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12 June 2012

ASX & MEDIA ANNOUNCEMENT

IMPORTANT DRILLING SUCCESS AT KIRUNA IRON PROJECT, SWEDEN ·

In-fill JORC resource drilling at Rakkurijoki intersects wide iron mineralisation (115m @ 47% Fe from 316m1) (100% Hannans ownership).

·

Exploration drilling at Altavaara intersects very wide low grade iron mineralisation (incl. 241m @ 21% Fe from 17m) - the deposit remains open at depth; metallurgical test work has been initiated to assess the potential to produce a saleable iron product (100% Hannans ownership).

·

Exploration drilling at Altavaara intersects high grade gold and copper (3m @ 5.2 g/t Au and 1.3% Cu from 15m); follow up copper-gold exploration is being planned.

·

Rakkurijoki and Altavaara are two iron projects within Hannans’ Kiruna Iron Project that comprises a global JORC resource of 473Mt @ 40% Fe2 plus a JORC Exploration Target of 203-272Mt @ 32-40% Fe3.

·

As a result of the successful acquisition of Scandinavian Resources Ltd, Hannans shareholders now have ownership of a significant iron project that has a potential pathway to production.

Summary Hannans’ Kiruna Iron Project, located in northern Sweden contains a number of deposits that are extremely well located with regard to infrastructure (rail, power and services) – the Rakkurijoki Project is located less than 100m from a major road, less than 1km from open access rail and 6km from Kiruna – the Altavaara Project is located less than 650m from the E4 highway and 15km from Kiruna – Kiruna, a mining centre with a population of approximately 18,000 is connected to major ports at Narvik, Norway (180km north-west) and Lulea, Sweden (340km south-east) (see Figures 1 and 2). Hannans is striving to create a pathway to producing a premium quality iron product by compiling 1 Billion tonnes of iron resources within 80km of Kiruna (home to Europe’s largest iron mine) and developing a central beneficiation facility to process ore from a number of satellite deposits.

1

Estimated average iron grade determined via magnetic susceptibility; formal XRF assays are required to confirm iron grades.

2

Refer ASX Announcement dated 17th January 2012 (Kiruna Iron-JORC Resource Update)

3

The JORC Exploration Targets have been subject to drill testing, ground geophysics and interpretation by the Geological Survey of Sweden and reviewed by Mr Thomas Lindholm of GeoVista AB. The potential quantity and grade of the exploration targets is conceptual in nature, there has been insufficient interpretation to define a JORC Mineral Resource and it is uncertain if further interpretation will result in the determination of a JORC Mineral Resource.


Important Drilling Success at Kiruna Iron Project

12 June 2012

Largest iron mine in Europe (refer LKAB.se)

Kiruna mining centre, population ~18,000

Kiruna ~6 km

Hannans drill rig, May 2012 Open access rail ~1km

Figure 1: Aerial photograph taken in may 2012 showing the Rakkurijoki Project’s close proximity to Europe’s largest iron mine

Open access rail ~1km

Major road

Kiruna ~6km

Major power lines

Figure 2: Aerial photograph taken in May 2012 showing active drilling and the Rakkurijoki Project’s close proximity to power, road and rail.

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Important Drilling Success at Kiruna Iron Project

