Hannans Quarterly Report 2013 | Q3

7/30/2019 Hannans Quarterly Report 2013 | Q3

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3rd Quarter Activities Report 2012/2013

Fast FactsASX Code : HNR

Capital Structure

Shares on issue: 706m

Options on issue: 9.3m

Market cap: $14m (at 2.0c)

Board of Directors

Managing Director:Damian Hicks

Non-Execut ive Directors:

Olof Forslund

Markus Bachmann

Jonathan Murray

Key Projects

Sweden

Pahtohavare (Copper-Gold)

Rakkurijoki (Iron)

Dear Shareholders,

During the 3rd Quarter ( January – March 2013) H annans : Released spectacular historic copper-gold results from the Central

Orebody at the Pahtohavare project (Hannans main Copper-Gold

project in Kiruna, Sweden).

Completed historical drill data validation and interpretation of the

Central Orebody at Pahtohavare.

Completed an Electro Magnetic (EM) field survey over the Central

Orebody at Pahtohavare which identified four priority conductors that

require drill testing.

Completed and released a Scoping Study which confirmed the

development potential of the Rakkurijoki Iron Project, Sweden (now

known as the Rakkuri Project).

Completed a placement of c.126m shares to raise $2.8 million through

two tranches to institutional and sophisticated investors.

During the 4th Q uarter (Apri l – June 2013) Hannans p lans to :

Pahtohavare Project (Copper-Gold)

Continue validation and interpretation of historic drill data the

Southern and South-Eastern Orebodies and the Eastern Zone at

Pahtohavare.

Design and commence a drill campaign at the Central Orebody to:

test targets where historical drilling was in-effective; infill historical drill profile spacing down to 25 metres;

test EM Conductors ‘down dip’ of existing mineralisation;

test potential ‘new lodes’ beneath existing mineralisation; and

confirm historical drill results with twin hole drilling.

Rakkuri Project (Iron)

Seek a joint venture partner to advance the project through to

completion of a Preliminary Feasibility Study.

Corporate

Seek a joint venture party for the Western Australian Nickel and Goldprojects.

Managing Director

30 April 2013



HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013 2

EXPLORATION

SUMMARY AN D HIGHL IGHTS

By Am anda Scott , Exp lorat ion Manager

Hannans holds a portfolio of mineral assets in Sweden, Norway and Australia. Its dual strategy is 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.

Summary

Sweden & Norway

Two main projects located within 6-8 kilometres from the Kiruna town site (a full service

mining town):o Pahtohavare (Copper-Gold) Project - current Exploration Target of 4.8-6.2Mt @ 2.00-

2.78% Cu and 1.23-2.23g/t Au, located 8 kilometres south-west of Kiruna, Sweden; and

o Rakkuri (Iron) Project - current combined JORC Resource of 144.4Mt consisting of two

known deposits Rakkurijoki 74.5Mt @ 39.7% Fe and Rakkurijarvi 69.9Mt @ 28.5%, located 5

kilometres south of Kiruna, Sweden.

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

Australia

Forrestania – nickel & gold project located 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.

East Pilbara Project – gold and base metals projects located east of Newman, Western Australia.

Highl ights - Sw eden

Pahtohavare Project:

Historical drilling data validation and interpretation completed for the Central Orebody with

significant results released1.

Data validation and interpretation on-going for the Southern and South Eastern Orebodies.

Multiple, well located conductors generated from Hannans’ recently completed ground geophysical

survey2. Moderately conductive anomalies (Conductor 1 & 2) identified ‘downdip’ from existing

copper-gold mineralisation at the Central Orebody. Conductor 1 & 2 may represent a continuation of

high grade copper-gold mineralisation at depth.

Rakkuri Iron Project:

Released a Scoping Study which confirmed the development potential of the Rakkuri Iron Project.

The Scoping Study was based on a 12 year mine life, supplying an iron fines product, at a premium

price, to the European and the Middle East North African markets.



HANNANS 3 r d QUARTER ACTIV IT IES REPORT 2012/2013 3

PAHTOHAVARE PROJECT

Overview

The Pahtohavare project is located 8 kilometres south-west of Kiruna, a full-service mining town in Norrbotten

County, northern Sweden. Kiruna is located approximately 1,200 kilometres north of Sweden’s capital

Stockholm. The project is also very well positioned with regard to major infrastructure; including sealed roads,

power and open-access railway (refer to Figure 2).

