Hana Mining Ltd.

Hana Mining Ltd.

July 14, 2009 09:01 ET

Hana Mining Ltd. Agrees to Purchase 100% of Ghanzi Copper-Silver Project in Botswana

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 14, 2009) - Hana Mining Ltd. ("the Company"), (TSX VENTURE:HMG)(FRANKFURT:4LH) is pleased to announce that it has agreed to purchase an initial, indirect 70% interest in the five prospecting licenses ("the Licenses") comprising the Ghanzi copper-silver project located in Botswana.

The Company has concluded a Share Purchase Agreement ("the Agreement") with the shareholders of Stellent (Proprietary) Limited ("Stellent"), a privately held corporation located in Gaborone, Botswana, the holder of the Licenses, which stipulates the terms of the purchase of all the issued shares of Stellent by the Company and, effectively, transfer of control over the Licenses. In addition to the acquisition and purchase of an initial 70% share interest in Stellent, the Agreement also grants to the Company the exclusive right to purchase the remaining 30% share interest in Stellent, upon certain terms and conditions.

The consideration payable by the Company for the purchase of the share interests in Stellent is as follows:

Purchase of initial 70% share interest

- Cash payment-US$200,000;

- Common Stock Issuance- 166,666 common shares, subject to a four (4) month hold period; and

- Warrants Issuance- 666,666 share purchase warrants, each warrant entitling the purchase of one (1) additional common share for a period of 24 months, at a price of CDN$0.32 cents per share.

Upon closing of the acquisition and purchase of the initial 70% share interest, the Company will appoint three (3) members to the Board of Directors of Stellent with the Stellent shareholders appointing one (1) director.

Purchase of additional 20% share interest

- Cash Payment - US$9,000,000 to be paid upon the earlier of the announcement of the completion of a positive, bankable feasibility study, the sale of all of the issued common shares of Hana Mining Ltd. to a third party or, at the Company's election.

Purchase of final 10% share interest

- Warrants Issuance - 4,000,000 share purchase warrants, each warrant entitling the purchase of one (1) additional common share for a period of 24 months from the date of issuance, at a price of CDN$2.00 per share; such warrants to be issued ten (10) days following the announcement of the completion of a positive, bankable feasibility study.

The Agreement is subject to its acceptance for filing by the TSX Venture Exchange and supercedes the previous Letter of Intent made between Stellent, the shareholders of Stellent and the Company dated June 11, 2007, as amended.

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

"I am very pleased for the Company shareholders and for Stellent, as this represents the conclusion of a process of negotiation which began in 2007, with our securing initial rights to explore the ground at Ghanzi, and it also reflects the value growth in the resource which we have unlocked over that time. This Agreement establishes a clear, defined path to 100% ownership of the project for Hana Mining, it establishes the cost of that consolidated ownership position, and it lets Company shareholders fully participate in the future potential we see for this project."

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

The Ghanzi Project is located in northwestern Botswana. The property consists of a bloc of Licences covering 2,200 sq. km. The area contains near surface sediment-hosted copper-silver deposits with a demonstrated cumulative strike length of over 16 kilometres. Significant infrastructure is planned or is in place in the region: a new 800 megawatt power plant is currently under construction in Botswana that will provide sufficient power for the project and the paved trans-Kalahari highway which runs from Namibia to South Africa, passes within 15 km of the property.

The Company recently released results of it's first NI 43-101 resource estimate for the Ghanzi Project (see press release dated June 1, 2009) , announcing an inferred resource of 2.9 Billion lb of copper and 51.1 Million oz of silver (0.3% Cu cut-off grade). The company has sufficient working capital to continue drilling the Ghanzi property, with the goal of making the property one of Africa's premier copper-silver resources.

Hana Mining Ltd. is listed on the TSX Venture Exchange ("HMG") and the Frankfurt Exchange ("4LH").

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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