Hammer Metals : Maiden Mineral Resource Estimate – Jubilee Project

MAIDEN MINERAL RESOURCE ESTIMATE FOR THE

JUBILEE COPPER-GOLD DEPOSIT

• • The Mineral Resource Estimate for the Jubilee copper-gold deposit comprises 1.4 million tonnes at 1.4% Cu and 0.62g/t Au in the Inferred category at a 0.5% Cu cut-off grade.

• • The deposit contains an estimated 20,000 tonnes of copper and 28,000 ounces of gold.

• • The deposit extends from surface and is open at depth with excellent potential to extend the resource at depth and along strike.

• • Results of the first metallurgical program were very encouraging with a peak copper recovery of 98% and gold recovery of 80% to a copper concentrate. (Refer to ASX release of November 13th, 2018.)

• • Jubilee is part of the Mt Frosty Joint Venture between Hammer Metals Limited (51% and operator) and Mount Isa Mines Limited (49%) and is located less than 1km from the Barkly highway, midway between Mount Isa and Cloncurry.

  The resource model will now be used as a basis for open pit mining and further metallurgical studies.

Table 1 - Mineral Resources by Category and Weathering Zone

(Totals may not sum exactly due minor rounding errors)

Hammer's Executive Chairman, Russell Davis said: "The completion of the maiden mineral resource estimate for Jubilee brings Hammer another step closer to the commercialisation of the deposit. Much of the mineralisation is primary sulphides, close to surface, and potentially open pittable. The strongly elevated gold content potentially adds significant value to the project.

Within five kilometres of the Jubilee deposit, Hammer holds the Elaine-Dorothy copper-gold deposit and the Lakeview, Black Rock, and Sunset copper-gold prospects, all of which have excellent potential to define additional copper and gold resources.

Hammer has now built up the dominant tenement position in the Mary Kathleen district, a highly mineralised and prospective terrain for copper and gold around the Mary Kathleen uranium and rare earth deposit."

JUBILEE MINERAL RESOURCE ESTIMATE

A summary of the background and information used in the Mineral Resource estimation is as follows:

H&S Consultants Pty Ltd ("H&SC") was commissioned by Hammer Metals ("Hammer") to generate Mineral Resources for the Jubilee Copper Deposit.

The Mineral Resource estimate is reported here in compliance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves Committee (JORC). Therefore, it is suitable for public reporting.

The geological and mineralization continuity has been assumed with sufficient confidence to allow the majority of the mineralization to be classified as an Inferred Mineral Resource.

The deposit is similar in size and style to other copper-gold deposits in the region that have been successfully mined by small-scale open pit mining techniques which implies that the mineralization may be economically extracted.

Hammer has conducted high level economic studies on similar deposits within the Mount Isa region and found positive results. Preliminary metallurgical studies were undertaken by Hammer in 2018 on sulphide drill samples from a total of three diamond drill holes. The studies concluded that saleable copper-gold concentrates should be able to be recovered.

Ownership

The Jubilee deposit lies primarily within exploration tenement EPM14467, which is owned and operated by Hammer (51%), in joint venture with Mount Isa Mines Ltd (49%). The southern extremity of the resource extends into EPM14022 (Hammer 100%).

The tenements are in good standing and no known impediments exist.

Geology

The Jubilee Project occurs within the Mary Kathleen Fold Belt of the Eastern Succession of the Mid Proterozoic Mount Isa Inlier. The deposit occupies Corella Formation less than 100m from the western contact with Argylla Formation intruded by Wonga Granite. The mineralisation occupies the eastern contact of a quartzite marker unit that separates calc-silicate on the east from banded psammite to mica schist on the west. The deposit occupies a narrow zone of silicification and quartz veining that strikes 165 degrees and dips at 60 to 70 degrees to the west.

Drilling Techniques

A total of 45 holes for 5,736m and 4,392 copper, gold and cobalt assays have been used in the Jubilee resource estimate comprising predominantly RC drilling (5,475m) with three diamond holes (261m). The sampling length varies between approximately 1 (~90%) and 2 (~10%) metres, due to various phases of drilling by different companies. Drill spacing is regular, nominally at 50m centres, comprising 11 section lines. A total of 1,126 one metre composites were extracted from the drill hole database using a grade envelope based on a nominal 0.05% Cu.