Copper mineralisation was first discovered at Pahtohavare in 1984 by the state-owned exploration company

Swedish Geological AB and later mined by Finnish mining company, Outokumpu in 1984. Three deposits were

defined at Pahtohavare (refer to Figure 2) namely;

Central (oxide, carbonate and sulphide ore);

Southern (sulphide ore); and

South-Eastern (sulphide ore).

Mineralisation has also been identified in an area referred to as the Eastern Zone.

The combined JORC Exploration Target3 for Pahtohavare (incorporating the Central, Southern, South-Eastern

and Eastern Zone) is summarised below:

Ore Mt Cu (%) Au (g/t)

Fresh 3.5-4.5 2.0-3.0 1.5-2.5

Oxide 1.3-1.7 2.0-2.2 0.5-1.5

Total (Oxide + Fresh) 4.8-6.2 2.00-2.78 1.23-2.23

Table 1 – JORC Exploration Target

Figure 1 – Pahtohavare and other Hannans Project locations in close proximity to the Kiruna Township.

3The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by the Geological Survey of Sweden,

reviewed by Mr Thomas Lindholm, of GeoVista AB. The potential quantity and grade of the exploration targets is conceptual in nature, there has been




Historical Drilling Validation and Interpretation

A total of 50 drill holes were completed at the Central ore body by previous explorers during the period 1984-

1996; 46 holes were drilled within 8 drill profiles (each profile 50 metres apart) and 4 holes were drilled outside

of these profiles (refer Figure 2). The current strike extent is approximately 300 metres.

The copper-gold mineralisation at the Central oxide orebody is complex and controlled primarily by structure

and secondly by lithology. Oxide, carbonate and sulphide copper minerals are present within the orebody whichis closely associated with native gold.

Oxide mineralisation is dominant down to approximately 100 metres below surface, at which point a ‘transition

zone’ starts becoming evident with disseminated sulphides. Little is known about the mineralisation below

approximately 110 metres depth at the Central ore body due to the lack of effective previous drilling below this

depth but from the current drill profiles it is evident that faulting and/or folding are important and may be

responsible for the dis-continuation of ore at depth on a number of drill profiles.

On all drill profiles presented to date the mineralisation has been shown to be closely associated with a chert unit

which honours the original logging by Swedish Geological AB. Recent re-logging and interpretation by Hannans’

geologists indicate that the unit referred to as chert in historic logs is more likely a silica-albite-carbonate

alteration and not a classic sedimentary chert. However the re-logging has confirmed the presence of thin chert

horizons in the basic tuff.

Figure 2 - Aerial photograph of the central ore body at Pahtohavare with drill collars (black dots) and drill profiles (red lines).




Significant intercepts from historic drill profiles

Profile Drillhole Northing

(RT 90)

Easting

(RT90)

Dip Azi EOH

Depth

From

(m)

To

(m)

