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Copper consolidation heats up: Austral tables 29.9% premium offer for Hammer

JMM

Key Facts:

Superior offer: Austral's proposal values Hammer at A$0.087/share, a 29.9% premium to the existing Larvotto Resources scheme, delivering roughly A$80.8 million in total equity value to Hammer shareholders.

Early shareholder support: Non-binding voting intention statements already cover approximately 6-7% of Hammer's issued share capital, giving Austral early momentum ahead of any formal scheme vote.

Rocklands feed source: Hammer's Kalman deposit (39.2Mt at 0.53% Cu) sits ~60km from Austral's Rocklands plant, offering a long-term processing pathway and avoiding costlier toll treatment arrangements.

Conditions ahead: The proposal hinges on due diligence, negotiated transaction documents, Hammer Board recommendation, shareholder approval, and regulatory sign-off from ASIC, ASX and the Court.

Austral Resources makes bold play for Hammer Metals in $80.8M copper consolidation move

Austral Resources Australia (ASX: AR1) has escalated the battle for control of Hammer Metals (ASX: HMX), lodging a non-binding indicative proposal that trumps the existing Larvotto Resources scheme by a commanding 29.9% premium.

The offer, valuing Hammer shares at A$0.087 each (approximately A$80.8 million in total equity value), combines A$0.080 in Austral scrip with A$0.007 in shares of a newly demerged company housing Hammer's Western Australian gold assets, mirroring the structure already agreed under the Larvotto deal.

Austral’s Chairman, David Newling, says:
“We believe this proposal represents a compelling and strategically superior outcome for Hammer shareholders. It offers a materially higher value proposition than the current Larvotto proposal, while combining two highly complementary Queensland copper businesses to create a larger, more relevant and better-capitalised company. Importantly, the transaction brings together Hammer's high-quality resource base with Austral's existing processing infrastructure, operational capability and strong balance sheet, creating genuine and immediately actionable synergies that we believe can accelerate development, unlock additional value from assets such as Kalman, and deliver greater long-term benefits for shareholders of both companies.

We look forward to welcoming Hammer shareholders to the Austral family and working together to deliver the benefits of a larger, stronger and more diversified business for all stakeholders. This is yet another forward step in our journey to become Australia’s next mid-tier copper powerhouse.”

At the heart of Austral's rationale is Hammer's Kalman deposit, a 39.2Mt copper-gold-molybdenum-rhenium resource sitting roughly 60km from Austral's Rocklands processing facility near Cloncurry. Chairman David Newling said the combination would create "a larger, more relevant and better-capitalised company" and position the merged entity as Australia's next mid-tier copper powerhouse.

Austral already has non-binding backing from Hammer shareholders holding 6-7% of issued capital. The proposal remains subject to due diligence, transaction documentation, and Hammer Board recommendation, with Euroz Hartleys and Shaw and Partners advising Austral on the deal.

About us:

Austral Resources Australia Ltd is an ASX listed copper cathode producer operating in the Mt Isa region, Queensland, Australia. Its Mt Kelly copper oxide heap leach and solvent extraction electrowinning (SX-EW) plant has a nameplate capacity of 30,000tpa of copper cathode. The recent acquisition of the Rocklands Facility enables the dual processing capabilities for copper sulphides and copper oxides, as well as an increased exposure to gold. Austral has recently embarked on an aggressive growth and consolidation strategy across the World Class Mount Isa Region, which includes the Lady Loretta and Rocklands Deposit. Austral now owns a significant copper inventory with a JORC compliant Mineral Resource Estimate standing at 64 Mt @ 0.73% Cu (468,414t of contained copper)(comprising of 52.8Mt @ 0.74% Cu at the Lady Annie Project – 8.8Mt at 0.75% Cu Measured MRE, 33.0Mt at 0.76% Cu Indicated MRE and 11.0Mt at 0.69% Cu Inferred MRE and 11.26Mt at 0.69% Cu at the Rocklands Project – 9.12Mt at 0.72% Cu Indicated MRE and 2.14Mt at 0.55% Cu Inferred MRE), two processing facilities, as well as 2,101km 2 of highly prospective exploration tenure in the heart of the Mt Isa district, a world class copper and base metals province. The Company intends to implement an intensive exploration and development program designed to extend the life of mine, increase its resource base and continually review options to commercialise its copper resources.

Contact details:

Austral Resources Corporate Affairs and Stakeholder Relations: Emma Godfrey, 0419 523 719, [email protected]

Jane Morgan Management Investor and Media Relations: Wilamina Russo, 0450 646 609, [email protected]