Drill holes used in the resource estimate included 42 reverse circulation holes for a total of 5,475m and 3 diamond holes for a total of 261m. Nineteen (19) RC holes were drilled by China Yunnan Copper (CYU), and the remainder were drilled by Hammer Metals Limited (HMX).

Drill holes dip at an average -60° towards the -east to optimally intersect the mineralised zones.

Sampling and Sub-Sampling Techniques

Face-sampling reverse circulation drilling (42 holes) was the primary technique used at Jubilee. 3 NQ standard-tube diamond holes were also drilled.

CYU's 19 RC drillholes were sampled at one metre intervals. A bulk sample was collected at the cyclone and passed through a 12.5% riffle splitter.

Hammer drillholes were sampled at one metre intervals, in the vicinity of mineralization, using an on-rig cone splitter. Intervals distal from the primary mineralisation were sampled as riffle-split 4m composites of 1m samples.

Sample Analysis Methods

Samples were submitted to ALS Mount Isa laboratory for 70% passing 2mm crush followed by 85% passing 75um pulverizing of a 1kg split. A 12-element suite was determined by 4 acid digest - ICPMS method ME-ICP61. Gold was analysed at Townsville laboratory by 50g fusion fire assay - AAS method Au-AA26.

Cut-off Grades

The mineralisation domains were constrained by wireframes constructed using Cu cut-off grade guided by geological and geochemical interpretation. Two domains were constructed, one at a nominal 0.1% Cu and the other at 0.05% in order to run comparative models

The influence of extreme grade values was addressed by applying top-cuts to the data. These cut values were determined through statistical analysis (histograms, log probability plots, CVs, and summary multi-variate and bi-variate statistics).

Mineral Resource Estimation Methods

Hammer provided to H&SC interpretative mineralisation string files that outlined their geological model interpretation of the mineralised structure, based on a range of geological and geochemical criteria. This interpretation equates to a fairly strict 0.1% Cu mineralisation, which defines a single zone of higher-grade Cu mineralisation with no or very little intervals with grades below that level. Hammer instructed H&SC to use this interpretation to make a grade block model with a parent block size of 1m by 12.5m by 5m (X, Y & Z) that is an appropriate sizing for a high-grade narrow lode, amenable to a highly selective and controlled mining operation in both underground and open pit scenarios.

Ordinary Kriging ("OK") was used to interpolate block grades for copper, gold and cobalt with a parent block size as described above. The block model was oriented parallel to strike of the mineralisation. The block was then sub-blocked on a 2-2-2 basis using the appropriate mineralisation wireframe. The mineralised zone was modelled as an ellipsoidal shape oriented parallel to the strike and dip of the mineralisation. A three-pass search strategy was used with the initial search ellipse of 75m by 75m by 5m (X, Y & Z) increasing to 125m by 125m by 5m.

Reporting of the resource estimates was for blocks inside Hammer's interpreted mineralisation wireframe, with a partial percent volume adjustment for both topography and the fault intersection. Gold is reported as the modelled top-cut Au results. Default density values were assigned to mineral blocks based on sample averages from within the north and south 'fresh' mineralised zones. There were no density measurements within the weathered zone, so density values within the highly weathered and slightly weathered zone where based on a percentage of the 'fresh' zone average density, assigned at 85% and 90% respectively.

All resources are classified as Inferred based on the lack of grade continuity (i.e. wide drill hole spacing), limited QAQC data, limited density data, and limited RC recovery information. The Inferred Resources were based on the pass 1 and 2 search passes.

Jubilee Grade - Tonnage curve

Competent Person Statements

The data in this report that relates to Exploration Data for the Jubilee Project is based on information evaluated by Mr John Downing who is a Member the of The Australasian Institute of Geoscientists (MAIG) and a consultant to the Company. Mr. Downing 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. Downing consents to the inclusion of the exploration data in the report of the Mineral Resource in the form and context in which they appear.

The data in this report that relates to Mineral Resources for the Jubilee Deposit is based on information evaluated by Mr Luke Burlet who is a Member of The Australasian Institute of Geoscientists (MAIG) and who has sufficient experience 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' (JORC Code). Mr Burlet is a Director of H&S Consultants Pty Ltd and he consents to the inclusion of the estimates in the report of the Mineral Resource in the form and context in which they appear.

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 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.

Jubilee Drill Hole Location Plan