1st Quarter Activities Report 2012/2013

Fast Facts
ASX Code: HNR

Dear Shareholders, During the 1st Quarter (July September 2012) Hannans: Completed the 2012 infill diamond drilling programme (6,634m) at Rakkurijoki iron deposit, Sweden; Initiated a scoping study at Rakkurijoki iron deposit, Sweden (results due for release in early 2013); Received assay results from Rakkurijoki and Laukkujrvi iron prospects and Srksjn gold project, Sweden; Completed summer field campaigns at various projects within the project pipeline in both Sweden and Norway; and Received laboratory confirmation of nickel sulphide mineralisation from Mt Gordon nickel prospect, Western Australia.

Capital Structure
Shares on issue: 479.8m Options on issue: 31.2m Market cap: $10.5m (at 2.2c)

Board of Directors
Chairman: Richard Scallan Managing Director: Damian Hicks Non-Executive Director: William Hicks Non-Executive Director: Jonathan Murray Non-Executive Director: Olof Forslund Non-Executive Director: Markus Bachmann

Subsequent to the end of the current Quarter Hannans announced: Receipt of positive preliminary metallurgical test work results on samples from both Altavaara and Paljasjrvi iron prospects, Sweden; A process to divest the Hannans nickel sulphide assets in Western Australia; A Share Purchase Plan to fund exploration and working capital; and The sale of the Discovery Zone copper project to Avalon Resources Ltd for $4m (subject to completion of due diligence).

During the 2nd Quarter (October December 2012) Hannans will focus on: Providing oversight to the scoping study being completed by the independent mining consultant for the Rakkurijoki iron deposit; Preparing drilling campaigns and obtaining approvals for Rakkurijoki, Rakkurijrvi, Ekstrmsberg and Altavaara iron prospects, Sweden; Preparing a campaign and obtaining approvals for the next round of exploration geophysics and drilling at the high priority Pahtohavare copper project in Sweden; Preparing a campaign and obtaining approvals for the next round of exploration (including shallow drilling) at the high priority Fiskarfjellet copper project in Norway; Preparing exploration campaigns for Hannans target generation projects in Norrbotten and Vsterbotten in Sweden and Finnmark, Troms and Nordland in Norway with a view to divesting non-core projects through joint ventures or relinquishments; and Completing the corporate actions announced during the current Quarter

Projects
Australia Nickel Gold Sweden Iron Copper-Gold Norway Copper-Gold

Yours faithfully

Managing Director

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EXPLORATION
SUMMARY AND HIGHLIGHTS
By Amanda Scott, Exploration 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 base metals exploration in Sweden, Norway and Australia. Summary Sweden & Norway

Australia

Flagship Kiruna Iron Project with a current combined JORC Resource of 473.7Mt @ 40.5% Fe1 (magnetite) and Exploration Target of 203-273Mt @ 32.1%-39.6% Fe2 (magnetite). Pipeline of projects covering gold, copper-gold and lead-zinc prospects in Sweden and Norway. Forrestania nickel & gold project located 7km north of Western Areas high grade nickel mines. Lake Johnston nickel & gold project located 25km south east of Norilsks 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.

Highlights Sweden & Norway Infill diamond drilling programme consisting of 19 holes (total 6,634m) was completed in September 2012 at the Rakkurijoki iron deposit, Sweden:

High grade iron mineralisation intercepted from infill drilling at Rakkurijoki iron deposit including 51m @ 46.6% Fe from 189.9m.

Positive preliminary metallurgical results received from both Altavaara and Paljasjrvi iron prospects indicating premium grade concentrates (>68% Fe) are obtainable. Exploration diamond drilling of three holes (total 653m) testing a highly prospective gold target was completed during July 2012 at the Srksjn project, Sweden.

Australia

Low grade gold mineralisation was intercepted in all three holes at Srksjn including 7m @ 1g/t Au from 74m.

Petrographical analysis of drill chips confirms the presence of nickel sulphides at Mt Gordon nickel prospect, Lake Johnston. Application for Exploration Incentive Scheme (EIS) funding for additional drilling at the Mt Gordon nickel discovery was made during the Quarter.

1 2

Refer to page 14 for Hannans JORC Compliant Indicated and Inferred Resource tables. The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by Hannans 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.

