2024 - 2025

Dear Melburn

I assume that we will see an update - of whatever kind - before Christmas. As I know from Dan, the drilling at Mt Isa (Lady Jenny) turned out to be difficult due to the weather. I don't expect to see any results before the middle - or rather the end - of January.

South32's really positive decision to drill in 2025 was not recognized by the market (and the SP). The Japanese seem to be taking the Bullrush thing very seriously - it seems to me that Sumitomo is making sustainable and well-considered decisions. Nobody wants to take note of this either - but it should give pause for thought that such a relatively large player is working with a giant like Rio in Australia and with a (still) dwarf like Hammer Metals.

Why I am invested in Hammer:

I have summarized the 10 highlights for 2024 and filtered out the potential catalysts for 2025. I think that HMX has never been in such a good starting position. The breakthrough moment will and must come at some point.

Russel (who recently increased his position), in the annual report emphasizes the company's core strategy to discover or acquire additional metal resources in proximity to their project areas, aiming to justify the development of a robust base metal operation.He believes that Hammer Metals is "close to achieving this goal", reflecting his confidence in the progress made and future potential.

Me too! DYOR AND GOOD LUCK FOR 2025

Highlights 2024

1. Strategic Positioning: Hammer Metals is focused on "future-facing" commodities, particularly in the Mount Isa region, with significant potential in copper, molybdenum, rare earth elements (REEs), and gold.

2. Resource Inventory Growth: The company has built a substantial resource inventory totaling 530,000 tonnes of copper equivalent (CuEq), including 321,000 tonnes of copper, 38,000 tonnes of molybdenum, 343,000 ounces of gold, and 84,100 kilograms of rhenium.

3. Successful Joint Ventures: Hammer entered into multiple joint ventures, including a notable agreement with Carnaby Resources, which provided $4 million in cash and $5 million in shares, allowing Hammer to retain a 30% interest in the Mount Hope project.

4. Exploration Success: Interesting high-grade copper drilling results were achieved at various sites.

5. New Leadership in Exploration: The appointment of Greg Amalric as Manager of Exploration and Discovery is expected to enhance the company’s exploration strategy, leveraging his extensive experience in the NW Queensland mineral province.

6. Funding and Financial Performance Hammer secured $1.75 million in exploration funding through joint ventures and received an additional $1.5 million from successful CEI and R&D funding applications, culminating in roughly $6.2 million for the financial year.

7. Maiden Gold Resource: The company announced a maiden gold resource of 54,000 ounces at the Orelia North deposit in the Yandal project, which is strategically located near existing mining operations.

8. Geophysical Programs: Completion of extensive geophysical programs has led to the identification of new copper-gold anomalies, enhancing the exploration pipeline for 2024 and 2025 - e.g. Mt. Isa Valley - Bullrush and others.

9. Corporate Strategy: Hammer is committed to consolidating and improving the quality of its tenement positions while focusing on delivering positive financial returns to shareholders.

10. Future Development Plans: The company is exploring additional corporate opportunities and acquisitions to further enhance its value proposition and resource base.

Possible Catalysts for Success in 2024

1. Continued Exploration Success: Ongoing drilling and exploration activities are expected to yield new discoveries, particularly in high-potential areas around Mt. Isa, which could significantly increase the resource inventory.

2. Joint Venture Partnerships: The strategic partnerships with major players like Carnaby Resources, Sumitomo Metal Mining, and South32 are likely to provide additional funding and expertise, facilitating more extensive exploration and development efforts.

3. Market Demand for Critical Minerals: With the Australian government emphasizing the importance of critical minerals especially also in a Mt. Isa "consolidation context". Hammer’s focus on copper, molybdenum and rhenium could position the company favorably in a growing market, potentially leading to increased valuations.

4. Successful Monetization of Resources (???): The company’s ability to monetize its resources, particularly the newly defined gold resource at Orelia North, could provide significant cash flow and enhance shareholder value.

5. Financial Position: With a solid cash position and successful funding initiatives, Hammer is well-equipped to pursue its exploration and development plans without the need for immediate capital raises, reducing dilution risk for shareholders.

Quality of Management

The management of Hammer Metals is reflected in their experience and strategic approach. The Board includes professionals with significant backgrounds in exploration, development, mining, business development, capital markets, and joint ventures, indicating a diverse skill set dedicated to delivering positive results for shareholders. Furthermore, the management team has undergone significant activity, including low-cost acquisitions and the assembly of substantial mineral resources, totaling 530,000 t of CuEq metal from their projects, which demonstrates proactive exploration and operational effectiveness.

Dan Thomas serves as the Managing Director and has a supportive executive team. The Company has made efforts to bolster its exploration capacity especially in 2024, highlighting the recent appointment of Greg Amalric as Manager - Exploration and Discovery, who brings extensive experience in the mineral province of Northwest Queensland, suggesting a commitment to enhancing the company's exploration strategy.