Hansa Resources Limited

May 05, 2008 08:30 ET

Hansa Acquires Mavoio-Tetelo-Bembe Copper Project in Angola

Significant Exploration Target of 31.3 Mt at 3.8% Copper defined

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2008) - HANSA RESOURCES LIMITED ("Hansa") (TSX VENTURE:HRL)(FRANKFURT:3F2) - Mr Jeff Gale, President & CEO, announces that the Company has signed a Memorandum of Understanding ("MOU") with Angolans Petroleum Services S.A.R.L. ("APServices") to acquire 70% of the 9,684.5 square kilometre Mavoio-Tetelo-Bembe exploration permit in the Uige Province of Northern Angola. The Mavoio-Tetelo-Bembe permit is elongate in a NNE-SSW trend between the "Maquela do Zombo" and "Bembe" villages near the border between Angola and the Democratic Republic of Congo.

The exploration permit includes the historic Mavoio Copper Mine, the Tetelo and Bembe copper deposits and numerous other lesser deposits and occurrences. Strong exploration potential exists away from the known deposits within the 200 kilometre by 50 kilometre exploration permit area.

To date, the Company has been successful in identifying and collecting adequate historic information from the Tetelo deposit. Further data is being sought from the remainder of the permit area. At Tetelo, stratiform metasomatic copper mineralization lies adjacent to a regional fault system, similar in style to the Copper Belt of the Democratic Republic of Congo. Mineralization is hosted principally by dolomites, clayey marls and dolomitic sandstones. Four main copper mineralized lenses are known within a 50-120 m thick sequence, dipping shallowly to the north and east at depths between 200 to 300 metres. Mineralization consists primarily of chalcocite with minor native copper and copper carbonates, in a hematite-goethite or pyrite-arsenopyrite matrix.

Dimensions of copper mineralization defined by historic drilling at Tetelo are as follows:

Tetelo North Tetelo South

Length 730 m 300 m

Width 128 m 100 m

(average) 32 m 10 m

Significant historic exploration has been completed at Tetelo, including 28 diamond drill holes, underground development consisting of a 920 metre decline and 136 metre crosscut. The deposit was explored by the Empresa do Cobre de Angola (ECA) from 1947, then by SIMEIRA (a Japanese/Portuguese Joint Venture) in 1971-1972. Data from this period received by Hansa includes drilling plans, cross sections with thickness, grade and location of mineralization, plans of underground development and summary reports of the day. As all original data on the Tetelo Project has not yet been retrieved, it is appropriate to quote an exploration target range to indicate the potential scale of the system.

Based on historic drilling, an exploration target has been estimated at Tetelo on the western side of the controlling fault using a 1.5% copper cut off between:

6.2 Million Tonnes ("Mt") at 3.1% copper and 12.8 Mt at 3.9% copper

This exploration target includes drillhole M96 which intersected 54.58 metres at 5.30% copper. When the eastern side of the controlling fault is included, the upper range for the exploration target for the Tetelo project using a 1.5% copper cut off increases to:

31.3 Mt at 3.8% copper

Silver is known to be present at potentially economic levels within this exploration target. The exploration target referred to is based on 18 drill holes and underground development as summarized in the report, "APServices and Ten Well Resources Inc (2004). Calculo e analise das reservas de cobre e da viabilidade tecnico-economica da mina de Tetelo. Provincia do Uige" by Ten Well Resources Inc. dated 2004. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define this target at this time and it is uncertain that further exploration will result in further discoveries on the property.

Many additional occurrences with copper, lead, zinc, gold, silver, cobalt, vanadium and manganese are reported within the exploration permit, and include:

- Mavoio - a past open pit and underground copper producer which was explored/exploited from 1937-1961. The prospect is located 1 kilometre to the south west of Tetelo and 173,000 tonnes were extracted at approximately 12% copper, corresponding to 20,800 tonnes of metal;

- Bembe - a past copper producer, located approximately some 130 kilometres south south west of Tetelo. Some 15,000-20,000 tonnes of ore were extracted;

- Lueca - historic lead, vanadium (copper), manganese mine; 10,600 tonnes of ore were extracted.

Mr Gale states, "Past exploration at Tetelo has demonstrated sufficient high grade copper mineralization over a significant area and thickness to suggest a potential company making project. We look forward to working with our strong local joint venture partner exploring the potential of Tetelo and Mavoio, and the highly prospective 9000 square kilometre exploration permit. Our first focus will be to confirm the exploration target at Tetelo by calculation of a NI43-101 compliant resource from historic data. Angolan government infrastructure initiatives were highly evident during our site visits. Considerable investment in road works, railroads, telecommunications, electricity lines & pipelines is occurring in the region and this impacts positively on the potential of the project."

Angola remains one of the least explored, mineral-rich countries in Africa. Angolan authorities have established a mining policy that opens the sector to private investment. Tax policies have been reformed to encourage private investment including tax holidays and exemptions from import duties for all mining equipment and supplies when such materials are not available locally. Corporate taxation is capped at 35 percent on net profits, while ad valorem royalty rates on metals is set at 5 percent.

The Mavoio-Tetelo-Bembe Exploration Permit is valid for 3 years from November 2007 and can be extended for an additional 3 years. Under the terms of the MOU Hansa will carry out a period of due diligence over the next 9 months which will include the drilling of up to 6 confirmatory drill holes and research of existing data and documentation with an estimated minimum expenditure of US$400,000. Once the due diligence period has been completed, Hansa will have the right to enter a Joint Venture with APServices. The Joint Venture will give Hansa the right to earn a 70% interest in the Mavoio exploration permit by completing an in-ground expenditure schedule of US$1 million after Year 1 from signing the definitive agreement, US$2 million after Year 2, US$3 million after Year 3 and US$4 million after Year 4 (a total of US$10 million minimum expenditure over a five year period).

The qualified person as defined by National Instrument 43-101 is Pedro Carvalho, Chief Geologist, Africa, for Hansa Resources and a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Carvalho has reviewed and verified the contents of this release.

On behalf of the Board,

Jeffrey Gale, President

Forward Looking Statement: This news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

The TSX Venture Exchange has not reviewed the information contained herein and, therefore, does not accept responsibility for the adequacy or accuracy of this news release.

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