Hammer Metals Ltd. announced that it has discovered a significant zone of copper and rare earth element (REE) mineralisation in initial RC drilling at the Hardway prospect, located within its broader Mount Isa portfolio in NW Queensland. Given the scale and potential significance of the discovery, and its location in close proximity to regional infrastructure, Hammer has promoted this prospect as a priority focus for upcoming exploration programs, with drilling set to resume in February. Hardway: Hardway is situated within Hammer Metals' 100% owned EPM14022, located between Mount Isa and Cloncurry just 1km north of the Barkly highway.

Hardway is located along a north-west trending structure identifiable by outcrops of quartz breccia. It is hosted within the Corella formation, a geological unit which also hosts the mineralisation at Hammer's Kalman Au-Cu-Mo-Re deposit, Jubilee Cu-Au deposit, Elaine Cu-Au deposit and other Hammer prospects such as Ajax, Trafalgar, Overlander and Hammertime. A single hole was drilled at Hardway to test underneath a historic open pit.

Significant results from HMHWRC001 include: 30m at 1.1% Cu from 48m; and 26m at 0.14% TREOY from 34m including 9m at 0.20%TREOY. The entire mineralised zone was strongly weathered, and carbonate altered. Recently reported laboratory analysed soil samples suggest that the Hardway trend is located within a ~1.9km long copper and rare earth-enriched corridor.

Further drilling is warranted to test this zone in more detail. Hardway Copper: The Hardway prospect includes historical small-scale artisanal workings which are approximately 30m in diameter at their widest point, with secondary workings located approximately 400m and 700m to the south- east. The workings cumulatively extend over a distance of approximately 1km.

Aquitaine Australia Minerals Pty Ltd. (CR5199) reported that the grade of the historic copper production at the Hardway mine approximated 5%, with an unknown tonnage. Previous exploration includes three diamond drill holes completed in 1966-1967 by Australian Selection Pty Ltd. and four RC drill holes by Goldsearch in 2008, some 700m to the south east of the main Hardway workings. Hammer Metals has undertaken total resampling of the historic Australian Selection diamond holes with results to be reported as they become available.

The recent soil sampling program by Hammer has identified the broad-scale copper anomalism over a 1.5km section of the Hardway fault system. The anomaly is open to the south. The Company has prioritised the Hardway prospect with drilling expected to re-commence in February targeting extensions to these results as well as testing priority targets along the identified soil anomalies.

Hardway REE's: Hardway is exceptionally well located, being less than 1km from the Barkly Highway in an established world class mining district. Drilling has confirmed a unique rare earth system with a high proportion of high-value heavy rare earth elements. Within the reported mineralised intervals, the ratio of high value HREOY to TREYO is an average of 65%.

The mix of rare earth elements is similar to the results from Hammer's previous rock chip sampling. Uranium and thorium values are low. Maximum element grades are as follows: 1,075ppm Yttrium, 190pmm Dysprosium, 263ppm Neodymium and 117ppm Samarium.

Previous analysis of rock chips by Scanning Electron Microscope indicated the Yttrium-bearing mineral within the sample was Xenotime. Further mineral identification work will be conducted to advance Hammer's understanding of this system and aid in refining the rare earth element potential at this prospect. Soil sampling has confirmed that the previously identified Yttrium anomaly extends for approximately 1.9km and is open to the south.