Hannans Quarterly Report 2011 | Q3

7/31/2019 Hannans Quarterly Report 2011 | Q3

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Hannans Snapshot

accompanying

3rd Quarter 2010/ 2011 Re

29 Ap ril 2011


2/42

Hannans Group Struc tur

Hannans

(ASX:HNR)

Hannans Reward

Australian Explora tion

Inte rna tiona l Explora tion

(Resources & Rewards)

Hanna ns InvestmentManagement

Equities Inve stments

Cash

Convertib le Notes

Co rporate Bo

TransCorpo


3/42

Hannans Top 20 Sharehold(1 Ap ril 2010 as c ompared to 31 Marc h 2

Rank NameUnits At

1 Apr 2010% OfUnits

Rank Name

1. Cra ton Cap ita l Funds 11,115,140 8.67 1. Cra ton Cap ita l Funds

2. Marfield Pty Limited 8,724,543 6.81 2. Marfield Pty Limited

3. Aust Global Resources Pty Ltd 3,636,363 2.84 3. Aust Globa l Resourc es Pty Lt

4. Susern Hold ings Pty Ltd 2,600,000 2.03 4. Acac ia Investments Pty Ltd

5. Mr Terrence Rona ld Grammer 2,460,000 1.92 5. Mossisberg Pty Ltd

6. Hsbc Custody Nominees (Austra lia ) Limited 2,300,000 1.79 6. Dixon Interna tiona l Pty Ltd

7. Mossisberg Pty Ltd 2,296,296 1.79 7. Hsbc C ustody Nominees (Au

8. Acac ia Investments Pty Ltd 2,054,697 1.60 8. Hsbc Custody Nominees (Au

9. Mr La fras Luitingh 2,046,296 1.60 9. Eric Preston Pty Ltd

10. Dixon Interna tiona l Pty Ltd 2,005,720 1.57 10. Kanaslex Pty Limited

11. Jiga long Community Inc / C 2,000,000 1.56 11. Mr Terrenc e Rona ld Gramm

12. Mandies Meats Pty Ltd 1,797,000 1.40 12. Ms Susan Eileen Dechow

13. Kanaslex Pty Limited 1,548,296 1.21 13. Bonord Pty Ltd

14. Nationa l Nominees Limited 1,500,000 1.17 14. Mr Terrence Rona ld Gramm

15. Bonord Pty Ltd 1,300,000 1.01 15. Susern Hold ings Pty Ltd

16. Rbc Dexia Investor Services Australia Nom 1,170,751 0.91 16. Rbc Dexia Investor Services A

17. Mr James Laurence Berry 1,170,000 0.91 17. Jiga long Community Inc / C

18. Forty Traders Limited 1,125,201 0.88 18. Ms Mara Jane Rudd

19. M r Fra nce sco Rizzo + M rs Fra nce sca Rizzo 1,034,931 0.81 19. Ma nd ie s M ea ts Pt y Lt d 20. Passio Pty Ltd 1,000,000 0.78 20. Mr James Laurence Berry

To ta ls: Top 20 Ho lde rs O f ORDINARY SHARES 52,885,234 41.2 To ta ls: Top 20 Ho lde rs O f ORDINARY

Tota l Remaining Holders Ba lance 75,263,481 58.7 Tota l Remaining Holders Ba lance


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Hannans Share Price Perform

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.0

0.5

1.0

1.5

2.0

2.5

3.0

04Jan11 18Jan11 01Feb11 15Feb11 01Mar11 15Mar11 29Mar11

SharePrice(AUD/Share)

Volume(m)

Volume SharePrice

0.0

0.5

1.0

1.5

2.0

2.5

3.0

06Apr10 15Jun10 24Aug10

Volume(m)

90.%

95.%

100.%

105.%

110.%

115.%

120.%

125.%

130.%

135.%

140.%

04Jan11 13Jan11 24Jan11 02Feb11 11Feb11 22Feb11 03Mar11 14Mar11 23Mar11

HNR.ASX

XMM.ASX

50.%

60.%

70.%

80.%

90.%

100.%

110.%

120.%

06Apr10 18May10 29Jun10 10Aug10 21Sep

Hannans Performanc e Relative to ASX 300 Metals & Mi

3rd Quarter 2010/ 2011 12 Months to 31 March 2011

3rd Quarter 2010/ 2011 12 Months to 31 March


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Hannans Liquid ity & Broker Tr

0.0

0.5

1.0

1.5

2.0

2.5

3.0

03Jan11 12Jan11 21Jan11 01Feb11 10Feb11 21Feb11 02Mar11 11Mar11 22Mar11 31Mar11

Volume(m)

Volume

Average

0.0

0.5

1.0

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2.0

2.5

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02Apr10 14May10 25Jun10 06Aug10 17Sep10

Volume(m)


2.0 1.5 1.0 0.5 0.0 0.5 1 0 1.5 2.0

MacquarieEquitiesLtd

HartleysLimited

CitigroupWealthAdvisorsPty

PatersonSecuritiesLimited

BellPotterSecuritiesLtd

AustralianInvestment

PensonFinancialServices

EurozSecuritiesLtd

ETRADEAustraliaSecuritiesLtd

CommonwealthSecuritiesLtd

Sell($m) Buy($m)

4.0 2.0

NorrisSmithStockbroking Pty

CitigroupWealthAdvisorsPty

BellPotterSecuritiesLtd

PensonFinancialServices

HartleysLimited

PatersonSecuritiesLimited

AustralianInvestment

EurozSecuritiesLtd

ETRADEAustraliaSecuritiesLtd

CommonwealthSecuritiesLtd



6/42


7/42

Hannans Reward Austra lian Ex


8/42

Austra lian ExHannans Reward


9/42

Projec t Prospec t Work completed last Q Positive Results Proposed Ac t

Forrestania

(1,153 km2)

Skeleton

Rocks

Prospect

(Ni + Au)

Field rec onna issance,

roc k chip sam pling

and XRF read ings

ta ken from selec ted Fe

ta rge t a rea s.

