ppm Zn, 38.2% Sulphur and elevated Cu and Pb). This zone is located at the boundary between mafic and felsic/intermediate rocks. Significant intercepts include: (ASX announcement 25 August 2021)

  • 18m at 0.12g/t Au from 24m in BWSAC0577;

  • 16m at 0.47g/t Au from 52m in BWSAC0585;

  • 3m at 0.47g/t Au from 52m in BWSAC0818; and

  • 8m at 0.35g/t Au from 72mn in BWSAC0828.

Drilling in hole BWSAC0839 finished in an anomalous zone of gold mineralisation - 0.32g/t Au from 56m.

Page 20 of 28

Eastern Granite

This target is located partly within a granite bordering the eastern margin of the Orelia trend where soil geochemical sampling had defined a1.1km by 300m gold anomaly. No previously drilling had been conducted over this target. Hammer Metals tested the area with 126 air core holes (3101m). This work was partly funded by a Western Australia Government Exploration Initiative grant.

Significant geochemical intercepts of 8m at 0.12g/t Au from 20m in BWSAC0621 and 4m at 0.15g/t Au from 12m in BWSAC0622 were associated with a north-northwest trending shear zone on the margin of the granite. Both holes terminated in anomalous mineralisation (ASX announcement 25 August 2021). Shear zones within granites are attractive targets within the Yandal Belt and, in some cases host economic mineralisation such as Northern Star’s Ramone Deposit.

==> picture [394 x 507] intentionally omitted <==

Figure 14. North Orelia Trend Targets three and four showing significant Hammer Drilling Intercepts (Background image Magnetics) (ASX announcement 25 August 2021)

Page 21 of 28

Bronzewing South

Hammer Metals also completed a 50m spaced detailed gravity survey at the Bronzewing South tenement immediately south of the Bronzewing Deposit. The survey has assisted in refining the structural framework and exploration model for the Bronzewing South prospect, outlining five target zones directly south of the original Bronzewing gold pits. These targets remain untested at depth yet sit in a favourable structural corridor with several attractive geophysical attributes.

Two of the five targets were partially tested by a 2020 diamond drilling program (refer to ASX announcement dated 15 January 2021). This initial testing confirmed the location of prospective stratigraphy within the Hammer Metals project area and the presence of altered and mineralised material co-incident with a gravity low

Hammer intends to target the third of these five targets located only 300m south of the Bronzewing deposit in an upcoming reverse circulation drilling program. Drill planning is complete and program organisation is underway for a mid-September mobilisation.

==> picture [323 x 463] intentionally omitted <==

Figure 15. Bronzewing South area showing Hammer targets (ASX announcement 25 August 2021)

Page 22 of 28

==> picture [525 x 372] intentionally omitted <==

Figure 16. Long section looking west through the Bronzewing South area showing the five targets identified in the detailed gravity survey. (ASX 25 August 2021)

Page 23 of 28

==> picture [449 x 649] intentionally omitted <==

Figure 17. Hammer Metals Bronzewing South Project Area

Page 24 of 28

Table 7. Significant Intercepts utilising a 0.1g/t Au cut-off (Refer to ASX announcement dated 25/8/2021 for full collar locations)

Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off Hammer Metals Limited - Orelia Project - Significant Results utilising a 0.1g/t Au cut-off
Target Hole **E_GDA94 ** N_GDA94 RL TD **Dip ** Az_GDA From To Width Au g/t*
Target 4 BWSAC0577 294691 6968898 522 50 -60 77 24 40 16 0.12
Target 4 BWSAC0585 294528 6968855 522 72 -60 77 52 68 16 0.4 7
incl. 56 60 4 0.84
Target 4 BWSAC0587 294632 6969505 524 96 -60 77 56 60 4 0.16
Target 4 BWSAC0591 294471 6969446 525 71 -60 77 60 64 4 0.14
Target 4 BWSAC0592 294453 6969436 525 28 -60 77 0 4 4 0.11
Eastern Granite BWSAC0621 296283 6968800 518 42 -60 90 20 28 8 0.12
41 42 1 0.11
Eastern Granite BWSAC0622 296243 6968794 518 30 -60 90 12 16 4 0.15
29 30 1 0.1
Target 3 BWSAC0632 295841 6968803 520 28 -60 90 24 27 3 0.12
Target 3 BWSAC0637 295641 6968800 521 37 -60 90 12 16 4 0.1
Target 3 BWSAC0638A 295599 6968802 521 43 -60 90 32 36 4 0.52
Target 3 BWSAC0639 295562 6968803 522 42 -60 90 24 28 4 0.1
Target 3 BWSAC0640 295523 6968803 522 46 -60 90 45 46 1 0.12
Target 3 BWSAC0641 295484 6968804 522 51 -60 90 20 24 4 0.16
40 48 8 0.21
Target 3 BWSAC0642 295441 6968803 522 48 -60 90 24 28 4 0.13
Target 3 BWSAC0643 295401 6968806 522 48 -60 90 4 8 4 0.14
Target 3 BWSAC0644 295366 6968804 522 54 -60 90 44 48 4 0.15
Target 3 BWSAC0650 295362 6969997 519 42 -60 90 16 20 4 0.16
40 41 1 0.1
Target 3 BWSAC0653 295241 6970003 520 47 -60 90 8 12 4 0.12
24 28 4 0.55
44 46 2 0.1
Target 3 BWSAC0655 295159 6970000 522 65 -60 90 48 56 8 0.25
Target 3 BWSAC0656 295121 6969996 520 60 -60 90 24 28 4 0.25
Target 3 BWSAC0657 295079 6969998 521 60 -60 90 48 52 4 0.1
59 60 1 0.11
Target 3 BWSAC0659 295000 6970000 520 66 -60 90 0 4 4 0.1
52 56 4 0.1
Eastern Granite BWSAC0672 296170 6970801 516 18 -60 270 0 4 4 0.11
Eastern Granite BWSAC0674 296257 6970807 516 48 -60 270 47 48 1 0.16
Eastern Granite BWSAC0687 296462 6971204 517 33 -60 90 0 4 4 0.1
Eastern Granite BWSAC0688 296426 6971203 517 38 -60 90 12 16 4 0.13
Target 3 BWSAC0736 294524 6973601 535 12 -60 90 8 12 4 0.15
Target 2 BWSAC0794 292137 6976375 541 32 -60 77 8 12 4 0.19
Target 3 BWSAC0800 294745 6973603 521 15 -60 90 14 15 1 0.11
Target 4 BWSAC0814 294776 6968694 521 57 -60 77 12 16 4 0.1
Target 4 BWSAC0816 294694 6968672 521 37 -60 77 4 8 4 0.1
Target 4 BWSAC0818 294612 6968653 521 56 -60 77 8 12 4 0.2
52 55 3 0.4 7
Target 4 BWSAC0820 294529 6968631 521 62 -60 77 44 48 4 0.12
Target 4 BWSAC0822 294445 6968619 521 57 -60 77 12 16 4 0.13
Target 4 BWSAC0823 294415 6968606 521 62 -60 77 8 12 4 0.32
Target 4 BWSAC0828 294996 6968329 526 108 -60 77 72 80 8 0.35
Target 4 BWSAC0839 294568 6968229 520 58 -60 77 56 58 2 0.32

Note
^ - Average analysis utilised where more than one reading conducted.
Coordinates and azimuth relative to GDA 94 Zone 51. RL Derived from a DGPS.

Page 25 of 28

CORPORATE

Hammer’s cash balance at 30 September was $9.0 million including $0.15 million held in Joint Venture expenditure accounts.

Hammer divested it’s early-stage Iron Ore project in the western Pilbara region for a total consideration of $325,000 and a future NSR royalty of 0.5% on all Iron Ore sales

In accordance with the reporting requirements of ASX Listing Rule 5.3, the Company incurred $1,329,000 (comprised of $979,000 costs attributable directly to the Company and $350,000 of costs incurred on behalf of JV partners) on exploration and evaluation activities during the quarter. There was no mining development or production activities conducted during the quarter.

Expenditure was on activities as described in this report and predominantly related to:

  • Exploration Drilling at the Yandal and Mt Isa Project areas;

  • Technical consulting services; and

  • General fieldwork including rehabilitation work;

In addition, during the quarter, related party payments totalling $85,000 were paid to the Directors of the company, representing Directors’ salary and fees for the period.

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 [email protected]

- END -

Page 26 of 28

About Hammer Metals

Hammer Metals Limited (ASX: HMX) holds a strategic tenement position covering approximately 2100km[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 51% interest in the Jubilee (Cu-Au) deposit. Hammer is an active mineral explorer, focused on discovering large coppergold deposits of the Ernest Henry style and has a range of prospective targets at various stages of testing. Hammer also holds a 100% interest in the Bronzewing South Gold Project located adjacent to the 2.3 millionounce Bronzewing gold deposit in the highly endowed Yandal Belt of Western Australia.

