Hammer Metals : Kalman Extended by Shallow Copper-Gold-Molybdenum Hits

ASX RELEASE

onlyDIRECTORS /

15 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 (14/02/2022) $0.073

KALMAN DEPOSIT EXTENDED WITH SHALLOW

COPPER-GOLD-MOLYBDENUM HITS

• Drilling at Kalman has intercepted broad zones of shallow copper/gold/molybdenum/rhenium mineralisation, extending the deposit to the north of the existing JORC resource. Significant intercepts include:
• • 50m* at 0.63% Cu and 0.49g/t Au, (0.79% CuEq† ) from 20m in K-144;
    o including 16m* at 1.38% Cu and 0.84g/t Au (1.59% CuEq†) from 43m
  • 64m* at 0.23% Cu, 0.12% Mo, 0.10g/t Au, 2.97g/t Ag, and 2.64g/t Re (0.75% CuEq† ) from 67m in K-143;
    o including 16m* at 0.19% Cu, 0.34% Mo, 0.08g/t Au, 8.84g/t Ag, and 8.59g/t Re (1.71% CuEq† ) from 114m
  • 22m* at 0.82% Cu, 0.37g/t Au and 0.03% Mo (1.0% CuEq† ) from 99m in K-145;
    o Including 8m* at 1.41% Cu, 0.75g/t Au, 0.08% Mo, 1.5g/t Ag, and 1.7g/t Re (1.88% CuEq†) from 99m.
• The most recent JORC Mineral Resource estimate on the Kalman deposit and reported to the ASX on 27 September 2016 was 20Mt at 1.8% CuEq.
• Follow up drilling to determine the extent of the mineralised zone and potentially increase the Kalman resource is planned.
• Drilling continues at the Ajax prospect where Hammer has intercepted shallow copper bearing sulphide. Initial analysis by portable XRF was completed with samples being submitted to the laboratory‡. Intercepts include:
• • 10m§ at 3.5% Cu from 25m in HMLVRC014*;with a maximum individual 1m PXRF analysis of 8.9% Cu (see ASX Announcement 14 February 2022)

Hammer's Managing Director, Daniel Thomas said:

"Kalman remains Hammer's most advanced prospect and these results highlight the latent potential in immediate proximity to the project. Drilling has improved confidence in the defined JORC resource and has also opened up the deposit to the North at shallow depths, whilst the high-grade potential of the system remains open at depth and along strike to the South. In an environment of rising metal prices and with a surge in demand for new economy metals, Hammer is presented with an immediate opportunity to further explore Kalman focussing on increasing the potential economic return from this system.

Combined with continued exploration success near this deposit, the underlying potential of the Mount Isa Inlier region is finally garnering the investor and industry interest it deserves. Hammer is positioned for success through the advancement of our JORC compliant resources and our numerous exploration prospects during the coming year. Drilling continues at our prospects and within the Mount Isa East Joint Venture providing a solid stream of exploration news in the months ahead."

For personal use only

Figure 1. Kalman oblique view looking northwest copper equivalent % blocks

(Refer ASX announcement 27 September 2016)

Kalman Drilling

Four RC holes for a total of 776m were drilled to test a poorly tested area at the northern end of the deposit. The successful delineation of near-surface mineralisation in this area has potential to materially upgrade the Kalman Resource. Hammer is currently reviewing options to conduct further drilling, targeting this lode along strike and at depth.

Significant intercepts include:

• 9m* at 0.65% Cu, 0.23% Mo, 0.27g/t Au, 12.09g/t Ag, and 4.82g/t Re (1.74% CuEq† ) from 41m in K- 142;
• 64m* at 0.23% Cu, 0.12% Mo, 0.10g/t Au, 2.97g/t Ag, and 2.64g/t Re (0.75% CuEq† ) from 67m in K- 143;

• 1. Including 16m* at 0.19% Cu, 0.34% Mo, 0.08g/t Au, 8.84g/t Ag, and 8.59g/t Re (1.71% CuEq† ) from 114m in including 4m* at 0.66% Mo and 20.78g/t Re from 125m.
• 50m* at 0.63% Cu, 0.01% Mo, 0.49g/t Au, 0.53g/t Ag, and 0.08g/t Re (0.79g/t CuEq† ) from 20m in K- 144;
• 1. including 16m* at 1.38% Cu, 0.01% Mo, 0.84g/t Au, 0.62g/t Ag, and 0.04g/t Re (1.59% CuEq† ) from 43m and 1m at 7.3g/t Au from 47m;
• 22m* at 0.82% Cu, 0.03% Mo, 0.37g/t Au, 0.8g/t Ag, and 0.63%Re (1.0% CuEq† ) from 99m in K-145;
• 1. Including 8m* at 1.41% Cu, 0.08% Mo, 0.75g/t Au, 1.5g/t Ag, and 1.7g/t Re (1.88% CuEq† ) from 99m; and
• 6m* at 0.4g/t Au, 1.3g/t Ag, 1.13% Cu, 0.13% Mo and 2.71g/t Re (1.73% CuEq† ) from 161m in K-145.

Mineralisation intercepted at 99m in hole K-145 represents an extension of a mineralised lode approximately 100m to the North of the existing JORC resource blocks. Future drilling will aim to extend this zone of mineralisation which remains open at depth and to the North (Figure 2).

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Similarly, a broad zone of mineralisation intercepted in hole K-144 potentially indicates the amalgamation of two interpreted mineral lenses (Figure 3). The previous resource model also constrained the eastern zone of mineralisation at depth below hole K-144. This also represents a zone for further resource definition at a shallow depth which would be amenable to future open pit mining.