ASX RELEASE

onlyDIRECTORS /

14 June 2022

MANAGEMENT

Russell Davis

Chairman

useDaniel 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

Sha e Price (11/05/2022) $0.057

Shares on Issue

815m

Mark t Cap

$46m

Options Unlisted

28m

Performance Rights

8m

Cash (31/3/2022)

$6.4m

personalFor

ADDENDUM TO PREVIOUS ANNOUNCEMENTS

ON 12 MAY 2022 AND 7 JUNE 2022

Hammer Metals Ltd (ASX: HMX) ("Hammer" or the "Company") is pleased to provide an addendum to its ASX announcements released on 12 May 2022 and 7 June 2022.

In the ASX announcement released on 12 May 2022 entitled AJAX EAST UPGRADED WITH SULPHIDES INTERSECTED IN INITIAL DRILLING and in the Investor Presentation released on 7 June 2022 Hammer made reference to the presence of sulphides in drill core from an initial diamond drill hole (HMLVDD001).

These references were noted as visual observations and are detailed below.

  • 6m interval of stringer sulphide mineralisation (including pyrrhotite and chalcopyrite) intersected within a 30m zone of highly altered metasediments, corresponding with the modelled EM conductor at ~290m down-hole.
  • Additional zones (1m from 253m and 1m from 342m down-hole) of stringer sulphide mineralisation also identified in the hanging and footwall of the main target horizon.
  • The presence of a significant sulphide horizon at Ajax East has upgraded the target, with this active sulphide system having the potential to host economic zones of chalcopyrite mineralisation.

Further to the observations noted above and the details provided in the announcements referred to and in accordance with the Australian Institute of Geoscientists "AIG" guidance, Hammer wishes to advise that visual estimates of sulphide mineral abundance should, never be considered a proxy or substitute for laboratory analyses where metal concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding potential impurities or deleterious physical properties relevant to valuations of some mineral commodities such as graphite and many industrial minerals.

Hammer confirms that as advised in its ASX announcement dated 12 May 2022 it is awaiting assay results, further it anticipates receipt of these results in June 2022.

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

For personal use only

Ajax East Diamond Drilling - Sulphide Mineral Observations in Drill Hole HMLCDD001

Hammer reiterates that following the initial drilling of HMLVRC0014 at Ajax (refer ASX announcement 9 March 2022), follow-up DHEM and FLEM surveys identified a large conductor to the east of Ajax beneath the historic workings at Smoko Gossan. The orientation of the modelled conductor aligned with the geological interpretation of the area, with the conductor situated immediately below an extensive high-gradecopper-in-soil anomaly. As a result, Ajax East was prioritised for diamond drill testing with Hammer recently completing its first test of the prospective horizon.

HMLVDD001 was drilled to a final depth of 417m with assays pending. Drilling encountered multiple shear zone hosted horizons primarily composed of Quartz (+carbonate) with chalcopyrite and pyrrhotite rich sulphide. In the modelled conductor position, the hole encountered a 30m wide zone of highly altered metasediment package including 6m of stringer sulphide mineralisation (dominantly composed of pyrrhotite and chalcopyrite) from 290m down-hole. Zones of sulphide mineralisation, individually up to 2m in downhole thickness were identified in both the hangingwall and footwall of the modelled EM horizon (Figures 3 to 6).

This result is considered to be highly encouraging for the first hole into this system as it confirms that the Ajax East EM response is sulphide-related with chalcopyrite a significant component within the broader sulphide mineral system. This indicates a fertile environment for hosting economic copper mineralisation.

The hole at Ajax East was cased with PVC to enable further down-hole EM surveys to be undertaken which have since confirmed the presence of EM anomalies within the hangingwall and main target horizons. Further surface FLEM surveys have been completed to assist with targeting and establishing potential differentiation between chalcopyrite and pyrrhotite mineralisation. This will enable better targeting for planned further drilling at this highly prospective target.

In accordance with AIG guidance the following details are provided on the nature, mineralogy and relative abundance of sulphide minerals observed.

Nature of sulphide occurrences

Three main sulphide intersections were observed in HMLVDD001. These occurrences consisted of stringer or vein style mineralisation. Core observations suggest that these zones are broadly concordant with the local foliations.

Associated with these veins are zones of disseminated sulphide which are interpreted to be marginal to the vein zones. Stringers can be up to 40cm in thickness.

The location of these zones was broadly in accordance with the location of EM conductors.

Sulphide minerals observed

At a field observation-scale, three sulphide minerals could be discriminated - Chalcopyrite (CuFeS2), Pyrrhotite (FeS) and Pyrite (FeS2). Commonly in the Mt Isa region other metals such as Co and Ni are associated with increased concentrations of Pyrrhotite and Pyrite. However, in practice visual identification of these minerals at hand specimen scale is not possible.

Relative abundance of sulphide minerals observed

When geologically logging a drillhole Hammer Metals geologists attempt to determine the relative abundance of the major sulphide minerals through visual observation. Utilising portable XRF is another option however it can be difficult to establish a mineral concentration over meaningful downhole widths. Typically, the major sulphide minerals can be identified, however in cases where grainsize of these minerals is fine, then a total quantum of sulphide is estimated.

A full sulphide observation table from HMLVDD001 is appended (Table 1).

