An Introduction to Hannans and the *New* Lapland Ni-Cu-PGE ...€¦ · Deposit Production/Reserves History Mineralisation Storliden, Sweden 1.86Mt @ 8.8% Zn, 3.1% Cu, producing 52kt

An Introduction to Hannans and the*New* Lapland Ni-Cu-PGE Project in Sweden

2 February 2015

Hannans Reward Ltd

ABN: 52099862129

ASX:HNRwww.hannansreward.com

DISCLAIMERThis Document and the information contained herein and any presentation (collectively referred to as “Information”) is proprietary toHannans Reward Limited (“the Company”, “Hannans Reward” or “Hannans”).

This Document is intended to provide general background on the Company. It is not a disclosure document and is not intended as anoffer, invitation, solicitation or recommendation with respect to any potential transaction.

Securities of micro cap exploration companies, typically involve a high degree of risk and as such, any investment in the Company mustbe considered as purely speculative. The Information in this presentation does not purport to cover all relevant information about anypotential investment in the Company. Accordingly potential investors are advised to seek appropriate independent advice, if necessary,to determine the suitability of this investment. You should not solely act in reliance on the material in this presentation. This presentationdoes not purport to be all inclusive or to contain all information which its recipients require in order to make an informed assessment ofthe Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to theaccuracy or completeness of the information, statements, and opinions contained in this presentation before deciding whether to makean investment into Hannans.

The Document contains reference to certain intentions, expectations and plans of the Company. Those intentions, expectations and plansmay or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. Theperformance and operations of the Company may be influenced by a number of factors, many of which are outside the control of theCompany. No representation or warranty, express or implied, is made by the Company or any of their respective directors, employees,agents, advisers and consultants that any intentions, expectations or plans will be achieved either totally or partially or within aprescribed timeframe or that any particular rate of return will be achieved.

The Information disclosed relates to the proposed business of the Company at the date of this Document. Material information may havechanged since the date the Document was compiled. No responsibility is accepted to advise any person of any change or update any ofthe Information.

Neither the provision of this Document nor any information contained in this Document or subsequently communicated to any person inconnection with this Document is, or should be taken as, constituting the giving of investment advice to any person. By accepting thisDocument you acknowledge and agree to be bound by each of the foregoing statements.

The currency used throughout the presentation is Australian Dollars unless otherwise stated.

Infrastructure, locomotives, ore wagons, unloading facilities, mining operations, drill rigs, windmills, ships nor reindeers are owned byHannans. Hannans does not own any of the infrastructure in this presentation.

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TABLE OF CONTENTS

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Slide Title Slide Number

Strategy 5

Directors & Management 6

Projects 7

Capital Structure 8

Scandinavia – High Grade Deposits 9

Scandinavia – Location Map 11

*New* Lapland Ni-Cu-PGE 12

Pahtohavare Copper-Gold 22

Rakkuri Iron 26

Lannavaara Iron 27

Lake Johnston Nickel 28

Reducing the Costs of Exploration 30

Contact Details 31

Competent Persons Statement 32

SNAPSHOT SUMMARY

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Hannans Reward Ltd (ASX:HNR) is an exploration company with a focus on copper, gold, nickel, PGE and iron.

Since listing on the Australian Securities Exchange in 2003 Hannans has signed agreements with Vale Inco, Rio Tinto, Anglo American, Boliden, Warwick Resources, Cullen Resources, Nickel Australia, Reed Resources, Tasman Metals and Grängesberg Iron.

Hannans has a significant *NEW* Ni-Cu-PGE exploration project in Sweden, JORC compliant copper, gold and iron resources in Sweden, a free-carried interest in a nickel sulphide project in Australia and a royalty interest on a copper exploration project in Norway.

Shareholders at various times since listing have included Rio Tinto, Anglo American, OM Holdings, BlackRock and Craton Capital.

STRATEGYVison

Our vision is to build a successful exploration and production company.

Mission

Our mission is to develop a company that has a material interest in a portfolio of mineral projects that are being rapidly progressed whether they are exploration, development or production assets.

We recognise that maintaining a professional, knowledgeable and ethical team of directors, employees and consultants is the key to our business.

Our focus is to provide shareholders with a satisfactory return on investment by managing our people, projects and capital in an entrepreneurial and responsible manner.

