Hana Mining Ltd.
TSX VENTURE : HMG
FRANKFURT : 4LH

Hana Mining Ltd.

July 14, 2010 09:00 ET

Hana Mining Expands Banana Zone at Ghanzi Copper-Silver Project by 4.2 Kilometres

High Grade Intercepts of 2.48% Cu and 23.1 g/t Ag over 4.0 metres, 2.20% Cu and 22.8 g/t Ag over 4.0 metres, and 1.98% Cu and 29.6 g/t Ag over 3.0 metres on the South Limb. High Grade Intercepts of 1.26% Cu and 7.2 g/t Ag over 6 metres, on the North Limb.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 14, 2010) - Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH) (the "Company") is pleased to announce its most recent drilling results based on the completion of 37 new RC holes drilled in the Banana Zone at its Ghanzi Copper-Silver Project in Botswana. These 37 new RC holes extend the mineralized strike lengths of the Banana Zone by 4,200 metres. These results are from new holes and are in addition to those used in the most recent NI 43-101 compliant inferred resource calculation. The mineralization remains open along strike and at depth.

Highlights of recent drilling results:

  • Mineralized strike length for the Banana Zone has been increased by 4.2 kilometres for a total of 48.5 kilometers. The Banana Zone, which contains 2.38 billion lbs of copper and over 45 million ozs of silver, at 0.75% copper cut-off, has a total strike length of 64 kilometres;
  • Drilling is progressing as scheduled to complete 80,000 metres in 2010;
  • High grade intercepts of 2.48% Cu and 23.1 g/t Ag over 4.0 metres in hole HA-316-R, 2.20% Cu and 22.8 g/t Ag over 4.0 metres in hole HA-329-R and 1.98% Cu and 29.6 g/t Ag over 3.0 metres in hole HA-334-R. The last two intercepts are from a more shallowly dipping area of the northeast end of the South Limb.
  • The mineralization remains open along strike and at depth.

Hana Mining's CEO and Chairman, Marek Kreczmer, commented: "The addition of 4,200 metres of strike lengths to the Banana Zone confirms the strengths of the mineralized system. The mineralization remains contiguous along strike and down dip."

Discussion of Results

The results have added an additional 4.2 kilometres of mineralized strike lengths to the Banana mineralization; to date a total of 48.5 kilometres of the 64 kilometre strike lengths of the Banana Zone have been reported. The mineralization is continuous along strike down dip. The shallow dips in the Sector 70000 are encouraging.

South Limb – 70000

Hole Number Type From To Length %CuT Ag g/t
HA-323-R Step Out 76 83 7 0.31 2.8
HA-324-R Sectional 134 138 4 0.50 6.3
HA-329-R Step Out 57 63 6 1.53 15.5
    58 62 4 2.20 22.8
    59 62 3 2.62 26.4
HA-334-R Sectional 123 127 4 1.53 22.5
    124 127 3 1.98 29.6

South Limb – 55000

Hole Number Type From To Length %CuT Ag g/t
HA-298-R Sectional 50 66 16 0.88 12.9
    51 66 15 0.93 13.7
    95 124 29 0.38 4.0
    107 124 17 0.50 5.2
HA-317-R Step Out 69 99 30 0.45 4.8
    91 99 8 0.84 9.3
    95 99 4 1.20 12.3
HA-320-R Step Out 98 113 15 0.60 6.4
    108 110 2 1.16 12.9
    111 113 2 1.34 11.2
HA-321-R Sectional 105 121 16 0.23 2.3
    123 153 30 0.48 5.9
    139 152 13 0.81 10.9
    144 152 8 1.05 14.8
    148 152 4 1.20 17.8
HA-330-R Step out 51 76 25 0.59 6.3
    62 76 14 0.82 8.7
    71 74 3 1.49 16.2
    72 74 2 1.85 20
HA-335-R Step out 80 93 13 0.54 5.6
    82 83 1 1.07 12.6
HA-336-R Sectional 117 130 13 0.49 5.4
    122 123 1 1.05 9.4
    139 141 2 0.67 5.8