12 June 2012

Figure 3: Iron Prospects, Kiruna District, Sweden

Figure 4: Major Scandinavian Iron Mines 3 | Page


Important Drilling Success at Kiruna Iron Project

12 June 2012

KIRUNA IRON PROJECT Hannans is striving to compile 1 Billion tonnes of iron resources within 80km of the Kiruna mining centre (home to Europe’s largest iron mine), develop a central facility to process ore from a number of satellite deposits and then produce a premium quality iron concentrate. The Kiruna Iron Project is extremely well located with regard to infrastructure (rail, power and services) the flagship Rakkurijoki Project is located less than 100m from a major road, less than 1km from rail and 6km from Kiruna. The Altavaara Project is located less than 650m from the E4 highway and 15km from Kiruna. Rakkurijoki Project The current JORC compliant mineral resource estimate (inferred) for the Rakkurijoki deposit is 74.5Mt @ 39.7% Fe 4 and forms part of a global JORC compliant mineral resource estimate of 473Mt @ 40% Fe for the Kiruna Iron Project. Diamond drilling at the Rakkurijoki Project re-commenced late in March 2012 where an infill programme is now underway. The infill drilling program is being conducted on 100m drill sections and will comprise approximately 13,000m with the aim of converting the current JORC inferred resource to the indicated category. The JORC inferred resource contemplates potential open pit mining methods. The primary reason for drilling the latest deep hole (RJ012022 end of hole 612m) was to test the footwall characteristics for geotechnical studies. If however the width and grade of the iron mineralisation continues to increase at depth (as indicated by drilling completed during May and the preliminary results highlighted below) it is conceptually possible that potential mine life could be extended at the cessation of open pit operations, through the commencement of an underground operation. ·

·

Recently received iron results from diamond drilling at Rakkurijoki include: o

44m @ 42.3% Fe (RJO11008)

o

35m @ 44.7% Fe (RJO11010)

Preliminary5 iron results from Rakkurijoki diamond drilling include: o

75m @ 47.3% Fe (RJO12015)

o

53m @ 43.6% Fe (RJO12020)

o

115m @ 46.8% Fe (RJO12022)

Preliminary environmental and social impact studies have also commenced and will continue throughout 2012 in addition to desktop mining studies. Drilling Summary - Rakkurijoki Project

4 5

Project

No. of Holes Drilled by KIAB

Year Drilled

Metres Drilled

Rakkurijoki

8

2011

3083

Phase 1

Rakkurijoki

2

2011

883

Phase 2 Infill Drilling

Rakkurijoki

13

2012

4263

Phase 2 Infill Drilling

TOTAL (to date)

23

Comments

8229

Refer ASX Announcement dated 17th January 2012 (Kiruna Iron-JORC Resource Update) Estimated average iron grade determined via magnetic susceptibility; formal XRF assays are required to confirm iron grades.

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Important Drilling Success at Kiruna Iron Project

12 June 2012

Figure 5: Drilling contractor (Protek) discussing iron mineralisation with Mr Lewis Wild (Geologist)

Figure 6: Rakkurijoki drillhole location plan showing cross-section profiles (green)

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Important Drilling Success at Kiruna Iron Project

12 June 2012

Figure 7: Rakkurijoki oblique drill section C-C’

Figure 8: Rakkurijoki oblique drill section D-D’

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Important Drilling Success at Kiruna Iron Project

12 June 2012

The infill drilling program has provided a much greater understanding of the iron mineralisation at the Rakkurijoki Project with the geological models continuing to evolve with each new drillhole. The onsite geologists are now recognising the importance the mafic and intermediate dykes penetrating not only the hanging-wall meta-aranite and the mafic tuff foot-wall but also the magnetite ore itself; the geometry of a wide intermediate porphyry intrusive, which intrudes the magnetite ore, appears to be controlling the width of magnetite mineralisation (see cross sections C-C’ and D-D’ above). Newly received assays from the Rakkurijoki Project continue to confirm that the deposit contains good widths and grades of iron mineralisation. From (m) To (m) Intercept 421.5 428.7 7.2 443 487 44 RJO11009 7527760 1686262 -60 317 231.5 239.1 7.6 262.9 270.5 7.5 289.8 344.2 54.4 RJO11010 7527704 1686306 -66 320 314.4 337.7 23.3 370.9 405.9 35 431.8 446.3 14.5 All samples submitted to ALS Laboratories (Brisbane) for ME-XRF15b for iron analysis and ME-ICP61 for all other elements. Hole ID RJO11008

Northing (RT90) 7527665

Easting (RT90) 1686590

Dip -64

Azimuth 321

Fe % 33.5 42.3 45.5 49.7 25.4 27.5 44.7 33.1

Preliminary iron grades 6, calculated from magnetic susceptibility measurements, are also presented below from holes completed over the past two months at the Rakkurijoki Project. Formal XRF assays are expected over the coming months. Hole ID RJO12011