Samp les collec ted

from interpreted

ultrama fic unit innorthern pa rt o f

prospec t a rea .

A numb er of haem at itic iron rich

ridges over la te ritised BIF units

identified.

XRF rea d ings collec ted with

va lues >50% Fe, m ax rea d ing is

60% Fe.

XRF read ings confirm u ltramafic

unit to the north on E77/1784.

Further field rec onn

ma pp ing a nd sam

RC drilling p rop osa

comp leted during

coming q uarter.

Auge r sam pling ov

ultram afic unit.

Sto rmb rea ker

Prospec t (Ni)

RC perc ussion d rilling

comp leted (11 holes

for 2,670 metres).

Infill auger samp ling

comp leted at

Sto rmbreaker West a nd

Sto rmbreaker NW.Aug er samp ling

commenced a t

Sto rmbreaker North.

Field rec onna issance,

roc k chip sam pling

and XRF read ings

ta ken from selec ted Fe

ta rge t a rea s.

RC drilling intersected komatiitic

lithologies.

FSRC035 inte rsec te d 35m @ 47.6%

Fe highlighting the po tential for

hae ma tite rich iron ore ma terial in

the area.

Histo rica l TEM a nomaly has beenident ified for d rill testing a t

Sto rmbreaker West.

Aug er sam pling has ident ified

ad ditional koma tiitic lithologies at

Sto rmbreaker West.

Aug er sam pling at Sto rmb rea ker

NW has ident ified a rob ust Cu

anomaly.

RC Percussion d rillin

ta rge ting TEM a nom

ma gne tic high fea

koma tiitic lithologie

Sto rmbreaker West

Additional auge r sa

Stormb rea ker NW tdefine the C u anom

Further mapping of

corrido rs to assess t

po tential for haem

iron ore a nd RC d ill

Lucy Rocks

Prospect

(Ni)

RC d rilling c om pleted

at Beaut iful Sunday

West (5 ho les for 1,054

metres).

POW ap plicat ion for

RAB drilling submitted

to DMP and DEC.

BIF intersec ted in a numb er of

holes confirming the p resenc e of

greenstone lithologies at de pth.

Ap prova l for RAB drilling rec eived

from the DEC.

RAB drilling.

Ad d itiona l RC drillin

greenstones a t Bea

Sund ay West.


10/42

Projec t Prospec t Work completed last Q Positive Results Proposed Ac tivities Sch

Queen

Victoria

Rocks

(395 km2)

Benari

Prospect

(Ni)

Nil Nil Geologica l

interpretation.

Aircore d rilling to define

geochemical

anomalies.

Geo

com

Airc

201

Horseshoe

Prospect(Ni)

Surface TEM c om pleted .

Field c hec king ofgeoc hemic al a nomalies

completed.

Kom atiitic litho logies

c onfirmed in the prospe c tarea.

Nil Nil

Spargo s

North

(Ni)

Surface TEM c om pleted

over selec ted VTEM

anomalies.

Surfac e TEM and

geoc hemic al a nomalies

field chec ked.

Surface TEM ha s

c onfirmed a number of

VTEM anomalies.

Further field chec king

of TEM a nd

geochemical

anomalies required.

Field

com

Spargo s

Prospect

(Ni)

Review of d rilling and

geochemical datacompleted.

Geological

interpretation

completed.

Preliminary inspection of

histo rica l diamond drill

core.

Field reconnaissance

completed.

Basal co ntac t confirmed

from histo rica l d iamo nddrilling, inte rp rete d lava

c hannel ha s a strike

length of ~1km.

Dissem inated Ni sulphides

c onfirme d in drill hole

QVD010 on b asa l

contact.

Three DHEM anomalies

c onfirmed c lose to basal

c ontac t p osition.Dissem inated Type II

nickel sulphides

c onfirmed internal to

ultrama fic unit in hole

QVD008.

Re-logg ing o f histo rica l

diam ond drill core.

Selec ted surfac e TEM

surveys.

Plan d iamo nd drilling

program.

Re-l

Q.

Surf

Q.

Diam

201

Spargo s

South

(Ni)

Surface TEM c om pleted

ove r the ultram afic unit.

No significant ano ma lies

generated from the

survey.

Nil Nil


11/42

Projec t Prospec t Work completed

last Q

Positive Results Proposed Ac tivities Sch

Lake

Johnston

(380 km2)

Ernest

Prospect

(Au)

Nil Nil Orienta tion geochemic al

surveys to the ea st o f the

Ernest prospect to assess

the large g rav ity fea ture.

Geo

this

Hardcore

Prospect

(Au)

RC percussion

drilling completed

(4 ho les fo r 1,110

metres).

High grade g old intervals

intersec ted in holes HCRC005

(1m @ 14.4 g/ t Au) and

HCRC009 (4m @ 6.93 g / t Au).

Data review and

detailed geological

interpretation.

Fina

com

Mt Gordo n

Prospect

(Au)

Gravity survey

co mpleted over

the Mt Gordo n

Prospect area.

