Kiruna Project

Resource Statement
Rakkuri Deposits

The Kiruna Iron Project represents an opportunity for Hannans and an incoming joint venture partner to establish a significant, premium grade (+68% Fe), iron concentrate operation. The Kiruna Iron Project comprises a number of different deposits, the majority within 80km of Kiruna.

Prior to the deposits being aggregated by Hannans they had not been effectively drill tested since early 1970. The initial focus was therefore to convert old deposits into JORC compliant mineral resources and assess the metallurgical characteristics of each deposit to determine if a saleable iron product could be produced from the magnetite ore.

The aim is to develop a business model whereby a number of satellite deposits, in addition to the main Rakkuri project are feeding into a central processing hub to create a long life profitable and sustainable mining and processing operation.

The initial concept is to bring the Rakkuri project into production, build a cash flow and introduce additional deposits as the business grows. Many studies and tests will need to be conducted to achieve this goal but it is considered achievable. Hannans is currently seeking a joint venture partner to assist in providing funding and expertise to progress the project.

The compelling attributes of the project are:

Resource Statement-Kiruna Iron Project

The global resource estimate for the Kiruna Iron Project currently stands at 395.5Mt @ 40.1%Fe.

Prospect Mt Fe (%) P (%) S (%)
Sautusvaara South 32.0 37.4 0.06 1.63
Sautusvaara North 11.4 39.7 0.09 0.44
Ekströmsberg 30.4 52.0 Unavailable Unavailable
TOTAL 73.8 43.0

JORC Compliant Indicated Mineral Resource Table

Prospect Mt Fe (%) P (%) S (%)
Rakkurijarvi 69.6 28.5 0.07 0.93
Rakkurijoki 74.5 39.7 0.28 0.89
Sautusvaara South 6.8 26.6 0.09 1.82
Sautusvaara North 1 44.8 0.05 0.46
Vieto 14 35.7 0.14 1.46
Puoltsa 19.1 30.20 Unavailable Unavailable
Renhagen 26.3 32.14 0.21 0.03
Harrejaure 16.2 43.4 0.04 0.01
Ekströmsberg 41.6 52 Unavailable Unavailable
Tjarrojakka 52.6 51 Unavailable Unavailable
TOTAL 321.7 39.30

JORC Inferred Resources

Total Mt Fe (%)
Total Inferred 321.7 39.3
Total indicated 73.8 43.8
TOTAL GLOBAL 395.5 40.1

Global Resource Inventory

Prospect Tonnage Range (Mt) Grade Range (Fe%)
Altavaara 55 - 60 26 - 29
Laukkujärvi 4 - 8 30 - 35
Tjåorika 15 - 30 45 - 55
TOTAL 74 - 98 33.6 - 39.6

JORC Compliant Exploration Target Table

Rakkuri Deposits

Two magnetite deposits (Rakkurijoki and Rakkurijärvi) located 5km from the world?s largest and most modern underground iron mine (Kiirunavaara, owned by LKAB)

The Rakkuri Deposits are extremely well located within close proximity to key project infrastructure including:

A positive scoping study assessing the viability of a stand-alone, open-pit mining operation at the Rakkurijoki iron deposit was completed in February 2013. The study found 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 (MENA) markets link to the Scoping Study Press Release

With the scoping study now completed, Hannans is actively searching for a joint venture partner to fund the project through the remaining feasibility and resource drilling phases up to a decision to mine.

The next stage of feasibility will include the Rakkurijärvi deposit, which is located ~1km away from Rakkurijoki, to expand the scope of the project.