(Source: Hannans Annual Reports 2003 - 2014)

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Olof ForslundNon-Executive Director

• Director of Hannans Reward Ltd (2012).• Geophysicist with extensive international

experience in the mineral exploration industry.• Previously Regional Manager of SGU Mineral

Resources Information Office.

Jonathan MurrayNon-Executive Director

• Director of Hannans Reward Ltd (2010).• Partner of Steinepreis Paganin• Principal legal practice areas include equity

capital markets, takeovers, project acquisitions and divestments, corporate governance, commercial law and strategy.

DIRECTORS & MANAGEMENT

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Damian HicksManaging Director

• Co-Founder of Hannans Reward Ltd (2002).• Financial, legal and compliance qualifications• Non-executive director of funds management

company Growth Equities

Markus BachmannNon-Executive Director

• Director of Hannans Reward Ltd (2012).• Corporate finance professional and

founding partner of Craton Capital.• Craton Capital awarded Fund Manager of

the Year at the Mining Journal’s “Outstanding Achievement Awards” during December 2010.

Magnus ArnqvistNon-Executive Director, Kiruna Iron AB

• MD of Bergteamet

• Ex-MD of Europe’s largest zinc mine.

• Mining engineer with Rapallo (Australia) and Mine Manager of the Kristineberg, Storliden and Maurliden Mines (owned by Boliden).

Amanda ScottExploration Manager

• Geologist with 10 years experience.• Responsible for developing the Kiruna Iron

Project portfolio and the SCR gold and base metals portfolio since inception.

• Previously Exploration Manager for Hannans Reward Ltd (2008-2010) and Scandinavian Resources Ltd (2010–2012)

PROJECTS*NEW* Lapland Ni-Cu-PGE Project (Sweden)

First mover advantage in potential new magmatic province

High potential for economic nickel-copper-PGE and gold

Pahtohavare Copper-Gold Project (Sweden)

Brownfields copper-gold project with drill ready sulphide targets

Copper oxide resource1 (1.4Mt @ 1.8% Cu) amenable to contract mining with excellent access to infrastructure

Rakkuri Iron Project (Sweden)

High quality iron project, strategically located

Lannavaara Iron Project (Sweden)

Large iron project at early stage of development

Lake Johnston Nickel Project (Australia)

20% free carried interest in nickel project (assays pending)

71: Refer ASX Announcement dated 31st January 2014

CAPITAL STRUCTURE

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# Name %

1 ERI 16.6

2 Craton Capital 8.9

3 Bruce Drummond 3.7

4 Jetosea Pty Ltd 3.0

5 Errawarra Pty Ltd 2.2

Top 5 Subtotal 34.4

Top 20 Subtotal 48.9

1,176 Holders 100.0

Directors & Management Holdings

9.7

Shares on Issue Options on Issue

721,966,13336,056,000

(1st tranche ex. at 0.08c and thereafter VWAP plus 50% premium on anniversaries)

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Share price ($)Vo

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Price and volume

Volume Period average volume Share price

-400000,0 -200000,0 0,0 200000,0 400000,0

Timber Hill Australia Pty Ltd

Bell Potter Securities Ltd

Hartleys Limited

Macquarie Equities Ltd

Australian Investment Exchange...

ETRADE Australia Securities Lt...

Patersons Securities Limited

Pershing Securities Australia ...

Morgan Stanley Smith Barney Au...

Commonwealth Securities Ltd

Trading Activity in HNR

Sell ($) Buy ($)

Last Twelve Months

SCANDINAVIA - HIGH GRADE DEPOSITS

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Deposit Production/Reserves/Exploration Results History Mineralisation

Garpenberg, Sweden

Reserves:25Mt @ 0.3g/t Au, 151 g/t Ag, 0.5% Cu, 4.6% Zn, 1.9% PbResources: 38Mt @ 0.4g/t Au, 113g/t Ag, 0.6% Cu, 3.4% Zn, 1.7% Pb

Mining started 800ADZinc, lead and silver ores mined with copper and gold as by-productsTotal resource (historicalproduction, reserves and resources exceeds) 110Mt

VMS

Zinkgruvan, Sweden

Current reserves:Zn-Rich: 11.8Mt @ 9% Zn, 3.6% Pb, 76g/t AgCu-Rich: 3.9Mt @ 2.2% Cu, 0.4% Zn, 31g/t Ag

Discovered in 1857, acquired by Lundin Mining from Rio Tinto in 2004.