6

Northing (RT90) 7527698

Easting (RT90) 1686063

Dip -53

Azimuth 319.5

RJO12012 RJO12013 RJO12014 RJO12015 RJO12016

7527570 7527526 7527493 7527660 7527642

1685916 1685952 1685980 1686096 1685986

-47 -58 -65 -62 -49

320.8 318.8 320.6 318.3 320.0

RJO12017

7527556

1686054

-66

320.5

RJO12018

7527758

1686134

-53

313.9

RJO12019

7527481

1686115

-67

312.7

RJO12020

7527724

1686167

-57

315.3

RJO12021 RJO12022

7527642 7527580

1686232 1686164

-56 -70

320 320

RJO12023

7527642

1686232

-70

320

From (m) 135 155 NSA 41 NSA 190 41 58 67 85 185 223 154 172 383 403 428 162 206 Pending 316 436 445 346 426

To (m) 145 190

Intercept 10 35

Fe % 55.4 37.3

57

16

38.5

265 51 63 78 91 207 259 168 201 389 418 447 169 259

75 10 5 11 6 22 36 14 29 6 15 19 7 53

47.3 49.1 42.8 34.3 26.6 43.4 28.5 50.6 44 46.5 41.3 48.7 48.1 43.6

431 441 452 354 460

115 5 7 8 34

46.8 43.4 43.2 31.7 40.1

Estimated average iron grade determined via magnetic susceptibility; XRF assays required to confirm iron grades.

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Important Drilling Success at Kiruna Iron Project

12 June 2012

Altavaara Project Assay results from thirteen diamond drill holes completed at the Altavaara Project in December 2011 have been received with very wide, low grade iron mineralisation intersected; the majority of the drill holes ended in iron mineralisation. 路

Diamond drilling at the Altavaara Project produced wide, low grade iron results: o

241.2m @ 21.5% Fe (ALT11003)

o

116.7m @ 21.8% Fe (ALT11004)

o

93.7m @ 22.8% Fe (ALT11006)

o

147.5m @ 23.7% Fe (ALT11011)

o

117.6m @ 25.2% Fe (ALT11013)

Diamond drilling at the Altavaara Project returned a copper-gold intercept: of: o

3m @ 5.2ppm Au & 1.3% Cu from 15m (ALT11006)

Prior to completing additional drilling, preliminary metallurgical testwork (Davis Tube Recovery) will be carried out on samples from Altavaara to determine if the iron mineralisation can be upgraded to saleable specifications. If the results are favourable the next round of drilling at Altavaara will be aimed at establishing a maiden JORC inferred resource. The Altavaara mineralisation is geologically different to all of the other deposits in the Kiruna Iron portfolio and therefore requires detailed additional examination. Hole ID

Northing (RT90)

Easting (RT90)

Dip

Azimuth

From (m)

To (m)

Intercept

Fe %

ALT11001

7534131

1701424

-57.0

72.1

13.4

137.1

123.7

20.5

ALT11002

7533356

1701337

-50.0

69.6

38.0

134.0

96.0

16.0

166.0

174.0

8.0

26.9

ALT11003

7534019

1701347

-56.8

77.7

17.2

258.5

241.2

21.5

inc.

17.2

38.8

21.6

26.0

60.4

75.1

14.8

30.2

211.9

252.8

40.9

27.0

ALT11004

7534066

1701248

-54.1

68.5

206.0

322.7

116.7

21.8

ALT11005

7533471

1701283

-50.8

69.1

83.7

149.5

65.8

16.9

ALT11006

7533823

1701342

-40.9

77.3

19.2

112.9

93.7

22.8

inc.

26.6

62.2

35.7

25.6

91.9

112.9

21.0

26.7

ALT11007

7533448

1701234

-50.4

70.4

143.0

207.4

64.4

16.8

ALT11008

7533766

1701302

-52.9

67.5

69.0

186.8

117.8

20.0

ALT11009

7533341

1701290

-49.7

69.8

105.0

173.6

68.6

16.6

ALT11010

7533687

1701329

-50.9

75.7

80.0

109.6

29.6

23.1

126.4

162.2

35.8

27.9

ALT11011

7533976

1701419

-53.7

71.4

34.5

182.0

147.5

23.7

inc.