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KIRUNA IRON PROJECT

RAKKURIJOKI
Infill diamond drilling at the Rakkurijoki iron deposit was finalised for the year totalling 19 holes for 6,634m bringing the total number of holes drilled by Hannans to 35 for a total of 12,087m (includes 6 holes at the Rakkurijrvi iron prospect, located 2km along strike from Rakkurijoki). Approximately 5,240m remain to be drilled to complete the 100m infill programme but all of these holes need to be drilled during winter when the ground is frozen. A work plan for this final phase of 100m infill drilling is currently being prepared with drilling anticipated to commence in late January 2013. Once the 100m infill programme is completed (approximately April 2013) a resource update will commence; it is anticipated that having completed the 100m-spaced infill drilling the majority of inferred tonnes will move into the indicated category. During the Quarter a scoping study to mine the Rakkurijoki iron deposit was initiated. The Rakkurijoki iron deposit is the most advanced within the Kiruna Iron Project. From a strategic standpoint, the Rakkurijoki deposit presents the best opportunity for Hannans to build an operating mine and thus become an iron ore producer. The scoping study aims to confirm or discard the technical and financial viability of the Rakkurijoki deposit as a standalone operation. The scope of works is being provided by Rock Team3 and supported by Vectura4 includes but is not limited to the following tasks:

3 4

Whittle optimisations and schedules (4 scenarios); Final and stage pit designs; Waste and moraine dump designs; Evaluating and reporting inventories for the pit designs;

Rock Team is providing Technical Services and is responsible for the delivery of the scoping study. Vectura is a specialist in transport infrastructure and movement planning in Sweden, Vectura will provide Rock Team with key logistic information which will feed into the scoping study.

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Develop mining schedules for each option (2 selected options); Conceptual site layout plans; Benchmark processing cost and performance; Conceptual design of loading terminal (2 separate proposals); Study of rail transport systems (2 alternatives); Study of port alternatives and port logistics; Options for loading terminals and loading technologies; and Sea transport options and cost for shipping to Antwerp, Bremerhaven and the Mediterranean Sea.

The final result of the scoping study will contain CapEx, FOB OpEx, indicative shipping costs, projected cash flows and an estimated NPV for the envisaged operation with accuracy of 30%. The scoping study is expected to be delivered to the Board of Directors by late December 2012. Laboratory results from seven diamond holes at Rakkurijoki were returned during the Quarter and are summarised in Table 1 below.

Table 1: Drilling results received from Rakkurijoki iron deposit during the Quarter
Hole ID RJO12011 Northing (RT 90) 7527698 Easting (RT 90) 1686063 RL 472 Azi 320 Dip -53 EOH 240 From (m) 135.2 154.65 RJO12012 RJO12013 RJO12014 RJO12015 7527570 7527526 7527493 7527660 1685916 1685952 1685981 1686096 470 470 471 471 321 319 322 318 -47 -58 -65 -62 141 222 174 342 NSA 40.13 NSA 189.94 244.27 RJO12016 7527642 1685986 471 320 -49 123 40.9 57.95 84.2 RJO12017 7527556 1686054 471 321 -66 300 184.52 223.31 RJO12018 RJO12019 7527758 7527481 1686134 1686115 471 471 314 313 -53 -67 280 456 153.58 382.89 240.97 264.85 52.33 77.54 90.32 207.03 254.28 201.17 449.75 51.03 20.58 11.43 19.59 6.12 22.51 30.97 47.59 51.58 46.6 35.3 36.8 36.2 47.4 43.5 25.27 40.9 31.4 56.21 16.08 29.7 To (m) 146.51 190.55 Intercept 11.31 35.9 Fe % 47.1 32.8

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

EKSTRMSBERG
The Ekstrmsberg iron prospect is located in the Kiruna South Hub, 30km southwest of Kiruna. Geophysical modelling at Ekstrmsberg is almost complete and will aid in designing an infill diamond drill programme scheduled for winter 2013. Several exploration holes located outside of the deposit area are also planned targeting magnetite and hematite iron mineralisation. The current JORC resource for Ekstrmsberg is:

30.4Mt @ 52% Fe (Indicated) 41.6Mt @ 52% Fe (Inferred)

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LAUKKUJRVI
The Laukkujrvi iron prospect is located in the Kiruna Central Hub, 30km west of Kiruna. Laboratory results from sixteen diamond holes drilled at the Laukkujrvi iron prospect during 2011 were returned during the Quarter and are summarised in Table 2 below. The iron mineralisation at Laukkujrvi is typically narrow (average 15m thick) and of moderate grade. The iron mineralisation is comprised of both magnetite and hematite and also commonly contains coincident copper and gold mineralisation. No resource calculation has been made to date for Laukkujrvi although the JORC Exploration Target is:

4-8Mt @ 30-35% Fe

Table 2: Drilling results received from Laukkujrvi iron prospect during the Quarter
Hole ID LAU11001 Northing (RT 90) 7531970 Easting (RT 90) 1656316 RL 467 Azi 48 Dip -59.7 EOH 221.1 From (m) 74 102 LAU11002 LAU11003 LAU11004 LAU11005 LAU11006 7532026 7531923 7531876 7531979 7532048 1656407 1656374 1656307 1656452 1656502 470 466 465 469 473 52 53 53 235 239 -58.5 -44 -50.5 -48.8 -48.8 200 43 203.6 118.6 274.7 58.8 NSA 186.5 94.2 49.85 175.68 226.19 LAU11007 7531943 1656524 470 54 -59.6 245.2 34.9 69.62 LAU11008 LAU11009 LAU11010 LAU11011 7531886 7531868 7531852 7532063 1656602 1656662 1656723 1656327 468 466 467 469 48 50 52 55 -60.1 -60.6 -50.5 -42.4 240.1 251.2 182 240.6 36.2 NSA NSA 46.83 118.47 164.78 LAU11012 7532015 1656262 470 55 -50.1 241.9 93.82 152.47 214.27 LAU11013 LAU11014 7531933 7531890 1656266 1656685 466 469 52 26 -54.5 -44.6 241.1 130.1 169.82 43.34 63.19 104.61 LAU11015 LAU11016 7531962 7532119 1656456 1656399 468 472 54 51 -49.5 -43.9 260 200 22.77 40.5 73.58 127.6 175.05 102.31 182.87 219.48 183.78 57.19 75.19 117.05 27.97 58.32 26.75 9.13 10.27 8.49 30.4 5.21 13.96 13.85 12 12.44 5.2 17.82 31.1 45.8 39.5 33.0 28.7 39.0 23.9 27.4 24.4 24.8 41.7 39.9 1963 _ _ 7536 2597 _ 1279 _ _ _ _ _ 202.5 110.7 56.78 186 234.17 58.1 82 66.52 16 16.5 6.93 10.32 7.98 23.2 12.38 30.32 25.0 42.2 30.9 _ 23.3 46.6 21.1 42.3 2793 2354 _ 4982 2044 _ _ To (m) 82 135.2 84.6 Intercept 8 32.5 10.4 Fe % 24.2 34.1 27.6 Cu ppm 2285 2756 _

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

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ALTAVAARA
The Altavaara iron prospect is located in the Kiruna North Hub, 15km south of Kiruna and just 600m from the E10 highway. Preliminary metallurgical test work results on drill core samples from Altavaara were received subsequent to the end of the Quarter (refer ASX Announcement dated 24 October 2012). The DTR results confirm that a high grade (>70% Fe) magnetite concentrate can be produced from ore at Altavaara despite the low feed grades (average 24%). In late 2011, 13 diamond drill holes were completed and in January 2012 an updated Exploration Target was released for Altavaara being:

PALJASJRVI

55-60Mt @ 26-29% Fe5

The Paljasjrvi iron prospect is located in the Lannavaara Hub, 70km trucking distance from the nearest rail head at Svappavaara. Preliminary metallurgical test work results on historic drill core samples from Paljasjrvi were received subsequent to the end of the Quarter (refer ASX Announcement dated 24 October 2012). The DTR results confirm that a high grade (>66% Fe) magnetite concentrate can be produced from ore at Paljasjrvi. The results also showed that the sulphur levels in the concentrate were elevated which is expected from skarn iron ores from the Kiruna District. The Paljasjrvi iron prospect is the priority exploration target in the Kiruna district for Hannans owing to its large strike length of iron mineralisation (magnetite) which is approximately 3,500m. Diamond drilling of approximately 10 holes has been planned and all governmental approvals have been received. This initial drill programme will focus on the southern half of the deposit and will have a profile spacing of approximately 200m. The current JORC Exploration Target for Paljasjrvi is:

40-60Mt @ 30-40% Fe.

Figure 1: Drill Rig at Rakkurijoki prospect, Kiruna, April 2012.

Copyright Photo by Hans Lindberg

The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by Hannans 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.

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PRIORITY PRECIOUS AND BASE METALS PROJECTS

SRKSJN PROJECT
Diamond drilling of three holes along a single profile, for a total of 652m, was completed during July at the Srksjn gold project located in the Swedish Caledonide Front. The drilling was designed to test a coincident IP and EM anomaly generated by the company in 2011 and also to follow up on high-grade mineralised outcrop sampled in 2010. Assay results from the diamond drilling have been received and are located in Table 3 below; whilst low-grade, a contiguous gold-mineralised zone was intercepted in all three holes. The mineralisation is characterised by strong silicification and intense arsenopyrite mineralisation within a wider marginal zone of weakly disseminated pyrite, pyrrhotite, and arsenopyrite. Lead, zinc and molybdenum values were anomalous but not economic. The host rocks at Srksjn are intensely deformed which is consistent with rocks located in the Caledonides, despite this; the low-grade gold-arsenic mineralisation can be traced between the three diamond drillholes and appears to be undeformed. Locally, high-grade gold (>10g/t Au) mineralisation as seen in outcrop and historic drill core, appears to be located within small scale (cm) fold hinges. Further work is required to fully understand the controls on gold mineralisation at Srksjn and to determine if any economic concentrations of high-grade gold located in larger scale, possible first order, fold hinges occur within the project.