Infill soil sampling

commenced.

Gravity survey shows a strong

correlation b etwe en g old

anomalies and gravity lows,

which possibly represent small

internal granitoid bodies.

Gravity lows off-set by NW

trending structures.

Geological

Interpretation.

Infill soil samp ling to be

completed.

RC percussion drilling.

Geo

com

RC d

Maggie

Hayes South

Prospec t (Ni

+ Au)

Nil Nil Surfac e TEM over the

southern portion of the

ultram afic unit.

Geological

interpretation.

Field rec onna issanc e to

asses Au a nomalies.

Surf

Q.

Jigalong

(2,589 km2)

Hill 616

Prospect(Mn)

Marumaru

(Mn)

Zeb ra Bore

(Mn)

Consultant

engaged to helpprog ress the

regional

manganese

exploration.

Preliminary Zinc

endowment

review.

Potentia l rem ains for Mc Arthur

River style zinc mineralisationin the reg ion.

Plan a nd imp lement

drilling a t Hill 616.

Field ma pp ing o f

selected ma nga nese

ta rge t a rea s.

Zinc exploration strategy

to be c ompleted.

Field

curr

Drill

201


12/42

Hannans Reward

1st Quarter 2nd Quarter 3rd QGeolog ica l ac tivities 176,695 23.60% 231,981 16.60% 201,922

Geochemica l ac tivities 100,910 13.50% 193,321 13.80% 143,428

Geophysica l ac tivities 203,381 27.20% 65,909 4.70% 105,478

Drilling 3,120 0.40% 571,986 41.00% 712,728

Field Supp lies 41,390 5.50% 152,301 10.90% 32,733

Field camp and travel 43,907 5.90% 43,592 3.10% 29,644

Environmenta l 4,200 0.60% 51,158 3.70% 2,640

Rehab ilita tion 3,759 0.50% 15,889 1.10% 7,970

Annua l tenement rent 31,036 4.20% 30,583 2.20% 17,074Annua l tenement ra tes 69,868 9.30% 18,547 1.30% 2,228

Tenement administra tion 34,771 4.70% 12,242 0.90% 6,377

Tenement app lica tion fees 34,477 4.60% 8,317 0.60% 8,595

Pena lty & exemption fees - 0.00% - 0.00% 11,806

Tota l 747,513 100.00% 1,395,826 100.00% 1,282,625

Cash Basis (Append ix 5B) 1121000 1,364,000 1,640,000Timing Diffe rence -373,487 31,826 -357,375

The a mounts shown in the ta ble abo ve ha ve b een p rep ared on a n Ac c ruals Basis and are unaud ited

Exp lora tion 2010


13/42

Hannans Investment ManageValuat ion of Equities

Company Type Number Price Va lueAGO FPO 6,401,334 3.50 22,404,669SCR FPO 1,835,001 0.62 1,137,701

Other FPO 20,000 0.22 4,400SCR Options (ex. 20c ) 1,250,001 0.46 580,750

SCR Options (ex. 40c ) 500,000 0.38 187,700

SCR Con Note (33c ) 2,535,000 0.62 1,571,700Theoretica l Value of Equities 25,886,920Cash a t Bank 3,485,000Tota l Equities and Cash 29,371,920

Hannans Rew ard Ltd Ca p ital StructureType Number Exp iryFPO 131,648,715

Options (ex. 80c) 2,250,000 30-Jun-11Options (ex. 20c) 2,000,000 31-Jul-11

Options (ex. 80c) 1,000,000 30-Jun-12

Options (ex. 40c) 100,000 30-Jun-12

Options (ex. 80c) 1,000,000 30-Jun-13

Options (ex. 20c) 300,000 20-Jul-13

Options (ex. 75c) 300,000 20-Jul-13

Options (ex. 100c) 300,000 20-Jul-13

Fully d iluted FPO 133,948,715

NTA per share 0.22

Notes1 - Theoret ica l value c a lculated using BSOPM with 4% risk free rate , 100% vo lat ility & 551 days to maturity2 - Theoret ica l value c a lculated using BSOPM with 4% risk free rate , 100% vo lat ility & 596 days to maturity3 - Assume s 100% of a mo unt c urrent ly d rawn, co nverted into SCR a t 33c4 - Pre-ta x (if pa yab le) on a fully diluted b asis5 Refe r Financ ial Rep ort fo r the Half Yea r End ed 31 Dec 2010


14/42

Wholly owned business unit o f Hannans CBS revenue reduces Hannans f ixed costs

CBS utilises expertise of Hannans corporate te am to p rovide transac tion servic es and corpo rate mand unlisted private and pub lic comp anies

CBS offering is co mplimentary to Hannans business model

CBS currently provide s on-going co rporate ma nage ment services to one ASX listed c omp any (exduring 4th Quarter)

CBS played a n imp ortant role in mana ging IPO process for Narac oota Resources Ltd w hich lodg eduring Ap ril 2011

Transac tion Corporate M

Resources & Rewards Pty Ltd is a 50/ 50 joint venture with a who lly owned subsidiary of Scand ina

Concep t ba sed on the p ooling of highly c ompetent Australian a nd Sca ndinavian g eoscientisac cess ec ono mic dep osits of m inerals (ex-Australia and ex-Scand inavia) a ll Australian op portScand inav ian opportunities go into ASX:SCR

Stage of development advanced exploration for precious, base and bulk commod it ies Corporate strategy co -fund ac quisition/a pplica tion, add value through field exploration, raise

explorat ion that ma y lead to ma jor ec onom ic minerals discove ry & thereafte r distribute be nefit

