Hana Mining Ltd.

Hana Mining Ltd.

August 23, 2010 09:00 ET

Hana Mining Shareholders Approve Arrangement Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2010) - Hana Mining Ltd. ("Hana" or the "Company") - (TSX VENTURE:HMG)(FRANKFURT:4LH) is pleased to announce that it has obtained approval from its shareholders at the August 12, 2010 Special General Meeting to the Plan of Arrangement and Arrangement Agreement (collectively the "Arrangement") with New Hana Copper Mining Ltd. ("New Hana") and Hana Mining Botswana (Proprietary) Limited ("Hana Botswana"), wherein the Company will spin-out Hana Botswana to New Hana. In addition, the Shareholders have approved the amendment to the articles required to give effect to the Arrangement, the completion of the financing in New Hana and the adoption of the Stock Option Plan for New Hana.

The application for the approval of the Arrangement by the Supreme Court of British Columbia, including a determination that the Arrangement was fair to security holders of the Company, was approved on August 17, 2010.

An effective date will be named upon the receipt of all required regulatory approvals (the "Effective Date"). As of the Effective Date, every four (4) common shares of the Company will entitle the shareholders of record to receive one additional common share of New Hana. New Hana is currently seeking a stock exchange listing for its common shares on the TSX Venture Exchange (the "Exchange"), and is in the process of completing an equity offering to raise at least $3,000,000 and up to a maximum of $5,000,000 to further develop the eleven (11) prospecting licenses held by Hana Botswana. Shareholders of the Company will receive the New Hana common shares, in addition to the common shares of the Company they already hold on the basis as set out above.

About New Hana's Kuke Project in Botswana

Hana Botswana owns 11 prospecting licenses in Botswana, representing the Kuke Property. The 10,653.9 km2 Kuke property is located immediately adjacent to the north and south of the Company's Ghanzi copper-silver project. In early 2010 a high resolution aeromagnetic survey indicated that copper-silver mineralization at the Company's Ghanzi project may extend well into the Kuke property. Therefore, the Kuke project has significant exploration potential. Once New Hana has completed its initial equity financing, it will carry out an exploration drilling campaign to confirm the presence of copper-silver mineralization at Kuke.

To view map of Location of New Hana Kuke Property in relation to the Company's Ghanzi Property, click here: http://media3.marketwire.com/docs/HMG823M.pdf.

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 2,169 sq Km, and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 58.7 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 April 21, 2010, announcing an inferred mineral resource of 3.9 billion pounds of copper and 62.1 million ounces of silver from 177 million tonnes. This mineral resource estimate consists of 73.5 million tonnes grading 1.5% Cu and 19 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.7% Cu and 12 g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 7 g/t Ag in Zone 6; all at a cut-off grade of 0.75% Cu. Also included is 83.6 million tonnes grading 0.46% Cu and 3.6 g/t Ag at a cut-off grade of 0.30% in the Chalcocite Zone.

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.

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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