Table 3: Drilling results received from the Srksjn Project during the Quarter
Hole ID SAR12001 Northing (RT 90) 7203500 Easting (RT 90) 1428005 RL 826 Azi 90 Dip -45 EOH 300 From (m) 135.45 146.45 SAR12002 SAR12003 7203500 7203500 1428200 1428100 811 800 90 90 -60 -50 146 206 15.08 74 To (m) 140.5 156.5 21.08 81 Intercept 5 8 6 7 Au g/t 0.56 0.28 0.72 1 As ppm 3157 5235 6094 3062

Note: All samples submitted to ALS Laboratories for Au-AA25 for gold analysis and ME-ICP61 for all other elements.

FISKARFJELLET PROJECT
The Fiskarfjellet Project is located approximately 25km southwest of Alta, northern Norway. During the 2011 summer field season a sediment hosted copper discovery was made by Hannans at Fiskarfjellet. Mapping at the project has revealed several kilometres of copper-mineralised dolomitic limestone across three separate dolomite horizons namely at Fiskarvatnet, Flomvatnet and Kvartpttevatnet. High-grade copper mineralisation was also discovered at the Flintfjellet prospect located a further 10-15km southwest of Fiskarfjellet. During the 2012 summer field season further mapping and sampling of the dolomite horizons has occurred in addition to sampling of the wall-rock siltstone. Minor chalcopyrite mineralisation has been identified in the wallrock siltstones at both Fiskarvatnet and Kvartpttevatnet (AL12001). At the Flintfjellet prospect all samples collected to date (AL12002-AL12006, AL11090-AL11091) have come from an extensive dolomite boulder field/train. During the Quarter mapping of the dolomite boulder train (approximately 1km) located additional dolomite boulders with high-grade Cu-Ag mineralisation and up to 1.26 g/t Au. The mineralised boulders are found in a limited area within the dolomite boulder field. The copper mineralisation in the dolomite boulders is largely chalcocite-bornite veining. Occasionally the dolomitechert is brecciated with a semi-massive to massive chalcocite-bornite matrix. See Table 4 below for assay results.

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Table 4: Rock chip results received from the Fiskarfjellet Project during the Quarter
Sample No. AL12001 AL12002 AL12003 AL12004 AL12005 AL12006 AL11090 AL11091 AL12007 AL12008 AL12009 AL12010 UTM East 562047 554718 554793 554597 554594 554584 554597 554583 552337 550813 551061 551291 UTM North 7753759 7746914 7747014 7747027 7747031 7747036 7747025 7747036 7743350 7743707 7744230 7744279 UTM Zone 34 34 34 34 34 34 34 34 34 34 34 34 Sample Type Boulder Boulder Boulder Boulder Boulder Boulder Boulder Boulder Bedrock Bedrock Bedrock Bedrock Sub-Area Kvartpttevatnet Flintfjellet Flintfjellet Flintfjellet Flintfjellet Flintfjellet Flintfjellet Flintfjellet Flintfjellet Flintfjellet Flintfjellet Flintfjellet Au g/t 0.66 x x x 0.01 1.26 0.03 0.06 0.02 0.06 x 0.03 Ag g/t x 181 35 218 314 226 435 484 1.4 151 4.2 6.7 Cu % 0.26 23.70 3.99 26.00 >40 26.20 >40 >40 0.51 27.40 0.76 1.23

Note: All samples submitted to ALS Laboratories for Au-AA25 for gold analysis and ME-ICP61 for all other elements.

5km to the southwest of the Flintfjellet boulder train, stratabound Cu-Ag mineralisation of the Fiskar-type was discovered along the contacts of two extensive dolomite layers of the Storviknes Formation although from the few exposures mapped the potential for significant thickness of copper mineralised dolomite rocks appears small (AL1212007-AL12010). The Norwegian Geological Survey (NGU) completed airborne electromagnetic, magnetic and radiometric surveys over the Fiskarfjellet Project during the Quarter as part of a larger government-funded study of the AltaKvnangen tectonic window. The data is expected to be released to the public in late 2012. Hannans will process, model and interpret the NGU airborne data when it becomes available and will then seek to carry out IP surveys in areas identified as prospective from the airborne data.

Figure 2: Airborne geophysical survey being flown over the Fiskarfjellet Project, October 2012

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NJIVLOJVRI PROJECT
The Njivlojvri Project is located 35km northwest of Kautokeino (northern Norway). During the 2011 summer field season Hannans identified a >2km long copper-gold anomaly generated through CHorizon soil sampling (50 x 200m spacing) at the Njivlojvri Project. The anomaly appears to be bound to a mineralised shear zone. Hannans also discovered copper-gold mineralisation in float samples at the Suovrrajvri Prospect which sits between known mineralisation to both the north and south. Additional rock sampling of quartz-carbonate-chalcopyrite veins and prospecting in the eastern part of the licenses was completed during the 2012 summer field season. A total of 8 samples were collected and results are listed in Table 5 below. An infill C-Horizon soil sampling programme and a ground magnetic survey were also planned for the summer field season at Njivlojvri but have been postponed until 2013 due to a governmental delay in permitting.