Country and p roject a ssessments have ta ken plac e w ithin South West Asia a nd the Pac ific Rimpresented from within South East Asia

InternatExplora


15/42

ContactsMr Damian Hicks, Managing DirectorMr Hic ks w as a fo und ing Dire ctor of Ha nna nsReward Limited .Mr Hicks holds a Bachelor of Commerce

(Account ing and Finance) from the University ofWestern Australia, is admitted as a Barrister andSolic itor of the Supreme Court of WesternAustra lia , holds a Graduate Dip loma in AppliedFinance & Investment from FINSIA (formerly theSe curitie s Institute o f Austra lia ), a G ra d ua teDip loma in Company Secre ta ria l Pract ice fromCha rtered Sec reta ries in Austra lia a nd is aGraduate Member o f the Aust ra lian Inst itute o fCom pa ny Direc tors.During the past 3 years Mr Hicks hasserved as aDirector of Sca ndinavian Resources Ltd. Mr Hicksis a non-execut ive Direc to r o f p riva te ly ownedfunds management Company, Growth Equit iesPty Ltd.da mianh@hanna nsreward.co m (E)+61 419930087 (Mb)

Mr Don Huntly, ExpMr Hunt ly holds aDeposit GeologyUniversity of We

Applied Science (Australian Instituteas a Reg istered PrMr Hunt ly is an exsenior explorationincluding XstrataNL, Gold fields oOp era tio n) a ndNickel operat ion).the discovery of tby Xstrata . He isInstitute of Geo

Professiona l Ge oscdo nh@hanna nsrew+61 8 9324 3388 (W

Mr Michael Craig, Joint Company SecretaryMr Cra ig holds a Bac helor of Commerc e(Ac c ounting & Inform ation System s), is amember of the Institute of CharteredAc c ounta nts in Austra lia a nd is c urrentlycomplet ing a Graduate Dip loma in CompanySec reta ria l Prac tice from Chartered

Sec reta ries in Australia .Mr Cra ig was p reviously an accountant w ithOrd Group , jo ine d Ha nna ns Re wa rd Ltd a sFinance & Compliance Manager in 2008 andwas appointed Jo int Company Secre ta ry in2010.micha elc@hanna nsreward.com (E)+61 8 9324 3388 (W)

Ms Mindy Ong,MsOng holds afrom the Universand is current lyAcc ountant co uMs Ong has exa nd a dministraenvironments injoined Hannansmindy0@hanna

Hannans Reward LtdGround Floo r, 28 Ord Stree t, West Web: www.hannansreward.comTwitter hanna nsreward & Fac eb


16/42

3rd Qua rter Ac tivities Rep ort 2010/2011

Summ ary and Highlights

By Don Huntly, Exploration Manager

Field based explora tion ac tivities during the quarter havebeen undertaken a t the Forresta nia , Queen VictoriaRoc ks, and Lake Johnston p rojec ts; and have inc lude dRC percussion d rilling, grav ity surveys, surfac e TEM surveys,aug er sam pling, ma pp ing a nd roc k chip sam pling.

Hannans explora tion ac tivities a re a imed a t identifying an

ec onomic m ineral dep osit (i.e. stand a lone operation)throug h the applic a tion of rigo rous explora tion p roc essesand a multidisc iplinary ap proac h.

Forrestania Projec t

RC d rilling at Stormb rea ker has been c om plete d (11ho les for 2,614 metres), the d rilling inte rsec tedultrama fic, mafic a nd BIF litho log ies, no signific ant Nior Au m inera lisation w as intersec ted in the d rilling.

One RC p ercussion ho le a t Sto rmbrea ker inte rsec ted35 metres @47.6% Fe(inc luding 4m @63.1% Fe from36m, 5m @62% Fe from 47m a nd 2m @61.6% Fe from

55m);the interval rep resents a hae ma titic ric hreg olith c ap over a w ea the red BIF unit, simila r inge olog ic a l sett ing to the Ca za ly Resource Ltd Parker Rang e Iron Projec t (33.6Mt @ 56.1% Fe) ~65km s to the no rth. Drilling o ver the two BIF units in thearea rem ains very sparse.

Rec onna issanc e ma pp ing, samp ling and XRFana lysis wa s com pleted at Stormb rea ker andSkeleton Roc ks, the field wo rk together w ith XRF

ana lyses has c onfirmed the p resenc e o f a num be r ofhaem atite ric h iron ta rge ts, the XRF rea d ingsreturned a number of samp les in excess of 50% Fe,best XRF sample read ings inc lude 60% FeatSto rmb rea ker and 60% Feat Skeleton Roc ks.

RC percussion d rilling wa s com pleted o ver theBea utiful Sund ay West Prospec t (5 holes for 1,054metres), the d rilling intersec ted magnet ite rich BIFlitholog ies and has c onfirmed the p resenc e o fgreenstone roc k types a t d ep th, no signific ant Ni orAu m inera lisa tion w as intersec ted in the d rilling .