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 type of deposits under consideration and to the activity 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 reference is made to previous releases of exploration results and mineral resource estimates in this announcement, the Company 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 exploration results and mineral resource estimates included in those announcements continue to apply and have not materially changed.

Page 27 of 28

Appendix A. Tenement Interests at the end of September 2021 as per Listing Rule 5.3.3

PROJECT TENEMENT STATUS **INTEREST % ** Acquired COMMENT
Mt Isa Project - QLD EPM 11919 Granted 100% No Subject to 1.5% NSR
EPM 12205 Granted 100% No
EPM 13870 Granted 100% No Subject to 2% NSR
EPM 14019 Granted 100% No 25% of tenement area held in trust to Global EnergyMetals Corporation
EPM 14022 Granted 100% No
EPM 14467 Granted 51% No
EPM 18084 Granted 80% No
EPM 25145 Granted 100% No
EPM 25165 Granted 100% No Subject to 1.5% NSR
EPM 25866 Granted 100% No
EPM 25867 Granted 100% No
EPM 26126 Granted 100% No
EPM 26127 Granted 100% No
EPM 26130 Granted 100% No
EPM 26474 Granted 100% No
EPM 26511 Granted 100% No
EPM 26512 Granted 100% No
EPM 26628 Granted 100% No
EPM 26694 Granted 100% No
EPM 26775 Granted 100% No 6.2% of tenement area held in trust to Global EnergyMetals Corporation
EPM 26776 Granted 100% No
EPM 26777 Granted 100% No
EPM 26902 Granted 100% No
EPM 26904 Granted 100% No
EPM 27018 Granted 100% No
EPM 27355 Granted 100% No
EPM 27469 Granted 100% No
EPM 27470 Granted 100% No
EPM 27806 Granted 100% No
EPM 27815 Granted 100% No
EPM 27861 Granted 100% No
Pilbara Iron Ore - WA E08/1997 Granted 100% No
Bronzewing Sth Project - WA E36/854 Granted 100% No
E36/855 Granted 100% No Subject to 1.5% NSR
E36/868 Granted 100% No
E36/869 Granted 100% No
E36/870 Granted 100% No
E36/882 Granted 100% No Subject to 1.5% NSR
E36/916 Granted 100% No
E36/996 Application 100% No
E36/1006 Application 100% No
E53/1989 Granted 100% No
E53/1996 Granted 100% No
E53/2030 Granted 100% No
E53/2085 Granted 100% No
E53/2112 Granted 100% No
E53/2113 Granted 100% No
E53/2114 Granted 100% No
E53/2115 Granted 100% Yes Granted during Quarter
E53/2116 Granted 100% No
E53/2117 Granted 100% No
E53/2118 Granted 100% No
E53/2127 Granted 100% No
E53/2128 Granted 100% No
P36/1857 Granted 100% No
P36/1858 Granted 100% No
P53/1682 Granted 100% No
P53/1683 Granted 100% No
P53/1684 Granted 100% No
P53/1685 Granted 100% No
P53/1686 Granted 100% No
P53/1687 Granted 100% No
P53/1688 Granted 100% No
P53/1689 Granted 100% No
P53/1690 Granted 100% No
P53/1691 Granted 100% No
P53/1692 Granted 100% No
P53/1693 Granted 100% No
P53/1694 Granted 100% No
P53/1695 Granted 100% No
P53/1696 Granted 100% No
P53/1697 Granted 100% No

Page 28 of 28

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Hammer Metals Limited ABN Quarter ended (“current quarter”) 87 095 092 158 30 September 2021