Table 5: Rock chip results received from the Njivlojvri Project during the Quarter
Sample No. KA12001 KA12002 KA12003 KA12004 KA12005 KA12006 KA12007 KA12008 UTM East 565372 565351 566214 565240 565242 565178 565269 566251 UTM North 7692409 7692418 7685382 7692618 7692617 7693074 7693890 7693591 UTM Zone 34 34 34 34 34 34 34 34 Sample Type Bedrock Bedrock Bedrock Bedrock Bedrock Bedrock Subcrop rock Bedrock Sub-Area Njivlojvri Njivlojvri Daccavarri Njivlojvri Njivlojvri Njivlojvri Njivlojvri Njivlojvri Au g/t x 1.37 0.02 0.1 0.07 0.03 0.25 0.29 Ag g/t x 0.5 x x x x x 0.8 Cu % 0.01 17.05 0.25 0.63 12.45 1.10 2.84 15.05

Note: All samples submitted to ALS Laboratories for Au-AA25 for gold analysis and ME-ICP61 for all other elements.

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PROJECT PIPELINE
Hannans is committed to building its pipeline. Many projects are assessed with a view to converting the projects into priority projects or relinquishing them. This process is a key part of Hannans project generation strategy.

GGOJAURE
The ggojaure Project is located approximately 100km northwest of Karesuando (northern Sweden). The project is located in the under-explored and poorly understood Archaean terrane of Norrbotten. Permits were applied for and granted during the Quarter after Hannans identified this area as an area of mineral prospectivity given the age of the rocks. Archive research showed molybdenum was identified in the project area in the early 1980s by the Swedish Geological Survey. In 1992 a private prospector collected a sulphidic quartz outcrop sample located 1.7km east of the molybdenum mineralisation; re-assay of the original sample by Hannans during the Quarter returned a value of 38.7g/t Au. Hannans subsequently spent a week in late July 2012 in the field mapping and sampling at the ggojaure Project. The mapping showed that thin (5-15cm) sulphide mineralisation (pyrite and minor chalcopyrite) occurred frequently along the several kilometre-long NNW and NNE shear zones and typically along sheared contacts of diabase dykes. Significant assay results include:

0.27g/t Au, 60.4g/t Ag, 5.09% Cu and 2990ppm W (G12005) 1.43g/t Au, 2.6g/t Ag, 1.21% Cu (G12026)

Whilst the width of mineralisation at ggojaure was disappointing the Archaean terrane in Norrbotten remains an area of exploration interest for Hannans.

VTMYRBERGET
During August 2012 a ground magnetic survey was initiated at the Vtmyrberget Project, located in the northern Skellefte District, Sweden. The survey was focused on an area of outcropping poly-metallic mineralisation with magnetic profiles covering a strike length of 13km. The poly-metallic mineralisation at Vtmyrberget is hosted in felsic volcanics (rhyolite-trachyte) and is associated with magnetite mineralisation. Previously reported sampling by Hannans returned the following results:

4.56% Cu, 32.5g/t Ag, 1,540 ppm W and 0.1g/t Au (KS08105) 2.47% Cu, 29.8g/t Ag, 370ppm W and 0.39g/t Au (KS08106) 0.9% Cu, 8.7g/t Ag, 2,470ppm W and 0.1g/t Au (KS08204)

It is anticipated that the detailed ground magnetic survey will assist in targeting areas of magnetite and accompanying poly-metallic mineralisation. The remaining profiles will be surveyed during the winter.

RINGVASSYA
During September 2012 a ground magnetic survey was initiated and completed at the Ringvassya Project located 80km north of Troms, Norway. The survey covered three prospect areas including Holmvasshgda, Srdalshgda and Srdalshgda South. The results are yet to be interpreted by Hannans. 14 samples were also collected during the Quarter, 7 of which have been returned but with no significant results. The balance of assay results is expected in late October.

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KVFJORD
The Kvfjord Project is located 15km west of the town on Harstad, central Norway and is comprised of three separate prospect areas; Kvfjord, Straumsfjellet and Salen. During July 2012, 24 rock samples were collected in the area between the abandoned Berg Mine and the Storsurnsen workings (Kvfjord Prospect); results are listed in Table 6 below.

