Hana Mining Ltd.

Hana Mining Ltd.

October 29, 2009 13:06 ET

Hana Mining RC Drilling Intersects 2.11% Cu and 30.7 g/t Ag Over 7 Metres in new Section of South Limb of Banana Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2009) - Hana Mining Ltd., ("HMG" or the "Company") - (TSX VENTURE:HMG) (FRANKFURT:4LH) is pleased to announce completion of 4 new RC drill holes at it's sediment-hosted Ghanzi Copper-Silver Project in Botswana. Results extend total mineralization by 400 metres along strike for two sections (one existing, one new) in the Banana Zone; the northeastern section (section 65,000, Figure 1) of the South Limb, and the southwestern section (section 25,000, Figure 1) of the North Limb of the Banana Zone (also referred to as "New Discovery").

Highlights of recent drilling results:

-- All four of these RC drill holes represent additional strike length and
potential resource tonnage that was not a part of the previous NI 43-101
resource estimate for the Ghanzi Project (including the Banana Zone),
announced in June 2009.
-- Three of the four reported drill holes extend mineralized strike
length in the northeastern portion of the South Limb by 200 metres,
an area that until now only had percussion hole results,
-- The fourth reported drill hole extends mineralized strike length in
the New Discovery area by another 200 metres to the southwest,
building on the results in this area announced last week (press
release dated October 21,2009), and
-- These four holes now bring the mineralized strike length total for
the Banana Zone to 16.2 km.
-- Two RC drills continue working the Banana Zone and we are expecting
assay results on another 12 completed holes in the South Limb soon, and
-- Higher grade mineralized zones with mineable thicknesses were evident in
two of the three holes in the 65,000 section of the South Limb, an early
indication that this section may offer an opportunity for a starter pit,
as have other sections in Banana Zone.

The results of the three new holes in section 65,000 (South Limb), and the one new hole in section 25,000 of the North Limb ("New Discovery") are as follows:

All intercepts reported are intersection length and are estimated to represent better than 80% of true thickness.

To view Figure 1: Location of New Drill Hole Assays In Banana Zone, please click on the following link:


To view Figure 2: Drill Hole Locations, Northeastern Portion Of South Limb (section 65,000), please click on the following link:


Area From To Intercept Copper Silver
Hole & Grid Hole (metre (metre Length Grade Grade
Number Reference Type depth) depth) (metres) (%) (g/t)
HA-64-R South Limb step out 84 93 9 1.48 24.4
65,000 including 86 93 7 2.11 30.7
including 88 92 4 2.65 45.1
97 100 3 2.07 48.3
including 97 98 1 5.15 117
HA-65-R South Limb step-out 66 72 6 1.55 19.1
65,000 including 67 70 3 2.73 35.7
including 67 68 1 3.58 42.8
including 69 70 1 4.05 58.7
HA-66-R South Limb step out 123 125 2 0.79 7.5
65,000 including 124 125 1 1.37 14.1
HA-63-R New Discovery step out 123 127 4 0.93 10.9
25,000 including 125 127 2 1.66 20.3

To view Figure 3: Drill Hole Locations, Southwestern Portion Of North Limb ("New Discovery", section 25,000), please click on the following link:


Qualified Person and Quality Assurance/Quality Control

Joseph Arengi, M. Sc., P. Geo., Vice President of Exploration for Hana Mining is the qualified person as defined in NI 43-101 and has reviewed the technical information in this press release.

The Company has implemented an industry-standard QA/QC program. A 35-40 kilogram sample is collected from the cyclone discharge at 1 meter intervals. The sample is then split 75/25; 75% of the sample is archived and the other 25% provides material for analysis. All samples are double bagged, sealed and transported in secured wooden crates and shipped to Scientific Services Laboratory in Cape Town, South Africa. Standards, duplicates and blanks are inserted into the sample stream. The analytical method for the total Cu, Ag, Pb, and Zn is acid digestion and Atomic Absorption Spectroscopy ("AAS"). The analytical method for soluble Cu is 5% sulfuric acid cold leach followed by AAS. The analytical method for Mo assays is XRF (full matrix correction).

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

"I am very pleased by these latest drill hole results in the northern end of the South Limb. This is a new area for us to begin an RC drilling program, and these early assay results on the program suggest yet again that the Banana zone mineralization is proving predictable and consistent with our understanding as to both deposition and grade. All of the potential mineralization in this area (60,000 to 65,000, see Fig. 1) will represent new strike and tonnes we can consider in our next 43-101 resource estimate. Mineralization remains open both north and south along strike from these latest three RC holes, as well as down dip, and again we see significantly higher than average grade (+2% Cu) copper and silver intercepts that will potentially locate starter pits and enhance early project returns in development."

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 2,200 sq. km., and contains sediment-hosted copper-silver deposits with a demonstrated cumulative mineralized strike length of over 20.7 kilometres. This favourable geology extends over the entire strike length of 600 kilometres Hana Mining 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 2.0 billion lb of copper and 34.9 million oz of silver from 60.4 million tonnes. This resource estimate is based on a 0.75% Cu cutoff grade, and averages 1.51% Cu and 17.98 g/t Ag. The Banana Zone represents 40.7 million tonnes of this total resource (67%), and is the current focus of the Company's drilling efforts and development focus for 2009 and 2010.

The country of Botswana is considered by the Fraser Institute Annual Survey of Mining Companies 2009 country ranking study to offer the most attractive mineral exploration and investment climate in Africa. On October 16th, the voters returned President Ian Kama and the governing Botswana Democratic Party (BDP) to power for another 5 year term. This is the 10th general election since the country achieved independence in 1966. The BDP received 53.7% (+3%) of the popular vote, won 45 (+1) of 57 Parliamentary seats, and was given a mandate by voters to pursue its election platform of focusing on creating jobs, diversifying the economy, and strengthening the mining-dominated (40%) sector (particularly copper) through investment in transport, energy, and water infrastructure.

Hana Mining is focused on demonstrating that the Ghanzi property represents one of Africa's premier future copper-silver resources.

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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