Fast Fac ts

ASX Co de: HNR

Capital Structure

Sha res on issue : 131.6m

Op tions on issue: 7.25m (ex 20c to $1)

Ma rket c ap : $26.32m (at 20c )

Financ ial Position (a t end of Qua rter)

Ca sh on hand : $3.85m

Value ofEquity Positions: $25.89m

Board of Directors

Richa rd Sc allan Cha irma n

Damian Hicks Ma nag ing Direc tor

William Hicks Non-Exec utive Direc torJonatha n Murray Non-Executive Director

Projec ts (Western Australia)

Forresta nia Nicke l & Go ld

QVR Nickel

Lake Johnston Nic kel & Go ld

Jigalong Mang anese and ba semetals


17/42

3rd Quarter Ac tivities Rep ort 2010/2011 29 Ap ril 2011

2 | P a g e

Assays have be en returned a nd the da ta interpreted for the a uge r samp lingc om plete d at Stormb rea ker West, the sam pling has identified untested koma tiiticlithologies north of the Beautiful Sunday Ni deposit (Western Areas NL).

Assays have be en rece ived and interpreted for the aug er sam pling c ompleted atSto rmb rea ker NW; the samp ling ha s detec ted komatiitic litholog ies as we ll as rob ustCu anoma ly to the ea st.

Lake Johnston Project

RC p ercussion d rilling wa s c om pleted a t the Hardc ore Prospec t (4 holes for 1,110metres), a ll assays have b ee n rec eived , best intervals include;

o HCRC005 1m @14.4 g/ t Au (239m)o HCRC009 4m @6.93 g/ t Au (215m)

Including 1m @21.3 g/ t Au (215m)

o HCRC009 - 1m @6.34 g/ t Au (222m)o HCRC009 - 3m @4.44 g/ t Au (237m)

Including 1m @11.4 g/ t Au (237m)

HCRC009 - 1m @6.77 g/ t Au (261m) HCRC009 - 1m @4.61 g/ t Au (286m)

A g ravity survey was c om pleted ove r the Mt Go rdon Prospec t a rea , the survey hasshown a strong c orrelation b etw een g ravity low s and go ld minera lisa tion.

Infill soil sam p ling c om menc ed ove r the Mt Go rdon Prospe c t a rea , samp ling will bec om plete d during April 2011.

Queen Victo ria Roc ks Projec t The Spargos p rospe c t historic a l da ta review a nd ge olog ic al interpreta tion has been

fina lised , a num ber of key findings we re highlighted during the review;

o The geo log ica l interpreta tion has highlighted a large lava c hanne l andemb ayment in the ultram afic footw all (Figure 8). The cha nne l is ~1 km a longstrike and rem a ins poo rly d rill tested in a numb er of key loc a tions (Figure 9).

o Minor d issem ina ted Ni sulphide s c onfirmed in hole QVD010 the sulphide s a reloc ated on an intac t ba sal contac t.

o Type II d issem inated Ni sulphide s c onfirmed in hole QVD008.o The Spargos p rospec t ha s a number of Ni sulphide oc c urrenc es over a 2 kmstrike extent, the Ni sulphide oc c urrenc es tog ethe r with fa vourab le ultrama fic

litholog ies and the interpreted lava c hannel are key c riteria indica tive of a fertilekoma tiitic hosted Ni sulphide environm ent.

o DHEM a noma lies from d iamond holes QVD010 and DDH006 are loca te infavourab le [p ositions relative to the basa l c onta c t and rema in untested .

Surfac e TEM was c om pleted over the Horseshoe p rospec t; no signific ant anom alieswere genera ted from the survey.

Surfac e TEM w as c om pleted at Spargos North over selec ted VTEM a noma lies, anumb er of the a nomalies have b een c onfirmed by the surface TEM surveys.

Surfac e TEM was c om pleted o ver the southern extension of the Spargos ultrama fic ,no significant a nom alies we re g enerated from the survey.


18/42


3 | P a g e

Ongo ing Exploration Ac tivities

Infill soil sam p ling to be c om pleted at Mt Go rdon p rospec t Lake Johnston Projec tduring 2nd c a lend ar quarter 2011.

Plan and imp lem ent surfac e TEM a t the Spargos p rospec t QVR Projec t d uring the 2nd c a lend ar quarter 2011.

Aug er d rilling to sta rt a t the Luc y Roc ks p rospec t Forresta nia Projec t d uring the 2nd c a lend ar quarter 2011.

Field ma pp ing to c omm enc e a t the Jiga long Project during the 2nd c alenda r quarter2011.

RC d rilling to c om me nc e a t Sto rmb rea ker West Forresta nia Projec t d uring 2nd or 3rdc a lend ar quarter 2011.

Ongo ing field ma pp ing a nd ta rge ting for iron a t Forrestania to be completed duringthe 2nd c a lend ar quarter 2011.

Drilling a t Hill 616 Jiga long Projec t to c om me nc e d uring the 3rd c alenda r quarter2011.

RC d rilling to c om menc e a t Mt Go rdo n Lake Johnston Projec t d uring 3rd calendarqua rte r 2011.

Forrestania Project

Known nicke l sulphide minera lisa tion w ithin the Forresta nia Belt oc c urs in a va riety o fgeo log ica l set tings above a nd below BIF horizons, as we ll as on m afic (Digg er Roc ks andCo smic Boy) and felsic (Flying Fox, Spotted Quoll, Bea utiful Sund ay) substrates.

Hanna ns tenem ent position is situated immed iate ly a long strike, to the north of, and a lsoto the we st o f the Western Areas NL nicke l sulphide dep osits c overing what is c onsideredto be the mo st p rospe c tive stratigraphy p roxima l to know n Ni sulphide dep osits in theForresta nia G reenstone belt.

It is c onsidered by Hannans tha t the stratigraphy within the ir tenement pac kage ha s simila rc harac te ristics to a rea s tha t hosts nicke l sulphide dep osits and oc c urrenc es elsew herewithin the Forresta nia Greenstone Belt (Figure 1).