SEDEX

Kristineberg, Sweden

Current reserves & resources:11.2Mt @ 3.74% Zn, 1.04% Cu, 1.4g/t Au, 39g/t Ag, 0.4% Pb

Discovered in 1918. Mining commenced in 1940’s. Production by Boliden ongoing, currently at 650kt/yr.Total production to date 27.8Mt (2013)

VMS

Sakatti,Finland

Intercepts include:48.10m @ 3.13% Cu, 0.47% Ni, 0.18g/t Pt, 0.12g/t Pd, 0.47g/t Au and 52.40m @ 2.36% Cu, 1.87% Ni, 0.76g/t Pt, 0.79g/t Pd, 0.19g/t Au

Greenfields discovery by Anglo American (no published resource statement)

Magmatic

Examples of high grade deposits discovered, developed and or mined in Scandinavia

Source : Company web sites

SCANDINAVIA - HIGH GRADE DEPOSITS

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Deposit Production/Reserves History Mineralisation

Storliden, Sweden

1.86Mt @ 8.8% Zn, 3.1% Cu, producing 52kt of copper, 150kt of zinc.

Discovered in 1998 by North Atlantic Natural Resources (renamed Lundin Mining), mining commenced in joint venture with Boliden in 2002, closed in 2008.

VMS

Kylylahti, Finland

Current reserve: 4.2Mt @ 1.6% Cu, 0.7g/t Au, 0.6% ZnCurrent resource: 7.7Mt @ 1.3% Cu, 0.7g/t Au, 0.5% Zn

Discovered in 1984 by Outokumpu, acquired by Altona Mining Ltd (ASX:AOH) in 2010, mining recommenced in 2012and was sold to Boliden in 2014

Ophiolite

Svartliden, Sweden

3Mt @ 4.72g/t Au producing 370koz Discovered in 1994, acquired by Dragon Mining in 1999. Open pit mining commenced in 2004 followed by underground mining in 2011, closed in 2013

Lode Gold

Examples of high grade deposits discovered, developed and or mined in Scandinavia Source : Company web sites

SCANDINAVIA – LOCATION MAP

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Project Locations

Kiruna Iron & Pahtohavare

Lannavaara Iron

Lapland Ni-Cu-PGE

*NEW* LAPLAND NI-CU-PGE PROJECT

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Potential for major deep-seated mafic intrusive complex identified – potential new magmatic province

Exploration targets have high ore potential First mover advantage in the region - significant

landholding secured Key targeting criteria met

THE CONCEPT

Sweden has good coverage of high quality regional geophysical data including airborne magnetic and ground gravity data.

Most conspicuous anomaly is the large positive gravity anomaly (40-50mgal) – the Muonionalusta Gravity High (MGH).

MGH has not been satisfactorily explained by the present knowledge of the bedrock geology.

Recent geophysical interpretation by independent consultants suggests the gravity anomaly is related to a major deep-seated mafic intrusive complex.

Where exposed, the bedrock comprises highly metamorphosed gneiss and several gabbroic ring dyke complexes and gabbroic intrusives (mafic to ultramafic).

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SWEDEN’S LARGEST POSITIVE GRAVITY ANOMALY

Gravity map over northern Sweden, from Bergman et al., (2001). Muonionalusta Gravity High (MGH) within red ellipse.

Lapland Ni-Cu-PGE Project Location

MGH – SIGNATURE HOT-SPOT

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The MGH: represents the loci of very anomalous, mantle derived

magmatic flux into the crust and is therefore a site of inherent prospectivity

can be considered as the signature of a “hot-spot” may be associated with a mantle plume might equally represent a major favourable tectonic

intersection that has received multiple pulses of magma over a protracted time.

Dr Jon Hronsky, January 2015 (Independent Consultant)

LAPLAND – KEY CRITERIA MET

Craton Margin – The MGH is located within close proximity to the Botnia-Pajala megashear and the interpreted Norrbotten and Karelian Craton margin (Lahtinen et al, 2007).

Regional Gravity High – Pronounced regional gravity high (40-50mgal) and subtle coincident magnetic high. Individual magnetic/gravimetric anomalies associated with mapped mafic-ultramafic intrusives.

Intrusives – Multiple mapped mafic-ultramafic intrusives are located within an upper-amphibolite gneissic terrane.