Table 1: HMLVDD001 - Sulphide observations - Mineral, Nature and Concentration based on visual observations

HMLVDD001

only

From (m)

To (m)

9.2

9.4

16

18.4

18.4

21.4

21.4

21.7

21.7

26.2

31

38

55

55.5

59.8

60.1

62.42

62.7

75.1

75.8

81.7

83.3

use

83.8

86

87

87.4

92.85

93

105.4

106.5

107.7

108.4

110.1

114.1

114.1

120

132.7

134

135.5

138

140

147.15

147.15

150

165

167

168.8

170

172.63

173

personal

181.65

182.3

183.2

183.3

320.35

320.8

184.9

185.2

186.35

186.6

190

192

198

199

209

210.5

216

216.6

227

229

229

235.2

235.2

235.8

235.8

249.5

249.5

251

253.68

268.5

268.5

272.35

272.35

273

273.8

274.8

278.3

278.6

280.05

280.9

288.4

288.9

292.6

294.6

295.3

299.1

299.55

300.7

302.45

302.7

305.5

306.2

315.6

317.1

317.6

318.1

For

322.5

324.35

325.2

327.45

327.45

327.65

327.95

328.45

338.45

338.55

339.5

339.8

340.4

342.15

342.15

342.85

344.05

344.3

345.3

347.25

348.3

348.5

353.55

354.65

362.9

363

375.6

375.7

382.2

382.35

383.8

385

398.3

398.4

411.1

411.25

414.1

414.6

415.65

415.75

Chalcopyrite or sulphide (if not

Pyrite

Pyrrhotite

Total Sulphide

differentiated)

concentration over logged

Intensity

Intensity

Intensity

Comment

Interval

interval (%)

Nature

over logged

Nature

over logged

Nature

over logged

interval (%)

interval (%)

interval (%)

0.2

0.25

Vein

0.25

2.4

0.25

Vein

0.25

3

0.1

Vein

0.1

0.3

2

Vein

2

4.5

0.1

Vein

0.1

7

0.1

Vein

0.1

0.5

0.5

Vein

0.5

0.3

1

Vein

1

0.28

0.5

Vein

0.5

0.7

0.1

Vein

0.1

1.6

0.5

Vein

0.5

2.2

0.5

Vein

0.5

0.4

0.5

Vein

0.5

0.15

1

Vein

1

1.1

1

Vein

0.5

Vein

0.5

0.7

3

Vein

0.1

Vein

3

Vein

2

4

2.1

5.9

0.1

Vein

0.1

1.3

0.25

Vein

0.25

2.5

0.5

Vein

0.25

Vein

0.5

7.15

0.25

2.85

0.25

Vein

0.25

2

0.25

Vein

0.25

1.2

0.25

Vein

0.25

0.37

10

Vein

10

Hangingwall Zone

0.65

30

Vein

30

0.1

3

Vein

1

Vein

2

0.3

0.5

Vein

0.5

0.25

2

Vein

2

2

0.5

Vein

0.5

1

0.25

Vein

0.25

1.5

0.25

Vein

0.25

0.6

0.5

Vein

0.5

2

0.5

Vein

0.5

6.2

1

Vein

1

Vein

0.6

2

Vein

2

13.7

1

1

1.5

0.25

Fracture

0.25

14.82

3

Vein

1

Fracture

2

Main Zone

3.85

1

Fracture

1

0.65

5

Vein

2

Vein

1.5

Vein

1.5

1

4.5

Vein

0.5

Vein

1

Vein

3

0.3

5.5

Vein

0.5

Vein

5

0.85

3

Vein

1

Vein

2

0.5

10

Vein

2

Vein

8

2

4

Vein

1

Vein

3

Main Zone

3.8

15

Vein

5

Vein

10

1.15

3

Vein

0.5

Vein

2.5

0.25

2

Vein

0.5

Vein

1.5

0.7

1

Vein

0.25

Vein

0.75

1.5

3

Vein

0.5

Vein

2.5

0.5

0.5

Vein

0.5

0.45

6

Vein

1

Vein

5

1.85

2

Vein

0.5

Vein

1.5

2.25

1

Vein

0.2

Vein

0.8

Vein

0.2

10

10

Footwall Zone

0.5

12

Vein

Vein

6

6

0.1

25

Vein

25

0.3

3

Vein

3

1.75

2

Vein

0.25

Vein

1.75

Footwall Zone

0.7

Massive

10

Massive

60

50

0.25

1

Vein

1

Footwall Zone

1.95

1.5

Vein

1

Vein

Vein

0.5

0.2

1

1

1.1

Vein

Vein

4

5

1

0.1

Vein

5

5

0.1

Vein

5

5

0.15

Disseminated

1

1

1.2

Disseminated

Disseminated

0.5

0.25

0.25

0.1

1

Vein

1

0.15

2

Vein

1

Vein

1

0.5

Disseminated

0.5

0.5

0.1

4

Vein

2

Vein

2

Page 3 of 7

For personal use only

Figure 1. Section through HMLVDD001 showing the relationship between observed sulphidic intervals and the modelled EM plate (refer

also ASX announcement 9 March 2022).

Page 4 of 7

For personal use only

Page 5 of 7

Figure 2: Hammer's northern tenement area

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Hammer Metals Limited published this content on 14 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 June 2022 03:02:01 UTC.