Table 6: Rock chip results received from the Kvfjord Project during the Quarter
Sample No. KV12001 KV12002 KV12003 KV12004 KV12005 KV12006 KV12007 KV12008 KV12009 KV12010 KV12011 KV12012 KV12013 KV12014 KV12015 KV12016 KV12017 KV12018 KV12019 KV12020 KV12021 KV12022 KV12023 KV12024 UTM East 550904 551063 548675 549197 549197 549197 547795 547188 548697 548716 543986 543986 543986 543986 543986 547259 547259 547199 547178 547178 547258 547258 547241 547241 UTM North 7631491 7631028 7630829 7630792 7630792 7630792 7630393 7630351 7632945 7632987 7628336 7628336 7628336 7628336 7628336 7630252 7630252 7630310 7630309 7630309 7630204 7630204 7630149 7630149 UTM Zone 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 Sample Type Bedrock Bedrock Bedrock Bedrock Bedrock Bedrock Boulder Bedrock Boulder Bedrock Dump sample Dump sample Dump sample Dump sample Dump sample Bedrock Dump sample Bedrock Bedrock Dump sample Dump sample Bedrock Dump sample Dump sample Sub-Area Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvya Kvya Kvya Kvya Kvya Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Kvfjord Au g/t 0.02 x 0.07 0.67 0.38 0.28 x x x x x 0.02 x x x x 0.02 0.07 0.03 0.09 x 0.01 0.02 0.08 Ag g/t 0.9 1 0.9 12.1 12.7 2.7 x 7.5 1.1 0.8 x 1.8 x x x 0.8 19.5 48.8 24.9 48.1 9.2 14.9 33.4 111 Cu % 0.01 0.02 0.02 0.78 0.79 0.12 0.00 0.56 0.02 0.02 0.03 0.35 0.00 0.09 0.03 0.02 0.84 0.62 1.10 1.68 0.65 1.03 1.43 3.94

Note: All samples submitted to ALS Laboratories for Au-AA25 for gold analysis and ME-ICP61 for all other elements.

C-Horizon soil sampling (81 samples) was also carried out during the quarter at the Kvfjord Prospect covering an extensive, untested VLF conductor between Berg and Storsurnsen. The peak copper value obtained from the soil sampling was 1,160ppm and the peak gold value was 0.014ppm. At the Straumsfjellet Prospect mapping and rock chip sampling was completed in September 2012 over polymetallic skarn horizons hosted in calcareous sediments and amphibolite. The strike length of the skarn horizons is approximately 1km although the mineralisation appears to be quite thin. Assay results are expected in late October 2012. A NGU funded airborne geophysics survey was flown over the Kvfjord Project area during the Quarter with the data being released to the public on the 26th of October 2012; on receipt of the data in-house modelling and processing will commence.

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UCCAVUOVDAS
The Uccavuovdas Project is located 8km north of Kautokeino (northern Norway). Similar to Njivlojvri to the northwest, Uccavuovdas is prospective for shear-hosted copper-gold mineralisation. The permits have very few exposures of outcrop and are covered by a veneer of glacial material. Tectonically the area is very complex with several first order NNW-SSE oriented shear zones or structures cutting the stratigraphy. All known mineralisation within the permit area are localised along shear structures and the stratigraphy is comprised of albite-carbonate altered greenstones and amphibolites and graphite schists. The Uccavuovdas area has been explored by several companies and the NGU from as early as 1960. The most recent work completed was by Outokumpu where they drilled 16 diamond drill holes and also completed several campaigns of both airborne and ground geophysical surveys producing multiple anomalies, most of which remain to be tested. During September2012 Hannans took 121 C-Horizon soil samples which have identified a strong copper anomaly (peak copper value of 595ppm) that is also coincident with an airborne conductivity anomaly and a NW-SE magnetic lineament. In 2011 a small outcrop of albite-carbonate altered felsite breccia with veins and disseminations of chalcopyrite and pyrite returned an assay of 0.75g/t Au and 1.56% Cu (KA11049). Follow-up work is currently being planned for Uccavuovdas.

NORDKAPP AND SNEFJORD

Follow-up of REE anomalies in regional till samples (historic till samples collected and re-assayed by NGU in 2011) was completed during the Quarter and involved mapping and a scintillometer survey. The REE-till anomalies are underlain by immature Caledonian nappe sediments (greywacke and mica schist) and radiation is very low consequently no further sampling was conducted by Hannans. Further research by NGU during 2012 indicates that the heavy mineral enrichment in the till might in fact be caused by deep weathering and glacially reworked saprolite. No further work is recommended at Nordkapp and Snefjord for REE. A single sample collected from a 1m thick massive-sulphide vein hosted in gabbro (Honningsvg Suite), assayed 0.7% Cu and 0.3% Ni and requires further follow-up.

