New Discovery in World-Class Zinc Jurisdiction of Ireland

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Overview

Hannan Metals (TSXV:HAN) is a base metal exploration company focused on advancing the wholly-owned Kilbricken Zinc Project in the world-class mining jurisdiction of Ireland. The project hosts a recently discovered high-grade zinc-lead-silver-copper deposit. While the property hosts numerous small-scale historical mines, Kilbricken remains open within a 40-kilometre strike area with significant blue sky potential for further discoveries. The company has planned a multi-phased exploration program at Kilbricken with an initial focus on delineating a maiden resource, expanding this maiden resource through drill discovery and then exploring the 40 kilometre strike extension from known mineralization.

Ireland is widely-recognized as a world leader in zinc mining and exploration. The nation ranks first in zinc production in Europe and tenth in the world with 230,000 tonnes of the metal mined in 2015. Attracted by the clean concentrates produced from “Irish-type” carbonate hosted deposits (large and high-grade), most of the world’s largest zinc producing companies all have current or past stakes in Ireland’s base metal ore field.

The price of zinc doubled in 2016 to more than US$2700/t due to tightening supply fundamentals brought on by falling production levels, limited discoveries and rising demand. The global demand for zinc is expected to grow 5 percent per year on increasing demand for higher performance alloys and steels.

Hannan Metals is led by a strong exploration and management team with decades of experience in zinc exploration, including “Irish-type” deposits. CEO Michael Hudson started his career with Pasminco Ltd, the largest global integrated zinc producer during the 1990s. He and his partners have raised more than US$100 million for European exploration and development, taking three companies with discoveries up over a $500 million market cap.

Investment Highlights 

• New to market; tight share structure with insiders owning 42 percent; structured financing plan.
• Zinc in tight supply amidst rising demand; zinc price doubled in 2016.
• Ireland is a leading global jurisdiction for zinc mining and exploration; ranked #1 for zinc discovery per square kilometre.
• Ranked first in the world in terms of zinc discovered per square kilometre, and second in the world with respect to lead.
• Exploration and management team with decades of zinc exploration experience, including for a zinc major; +$100M raised for European exploration over last decade.
• Kilbricken zinc-lead-silver-copper discovery (intersections include 20.5 meters at 7.5 percent zinc, 9.9 percent lead, 0.07 percent copper, 74.6 g/t silver).
• Big upside: deposit remains open with 40-kilometre trend to test, includes Milltown (13.3 meters at 5.8 percent lead and 10.5 percent zinc).

Key Property: Kilbricken Zinc Project, Ireland

The newly discovered Kilbricken project covers 32,223hectares in Ireland’s base metal ore field—one of the world’s top zinc jurisdictions and home to many significant zinc-lead deposits.

The area in and around Kilbricken was the subject of small-scale mining during the 19^th century followed by sporadic exploration in the early 1960s through to present day. The property hosts the high-grade zinc-lead-silver-copper Kilbricken deposit discovered in 2008, lying 400 meters below a Victorian era small-scale mine. The deposit represents the first base metal discovery in this area since the 1950s.

Modern exploration includes seismic surveys

Earlier exploration work completed by Lundin Mining included a total of 222 drillholes over 118,000 meters. Lundin and other previous operators also undertook significant surface geochemical and multiple geophysical surveys including a 3D seismic survey over the main Kilbricken mineralization in 2011, and a 2D seismic survey conducted in 2012 that consisted of 8 traverses over a total 10-kilometre strike length across the regional Kilbricken extensions.

Unique massive sulphide deposit with zinc, lead, silver and copper

High-grade massive sulphide mineralization has been identified at Kilbricken in two zones: the Zinc Zone and the Fort Zones.

The mineralization system at Kilbricken lies at the base of the Waulsortian Limestone, the principal ore host sequence in Ireland. However, the massive sulphide mineralization found at Kilbricken differs from most of Ireland’s other zinc-lead properties in its silver content, which is characterized by higher grades than usually found in Irish base metal deposits. Drilling has also identified high-grade copper mineralization.

Upcoming metallurgical bench testing

Mineralogical test work completed by SGS delivered the following results:

• Sphalerite (chief ore of zinc) grades between 98 percent and 81 percent for recoveries of 78 percent to 95 percent, respectively.
• Galena (chief ore of lead and an important ore of silver) grades between 98 percent and 84 percent for recoveries of 88 percent to 96 percent, respectively.

Hannan Metals plans to carryout metallurgical drilling and benchtop studies during Phase 1 of its upcoming work program.

Planned Three-Phase Exploration Program

Hannan Metals is planning a Three-Phase Work Program for Kilbricken which will include compiling and re-interpreting the existing datasets to create a resource model for the project in addition to metallurgical test work and diamond drilling. The company’s first goal is to produce a maiden resource estimate for Kilbricken in 2017.