The stra tigraphy within the Hannans tenement p ac kage is a lso considered p rospec tive foriron d ep osits, which has now been c onfirmed by rec ent e xp loration ac tivities.

The fo llow ing ta b le includes a summ ary of exploration ac tivities com plete d for theForresta nia Projec t.

Ac tivity Forrestan ia Summa ry

RC Perc ussion Drilling 16 ho les for 3,724 met res

Down-hole EM nil

Surfac e EM nil

Geo c hemic al Sam pling 1,883 aug er sam ples

2 roc k c hip sam ples

54 portable XRF readings

Stormbreaker Prospec t Area

Exp lora tion a c tivities for the quarte r included RC p ercussion d rilling, auger samp ling,ma pp ing a nd rock chip sam pling (Figure 1).


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4 | P a g e

A total of 11 RC percussion holes were drilled for 2,614 metres, 10 holes were drilled alongthe w estern ultram afic c orrido r ta rge ting g eoc hemica l anoma lies, and one hole w asdrilled on the c entral ultram afic ta rge ting a c oincide nt ge oc hemica l and TEM a noma ly(PAC007). The d rilling inte rsec ted m afic , ultram afic a nd BIF litholog ies, a ll assays ha ve

been returned , with no Ni or Au minera lisa tion was intersec ted in the d rilling (Figure 2).RC p ercussion hole FSRC035 intersec ted a zone of reg olith e nriche d , haem atite ric h ironmaterial, the interval returned 35 metres at 47.6% Fefrom 23 metres down-hole (Tab le 1).The interval inc lude s a num ber o f sma ller zones in exc ess of 60% Fe (4m @63.1% Fe from36m, 5m @62% Fe from 47m and 2m @61.6% Fe from 55m), the b roa der iron ric h zonerep resents the weathered portion of a ma gne tite rich BIF unit a nd has simila r geo log ic a lc harac teristics to othe r haem atite ric h iron dep osits in the reg ion such a s the Ca za lyResources Parker Range Deposit ap proximate ly 65 km s to the north.

Field ma pp ing and roc k chip sam pling wa s c ompleted over the Stormbreaker area; thema pp ing has identified extensive zones of ha ematite ric h ma teria l ove r weathered BIFunits. A to ta l of 24 portab le XRF rea d ings we re taken over a strike extent o f 4 kms, six ofthese samples returned read ings in excess of 50% Fe (Ma x rea d ing is 60% Fe).

Assays have be en rece ived for the a dd itiona l auger sam pling p rog ram c ompleted overthe Sto rmb rea ker West a rea ; the d a ta ha s been interpreted and the samp ling ha sidentified add itional koma tiitic litholog ies further to the west in an a rea with little o r noexplora tion. A review o f the surfac e TEM in the a rea has identified an ano ma ly coinc identwith an interpreted koma tiitic unit; the anom aly rem ains to be d rill tested (Figure 2).

Assays have b een rec eived for the aug er samp ling c om plete d a t Stormb rea ker NW, thesamp ling has helped to delinea te koma tiitic litholog ies as we ll as a rob ust Cu a nom aly tothe east o f the survey, ad d itional samp ling is req uired to b ette r define the Cu anomaly.

