Hana Mining Ltd.

Hana Mining Ltd.

September 20, 2011 07:00 ET

Hana Mining Ltd. Announces the Appointment of Highly Experienced and Successful Chief Geologist to Lead Exploration Program at the Ghanzi Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2011) - Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH) ("Hana" or the "Company") is pleased to announce that it has appointed Mr. Fouché ("Sas") du Plessis Burgers as Chief Geologist of the Ghanzi Copper-Silver Project.

Mr. Burgers, Hons. B.Sc., is a professional mining and exploration geologist and a certified rock mechanics engineer. He has more than 30 years' experience in exploration, underground and open pit mining operations in South Africa, Mozambique, Ghana and the Democratic Republic of the Congo ("DRC"). He held multiple high level management positions including Chief Mining and Exploration Geologist, Consulting Geologist, Technical Services Manager, Ore Resource Manager and Business Unit Leader (Mine Manager). Mr. Burgers is member of the Geological Society of South Africa. He is also registered as a Natural Scientist (Pri, Sci, Nat) with the South African Council for Natural Scientific Professions.

From March 2009 until recently, Mr. Burgers worked for Metorex Ltd., as the Ore Resource Manager at Ruashi, a stratiform copper mine in the DRC where he was instrumental in their dramatic resource increase. He was also the Competent Person at the mine and responsible for signing off the mine's Resource Model and Competent Persons Report (CPR) to Metorex. His managerial involvement includes defining, modeling and expanding the ore body according to the SAMREC code of compliancy. He also managed the Exploration geology, Mining geology, Survey, Geo-hydrology, Mine planning and Geo-technical departments assisted by various consultants. His department was also responsible for the life of mine modeling, the increase in the ore reserve and the 2-year operational plan. Mr. Burgers' most recent position with Metorex was as the Regional Geologist DRC to expand the base metal interest of Metorex within the DRC.

Mr. Burgers has been granted 200,000 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 Mining's new Chief Geologist, Sas Burgers, commented as follows:

"When I look at where the Ghanzi Project currently is and its astonishing exploration potential, it reminds me of Metorex's assets a couple of years ago. I believe that the Ghanzi Project has the potential to host billions of pounds of additional copper-silver resources making it a true world-class asset. I look forward to working with the rest of the Hana management team on this exciting opportunity to unlock the value of our outstanding asset."

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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