Hammer Metals : Jubilee First Metallurgical Test Work

JUBILEE METALLURGY STUDY OBTAINS OUTSTANDING

+98% COPPER RECOVERY TO CONCENTRATE

•  Hammer Metals Limited is pleased to report the results of the first metallurgical program for the Jubilee Cu-Au Prospect. Jubilee is located within the Mt Frosty Joint Venture between Hammer Metals Limited (51% and operator) and Mount Isa Mines Limited (49%).

•  The recently completed diamond drilling programme obtained significant results including 5.5 metres at 14.5g/t Au and 6.87% Cu from 74 metres within 14 metres at 5.93g/t Au and 2.19% Cu from 66 metres in HJDD003. (Refer to ASX release dated August 27th 2018)

•  Testwork was conducted on a single composite sample sourced from the three recently completed diamond drillholes (HJDD001, HJDD002 and HJDD003). Optimum grind and reagent settings were obtained in Test 3 which resulted in a peak copper recovery of 98% and gold recovery of 80% to a copper concentrate.

•  The maiden Mineral Resource Estimate for Jubilee is underway. It is anticipated the results will be released later in the quarter.

Copper rougher flotation test T3

Hammer's Executive Chairman, Russell Davis, said: "The positive test results bring Hammer one step closer to the commercialisation of Jubilee. This is set to continue with the release of the maiden Jubilee resource estimate in the near future"

FIRST STAGE METALLURGICAL PROGRAM

A single composite sample was sourced from a recently completed diamond drill program at Jubilee. (Refer to ASX release dated August 27th 2018.)

The aims of the ALS study were:

• (1) determine copper, gold and cobalt recoveries via rougher flotation;

• (2) determine preliminary comminution parameters; and

• (3) determine the main copper minerals in concentrates.

Table 1 - Head grade assay for the Jubilee composite

Six rougher flotation tests were undertaken on the composite using different grind and reagent settings. To investigate gold recovery, gravity separation tests were conducted in isolation and in combination with rougher flotation. It was concluded that the gold was fine and there was no benefit in the introduction of gravity separation. Both copper and cobalt concentrates were produced.

The conclusion was that Test T3 achieved optimal recoveries of both copper and gold using flotation without gravity concentration. As expected, the cobalt grade of the cobalt concentrate was not high enough to be a stand-alone product, however the additional gold recovered in the cobalt concentrate may be of commercial value.

The 19.4% copper grade from the T3 concentrate should increase through regrind and cleaner flotation test work. This will be undertaken in future metallurgical studies.

Comminution tests reported an SMC classification of "medium" for JK impact breakage parameters and an abrasion index classification of "slightly abrasive". Optical mineralogy indicated that that copper in the composite concentrate was exclusively present as chalcopyrite (CuFeS2).

Table 2 - Optimal test results for the Jubilee composite

Table 3 - Rougher float test parameters

For further information contact:

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

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 anactive 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.

Drill Hole Location Plan with the three diamond holes identified by red call-outs

Long section of Jubilee (facing west) with the three diamond holes identified by red call-outs

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.

Hammer Metals Mount Isa Project area