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30 August 2012

ASX & MEDIA ANNOUNCEMENT

NICKEL SULPHIDES CONFIRMED AT LAKE JOHNSTON PROJECT Highlights •

A new sequence of nickel sulphide bearing komatiites has been confirmed at the Lake Johnston project, Western Australia

Laboratory (petrographic) results of samples taken from an RC drill hole confirmed the presence of nickel sulphides in five out of seven samples submitted

Sulphides present in these samples include pentlandite, violarite, pyrrhotite and chalcopyrite

Strong coincident geochemical and magnetic anomalies exist in close proximity along strike (surface EM geophysical techniques ineffective in the area due to highly resistive ground)

Follow-up work including drilling and downhole geophysics is currently being planned

Hannans Reward Ltd (Hannnans) is pleased to announce the receipt of laboratory (petrographic) results that confirm the presence of komatiite-hosted nickel sulphide mineralisation from RC drilling at the Lake Johnston project. This newly found sequence of komatiites is located in the southern portion of the Lake Johnston tenement package within the Mt. Gordon prospect area (Figure 1). BACKGROUND & DISCUSSION A soil sampling program conducted in 2011 generated a coincident nickel/copper anomaly in the Mt. Gordon prospect area (Figure 2). The anomaly was followed up with a small, ground based moving-loop electromagnetic survey, however the survey was interpreted to be ineffective due to the highly resistive nature of the ground (survey penetration <100m depth) and failed to generate any significant anomalies beneath the surface. The soil anomaly was drill tested in early 2012 with a single RC percussion hole (MGRC059) which intersected a high-MgO ultramafic unit, returning elevated nickel values up to 0.56% Ni (Table 1).


Nickel Sulphides confirmed at Lake Johnston Project

30 August 2012

Figure 1. Lake Johnston Project diagram showing the location of the new nickel bearing ultramafic sequence. Table 1. Mt Gordon Ni RC drilling summary table (previously reported) Hole ID MGRC059

MGA East

MGA North

Dip

Azi.

Total Depth

From (m)

To (m)

Int (m)

Ni Grade (%)

290825

6400803

-60

090

174

16

64

48

0.30

96

98

2

0.56

118

134

16

0.26

140

168

28

0.28

*Lower cut-off grade of 0.25% Ni

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Nickel Sulphides confirmed at Lake Johnston Project

30 August 2012

Figure 2. Mt Gordon nickel anomalies.

Recent samples taken from MGRC059 were sent for petrographic and geochemical analysis; results from these two studies have now been received and have indicated the following results: •

MGRC059 indicates the presence of fertile, high-MgO, reduced komatiites with the presence of nickel sulphides;

Disseminated and trace primary sulphides present including pentlandite, violarite, pyrrhotite and chalcopyrite (Figure 3);

Nickel sulphides (pentlandite and/or violarite) were noted in five of the seven samples submitted for petrographic analysis (including at 76m, 117m, 132m, 165m and 172m downhole);

It is has been interpreted that at least two thick (>30 metres) komatiite units were intersected in the hole; 3 | Page


Nickel Sulphides confirmed at Lake Johnston Project

30 August 2012

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The komatiites intersected have a significantly high Ni-MgO ratio, indicating that they are enriched in nickel; and

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The komatiites were emplaced in a reduced oxygen environment indicated by the low chromium content.

Figure 3. Thin section photo of samples taken from RC drill hole MGRC059 showing sulphide mineralisation.

These results are highly encouraging for Hannans as they confirm the presence of a new sequence of nickel sulphide bearing komatiites, in an area which has no previous noted record of exploration for that style of mineralisation. It is noteworthy that just approximately two kilometres to the south of this komatiitic sequence lies the Medcalf intrusive, a large layered mafic-ultramafic intrusive which is known to host elevated concentrations of vanadium, titanium and iron. It is still unknown exactly what geological relationship exists between the two units.

FUTURE EXPLORATION Follow-up drilling and downhole geophysical surveys are currently being planned to thoroughly test the coincident geochemical and magnetic anomalies that exist along strike within the immediate vicinity (Figure 2). Further step out geochemical sampling is also currently being planned to cover the existing strike between the nickel anomalies and the Medcalf Intrusive.

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Nickel Sulphides confirmed at Lake Johnston Project

30 August 2012

HANNANS SUMMARY Hannans 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 Sweden 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 project located 30km south-west of Coolgardie, Western Australia.

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

For further information please contact: Tom Lyons Exploration Geologist Hannans Reward Ltd Tel: +61 8 9324 3388 (Australia)

Amanda Scott Exploration Manager Hannans Reward Ltd Tel: +46 703 221 497 (Sweden)

COMPETENT PERSONS STATEMENT The information in this document that relates to exploration results is based on information compiled by Ms Amanda Scott, Exploration Manager, Hannans Reward Ltd, who is a Member of the Australian Institute of Mining and Metallurgy. Ms Scott is a full-time employee of Hannans Reward 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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Nickel Sulphides Confirmed at Lake Johnston Project