Phases two and three will focus on drilling and expansion of the immediate extensions from the drilled high-grade mineralization at Kilbricken. The work will also test the step out areas within the underexplored 40-kilometre trend, which contains the Milltown prospect where previous drilling results included 13.3 meters at 5.8 percent lead and 10.5 percent zinc.

Management

Michael Robert Hudson, CEO and Chairman of the Board

Michael Hudson has more than 26 years of experience developing and financing mineral exploration properties worldwide. He began his career with Pasminco Ltd, the largest global integrated zinc producer during the 1990s, at Broken Hill. Hudson also spent ten years exploring or developing zinc-lead projects from exploration to pre-feasibility projects in Pakistan, Australia and Peru. In the Canadian capital markets, he has raised more than US$100 million for primarily European focused exploration and project development in Finland, Spain, Portugal, Sweden and Ireland. Discoveries or projects significantly advanced include: Broken Hill (The Pinnacles and Western A-Lode – Zinc, Lead), Pakistan (Duddar – Zinc), Peru (Accha – Zinc, Bongara – Zinc), Olary (Portia – Gold, Benagerie Ridge – Copper-Gold), Sweden (Norra Kärr – Heavy Rare Earths) and Finland (Rompas – Gold).

Since 2004, Hudson has headed Mawson Resources Ltd as founding Chairman and CEO. He is also a founder and Chairman of Leading Edge Materials, a critical metals company in Sweden. He is a Fellow of the Australasian Institute of Mining and Metallurgy and Member of both the Society for Economic Geologists and Australian Institute of Geoscientists. He graduated from the University of Melbourne in 1990 with a B.Sc. (Hons 1st) in Geology and more recently received the Tolhurst Noall Prize for “Mining Investment Analysis” in Victoria, Australia for the FINSIA Graduate Diploma.

Nick DeMare, President and Director

Nick DeMare, a chartered professional accountant, has been President of Chase Management Inc. since 1991, providing accounting, management, securities regulatory compliance and corporate secretarial services to private and public-listed companies. DeMare also serves as an officer and/or director of a number of public-listed companies. He holds a Bachelor of Commerce degree from the University of British Columbia and is a member in good standing of the Institute of Chartered Accountants of British Columbia.

David Henstridge, Director

David Henstridge is a self-employed professional geologist with over 30 years of experience in the mining industry including 20 years in managing public-listed companies. Henstridge is a director and member of various audit, compensation, corporate governance and nominating committees of other public-listed mineral exploration companies. He holds a Bachelor of Science (Honours) degree from the University of Adelaide in Australia and professional designations from each of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Geological Society of Australia.

Harvey Lim, CFO and Director

Harvey Lim has held the position of controller since 1991for Chase Management Ltd., a private company which provides accounting and management services to companies listed on the TSX Venture Exchange or The Toronto Stock Exchange and its predecessors. Lim also serves as officer and/or director of other public-listed companies. He holds a Bachelor of Commerce degree from the University of British Columbia and is a member in good standing of the Chartered Professional Accountants British Columbia. Lim has previously worked for Coopers & Lybrand, Chartered Accountants (since merged into PricewaterhouseCoopers) and Ingot Management Ltd., a private company which provided accounting, management, securities regulatory compliance and corporate secretarial services.

Michael Iannacone, Director

Michael Iannacone has worked in various operational and finance related positions for companies (both public and private) in such industries as real estate, software development, mineral resource development, mineral resource/precious metals production, industrial valve application and marine transportation. He received his Bachelor of Commerce degree (Accounting Major) from the University of British Columbia in 1978 and is a member in good standing of the Chartered Professional Accountants British Columbia. Iannacone completed his articles and obtained his Chartered Accountant designation in 1980 while working for Coopers and Lybrand, Chartered Accountants (since merged into PricewaterhouseCoopers). During his five years with Coopers and Lybrand, he performed audit related functions, with primary focus on natural resources and precious metals sector.

Lars Dahlenborg, VP Exploration

Lars Dahlenborg is an exploration geologist with 10 years of experience in Sweden, Finland and Peru. He began his career as an underground mapping geologist at LKAB in Kiruna, Sweden. He joined Mawson’s Swedish exploration team in 2007 where he planned, supervised and implemented several drill projects for energy metals. He is responsible for the only new drill discovery of U-Cu mineralization made in Sweden since the early 1980s. In 2010 he joined Mawson’s exploration team in Peru, where he created the regional exploration database and led a project generation for Cu-Au mineralization with local experts. In 2011 he joined Mawson’s Finnish exploration team at the Rompas Rajapalot gold project. In Finland, he held a senior position supporting the exploration manager and advanced the technical understanding of the project together with the Finnish exploration team. He holds a MSc geology from Lund university in Sweden and is a Member of the Australian Institute of Geoscientists.

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