Table 1. Results from XRF ana lysis of samples from RC percussion ho le FSRC035

Hole ID From To Fe% Mg O% P% S% SiO2% TiO2% LOI

FSRC035 0 1 22.28 0.29 0.013 0.016 52.4 0.37 5.92

FSRC035 1 2 23.59 1.4 0.009 0.035 45.7 0.46 5.81

FSRC035 2 3 8.81 0.99 0.005 0.053 61.8 0.61 6.51

FSRC035 3 4 8.26 0.68 0.005 0.052 62.1 0.65 6.57

FSRC035 4 5 9.39 0.34 0.003 0.067 60.5 0.55 7.35

FSRC035 5 6 30.63 0.09 0.006 0.114 35.3 0.53 5.65

FSRC035 6 7 36.21 0.1 0.007 0.122 27.4 0.52 5.46

FSRC035 7 8 40.7 0.09 0.008 0.216 19.55 0.49 5.87

FSRC035 8 9 43.06 0.05 0.009 0.813 12.1 0.52 7.74

FSRC035 9 10 42.09 0.05 0.007 0.964 11.2 0.57 8.54

FSRC035 10 11 40.26 0.04 0.007 0.868 13.35 0.62 8.66

FSRC035 11 12 29.92 0.07 0.006 0.246 23.9 0.87 10.58

FSRC035 12 13 28.07 0.27 0.005 0.204 28.4 0.94 10

FSRC035 13 14 29.69 0.07 0.004 0.225 25.7 1.03 11.73

FSRC035 14 15 36.25 0.05 0.003 0.183 20.2 0.76 12.2

FSRC035 15 16 39.95 0.04 0.004 0.184 16.1 0.72 12.37

FSRC035 16 17 39.79 0.04 0.004 0.208 15.95 0.75 12.45

FSRC035 17 18 30.91 0.09 0.003 0.18 23.7 0.98 12.26

FSRC035 18 19 28.88 0.11 0.003 0.165 25.2 0.92 12.65

FSRC035 19 20 33.99 0.11 0.004 0.172 21.4 0.71 12.11

FSRC035 20 21 39.31 0.11 0.006 0.162 16.15 0.63 12.39

FSRC035 21 22 42.48 0.07 0.005 0.154 13.75 0.52 12.48

FSRC035 22 23 46 0.04 0.004 0.135 11.05 0.49 12.31

FSRC035 23 24 50.18 0.01 0.004 0.144 7.89 0.33 11.68

FSRC035 24 25 51 0.03 0.005 0.129 7.07 0.31 11.92

FSRC035 25 26 50.1 0.51 0.004 0.122 8.32 0.36 11.27

FSRC035 26 27 45.93 0.24 0.005 0.118 16.8 0.38 10.49

FSRC035 27 28 45.57 0.08 0.007 0.128 15.55 0.41 11.02


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5 | P a g e

Hole ID From To Fe% Mg O% P% S% SiO2% TiO2% LOI

FSRC035 28 29 51.14 0.02 0.015 0.144 8.38 0.28 11.95

FSRC035 29 30 56.31 0.01 0.009 0.163 3.63 0.13 12.09

FSRC035 30 31 57.21


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6 | P a g e

rich reg olith o ver BIF units a t two loca tions (Figure 3), and XRF rea d ings ta ken in the a reaha ve returned va lues in exc ess of 50% Fe (max rea d ing is 60% Fe).


RC p ercussion d rilling will be p lanned for Sto rmb rea ker West to test the komatiitelitho log ies and the surfac e TEM a nom aly. Furthe r field rec onna issanc e, ma pp ing and roc k chip samp ling to a ssist with d rill c ollar

loca tions over iron ta rgets a t Sto rmb rea ker and Skeleton Roc ks during 2nd calendarqua rter of 2011.

Reg olith d rilling a t the Luc y Roc ks p rospec t is sc hed uled for 2nd c a lend ar quarter 2011to c onfirm the g eologica l interpretation a nd stratigrap hy in the area.

Ad d itiona l infill auger samp ling fo r Sto rmb rea ker NW, p lanned fo r 2nd or 3rd calendarqua rter to c over the Cu anoma ly.

Infill auger samp ling at Stormb rea ker North w ill be c omplete d during 2

nd

calendarqua rte r 2011.


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Figure 1. Lea sing d iag ram show ing the Stormb reaker and Luc y Roc ks prospec t a reas.


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Figure 2. Stormbreaker and Luc y Roc ks prospe c t a rea s showing ae rom ag netic ima ge and explorationsummary.


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Figure 3. Lea sing diag ram showing ae rom ag netic ima ge of the Skeleton Roc ks prospe c t a rea .


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Lake Johnston Project

Hannans have p ut tog ethe r a tenement portfolio at Lake Johnston w hich cove rs ~30 km sof greenstone stratigraphy (Figure 4). The g ranted tenure inc ludes a numb er of highgrad e g old o c currenc es (Ernest, Hardc ore and Mt Go rdon p rospec ts), as a result theprojec t is considered to b e highly p rospec tive for the d isc ove ry of add itional high g radegold mineralisation.

Exp lora tion a c tivities for the q uarte r included RC p ercussion d rilling (Hardc ore p rospec t)and a reg iona l gravity survey ove r the Mt G ordon prospec t (Figure 4).

The fo llow ing ta b le inc lude s a summ ary of exp loration a c tivities com plete d for the LakeJohnston Projec t.

Ac tivity Lake Johnston Summ ary

RC percussion d rilling 4 ho les for 1,110 me tres

Down ho le TEM nil

Surfac e EM nil

Gravity 2,073 sta tions

Geo c hemic al Sam pling nil

Hardc ore Prospec t (E63/1327)

Hannans rec ently co mp lete d 10 hole RC p ercussion p rog ram a t the Hardc ore Prospec t (4holes for 1,110 metres), during Janua ry 2011. The drilling tested dow n d ip a nd a long strikeof historic a l high grad e go ld intersec tions (Figure 5).

Best d rilling intersec tions inc lude s;

o HCRC005 1m @ 14.4 g / t Au (239m)o HCRC009 4m @ 6.93 g/ t Au (215m)

Inc luding 1m @ 21.3 g / t Au (215m)

o HCRC009 - 1m @ 6.34 g / t Au (222m)o HCRC009 - 3m @ 4.44 g / t Au (237m)

Inc luding 1m @ 11.4 g / t Au (237m)

HCRC009 - 1m @ 6.77 g / t Au (261m) HCRC009 - 1m @ 4.61 g / t Au (286m)

The high grad e go ld intercep ts are summ arised in Tab le 1 and also include theintersec tions out lined in the p revious Hanna ns quarte rly rep ort.

The gold minera lisa tion ha s been intersec ted within a felsic intrusive unit and is assoc iatedwith q ua rtz veining, minor pyrite a nd intense silica a lteration. The d rilling rema ins widespaced however the high grade shoot is interpreted to have a strike length of ~100me tres and a stee p p lunge to the north-west (Figure 5).

The rec ent assay results further co nfirm the highly p rospec tive na ture o f the Hannansgrante d tenements, which now c ove rs a 25 km corridor.


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Figure 4. Lake Johnston Lea sing Diag ram showing regiona l geo logy, prospe c t loc ations and Au p pbgeochemistry image.


