Hana Mining Ltd : Infill drilling encounters consistent high-grade copper-silver mineralization along the Northeast Fold of the Banana Zone

January 09, 2012
Infill drilling encounters consistent high-grade copper-silver mineralization along the Northeast Fold of the Banana Zone

is pleased to announce its most recent drilling results from the completion of 14 infill diamond drill holes in the Banana Zone at its Ghanzi sediment hosted Copper-Silver Project in Botswana.

Infill drilling was carried out on the Northeast Fold area (between sections 69125 to 70425 at the Northeast Fold; Figures 1 and 2) to convert a substantial amount of the NI 43-101 compliant resources within this area into the Indicated category from the Inferred category.

These results are from new holes and are in addition to those used in the most recent NI 43-101 compliant Indicated and Inferred mineral resource calculation (see Table 1 at the end of this press release for the results from all 14 drill holes). The mineralization remains open at depth.

Highlights of recent drilling results:

• The latest results continue to confirm the continuity of copper-silver mineralization at the Northeast Fold area of the Banana Zone.
• Core lengths intercepts of
  • 2.17% CuEq(1), (1.82% Cu and 24.0 g/t Ag) over 8.0 metres within a wider mineralized interval of 0.96% CuEq (0.79% Cu and 12.0 g/t Ag) over 24.7 metres in hole HA-434-D,
  • 2.59% CuEq(1), (1.98% Cu and 42.0 g/t Ag) over 4.5 metres within a wider mineralized interval of 1.34% CuEq (1.05% Cu and 20.0 g/t Ag) over 10.0 metres in hole HA-407-D,
  • 1.21% CuEq(1), (1.17% Cu and 3.0 g/t Ag) over 1.5 metres within a wider mineralized interval of 0.22% CuEq (0.19% Cu and 2.0 g/t Ag) over 15.7 metres in hole HA-441-D,
  • 0.94% CuEq(1), (0.85% Cu and 6.0 g/t Ag) over 7.9 metres within a wider mineralized interval of 0.52% CuEq (0.45% Cu and 5.0 g/t Ag) over 27.7 metres in hole HA-439-D.

(1) Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not adjusted for metallurgical recoveries. The formula used is as follows: CuEq = Cu% + (Ag g/t x 0.01458).

Discussion of Results:

These are the first set of results from the 2011 infill drilling program for the Northeast Fold area which is located at the most northeast part of the Banana Zone. This area consists of a plunging anticline where thick intervals of copper mineralization were encountered. Like many parts of the North Limb North area, high-grade copper silver mineralization at the Northeast Fold bifurcates and is contained within a broader low grade mineralized envelope. Mineralization at the Northeast Fold is open along plunge and along dip of this anticlinal structure. Further infill drilling results from the Northeast Fold are expected soon.

Figure 1: Location of Most Recent Drilling Results at the Banana Zone

*Please note all figures show section grid lines that are referenced in the result tables.

Figure 2: Drill Hole Location of Northeast Fold, Sections 69125 to 70425

Figure 3: Cross-section through section 69475 (Northeast Fold)

Development Update

The following engineering and consultation activities are ongoing:

• Work on the revised resource estimate for the Banana Zone is continuing as expected and the Company expects to release the results of this resource estimate in the second quarter of 2012.
• Work continues on the Preliminary Economic Assessment ("PEA") which is also expected to be completed in the second quarter of 2012.

Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:

"The Northeast Fold is another key area where we are investigating the potential of open pit and underground mining operations. Not only is mineralization open along dip along the limbs of the folds in this area, but also along plunge of the top of the fold. This area is also attractive given that relatively high-grade mineralization is found over thick intersections."

Qualified Person and Quality Assurance/Quality Control

The drilling program and results are reviewed and approved by Marek Kreczmer, Chief Executive Officer for Hana. He is the qualified person as defined in NI 43-101 and has reviewed the technical information in this press release.

Drill core is logged and photographed. Mineralized intervals are split in half by sawing and sampled at site. The remainder of the core is kept as a permanent record. Samples are placed into labelled bags, closed and packed into sealed bags that are shipped to ALS Chemex Laboratory in Johannesburg, South Africa or Scientific Services Laboratories in Cape Town, South Africa. Hana has implemented an industry-standard QA/QC program that includes the blind insertion of certified standards, duplicates and blanks into the sample stream.

About Hana Mining's Ghanzi Copper-Silver Project in Botswana:

The Ghanzi Project is located in the center of the Kalahari Copper Belt in northwestern Botswana. The Ghanzi property covers 2,149 square kilometres, and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 70 kilometres. This favorable geology extends over an estimated strike length of 600 kilometres. Hana Mining released results of its most recent NI 43-101 compliant resource estimate for the Ghanzi Project on December 20, 2010, announcing an Indicated mineral resource of 585 million pounds of copper and 12 million ounces of silver from 19.7 million tonnes at a grade of 1.35% copper and 19.7 g/t silver. All of the Indicated resources are from the Banana Zone. There are also Inferred resources of 2.4 billion pounds of copper and 40.6 million ounces of silver from 91.2 million tonnes. This Inferred mineral resource estimate consists of 69.9 million tonnes grading 1.10% Cu and 14.98 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.66% Cu and 12.11 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 6.7 g/t Ag in Zone 6, and 1.6 million tonnes grading 0.85% Cu and 6.4 g/t Ag in the Chalcocite Zone; all at a cut-off grade of 0.75% Cu.

