Hana Mining Ltd.

Hana Mining Ltd.

May 05, 2011 09:00 ET

Hana Mining Appoints New Chief Financial Officer

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) -Hana Mining Ltd. ("HMG" or the "Company") (TSX VENTURE:HMG)(FRANKFURT:4LH) is pleased to announce the appointment of Mr. Paul Taggar as the new Chief Financial Officer ("CFO") of the Company, effective as of May 3, 2011. Mr. Matthew ("Matt") Kavanagh, the outgoing CFO, has resigned to pursue other opportunities.

Mr. Taggar, a member of the Canadian Institute of Chartered Accountants, joins us from Fronteer Gold Inc. where he spent the last 5 years as Corporate Controller until the acquisition of Fronteer Gold by Newmont Mining Corp. (TSX:NMC)(NYSE:NEM) for Cdn$2.3 billion in April 2011. Prior to Fronteer, Mr. Taggar worked as a manager for KPMG, LLP in their Vancouver and Silicon Valley offices in the audit assurance department. Mr. Taggar is a Chartered Accountant and has a BBA from Simon Fraser University.

Mr. Taggar has been granted 250,000 incentive stock options exercisable at a price of $3.38 per share expiring on May 2, 2016. All securities issued upon exercise of the Options are subject to a hold period expiring four (4) months after the date of grant. The subject Options will vest quarterly over 24 months, in 8 equal tranches, with the first tranche vesting August 2, 2011. The Options are subject to the terms and conditions of the Company's Stock Option Plan.

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

"I am personally very pleased to welcome Paul to the Hana team. I believe that Paul's experience at Fronteer, which during his tenure saw its market capitalization increased from Cdn$300 million to over Cdn$2.23 billion at the time of its acquisition by Newmont, will be invaluable to Hana which is a rapidly growing company.

I would also like to thank Matt Kavanagh for his contributions in the CFO role over the last year. We wish Matt every success in his future corporate endeavors."

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 2,149 square kilometres, and contains sediment-hosted copper-silver deposits with a demonstrated cumulative tested strike length of 70 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 December 20, 2010, announcing an Indicated mineral resource of 762 million pounds of copper and 16 million ounces of silver from 37.4 million tonnes at a grade of 0.93% copper and 13.4 g/t silver. All of the Indicated resources are from the Banana Zone. There are also Inferred resources of 5.6 billion pounds of copper and 85.4 million ounces of silver from 423.9 million tonnes. This Inferred mineral resource estimate consists of 225.4 million tonnes grading 0.64% Cu and 8.1 g/t Ag in the Banana Zone, 20.7 million tonnes grading 1.23% Cu and 8.7 g/t Ag in Zone 5, 16.7 million tonnes grading 0.86% Cu and 4.0 g/t Ag in Zone 6, and 161.1 million tonnes grading 0.45% Cu and 3.6 g/t Ag in the Chalcocite Zone; all at a cut-off grade of 0.30% Cu.

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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