106.9

153.0

46.1

30.1

ALT11012

7534083

1701543

-53.4

250.4

14.3

129.3

114.9

23.1

ALT11013

7534042

1701440

-42.9

72.4

8.9

126.4

117.6

25.2

132.8

143.3

10.5

29.3

All samples submitted to ALS Laboratories (Brisbane) for ME-XRF15b for iron analysis and ME-ICP61 for all other elements.

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Important Drilling Success at Kiruna Iron Project

12 June 2012

Drillhole ALT11006 has intercepted copper and gold mineralisation (3m @ 5.2ppm Au and 1.3% Cu) at a shallow depth of 15m. The copper-gold mineralisation (chalcopyrite & bornite) was located within strongly altered mafic volcanics; namely potassic and silica alteration. Whilst the copper-gold mineralisation was unexpected at the Altavaara Project the Kiruna District is highly prospective for copper-gold mineralisation and is classified as an IOCG province. Despite the primary focus being bulk commodities every prospect is approached with the view it has the potential to host significant precious and base metal mineralisation in addition to iron. The copper-gold target will be refined with additional exploration techniques prior to further drill testing.

Figure 9: Copper mineralisation (chalcopyrite) in altered (k-feldspar) mafic volcanics-ALT11006. Hole ID

Northing (RT90)

Easting (RT90)

Dip

Azimut h

From (m)

To (m)

Intercept

Au ppm

Cu %

ALT11006

7533823

1701342

-40.9

77.3

15

18

3

5.2

1.3

All samples submitted to ALS Laboratories (Pite책) for Au-AA23 for gold analysis and ME-ICP for all other elements.

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Important Drilling Success at Kiruna Iron Project

12 June 2012

HANNANS SUMMARY Hannans Reward Ltd holds a global portfolio of mineral assets in Sweden, Norway and Australia. Hannans has a dual strategy focused on creating a pathway to production for the Kiruna Iron Project in Sweden, supplemented with precious and other base metals exploration in Sweden, Norway and Australia. Sweden & Norway ·

Flagship Kiruna Iron Project is 30km from the 2Bt Kiruna iron mine (owned by LKAB) – the world’s largest and most modern underground iron mine.

·

Pipeline of projects covering gold, copper-gold and lead-zinc prospects in Sweden and Norway.

Australia ·

Forrestania – nickel & gold project 7km north of Western Area’s Flying Fox nickel mine

·

Lake Johnston – nickel & gold project located 25km south east of Norilsk’s Maggie Hays nickel mine and 100kms west of Norseman, Western Australia.

·

Queen Victoria Rocks – nickel and gold project located 30km south-west of Coolgardie, Western Australia.

·

Jigalong – base metals project located 150km east of Newman, Western Australia

For further information please contact: Damian Hicks Managing Director Hannans Reward Ltd Tel: +61 8 9324 3388

Ben Della-Vedova Business Development Manager Hannans Reward Ltd Tel: +61 8 9324 3388

James Harris Professional Public Relations Tel: +61 8 9388 0944

Competent Persons Summary The information in this document that relates to exploration results is based on information compiled by Ms Amanda Scott, Exploration Manager, Scandinavian Resources Ltd, who is a Member of the Australian Institute of Mining and Metallurgy. Scandinavian Resources is a subsidiary of Hannans Reward Ltd and Ms Scott is a full-time employee of Scandinavian Resources Ltd. Ms Scott has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2004 edition of the “Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms Scott consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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Important Drilling Success at Kiruna Iron Project

12 June 2012

APPENDIX A JORC Compliant Indicated Mineral Resource Table HUB 1- KIRUNA HUB Prospect Sautusvaara South Sautusvaara North Ekströmsberg TOTAL

Mt 32.0 11.4 30.4 73.8

Fe (%) 37.4 39.7 52.0 43.0

P (%) 0.06 0.09 Unavailable -

S (%) 1.63 0.44 Unavailable -

P (%) 0.07 0.28 0.05 0.05 0.09 0.05 0.14 0.025 0.23 0.04 Unavailable Unavailable 1.96 -

S (%) 0.93 0.89 0.95 1.08 1.82 0.46 1.46 0.01 0.03 0.01 Unavailable Unavailable Unavailable -