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MGH

C.J. Carlon, 2000

LAPLAND PROJECT – CRATON MARGIN

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Craton Margin

MGH

Nova Ni-Cu deposit sitting on the Yilgarn Craton margin, Western Australia

MGH sitting on the Norrbotten Craton margin, Northeastern Sweden

The Nova deposit is owned by Sirius Resources Ltd (ASX:SIR) and is referred to in this presentation as an example of a world class magmatic Ni-Cu-PGE deposit.

LAPLAND PROJECT – GRAVITY HIGH

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Regional Gravity Anomaly

Nova Ni-Cu deposit sitting on axis of the Fraser Range Gravity Complex (15-20Mgal), Western Australia

Muonionalusta Gravity High (MGH) (40-50Mgal), Northeastern Sweden

MGH

LAPLAND PROJECT – INTRUSIVES

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Mafic-Ultramafic Intrusives within Highly Metamorphosed Terrane

Nova Ni-Cu deposit sitting on the limb of a gabbro intrusive within the granulite facies Fraser Zone terrane.

Multiple mafic-ultramafic intrusives within upper-amphibolite facies terrane. The centre of the MGH is shown by the dashed zone.

MGH

IMPLICATIONS FOR MINERALISATION

Major deep-seated mafic intrusives can be an important component in mineralising systems.

Economic mineralisation within or near the MGH could potentially include: Massive to disseminated Cu-Ni-PGE Stratiform Cr Reef style PGE Fe-Ti-V deposits Hydrothermal Au-Cu IOCG mineralisation REE mineralisation within pegmatites

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MAGMATIC NI-CU-PGE DEPOSITS

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Examples of magmatic Ni-Cu-PGE deposits include: Bushveld (South Africa) Duluth (USA) Norilsk-Talnakh (Russia) Jinchuan (China) Pechenga (Russia) Voisey’s Bay (Canada) Eagle (USA) Nebo Babel (Western Australia) Nova (Western Australia) Sakatti (Finland)

PAHTOHAVARE COPPER-GOLD

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Potential for 2-3 high grade copper depositsacross the Project

At Southern, there is high potential forcontinuation of copper ore beneath thelowest mined level ~200m. Historicalproduction of ~1.7Mt @ 1.9% Cu, 0.9g/t Au

At Central, there is high potential forcontinuation of copper-gold sulphide orebeneath oxide ore

At Central, metallurgical testwork results onoxide copper ore is positive, an internalscoping study to assess CAPEX and OPEX isplanned

Between Southern and Central there ispotential for copper-gold ore, currently ZEROdrilling testing contiguous host stratigraphy

Drilling workplan to test copper-gold sulphidetargets recently granted by Mining Inspector

PAHTOHAVARE – SOUTHERN DEPOSIT

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~200m from surface

Lowest mined level

“DRILL HERE” - Untested depth potential

Proposed drillholes

Drill ready copper sulphide targets beneath current high-grade copper sulphide mineralisation at Southern

Historical drives

Mined out orebody (blue)

PAHTOHAVARE – CENTRAL DEPOSIT

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Drill ready copper sulphide targets beneath currently defined oxide copper mineralisation at Central

Bottom ofoxidation

“DRILL HERE” - Untested sulphide potential (beneath the oxide ore)

PAHTOHAVARE – CENTRAL DEPOSIT

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Sample Distribution

Head 100%

Acid Soluble 80%

Cyanide Leach Soluble 1%

Residue 19%

In summary:

80% of the copper can be recovered using an acid leach;

94-99% of all copper bearing minerals are present as chrysocolla or chrysocolla withchlorite/smectite or iron oxide/hydroxides (>94%) across all size fractions;

<5% of the copper containing minerals are present as chalcopyrite, bornite and chalcocite;

no observations of malachite or azurite; and

4-8% by weight of the master composite is comprised of copper containing minerals.

Figure: QEMSCAN results showing abundance and distribution of coppermineralisation across a range of size fractions within the mastercomposite.