South Limb – 50000

Hole Number Type From To Length %CuT Ag g/t
HA-302-R Step Out 33 55 22 0.49 4.2
    51 54 3 1.55 16.0
    53 54 1 2.87 30.1
HA-307-R Step Out 11 16 5 0.56 <2.0
    14 15 1 1.55 <2.0
HA-316-R Sectional 71 111 40 0.51 5.0
    91 109 18 0.89 8.9
    104 108 4 2.48 23.1
HA-322-R Step Out 60 73 13 0.52 5.7
    69 73 4 1.08 12.2
    72 73 1 1.87 20.9
HA-325-R   124 136 12 0.48 6.1
    131 136 5 0.90 11.9
    133 134 1 1.34 17.9
    135 136 1 1.27 15.2
HA-326-R Step Out 20 28 8 0.73 <2.0
    25 27 2 1.31 <2.0
HA-331-R Sectional 87 101 14 0.57 6.0
    93 101 8 0.88 9.8
    94 99 5 1.07 12
    96 98 2 1.41 12.5
HA-337-R Sectional 133 143 10 0.78 9.1
    135 142 7 1.05 12.4
    136 140 4 1.33 15.8
HA-338-R Step out 53 59 6 0.52 4.2
    55 56 1 1.00 7.0
HA-339-R Step out 39 42 3 0.68 6.7
HA-342-R Sectional 131 138 7 0.41 3.3
    135 136 1 1.13 11.9
HA-343-R Step Out 34 43 9 0.31 2.4
    37 43 6 0.39 3.0
HA-347-R Sectional 85 95 10 0.41 3.5
    87 94 7 0.52 4.6
HA-350-R Step Out 46 51 5 0.55 7.7
HA-351-R Step Out 79 85 6 0.48 4.1
    79 84 5 0.53 4.7

North Limb – 20000

Hole Number Type From To Length %CuT Ag g/t
HA-274-R Step Out 68 75 7 0.83 <2.0
    68 71 3 1.26 <2.0
    100 105 5 0.37 4.4
HA-318-R Step Out 51 89 38 0.39 2.5
    76 82 6 1.26 7.2
    76 77 1 4.01 34.7
    102 106 4 0.78 11.4
    104 105 1 1.15 16.5
HA-319-R Step Out 83 98 15 0.42 2.7
    83 89 6 0.68 3.2
    105 109 4 0.68 8.9
HA-327-R Sectional 77 89 12 0.47 5.3
    105 110 5 0.74 11.6
    107 110 3 0.91 16.7
    109 110 1 1.10 3.1
HA-328-R Step out 89 94 5 0.53 8.5
    108 111 3 0.59 8.8
HA-333-R Sectional 76 87 11 0.31 <2.0
    80 84 4 0.42 <2.0
    95 100 5 0.75 2.4
    126 132 6 0.50 6.4
HA-340-R Step out 84 89 5 0.35 4.5
    87 88 1 0.88 5.2
HA-341-R Sectional 86 91 5 0.41 4.6
    103 110 7 0.66 3.2
    130 132 2 0.57 7.6
HA-345-R Step Out 94 102 8 0.26 3.3
HA-346-R Step Out 66 72 6 0.33 <2.0
    93 97 4 0.51 5.4
HA-352-R Sectional 113 116 3 0.37 4.7
    114 115 1 0.80 10.9

To view Figures 1 to 5 accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/hmg714.pdf

Development Update:

The following engineering activities are ongoing to fulfill the goal of completion of a PEA by Q4 2010:

  • Mine open pit modeling is being carried out using the April 2010 resource as a basis to define parameters to be used in the revised model to be completed after the 2010 drilling has been incorporated;
  • Metallurgical work is ongoing for the Banana Zone at Mintek in Johannesburg, and at Metcon Research in Tucson, Arizona;
  • Field work for water exploration has begun;
  • A Preliminary Environmental Impact Assessment (PEIA) has been filed with the Botswana Departmental of Environmental Affairs (DEA) in Gabarone. This filing is to formally begin the environmental permitting process and initiates interaction between Hana and the Botswana environmental regulators.

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 49.2 kilometres. This favourable 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 resource of 3.9 billion lbs of copper and 62.1 million oz of silver from 177 million tonnes. This 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 in the Sectors 5000, 20000 and 65000 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.

Neither the TSX Venture Exchange or its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) have reviewed nor do they accept responsibility for the adequacy or accuracy of this release.

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