Hammer Metals : Drilling begins at Perentie – Mt Isa

DRILLING BEGINS AT PERENTIE COPPER-GOLD TARGET

• • Hammer Metals Limited is pleased to announce that a first pass 1000m reverse circulation (RC) drilling programme has begun at the new Perentie copper-gold target.

• • The drilling is an initial test of the +5km long Susan - Paddy B - Judith mineralised trend and the +5km Rainbow Ridge - Trackside mineralised trend recently delineated by Hammer.

• • Rock chip grades of up to 31% Cu, 19g/t Au and 240g/t Ag were obtained in rock chip sampling in these areas (Refer to ASX announcements dated August 15th and 22nd, September 3rd and 28th, and October 11th).

• • A Sub Audio Magnetics or "SAM" geophysical survey was completed over parts of the trends to assist with the delineation of the structure of the mineralised trends and drill hole planning.

• • It is expected that the programme will be completed within two weeks (weather permitting) and results to be received by mid-late December.

For further information contact: Russell Davis | Executive Chairman T: +61 8 6369 1195info@hammermetals.com.auwww.hammermetals.com.au

Perentie area showing the location of the recently completed SAM survey (shaded yellow). Along the mineralised trends there is significant areas of cover. This can be seen by the numerous gaps in the surface sampling coverage.

About Hammer Metals

Hammer Metals Limited (ASX: HMX) holds a strategic tenement position covering approximately 3000km2 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-Dorothy (Cu-Au) deposit. Hammer also has a 75% interest in the Millennium (Cu-Co-Au) deposit and a 51% interest in the emerging Jubilee (Cu-Au) project. Hammer is an active mineral explorer, focused on discovering large copper-gold deposits of the Ernest Henry style and has a range of prospective targets at various stages of testing.

• 1 TMI RTP - Total Magnetic Intensity - Reduced to Pole

• 2 MMC - Magnetometric Conductivity

Competent Person's Statement:

Exploration Results

The information in this report as it relates to exploration results and geology was compiled by Mr. Mark Whittle, who is a Member of the AusIMM and a consultant to the Company. Mr. Whittle who is a shareholder and option-holder, has sufficient experience which is relevant to the style of mineralisation and type of deposit 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.

• 3 TMI RTP - Total Magnetic Intensity - Reduced to Pole

• 4 MMC - Magnetometric Conductivity

Hammer Metals Mount Isa Project area