BRENNFJELLMYRA
The Brennfjellmyra Project is located 5km southeast of the small town of Skibotn (northern Norway). Historic sampling by the NGU returned samples assay in the range 1-3g/t Au. During the Quarter Hannans followed-up on the NGU work and found additional workings with similar mineralisation (disseminated chalcopyrite-pyrrhotite) in a garnet bearing amphibolite and close to the contact with a metagabbro; 6 samples were collected and results are expected in late October.

RANA GRAPHITE
During the Quarter a 7km long graphite-rich sedimentary horizon was mapped and sampled within the Rdingfjell Nappe, located 15km west of Mo i Rana, Norway. 10 rock chip samples were collected and assayed for carbon content which ranged between 2.2-6.4% C (organic). Due to the low total carbon content no flake size analysis was completed and no permit was applied for over the prospective horizon.

LAKE JOHNSTON
The receipt of petrographic results during the quarter confirmed 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. 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.

HANNANS 1 s t 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

13

NICKEL PROJECT DIVESTMENT

At the end of the quarter the Hannans Board of Directors authorised a process to divest the companys nickel project portfolio in Western Australia, which includes the: Forrestania Project (east of Hyden, Western Australia); Lake Johnston Project (west of Norseman, Western Australia); and Queen Victoria Rocks Project (south-west of Coolgardie).

The divestment process is consistent with Hannans business stratergy of moving away from pure high-risk greenfields exploration projects to a balanced mix of exploration and development assets. Hannans is of the firm opinion that the projects subject to divestment are high quality and as a result will be looking to continue holding an interest in the projects by retaining a joint venture interest or hold equity in the incoming party. Hannans will be be seeking to retain a 100% interest in the gold rights only within the Skeleton Rocks area of the Forrestania Project.

CONTACTS
For further information please contact: Damian Hicks Managing Director Tel: +61 8 9324 3388 Web: www.hannansreward.com Email: admin@hannansreward.com Amanda Scott Exploration Manager Ben Della-Vedova Business Development Manager

HANNANS 1 s t 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

14

HANNANS JORC RESOURCE TABLES

JORC COMPLIANT INDICATED MINERAL RESOURCE TABLE
Prospect Sautusvaara South Sautusvaara North Ekstrmsberg 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 -

JORC COMPLIANT INFERRED MINERAL RESOURCE TABLE

Prospect Rakkurijrvi Rakkurijoki Discovery Zone Tributary Zone Sautusvaara South Sautusvaara North Vieto Puoltsa Renhagen Harrejaure Ekstrmsberg Tjrrojkka 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 P (%) 0.07 0.28 0.05 0.05 0.09 0.05 0.14 Unavailable 0.21 0.04 Unavailable Unavailable 1.96 S (%) 0.93 0.89 0.95 1.08 1.82 0.46 1.46 Unavailable 0.03 0.01 Unavailable Unavailable Unavailable -

TOTAL INDICATED & INFERRED

Competent Persons Statement

Mt 473.7

Fe (%) 40.5
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 MinarcoMineConsult 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, Lule, 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.

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. Competent Persons Statement-Rakkurijrvi, Rakkurijoki, Discovery, Tributary Zone, and Puoltsa Mineral Resources The mineral resource estimate for Rakkurijrvi, Rakkurijoki, Discovery, Tributary Zone and Puoltsa is effective from 13 January 2012 and has been prepared by Mr Thomas Lindholm, MSc of GeoVista AB, Lule, 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-Ekstrmsberg, Tjrrojkka and Pattok Mineral Resources The mineral resource estimate for Ekstrmsberg, Tjrrojkka, 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 Ekstrmsberg, Tjrrojkka, and Pattok have been

TRANSACTION SERVICES & CORPORATE MANAGEMENT

Corporate Board Services is designed to assist the Boards and Management of ASX listed companies by assuming responsibility for their day-to-day financial and compliance management. This value added service enables the Board to focus on important strategic decisions and Management to focus on implementing the strategy in a cost effective manner.

STRATEGY

CBS provides cost efficient, professional and timely services CBS is wholly owned by Hannans CBS revenue reduces Hannans fixed cost CBS offers Hannans shareholders opportunities to access new offerings CBS utilises expertise of Hannans corporate team to provide transaction services and corporate management services to listed and unlisted private and public companies

SERVICES OFFERED
Financial Management Budgeting and forecasting Bookkeeping Annual Report Half-year Report Board remuneration, salaries and wages Management reporting Quarterly Report ASX & ASIC Documentations

ASX Compliance Management

Shareholder Communications Management Company Secretarial & Administrative Support

CLIENTELE
Our clients include Equity & Royalty Resources Ltd, Naracoota Resources Ltd (ASX: NRR), Errawarra Resources Limited and the Hannans Reward Group of companies. The range of services provided this year includes assisting with the preparation of Annual, Half Year and Quarterly Reports, preparation of loan documents, preparation of detailed Board packs for Board meetings, arranging shareholder meetings, preparation of Notices of Meeting and providing full accounting and financial management support to Australian and Swedish based companies. By utilising the services of CBS, clients can focus on their core business activities.