Interval Cu % Au g/t

2 PAH87110 7527987 1680290 -60 250 45.35 3.5 27.1 23.6 3.8 -

Inc. 18.75 21.7 2.95 26.9 6.2

2 PAH87118 7527987 1680290 -90 0 69.35 4 25.4 21.4 0.97 1.1

2 PAH87118 7527987 1680290 -90 0 51.5 65.8 14.3 1.2 -

2 PAH87109 7527994 1680314 -60 250 46.15 40.15 46.15 6 0.74 -

3 PAH87108 7528040 1680251 -60 250 34.25 17.75 27.3 9.55 0.36 -

3 PAH87107 7528050 1680275 -60 250 52.75 6 39 33 4.9 5.84

Inc. 24.7 39 14.3 10.4 13.3

3 PAH87120 7528057 1680301 -62 250 109.4 62.45 87 24.55 2.19 0.54

Inc. 78.65 83.62 4.97 7.4 1.2

3 PAH87122 7528057 1680301 -76 250 130 71.35 78 6.65 0.68 0.21

3 PAH87122 7528057 1680301 -76 250 87 96.75 9.75 0.32 -

3 PAH86114 7528075 1680342 -55 250 97.49 7.6 13.03 5.43 2.57 0.38

3 PAH86114 7528075 1680342 -55 250 74.39 83.39 9 1.32 0.2

4 PAH88113 7528069 1680163 -60 250 46.25 16.55 42.15 25.6 0.42

4 PAH87112 7528091 1680239 -60 250 76.85 11.55 33.6 22.05 0.41 -

Inc. 43.7 44.15 0.45 5.25 1

Inc. 51.25 60.65 9.4 0.39 -

4 PAH87116 7528113 1680282 -60 250 100.34 54.57 63.92 9.35 0.29 0.21

Inc. 80.22 91.02 10.8 0.6 0.1

4 PAH87126 7528131 1680330 -60 250 135.3 86.2 104.46 18.26 0.91 0.19

Inc. 115 124.18 9.18 5.25 0.23Inc. 121.33 122.5 1.17 37.2 1.8

5 PAH87106 7528138 1681020

5

-60 250 58.95 5.8 25.1 19.3 0.49 0.13

5 PAH87105 75281856 1680252 -60 250 154.34 67.4 113.4 46 1.1 0.63

Inc. 85.79 99.74 13.95 2.2 0.9

Inc. 117.69 119.84 2.15 15.9 7.7

Inc. 128.4 129.79 1.39 8.8 4

5 PAH87104 7528206 1680392 -60 250 224.1 194.2 219.15 24.95 0.57 0.22

6 PAH88103 7528166 1680130 -60 250 59.05 11.5 19.3 7.8 1.78 1.36

Inc. 26.7 56.9 30.2 0.28 0.09

6 PAH87113 7528172 1680155 -60 250 61.05 14.5 47.55 33.05 1.91 0.32

Inc. 25.75 47.55 21.8 2.7 0.5

7 PAH88120 7528189 1680055 -45 250 51.45 5.8 25.3 19.5 0.19 -

7 PAH88101 7528203 1680093 -45 250 111.8 14.75 44.5 29.75 0.63 0.15

7 PAH87124 7528211 1680115 -60 250 99 21.65 81.3 59.65 1.21 0.22

Inc. 25.55 55.8 30.25 1.9 0.4

Table 1 – Significant intercepts Pahtohavare Central Orebody.




FLTEM Results

Anglo American Exploration BV conducted an airborne geophysical survey (TEM) over the Pahtohavare Project

in the year 2000. This survey generated four separate EM anomalies (refer to Figure 3 below and Hannans ASX

release dated 12th March 2013). Anglo did not drill test these anomalies at the time, most likely due to the

requirement to complete a follow-up ground EM survey to further refine and model the anomalies. At the time

the copper price was also historically low and trending lower.

Figure 3 – TAU decay image showing several (A – E) untested airborne TEM anomalies (survey by Anglo American Exploration

BV in 2000), the location of recent ground fixed-loop surveys (box shapes and hatched lines) and drill hole collar locations (black

dots)

Hannans used the Anglo survey data to design a ground based geophysical survey (FLTEM) to refine the Anglo

anomalies. The FLTEM survey has the added advantage of penetrating deeper into the earth’s surface enabling

more detailed modelling of the anomalies (refer to Figure 4 below).



HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013 7

At Pahtohavare, copper-gold mineralisation is associated with rock units that are both conductive (graphite

schist) and non-conductive (chert, basic tuff and gabbro). For this reason it has been important to generate a

thorough understanding of the geology of the Central, Southern and South-Eastern orebodies in order to

understand where the existing mineralisation is hosted. This understanding will aid in interpreting the source of

the anomalies and designing drill holes to test the targets.

The copper-gold mineralisation at the Central orebody is closely associated with a variably altered graphitic schistunit which is strongly conductive and can have the effect of ‘masking’ any lower strength conductors i.e.

disseminated sulphides. The multiple ore lodes and the stratigraphy are both dipping in the same orientation

which makes it challenging to distinguish between the two conductive units (graphite and disseminated

sulphides). The existing, shallow, high-grade ore at Central is oxidised and therefore not conductive and will not

generate a geophysical anomaly although the deeper mineralisation highlighted in Drill Profiles 4 & 5 is associated

with disseminated sulphides (Refer to ASX release dated 14 March 2013).