RAKKURI IRON

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Potential open pit iron ore mine

Operating iron mine at 1,365m depth

Rakkurijoki

Current JORC Inferred resource of 74.5Mt @ 39.7% Fe(down to 350m) - mineralisation currently open at adepth of >400m - positive scoping study completed inFebruary 2013

Rakkurijärvi

Current JORC Inferred resource of 69.6Mt @ 28.5% Fe(drill spacing to 150m) - mineralisation currently openat a depth of ~150-300m; additional resource drillingrequired

Rakkuri (Combined)

Ore upgrades to +68% Fe product (DTR-analysis) &requires flotation of sulphides

Excellent location for mining - 4km from Kiruna, ~1kmfrom open access, heavy gauge rail, 250m from theroad

Area of national interest for mining & reindeer herding

Potential for a 15 year open pit mining operation

LANNAVAARA IRON

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Potential large, long-life (+25 year)project; at the conceptual stage

Proven high iron content product(+69% Fe) & requires flotation ofsulphides.

Completed initial consultations with stakeholders in three countries

Completed study into technical feasibility of slurry pipeline – positive

Planned study into environmental approvals and social licenses to operate

3D airborne magnetic image showing 3.5km strike length of magnetite mineralisation

LAKE JOHNSTON NICKEL

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Nickel targets located adjacent to Poseidon Nickel Limited’s (ASX:POS) Lake Johnston Project

Hannans’ 20% interest free carried by NeoMetals Ltd (ASX:NMT) through to a Decision to Mine

Two diamond drillholes (755m apart) completed in October 2014 were designed to intersect pronounced aeromagnetic anomalies.

Both holes intersected a classic mafic-ultramafic pile of gabbro, amphibolite and serpentinite before entering the pillowed basalt footwall.

Serpentinised cumulate zones in both holes contained very fine grained sulphides and were elevated in nickel. Assay results from MGD001 include 38m @ 0.24% Ni from 335m.

The serpentinised cumulate zone in MGD002 was considerably thicker than that intersected in MGD001. Assay results now expected to be received during February 2015

LAKE JOHNSTON NICKEL

29Photomicrograph showing nickel mineralisation from MGRC059.

REDUCING THE COST OF EXPLORATION

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Hannans subsidiary Scandinavian Resources AB is developing a system to reduce the cost of exploration associated with collecting project and prospect scale geophysical data (magnetics, electromagnetics and gravity).

Our data will supplement the extensive regional data sets made available on ‘open file’ by the Geological Survey of Sweden

System has the potential to be 100X faster than ground surveys (magnetics) and cost effective

Test flights scheduled for March 2015 Potentially a ‘competitive advantage’ for Scandinavian Resources in a

jurisdiction that relies heavily on the use of geophysics due to the extensive coverage of glacial moraine.

CONTACT DETAILS

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For further information please contact:

Damian Hicks, Managing Director +46703220226 (M)

[email protected] (E)

Amanda Scott, Exploration Manager +46703225133 (M)

[email protected] (E)

Mindy Ku, Finance & Compliance Manager +61893243388 (T)

[email protected] (E)

www.hannansreward.com (W)

COMPLIANCE STATEMENTSThe information in this document that relates to exploration results is based on information compiled by Amanda Scott, aCompetent Person who is a Member of the Australian Institute of Mining and Metallurgy (Membership No.990895). AmandaScott is a full-time employee of Hannans Reward Ltd. Amanda Scott has sufficient experience, which is relevant to the style ofmineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as aCompetent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves (JORC Code). Amanda Scott consents to the inclusion in the report of the matters based on herinformation in the form and context in which it appears.

The information in this document that relates to Mineral Resource and Exploration Target Estimates for Pahtohavare isextracted from the report entitled “Re-Release of Maiden JORC Resource at Pahtohavare To Comply With JORC” created on 31January 2014 and is available to view on the Company’s website (www.hannansreward.com). The Company confirms that it isnot aware of any new information or data that materially affects the information included in the original marketannouncement and in the case of Mineral Resources or Ore Reserves that all material assumptions and technical parametersunderpinning the estimates in the relevant market announcement continue to apply and have not materially changed. TheCompany confirms that the form and context in which the Competent Person’s findings are presented have not beenmaterially modified from the original market announcement.

The information in this document that relates to Mineral Resource Estimates for Rakkurijoki and Rakkurijärvi is extracted fromthe report entitled “Kiruna Iron Project JORC Resource Update” created on 17 January 2012 and is available to view on theCompany’s website (www.hannansreward.com). The Company confirms that it is not aware of any new information or datathat materially affects the information included in the original market announcement and in the case of Mineral Resources orOre Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant marketannouncement continue to apply and have not materially changed. The Company confirms that the form and context in whichthe Competent Person’s findings are presented have not been materially modified from the original market announcement.

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