Hammer Metals Ltd. released results from shallow reverse circulation drilling conducted on the northern margin of the Kalman deposit. Drilling undertaken in early 2022 identified the potential for further shallow Resources at the northern end of the Kalman deposit. Given the improving metal prices, testing this portion of the Resource at a shallow depth was seen as a priority.

Twelve holes for 2,218m were drilled in late 2022, with assay results reported in this announcement. These holes specifically tested a zone of mineralisation referred to as the Eastern Target Zone. This zone, previously intersected in K-145, had the potential to extend the Kalman Resource to the north and east.

Significant intercepts from K145 included: · 22m at 0.82% Cu, 0.03% Mo, 0.37g/t Au, 0.8g/t Ag and 0.63% Re (1.16% CuEq) from 99m in K-145; o Including 8m at 1.41% Cu, 0.08% Mo, 0.75g/t Au, 1.5g/t Ag and 1.7g/t Re (2.29% 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 (2.39% CuEq) from 161m in K-145. The December 2022 program focused on this area of the deposit, with significant intersections including: · 89m at 0.40% Cu, 0.18g/t Au, 0.14% Mo and 2.9g/t Re (1.74% CuEq) from 143m in K-153; o including 24m at 0.44% Cu, 0.29g/t Au, 0.5% Mo and 10.2g/t Re (5.07% CuEq) from 194m · 107m at 0.42% Cu, 0.12g/t Au, 0.06% Mo and 1.8g/t Re (0.97% CuEq) from 98m in K-146; o including 23m at 0.73% Cu, 0.21g/t Au, 0.23% Mo and 7.5g/t Re (2.88% CuEq) from 178m; including 9m at 0.89% Cu, 0.19g/t Au, 0.55% Mo and 17.8g/t Re (5.97% CuEq) from 182m; · 66m at 0.40% Cu, 0.17g/t Au and 0.03% Mo (0.69% CuEq) from 133m in K-147; o including 14m at 0.68% Cu, 0.33g/t Au, 0.05% Mo (1.67% CuEq) from 150m. Holes K-151 and K-156 failed to intercept this zone, with mineralisation apparently displaced.

An upcoming DHEM program aims to define this dislocation with a view to further extending the deposit to the north. Mineralisation intercepted in the Eastern Target Zone and at the northern end of the deposit will now be modelled, with an updated Mineral Resource Estimate to be completed in First Quarter /Second Quarter of calendar 2023. The recent drilling has highlighted the exploration potential and upside near Kalman.

In addition to the DHEM survey, a number of surface Fixed Loop EM (‘FLEM’) surveys will be completed within the target zone along the Pilgrim Fault. Additional `unclassified' mineral zones within the deposit will also be considered for future drilling to further add to the resources with the Kalman deposit. Several untested geochemical anomalies are also being investigated with additional infill geochemical sampling planned for after the wet season.

FLEM surveys are planned to commence this week at the Hardway, Mascotte and Pommern drill targets prior to the commencement of drilling. Within Hammer's 100%-owned tenement areas, preparation is underway for further drilling at Hardway, Hope South, Mascotte, Tourist Zone and new prospects, Bulonga and Pommern. Geophysical modelling at the Bullrush prospect will enable targeting of possible IOCG style mineralisation beneath Cambrian Georgina Basin sediments.