Mineralisation at Central is hosted in both conductive and non-conductive rock units. The FLTEM survey has

identified conductive anomalies (Conductors 1 & 2) located ‘down-dip’ from existing copper-gold mineralization

at the Central orebody (refer to Figure 5 below). The additional conductive anomalies (Conductors 3 & 4)

identified at Central may represent stratiform-type copper-zinc mineralisation which has been identified (from

historic drilling) to the east of both the Central and the South Eastern orebodies. All of these anomalies must bedrilled tested to confirm the source of the anomalies and to identify additional copper-gold mineralisation.

Four drillholes have therefore been proposed to test the modelled conductors at the Central orebody. These

four holes will be part of a larger drill program designed to test for additional close to surface mineralisation.

All four drillholes will be followed up with down-hole EM surveys to improve the modelling of existing anomalies

and to help identify any off-hole conductors that may represent additional copper-gold drill targets.

F igure 5 –FLTEM L ine 3 and D ri l l Prof i le 4 showing the locat ion of the four conductors a t the Centra l Orebody . PDH means

Planned Dri l l Hole .




RAKKURI IRON PROJECT

Overview

The Rakkurijoki Iron deposit is located 5 kilometres south of Kiruna, a full service mining town in Sweden (refer

to Figures 1).

The Scoping Study determined the Rakkurijoki deposit has the potential to supply iron product over a 12 year

mine life, at a premium price, to the European and the Middle East North African markets.

The Scoping Study evaluated the practicality of combining a low-cost logistics solution with the least mining,

processing, financial and execution risk.

A decision has now been made to initiate a Pre-feasibility Study (PFS) on the Rakkurijoki deposit and to expand

the PFS to include the Rakkurijärvi Iron deposit, located 2.5km south-west of Rakkurijoki (refer to Figure 1).

In the future, the two deposits collectively will be referred to as the Rakkuri Iron Project. The combination of

the two deposits may further enhance the economics of the Rakkuri Project with relatively minimal additional

capital expenditure.

The Rakkurijoki deposit is located less than 1 kilometre from a modern, government owned, open access heavy gauge rail line. The line connects the Rakkurijoki deposit to two modern iron ore export ports. This premium

location with regard to logistics differentiates the project from other iron projects in Scandinavia and represents

a significant competitive advantage.

A Joint Venture partner is being sought to fund the completion of a further drilling campaign and the PFS.

PROJECT PIPELINE

During the Quarter Hannans continued the Divestment Process of its Australian Projects including Forrestania,

Lake Johnston, Queen Victoria Rocks and its East Pilbara Project (no exploration work was completed in

Australia during the Quarter).

Hannans also initiated a divestment process for its Norwegian Projects including Fiskarfjellet and Njivlojávri

copper-gold projects (no exploration work was completed in Norway during the Quarter).

At the end of the quarter the company was in discussions with a number of groups relating to the divestment

process, however no formal agreements have yet been reached in relation to any proposed transactions.

CONTACTS

For further information please contact:

Damian Hicks

Managing Director

Amanda Scott

Exploration Manager

Ben Della-Vedova

Business Development Manager

Tel: +61 8 9324 3388

Web: www.hannansreward.com

Email: [email protected]




Competent Persons Statement-Exploration Results

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 “AustralianCode 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.

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 Fellow of the Australasian Institute of Mining and Metallurgy. 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.

Notes

Survey:

Historic drillhole collars from the Central orebody have been located in the field by Hannans and surveyed with

an RTK GPS in the Swedish coordinate system RT 90 (2.5 Standard). Not all drillhole collars were located and

these positions have been back-calculated through a grid transformation.

Drillhole elevation data has been collected for the holes found in the field via RTK GPS but elevation for the

holes not found will be generated through a digital elevation model (DEM) derived from digital spot elevation

data supplied by Metria as part of the process to convert the current JORC Exploration Target to a JORC

Mineral Resource.

Assays:

The historic drill assays quoted in this press release were undertaken by Swedish Geological AB and assayed at

SGAB Analys in Luleå, Sweden via an acid digest and ICP for all elements except for gold which was via a fire

assay. The majority of historic drillcore is 76mm and was sampled to geological boundaries and half-cored.