The Banana Zone exhibits certain areas of higher grade Cu and Ag mineralization, particularly between sections 49700 to 52000 on the North limb and sections 63000 to 71000 on both the North and South limbs, which represent an opportunity to locate starter pits and mine initial tonnages at higher than average grades. These higher grade pockets tend to be well within open pit depth parameters and represent opportunities to improve early cash flow and overall returns in development.

The project will benefit from proposed rail and power infrastructure expansions, along with proximity to local population centers and workforce. A feasibility study is currently underway (funded by the World Bank and the governments of Botswana and Namibia) to support completion of a rail line link that would connect Botswana with the Namibian port of Walvis Bay, on the Atlantic coast. The closest existing railhead to port is at Gobabis, in Namibia, approximately 550 km from our property. Construction has begun on the 600MW expansion of the government-owned Moropule Power Plant, having secured US$825 million project funding in May 2009. The Ghanzi Copper- Silver Project is currently accessed by the paved Trans-Kalahari highway, which passes within 15 km of the property.

The Ghanzi property is one of Africa's premier future copper-silver resources.

For Further Information, contact:
Marek Kreczmer
CEO
Hana Mining Ltd.
Tel: (604) 676-0824
Email: info@hanamining.com

Patrick Donnelly
VP - Corporate Development
Hana Mining Ltd.
Tel: (604) 676-0824
Email: patrick@hanamining.com

Table 1: Drill Results from Northeast Fold, Banana Zone, Sections 69125 to 70425 - Interval indicates down hole interval

	Hole #		Section		Mineralized Zone		From (m)		To (m)		Inter- val (m)		Est. True Width (m)		Cu Eq (%)		Cu (%)		Ag (g/t)
	Northeast Fold Diamond Drilling
HA-04-D	NF69350	Northeast Fold	33.00	51.00	18.00	18.00	0.42	0.40	1.0
includes			40.00	47.00	7.00	7.00	0.72	0.70	1.0
HA-407-D	NF69125	Northeast Fold	118.60	128.60	10.00	10.00	1.34	1.05	20.0
includes			121.58	126.08	4.50	4.50	2.59	1.98	42.0
HA-407-D			136.28	141.37	5.09	4.33	0.43	0.38	4.0
HA-411-D	NF69125	Northeast Fold	54.00	68.00	14.00	14.00	0.53	0.52	1.0
includes			56.00	59.24	3.24	3.24	0.97	0.95	1.0
includes			61.87	64.06	2.19	2.19	0.94	0.92	1.0
HA-411-D			74.00	81.65	7.65	6.50	0.33	0.28	3.0
HA-416-D	NF69225	Northeast Fold	164.58	171.87	7.29	7.29	0.76	0.73	2.0
HA-416-D			179.97	184.25	4.28	4.28	0.73	0.63	7.0
HA-417-D	NF69125	Northeast Fold	37.00	52.27	15.27	15.27	0.25	0.22	2.0
includes			46.86	48.40	1.54	1.54	0.88	0.80	6.0
HA-418-D	NF69300	Northeast Fold	116.61	130.00	13.39	13.39	0.61	0.49	8.0
includes			119.75	126.16	6.41	6.41	0.98	0.79	13.0
HA-418-D			135.66	142.47	6.81	6.81	0.62	0.51	7.0
includes			136.47	141.00	4.53	4.53	0.86	0.71	10.0
HA-419-D	NF69300	Northeast Fold	82.00	109.00	27.00	27.00	0.52	0.49	2.0
includes			84.00	94.00	10.00	10.00	0.83	0.80	2.0
includes			104.00	108.18	4.18	4.18	0.75	0.65	7.0
HA-431-D	NF69425	Northeast Fold	167.56	186.83	19.27	19.27	0.34	0.30	3.0
includes			168.00	170.00	2.00	2.00	0.72	0.69	2.0
includes			181.19	183.00	1.81	1.81	0.76	0.65	8.0
HA-432-D	NF69475	Northeast Fold	133.00	153.94	20.94	20.94	0.58	0.54	3.0
includes			133.67	142.00	8.33	8.33	0.96	0.90	4.0
includes			148.65	153.17	4.52	4.52	0.55	0.49	4.0
HA-434-D	NF69475	Northeast Fold	94.15	118.85	24.70	24.70	0.96	0.79	12.0
includes			94.57	102.55	7.98	7.98	2.17	1.82	24.0
includes			105.16	107.93	2.77	2.77	1.03	0.74	20.0
HA-436-D	NF69525	Northeast Fold	67.00	84.11	17.11	17.11	0.50	0.45	3.0
includes			69.51	74.21	4.70	4.70	0.75	0.69	4.0
HA-438b-D	NF69525	Northeast Fold	178.00	193.50	15.50	15.50	0.49	0.44	4.0
includes			178.57	183.00	4.43	4.43	0.85	0.79	4.0
HA-439-D	NF69425	Northeast Fold	98.60	126.30	27.70	27.70	0.52	0.45	5.0
includes			100.23	108.15	7.92	7.92	0.94	0.85	6.0
includes			124.16	126.30	2.14	2.14	0.71	0.60	8.0
HA-440-D	NF69425	Northeast Fold	38.00	69.12	31.12	31.12	0.66	0.61	3.0
includes			40.55	58.58	18.03	18.03	0.86	0.81	3.0
HA-441-D	NF70425	Northeast Fold	152.50	168.22	15.72	15.72	0.22	0.19	2.0
includes			166.74	168.22	1.48	1.48	1.21	1.17	3.0

Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not adjusted for metallurgical recoveries. The formula used is as follows: CuEq = Cu% + (Ag g/t x 0.01458).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

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