Hana Mining Ltd.

Hana Mining Ltd.

December 10, 2010 15:54 ET

Hana Mining Ltd. Announces Closing of Arrangement for Spin-Out of New Hana Copper Mining Ltd. and Financing for New Hana

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2010) - 


Hana Mining Ltd. (the "Company"), (TSX VENTURE:HMG)(FRANKFURT:4LH): The Company is pleased to announce that the plan of arrangement (the "Arrangement") with New Hana Copper Mining Ltd. ("New Hana"), wherein the Company transferred one of its wholly-owned subsidiaries, Hana Mining Botswana (Proprietary) Limited ("Hana Botswana") to New Hana has been completed. Hana Botswana holds all mineral licenses in respect of the Kuke Property, which is now controlled by New Hana.

The effective date for the Arrangement was November 26, 2010 (the "Effective Date"). The shareholders of the Company on the Effective Date received one common share of New Hana for every four (4) common shares of the Company.

New Hana has also completed a brokered and non-brokered private placement (the "New Hana Financing") of 20,000,000 units (the "Units") at an offering price of $0.25 per Unit. Each Unit consisted of one (1) common share of New Hana and one-half (1/2) of one non-transferable share purchase warrant (the "Warrants"). Each whole Warrant will entitle the holder to acquire one additional common share of New Hana at an exercise price of $0.50 per share until December 10, 2011. All common shares and Warrants issued in the New Hana Financing will be subject to resale restrictions until the later of (i) April 11, 2011, and (ii) the date New Hana becomes a reporting issuer in any jurisdiction in Canada. The brokered portion of the financing was co-led by Canaccord Genuity Corp., Cormark Securities Inc. and Raymond James Ltd.

The common shares of New Hana have been conditionally approved for listing on the TSX Venture Exchange, subject to meeting initial listing requirements. If and when listed, the common shares of New Hana are expected to trade under the symbol "HML". The listing date of New Hana will be the date it becomes a reporting issuer in British Columbia and Alberta.

Investors are referred to the Information Circular dated July 12, 2010 prepared in connection with the Arrangement and available on SEDAR under the Company's profile for further information (www.sedar.com).

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 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 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 limb, 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 2010. 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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