The results have not yet been independently verified by Hannans, however the sampling and assaying are

considered to have been undertaken using standard industry practice and QA/QC procedures. Core from more

than 150 holes are stored in archive and will be used to validate the historic assaying as part of the process to

convert the current JORC Exploration Target to a JORC Mineral Resource.

Current intercepts are weighted averages calculated using a 0.1% Cu and 0.1g/t Au lower cut-off. Generally the

assays were consistent through a mineralised interval but where a high value has been diluted by lower values

they have been reported as such in Table 1.



Appendix 5BMining exploration entity quarterly report

+See chapter 19 for defined terms.

30/9/2001 Appendix 5B Page 1

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

HANNANS REWARD LTD

ABN Quarter ended (“current quarter”)

52 099 862 129 31 MARCH 2013

Consolidated statement of cash flows

Cash flows related to operating activitiesCurrent quarter

$A’000 Year to date(9 months)

$A’0001.1 Receipts from product sales and related debtors - -

1.2 Payments for (a) exploration & evaluation(b) development(c) production(d) administration

(571)--

(393)(6)

(3,308)--

(1,736)(6) 1.3 Dividends received - -1.4 Interest and other items of a similar nature

received17 44

1.5 Interest and other costs of finance paid (18) (74)1.6 Income taxes paid - -1.7 Other - -

Net Operating Cash Flows (965) (5,074)

Cash flows related to investing activities1.8 Payment for purchases of:

(a) prospects(b) equity investments(c) other fixed assets

--

(1)

--

(11)1.9 Proceeds from sale of:

(a) prospects(b) equity investments(c) other fixed assets

---

-6,077 (7)

-1.10 Loans to other entities - -1.11 Loans repaid by other entities - -1.12 Other (Director Loan) - 155

Net investing cash flows (1) 6,2211.13 Total operating and investing cash flows (carriedforward)

(966) 1,147





Appendix 5B Page 2 30/9/2001

1.13 Total operating and investing cash flows(brought forward)

(966) 1,147

Cash flows related to financing activities1.14 Proceeds from issues of shares, options, etc. 2,496 4,2411.15 Proceeds from sale of forfeited shares - -

1.16 Proceeds from borrowings - -1.17 Repayment of borrowings (149) (2,262)1.18 Dividends paid - -1.19 Other –Share issue costs (169) (225)

Net financing cash flows 2,178 1,754

Net increase (decrease) in cash held 1,212 2,901

1.20 Cash at beginning of quarter/year to date 2,096 4081.21 Exchange rate adjustments to item 1.20 2 1

1.22 Cash at end of quarter 3,310 3,310

Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of the related entities

Current quarter$A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 100

1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions1.23 – Payment of executive and non-executive director’s fees.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidatedassets and liabilities but did not involve cash flowsN/A

2.2 Details of outlays made by other entities to establish or increase their share in projects in which thereporting entity has an interestN/A






Financing facilities availableAdd notes as necessary for an understanding of the position.

Amount available$A’000

Amount used$A000

3.1 Loan facilities 310 (8) 310 (8)

3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter$A’000

4.1 Exploration and evaluation 1,250

4.2 Development -

4.3 Production -

4.4 Administration

-Corporate Administration

-Loan Repayment

-Tranche 2 Placement

450

150

(300) (9)

Total 1,550

Reconciliation of cashReconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.

Current quarter$A’000

Previous quarter$A’000

5.1 Cash on hand and at bank 3,310 2,096

5.2 Deposits at call - -

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 3,310 2,096





Appendix 5B Page 4 30/9/2001

Changes in interests in mining tenements

Tenement reference Nature of interest(note (2))

Interest atbeginningof quarter

Interest atend of quarter

6.1 Interests in mining

tenements relinquished,reduced or lapsed

E15/913

E63/1423Gordon Kitchener 1-2Luppovare 2Puoltsa 5Maunuvaara 2-3Åggojaure 1-2Neiden 1-7Notsynene 1-8Birtavarre 1-8Bleikvassli 10-47Eappergielas 1Gjeddevann 2-3Gorvvesjávri 2Husvika 1-2

KvæfjordNordkapp 1-7Ravnåsen 1SalenSnefjord 1-6StraumsfjelletVilgesrassa 1-2Øvre Elsvatnet 1-17Famnvatnet 1-24Famnvatnet 30-33Famnvatnet 42-47Famnvatnet 56-173Famnvatnet 176-186Famnvatnet 189-209