CONTACT
Michael Craig (Principal) and Mindy Ong (Principal) 6 Outram Street, West Perth, WA, Australia Tel: +61 8 9322 3383 Email: admin@corpbservices.com Web: www.corpbservices.com

Appendix 5B Mining exploration entity quarterly report

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

30 SEPTEMBER 2012

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 1.2 Receipts from product sales and related debtors Payments for (a) exploration & evaluation (b) development (c) production (d) administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other Net Operating Cash Flows Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (Director Loan) Net investing cash flows Total operating and investing cash flows (carried forward) Current quarter $A000 (1,513) (668) (6) 8 (38) (2,211) Year to date (3 months) $A000 (1,513) (668) (6) 8 (38) (2,211)

1.3 1.4 1.5 1.6 1.7

1.8

(7) 3,720 100 3,813 1,602

(7) 3,720 100 3,813 1,602

1.9

1.10 1.11 1.12 1.13

+ See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward) Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other (provide details if material) Net financing cash flows Net increase (decrease) in cash held 1.20 1.21 1.22 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 Cash at end of quarter

1,602

1,602

1.14 1.15 1.16 1.17 1.18 1.19

(1,561) (1,561) 41 408 (1) 448(7)

(1,561) (1,561) 41 408 (1) 448(7)

Note 7: In addition to cash as at 30 September 2012 HR Equities Pty Ltd (wholly owned subsidiary of Hannans Reward Ltd) owned 1,564,000 shares in AGO. These have subsequently been sold during October 2012 and HR Equities Pty Ltd no longer holds AGO shares.

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
Current quarter $A'000 1.23 1.24 1.25 Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10 Explanation necessary for an understanding of the transactions 1.23 Payment of executive and non-executive directors fees. 130 -

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A

2.2

Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A

+ See chapter 19 for defined terms. Appendix 5B Page 2 30/9/2001

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 3.2

Loan facilities Credit standby arrangements

Amount available $A000 -

Amount used $A000 -

Estimated cash outflows for next quarter

$A000 4.1 4.2 4.3 4.4 Exploration and evaluation Development Production Administration Total 800 500 1,300

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. 5.1 5.2 5.3 5.4 Cash on hand and at bank Deposits at call Bank overdraft Other (provide details) Total: cash at end of quarter (item 1.22) Current quarter $A000 448(7) 448(7) Previous quarter $A000 408 408

Changes in interests in mining tenements

Tenement reference 6.1 Interests in mining tenements relinquished, reduced or lapsed Interests in mining tenements acquired or increased E15/1267 E15/1278 E15/1234 E45/3747 E45/1449 E45/1935 Vtmyrberget nr 6 Nature of interest (note (2)) Surrendered Surrendered Surrendered Granted Granted Granted Granted Interest at beginning of quarter 100% 100% 100% 0% 0% 0% 0% Interest at end of quarter 0% 0% 0% 100% 100% 100% 100%

6.2

+ See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number 7.1 7.2 Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions +Ordinary securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs +Convertible debt securities (description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Options (description and conversion factor)

Number quoted

Issue price per security (see note 3) (cents) -

Amount paid up per security (see note 3) (cents) -

7.3 7.4

479,772,810

479,772,810

7.5 7.6

Exercise price 80 cents 20 cents 7 cents 13 cents 8 cents 17cents 25 cents 7 cents -

Expiry date 30 June 2013 30 June 2013 31 October 2012 1 February 2013 30 June 2013 30 June 2013 30 June 2013 15 September 2013 -

7.7

1,000,000 2,000,000 21,910,017 3,000,000 1,200,000 900,000 900,000 300,000 -

7.8 7.9 7.10 7.11 7.12

Issued during quarter Exercised during quarter Expired during quarter Debentures (totals only) Unsecured notes (totals only)

+ See chapter 19 for defined terms. Appendix 5B Page 4 30/9/2001

Appendix 5B Mining exploration entity quarterly report

Compliance statement
1 2 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act 2001. This statement does give a true and fair view of the matters disclosed.

Michael Craig Company Secretary 31 October 2012

Notes
1 The quarterly report provides a basis for informing the market how the entitys activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. Payments for Administration includes transaction costs of $320,000 paid to third parties during the quarter relating to the off market takeover of Scandinavian Resources Ltd. In addition to cash as at 30 September 2012 HR Equities Pty Ltd (wholly owned subsidiary of Hannans Reward Ltd) owned 1,564,000 shares in AGO. These have subsequently been sold during October 2012 and HR Equities Pty Ltd no longer holds AGO shares.

3 4 5

+ See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 5