Hammer Metals : Millennium North Metallurgical Test Work

• • Hammer Metals Limited is pleased to report the results of the first metallurgical program conducted over the northern quartzite zone of the Millennium Co-Cu-Au resource. The Millennium Project is a joint venture with TSX listed, Global Energy Metals Corporation (GEMC).

• • Two composite samples were sourced from diamond drill core (MIDD001-MIDD010) from a program conducted in the first quarter of 2018. (Refer to ASX releases January 17th, June 5th and July 19th.) The drilling tested the northern quartzite domain which contains the majority of the Millennium Co-Cu-Au resource.

• • The key outcomes of the metallurgical test work:

  • o Production of separate cobalt and copper rougher concentrate streams is possible.

  • o High-grade composite peak rougher flotation test:

    •  Combined Cu recovery of 95.1%

    •  Combined Co recovery of 95.4%

    •  Au total recovery of 81.4% reporting dominantly to the Cu concentrate

  • o Low-grade composite peak rougher flotation test:

    •  Combined Cu recovery of 91.3%

    •  Combined Co recovery of 91.7%

    •  Au total recovery of 77.9% reporting dominantly to the Cu concentrate

  • o It is expected that the concentrate grades may increase on re-grind and final cleaner flotation. This test-work will be conducted in 2019.

• • The results are considered very encouraging. Looking ahead, further drilling is planned on the southern portion of the Millennium deposit to expand and upgrade the current resource. This will be accompanied by ongoing metallurgical characterisation.

Copper rougher flotation test HG-3 (left) and cobalt rougher flotation test HG-1 (right)

Hammer's Executive Chairman, Russell Davis said: "Very encouraging recoveries of copper and cobalt to separate concentrates have been achieved from this initial phase of metallurgical test-work. Hammer looks forward to GEMC further advancing the evaluation of the Millennium project in 2019."

FIRST STAGE METALLURGICAL PROGRAM

Two composites were sourced from diamond drill core from a program conducted during the first quarter of 2018. (Refer to ASX releases January 17th, June 5th and July 19th.) The drilling was testing what is termed the northern quartzite domain at Millennium. This domain hosts the majority of the Millennium Co-Cu-Au resource.

The test-work was done by ALS in Adelaide. The aims of the test-work were:

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

• (2) determine preliminary comminution parameters; and

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

Table 1 - Composite head grade assays (HG - high grade and LG - low grade)

Twelve rougher float tests were undertaken on the high-grade and low-grade composites. Each test was conducted using different grind and reagent settings. The optimum settings were obtained in tests HG-7 and LG-5 and the results of these tests are summarised below.

Quartzite is the main host lithology for this domain at Millennium and, as expected, the comminution test work reported results indicative of a silica rich gangue material. The SMC test classified the composites as "very hard", abrasion tests as "slightly abrasive" and the Ball Mill index test as "hard".

Optical mineralogy and XRD analysis indicated that copper was exclusively present as chalcopyrite (CuFeS2) and cobalt was identified in both cobaltite (CoAsS) and catterite (CoS2).

Table 2 - Rougher float test results for high-grade and low-grade composites

Table 3 - Rougher float test parameters

Oblique view of the Millennium deposit looking north. The quartzite domain is largely present at

Millennium North

Northern Zone at Millennium showing the mineralised Quartzite

The location of the northern quartzite domain (shaded in orange). The mineralised portion of the domain is shaded in red

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.

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

JORC Code, 2012 Edition

Table 1 report - Exploration Update

• • This table is to accompany an ASX release updating the market on metallurgical results