Famnvatnet 212-223Famnvatnet 226-442Famnvatnet 445-446Famnvatnet 450-461Famnvatnet 464-465Famnvatnet 469-478Famnvatnet 481-587

Surrendered

SurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrendered

SurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrendered

SurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrenderedSurrendered

100%

100%100%100%100%100%100%100%100%100%100%100%100%100%100%

100%100%100%100%100%100%100%100%100%100%100%100%100%100%

100%100%100%100%100%100%100%

0%

0%0%0%0%0%0%0%0%0%0%0%0%0%0%

0%0%0%0%0%0%0%0%0%0%0%0%0%0%

0%0%0%0%0%0%0%

6.2 Interests in miningtenements acquired orincreased

P77/4048P77/4049P77/4050P77/4051P77/4155P77/4156

Flintfjellet 4-7

GrantedGrantedGrantedGrantedGrantedGranted

Applied

0%0%0%0%0%0%

0%

100%100%100%100%100%100%

0%






Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price persecurity (see

note 3) (cents)

Amount paid up persecurity (see note 3)

(cents)

7.1 Preference+securities (description)

- - - -

7.2 Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returns of capital, buy-backs,redemptions

-

-

-

-

-

-

-

-

7.3 +Ordinarysecurities 706,966,133 706,966,133 - -

7.4 Changes duringquarter(a) Increasesthrough issues

(b) Decreasesthrough returns of capital, buy-backs

126,334,403

-

126,334,403

-

$0.02

-

$0.02

-

7.5 +Convertible debtsecurities(description)

- - - -

7.6 Changes duringquarter(a) Increases

through issues(b) Decreasesthrough securitiesmatured, converted

-

-

-

-

-

-

-

-

7.7 Options (description andconversion factor)

1,000,0002,000,0001,200,000900,000900,000300,000

-Exercise price

80 cents20 cents8 cents17 cents25 cents7 cents

Expiry date30 June 201330 June 201330 June 201330 June 201330 June 2013

15 September 2013

7.8 Issued duringquarter

- - - -

7.9 Exercised during

quarter - - - -7.10 Expired during

quarter3,000,000 - 13 cents 1 February 2013

7.11 Debentures (totals only)

- -

7.12 Unsecured notes (totals only)

- -





Compliance statement1 This statement has been prepared under accounting policies which comply with accounting

standards as defined in the Corporations Act 2001.

2 This statement does give a true and fair view of the matters disclosed.

Michael CraigCompany Secretary30 April 2013

Notes1 The quarterly report provides a basis for informing the market how the entity’s activities have

been financed for the past quarter and the effect on its cash position. An entity wanting todisclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in miningtenements acquired, exercised or lapsed during the reporting period. If the entity is involved ina joint venture agreement and there are conditions precedent which will change its percentageinterest in a mining tenement, it should disclose the change of percentage interest andconditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities.The issue price and amount paid up is not required in items 7.1and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industriesand AASB 1026: Statement of Cash Flowsapply to this report.

5 Accounting Standards. ASX will accept, for example, the use of International AccountingStandards for foreign entities. If the standards used do not address a topic, the Australian

standard on that topic (if any) must be complied with.6 ‘Payments for Administration’ includes the following transaction costs:

Current quarter$A’000

Year to date(9 months)

$A’000 Transaction Costs relating to the off market takeover of Scandinavian Resources Ltd 0 376

Legal fees paid on behalf of wholly owned subsidiaryKiruna Iron AB incurred in relation to the proposed IPO of the subsidiary on AIM during 2012

0 70

Total 0 446

7 The balance of the shares held in Atlas Iron Ltd (ASX:AGO) shares were sold during October2012.

8 Full details of the loan terms and conditions are available at note 18 in Hannans Reward 2012Annual Report.

9 The inflow of $300,000 relates to Tranche 2 of the placement announced to ASX on 25 March2013. Tranche 2 is a placement to Directors and is subject to shareholder approval at a GeneralMeeting to be held on 6 June 2013. Further details of the meeting can be found in the Notice of Meeting released to ASX on 30 April 2013.

Hannans Quarterly Report 2013 | Q3

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