Consolidated statement of cash flows Current quarter
$A’000		 Year to date (3
months)
$A’000
1.
Cash flows from operating activities
1.1
Receipts from customers
1.2
Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) staff costs
(e) administration and corporate costs
1.3
Dividends received (see note 3)
1.4
Interest received
1.5
Interest and other costs of finance paid
1.6
Income taxes paid
1.7
Government grants and tax incentives
1.8
Other (provide details if material)
- Property lease bonds paid
- Miscellaneous refunds
1.9
Net cash from / (used in) operating
activities		 (44)
(186)
(9)		 (44)
(186)
(9)
(239) (239)
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) exploration & evaluation
(e) investments		 (5)
(979)		 (5)
(979)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows Current quarter
$A’000		 Year to date (3
months)
$A’000
(f)
other non-current assets
2.2
Proceeds from the disposal of:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) investments
(e) other non-current assets
2.3
Cash flows from loans to other entities
2.4
Dividends received (see note 3)
2.5
Other (provide details if material)
- Miscellaneous
- Reimbursement of exploration costs by
JV partners and cash calls received
- Exploration expenditure on behalf of JV
partners
2.6
Net cash from / (used in) investing
activities		 325 325
3 3
14 14
(350) (350)
(992) (992)
3.
Cash flows from financing activities
3.1
Proceeds from issues of equity securities
(excluding convertible debt securities)
3.2
Proceeds from issue of convertible debt
securities
3.3
Proceeds from exercise of options
3.4
Transaction costs related to issues of equity
securities or convertible debt securities
3.5
Proceeds from borrowings
3.6
Repayment of borrowings
3.7
Transaction costs related to loans and
borrowings
3.8
Dividends paid
3.9
Other (provide details if material)
- Share capital oversubscriptions refunded
3.10
Net cash from / (used in) financing
activities		 150 150
(14) (14)
136 136

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 2

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows Current quarter
$A’000		 Year to date (3
months)
$A’000
4.
Net increase / (decrease) in cash and
cash equivalents for the period
4.1
Cash and cash equivalents at beginning of
period
4.2
Net cash from / (used in) operating
activities (item 1.9 above)
4.3
Net cash from / (used in) investing activities
(item 2.6 above)
4.4
Net cash from / (used in) financing activities
(item 3.10 above)
4.5
Effect of movement in exchange rates on
cash held
4.6
Cash and cash equivalents at end of
period		 10,069
(239)
(992)
136
-		 10,069
(239)
(992)
136
-
8,974 8,974
5.
Reconciliation of cash and cash
equivalents
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts		 Current quarter
$A’000		 Previous quarter
$A’000
5.1
Bank balances
5.2
Call deposits
5.3
Bank overdrafts
5.4
Other – Balance of JV bank accounts
5.5
Cash and cash equivalents at end of
quarter (should equal item 4.6 above)		 8,800
22
-
152		 9,582
22
-
465
8,974 10,069
6.
Payments to related parties of the entity and their
associates		 Current quarter
$A'000
6.1
Aggregate amount of payments to related parties and their
associates included in item 1
44
6.2
Aggregate amount of payments to related parties and their
associates included in item 2
41
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an
explanation for, such payments.		 44
41

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 3

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.
7.1
7.2
7.3
7.4
7.5
7.6		 Financing facilities
Note: the term “facility’ includes all forms of financing
arrangements available to the entity.
Add notes as necessary for an understanding of the
sources of finance available to the entity.
Total facility
amount at quarter
end
$A’000
Amount drawn at
quarter end
$A’000
Loan facilities
-
-
Credit standby arrangements
-
-
Other (please specify)
-
-
Total financing facilities
-
-
Unused financing facilities available at quarter end
-
Include in the box below a description of each facility above, including the lender, interest
rate, maturity date and whether it is secured or unsecured. If any additional financing
facilities have been entered into or are proposed to be entered into after quarter end,
include a note providing details of those facilities as well.		 Total facility
amount at quarter
end
$A’000		 Amount drawn at
quarter end
$A’000
- -
- -
- -
- -
8. Estimated cash available for future operating activities $A’000
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8		 Net cash from / (used in) operating activities (item 1.9)
(239)
(Payments for exploration & evaluation classified as investing
activities) (item 2.1(d))
(979)
Total relevant outgoings (item 8.1 + item 8.2)
(1,218)
Cash and cash equivalents at quarter end (item 4.6)
8,974
Unused finance facilities available at quarter end (item 7.5)
-
Total available funding (item 8.4 + item 8.5)
8,974
Estimated quarters of funding available (item 8.6 divided by
item 8.3)
7.37
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”.
Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
If item 8.7 is less than 2 quarters, please provide answers to the following questions:
8.8.1
Does the entity expect that it will continue to have the current level of net operating
cash flows for the time being and, if not, why not?		 (239)
(979)
(1,218)
8,974
-
8,974
Answer: Not applicable
8.8.2
Has the entity taken any steps, or does it propose to take any steps, to raise further
cash to fund its operations and, if so, what are those steps and how likely does it
believe that they will be successful?
Answer: Not applicable

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Not applicable

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

  • 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

Date: .........29 October 2021..........................................................................

Authorised by: ...............The Board....................................................................

(Name of body or officer authorising release – see note 4)

Notes

  1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

  2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

  3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

  4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

  5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 5

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