Hana Mining Ltd.

Hana Mining Ltd.

August 15, 2011 09:00 ET

Hana Mining Ltd. Announces the Appointment of a Highly Experienced Project Director to Lead Development of the Ghanzi Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2011) - Hana Mining Ltd. ("Hana" or the "Company") (TSX VENTURE:HMG)(FRANKFURT:4LH) is pleased to announce that it has appointed Mr. Robert Dey as Project Director of the Ghanzi Copper-Silver Project. Mr. Dey has nearly 30 years of experience as an engineer in the development of mining projects in southern Africa. Mr. Dey's most recent experience was with Impala Platinum Holdings Limited ("Implats") where he spent over 10 years, most recently as the Group Executive – Projects, responsible for the overall co-ordination of the Group's capital expenditure as well as project delivery of three new deep level vertical shafts that are currently in the development phase. He was also Project Director for the establishment of a new mine, Marula Platinum Mine, where his responsibilities covered the feasibility and implementation phases. The project was completed on time and on budget.

Mr. Dey, who is a South African citizen, holds a B.Sc. in Mechanical Engineering from the University of Natal. Mr. Dey will be based in Johannesburg, South Africa where Hana is setting up a technical office to manage the engineering and development of the Ghanzi Project. Mr. Dey has been granted 400,000 incentive stock options exercisable at a price of $1.27 per share expiring on August 12, 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 upon the successful completion of certain project and corporate objectives. The Options are subject to the terms and conditions of the Company's Stock Option Plan.

Hana also announces that Mr. James ("Jim") Sullivan will be retiring as President and Chief Operating Officer of the Company effective December 31, 2011. Mr. Sullivan will remain on the Company's board of directors.

Hana Mining's new Project Director, Robert Dey, commented as follows:

"The opportunity to be a key part of a group that is developing a world-class mining project, which is located in a mining friendly jurisdiction such as Botswana, was too compelling to resist. I look forward to working with the rest of the Hana management team towards the development of this truly unique asset."

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

"I am pleased to add someone of Robert's caliber, who knows how to build and operate mining projects in southern Africa, to Hana's management team. Robert will be leading our new technical office in Johannesburg which is only a four-hour drive from Botswana's capital, Gabarone, and a further 10 hour drive to the Ghanzi Project. I believe that with Robert's experience and leadership that the Ghanzi Project will move forward and become a world-class project. I also want to personally thank Jim for his contributions to the company and wish him the best in his retirement."

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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