Hammer Metals : High Grade Copper Intercepted at Ajax

ASX RELEASE

onlyDIRECTORS /

14 February 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 (11/02/2022) $0.07

1. (08) 6369 1195

ABN 87 095 092 158

HIGH GRADE COPPER INTERCEPTED AT AJAX

• Drilling at the Ajax prospect (100% HMX) has intercepted shallow Copper bearing sulphides. An initial analysis by portable XRF has been completed on- site prior to the samples being submitted to the laboratory for definitive analysis.*
• Significant portable XRF intercepts include:
• • 10m† at 3.5% Cu from 25m in HMLVRC014*;with a maximum individual 1m PXRF analysis of 8.9% Cu
• Drilling for this hole was completed yesterday, 13 February, to a depth of 200m. Samples are being submitted to the laboratory for confirmatory analysis.
• The hole will be cased with PVC to enable the completion of a Downhole EM survey
• Follow up drilling at Ajax has been prioritised with results from a recent soil geochemical survey covering this prospect expected soon
• Ajax is located on the Trafalgar to Jubilee trend approximately 1.2km south- east from Hammer's Lakeview prospect
• Results from extensional drilling at Kalman due imminently

Figure 1. Sieve of sulphidic interval, 28-29m in HMLVRC014 which analysed

8.98% Cu by portable XRF

Hammer's Managing Director, Daniel Thomas said:

"This is a great result, intersecting mineralisation at a greenfield prospect such as Ajax. This interim result from our first drillhole into this prospect illustrates the potential of the Trafalgar to Jubilee trend (~12km long) to host multiple Cu-Au deposits. Follow up drilling to determine the extent of mineralisation at Ajax has been prioritised and will be incorporated into our current drill program. This intercept is a testament to the team's hard work over the past 12 months and it's exciting as we look to drill several similar targets along this highly prospective trend."

• These portable XRF results should be considered preliminary, and they will be subject to confirmation by subsequent laboratory analyses. The lab analyses may vary from those obtained by portable XRF. See Appendix 1 for a full tabulated list of PXRF analyses for the interval quoted in the intersection.
  † True thicknesses cannot be ascertained as this is the first drillhole into the Ajax Prospect

For personal use only

Hammer Metals Ltd (ASX:HMX) ("Hammer" or the "Company") is excited to release interim portable XRF results from reconnaissance reverse circulation hole HMLVRC014 at the Ajax prospect located ~1.2km southeast of Lakeview along the 12km Trafalgar to Jubilee mineralised trend..

Drilling of hole HMLVRC014 commenced on 12 February with samples to be submitted today for priority laboratory analysis. During routine drill logging all drilled intervals are subject to portable XRF analysis to aid in grade determination and lithochemical analysis. The portable XRF results reported herein should be considered preliminary, and they will be subject to confirmation by subsequent lab analysis using fire assay for gold and ICP-MS/ICP-OES for multiple elements.

HMLVRC014 will be subject to DH EM in the near future to aid in follow-up drilling.

The mineralised interval is composed of a quartz (+chalcopyrite) vein within a biotite schist host. The mineralisation is located in a local demagnetised zone and this observation will aid future drill targeting.

Figure 2. Sieve of sulphidic intervals 27-31m, averaging 6.02% Cu (by portable XRF) in HMLVRC01

• Coordinates relative to GDA94 Zone54

Table 1: Ajax Prospect - Portable XRF intercepts utilising a 0.1% Cu cut-off (See Appendix 1 for results of

individual metre copper analyses)

Next Steps

Drilling of the current hole was completed on 13 February with several nearby drill targets (Orion, Neptune, Sunset) still to be tested. The existing hole will be cased with PVC to enable the completion of a Downhole EM survey. The nature and tenor of mineralisation are likely to be conducive to this type of geophysical survey.

Follow up drilling at Ajax has been prioritised with the Company's current plan to test below the current intercept. Localised wet weather events present challenging ground conditions which the team continue to monitor and consider before preparing any new drill sites. Dry conditions are expected to return towards the end of the month.

The Lakeview region has been previously mapped and subject to a multielement soil geochemical survey. Results from the soil survey are expected to be reported in the near future.

Mount Isa - Ongoing Exploration Activities

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For personal use only

Figure 4: Hammer's northern tenement area

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