JORC Compliant Inferred Mineral Resource Table HUB 1-KIRUNA HUB Prospect Rakkurijärvi Rakkurijoki Discovery Zone Tributary Zone Sautusvaara South Sautusvaara North Vieto Puoltsa Renhagen Harrejaure Ekströmsberg Tjårrojåkka Pattok TOTAL

Mt 69.6 74.5 10.9 4.9 6.8 1.0 14.0 19.1 26.3 16.2 41.6 52.6 62.4 399.9

Fe (%) 28.5 39.7 38.7 28.6 26.6 44.8 35.7 30.2 32.1 43.4 52.0 51.0 44.2 38.1

TOTAL Indicated & Inferred

Mt 473.7

Ave Fe (%) 40.5

JORC Compliant Exploration Targets Table Kiruna Hub Prospect Åkosjegge Altavaara Laukkujärvi Leppäjoki Tjåorika Total Hub 1

Tonnage Range (Mt) 10-15 55-60 4-8 5-8 15-30 89-121

Grade Range (Fe%) 23-30 26-29 30-35 35-45 45-55 31.8-38.8

Lannavaara Hub Prospect Kevus Paljasjärvi Teltaja Total Hub 2

Tonnage Range (Mt) 35-45 40-60 39-47 114-152

Grade Range (Fe%) 28-35 30-40 40-48 32-41

TOTAL Hub 1 & 2

Mt 203-273

Fe (%) 32.1-39.6

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Important Drilling Success at Kiruna Iron Project

12 June 2012

Competent Persons Statement-Rakkurijärvi, Rakkurijoki, Discovery, Tributary Zone, and Puoltsa Mineral Resources The mineral resource estimate for Rakkurijärvi, Rakkurijoki, Discovery, Tributary Zone and Puoltsa is effective from 13 January 2012 and has been prepared by Mr Thomas Lindholm, MSc of GeoVista AB, Luleå, Sweden acting as an independent “Competent Person”. Mr Lindholm is a member of the Australasian Institute of Mining and Metallurgy (Member 230476). Mineral resources of the Rakkuri iron deposits have been prepared and categorised for reporting purposes by Mr Lindholm, following the guidelines of the JORC Code. Mr Lindholm is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits.

Competent Persons Statement-Ekströmsberg, Tjårrojåkka and Pattok Mineral Resources The mineral resource estimate for Ekströmsberg, Tjårrojåkka, and Pattok is effective from 22 July 2011 and has been prepared by Dr Christopher Wheatley of Behre Dolbear International Ltd, UK, acting as an independent “Competent Person”. Dr Wheatley is a member of the Institute of Materials Minerals and Mining (Member 450553). Mineral resources of the Ekströmsberg, Tjårrojåkka, and Pattok have been prepared and categorised for reporting purposes by Dr Wheatley, following the guidelines of the JORC Code. Dr Wheatley is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Dr Wheatley consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Persons Statement-Vieto, Sautusvaara, Renhagen and Harrejaure Mineral Resources The mineral resource estimate for Vieto and Sautusvaara is effective from 26 July 2011 and the mineral resource estimate for Renhagen and Harrejaure is effective from 13 January 2012 and has been prepared by Mr Geoffrey Reed of Minarco-MineConsult acting as an independent “Competent Person”. Mr Geoffrey Reed is a member of the Australasian Institute of Mining and Metallurgy (CP)(Member 205422). Mineral resources of Vieto, Sautusvaara, Renhagen and Harrejaure have been prepared and categorised for reporting purposes by Mr Reed, following the guidelines of the JORC Code. Mr Reed is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Mr Reed consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Persons Statement-Exploration Targets The information in this document that relates to JORC Exploration Targets is based on information reviewed by Mr Thomas Lindholm of GeoVista AB, Luleå, Sweden acting as an independent “Competent Person”. Mr Lindholm is a member of the Australasian Institute of Mining and Metallurgy (Member 230476). Mr Lindholm is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Mr Lindholm consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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Kiruna Iron Drilling Success  

Hannans’ Kiruna Iron Project, located in northern Sweden contains a number of deposits that are extremely well located with regard to infras...