HAMMER METALS LIMITED — M&A Activity 2013

Dec 8, 2013

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9 December 2013

Midas Receives Cash offer for Mt Philp

Midas Resources Limited (“Midas”) (ASX:MDS) wishes to advise it has received a cash offer for its 100% owned Mt Philp Iron Ore deposit from private mining company Developed Iron Ore Pty Ltd (“DIO”).

This offer is subject to a 90 day due diligence period to commence on the 14[th] of January due to the approaching Christmas break. Exclusivity has been granted to “DIO” during this period for a non-refundable cash payment of $50,000.

The offer consists of;

• A Purchase price of $1.5 million;

  • $500,000 to be paid within 60 days of due diligence being completed; and

  • $1million to be paid six months after the transfer of the first payment.

• DIO will grant in favour of Midas a royalty of 0.5% the gross proceeds of the sale of iron extracted from the Mt Philp asset.

This offer is not subject to any capital raising from DIO. The exclusivity fee is in addition to the $1.5million in cash.

It is intended that all interests to iron ore on the Mt Philp asset within the area of application for Mineral Development License (MDL) 471 will be transferred to DIO, however legal ownership of MDL471, together with the rights to all minerals apart from iron ore, will remain with the current tenement holder being Midas’s wholly owned subsidiary, Mt Dockerell Mining Pty Ltd.

Alexander Hewlett

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Executive Director