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Figure 5. Lake Johnston Hardc ore Prospe c t diagram ma tic long -sec tion looking NE

Table 1. Summary of Hardc ore d rilling a ssay results

Hole ID MGA_North MGA_East Dip Azi From (m) To (m) Int Au g/ tHCRC001 6407706 285777 -75 030 NSA

HcRC002 6408057 285561 -75 030 NSA

HCRC003 6408711 284881 -75 030 NSA

HCRC004 6408656 284849 -75 030 NSA

HCRC005 6408516 285017 -75 030 239 240 1 14.4

HCRC005 6408516 285017 -75 030 249 250 1 1.71

HCRC006 6408410 285100 -65 030 NSA

HCRC007 6408416 285102 -60 030 281 282 1 1.21

HCRC007 6408416 285102 -60 030 286 287 1 1.52

HCRC008 6408402 285213 -65 030 NSA

HCRC009 6408517 285024 -60 030 190 191 1 2.31HCRC009 6408517 285024 -60 030 196 197 1 1.28

HCRC009 6408517 285024 -60 030 203 204 1 1.74

HCRC009 6408517 285024 -60 030 215 219 4 6.93

HCRC009 6408517 285024 -60 030 222 223 1 6.34

HCRC009 6408517 285024 -60 030 229 230 1 1.56

HCRC009 6408517 285024 -60 030 237 240 3 4.44

HCRC009 6408517 285024 -60 030 261 262 1 6.77

HCRC009 6408517 285024 -60 030 266 267 1 4.61

HCRC009 6408517 285024 -60 030 286 287 1 1.24

HCRC010 6408396 285213 -55 030 NSA


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Mt Gordon Prospec t (E63/1365)

A g ravity survey has be en c ompleted over the Mt Gordon prospe c t a rea , a to tal of 2,073rea d ings we re c ollec ted . The g ravity da ta has been proc essed and shows a strongc orrelation b etw een the go ld minera lisat ion a t surfac e a nd in d rilling with g rav ity low

features. The gravity low s appea r to b e a ssoc ia ted with sma ll internal granitoid b od ies.The g rav ity d a ta has a lso indica ted tha t the re a re some m inor offsets trend ing NWproxima l to the go ld mineralisa tion.

Rec ent d a ta c om pilat ion and interp reta tion of the historic a l drilling da ta ha s indica tedtha t the go ld mineralisa tion is hosted within a numb er of rock types inc luding m afic ,ultrama fic, ga bbroic a nd g ranitic litholog ies. The gold m inera lisa tion also ha s a strongassociation with quartz veining.

Soil samp ling c omme nc ed a t Mt G ordon during the quarter, samp ling is ong oing.

Ongo ing Exploration Ac tivity

Ongoing d ata interpretation and c ompilation to build a geologica l and structuralinterpretation of the Mt Go rdo n area.

Finish soil samp ling and proc ess assay d a ta during the 2nd c alenda r qua rter. Plan and imp lement RC p ercussion d rilling during the 3rd calenda r qua rter.


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Queen Vic toria Roc ks (QVR) Projec t

Exploration for the q ua rter has inc lude d surface TEM surveys at the Horseshoe, SpargosNorth and Spargos South p rospec ts, as we ll as field rec onna issanc e at the Horseshoe ,Spargos North and Spargos p rospec ts (Figure 7).

The fo llow ing tab le includes a summ ary of explora tion ac tivities com pleted for the QueenVic to ria Roc ks Projec t.

Ac tivity QVR Summa ry

RC percussion drilling nil

Down ho le TEM nil

Surfac e EM 2.65 line km s of MLEM

21.1 line kms of FLEM

Geo c hemic al Sam pling 1 aug er sam ple

19 roc k c hip sam ples1 roc k chip sam ple

Spargos Prospec t (P15/4964, P15/ 4965, P15/4966, P15/ 4967 and E15/ 971)

The historica l da ta review and geo log ic a l interpreta tion for the Spargos Prospec t a rea hasbeen fina lised .

A numb er of significant findings have resulted from the review and g eo log ic a linterpreta tion. These findings a re a summa rised below and a lso illustrated in the follow ingdiagrams.

The geo log ica l interpreta tion has highlighted a large lava channel andemb ayme nt in the ultram afic footw all (Figure 8). The c ha nne l is ~1 km a long strikeand rema ins poo rly drill tested in a numb er of key loc a tions (Figure 9).

Minor d issem inate d Ni sulphide s c onfirmed in hole QVD010 the sulphide s areloc ated on an intac t ba sal c ontac t.

Type II d issem inated Ni sulph ides confirmed in hole QVD008. The Spargos p rospec t ha s a number of Ni sulphide oc c urrenc es over a 2 km strike

extent, the Ni sulphide occ urrenc es tog ethe r with favo urab le ultram afic litholog iesand the interpreted lava c hannel a re key criteria indica tive of a fertile koma tiitichosted Ni sulphide environment.

DHEM a noma lies from d iamond holes QVD010 and DDH006 are loca te infavourab le [p ositions relative to the basa l c onta c t and rema in untested .

A more deta iled review of the surfac e TEM c overage a nd effec tiveness c an now becom plete d using the geolog ic a l interpreta tion as guide for planning future surveys.


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16 | P a g e

Figure 7. Hanna ns Rew ard Ltd Queen Vic toria Roc ks Projec t


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17 | P a g e

Horseshoe Prospec t (E15/755)

Surfac e TEM w as c om plete d in the a rea ta rge ting the koma tiitic unit, a tota l of 9.6 linekm s of Fixed Loo p TEM (FLEM) were c om pleted . No signific ant a noma lies werege nerated from the survey.

A field rec onna issance trip wa s a lso undertaken to assess the ge oc hemic a l anoma lies inthe a rea . The trip has ind ic a ted the ge oc hemica l samp ling has be en very effec tive, andthe a nom alies are assoc ia ted with outc rop ping to sub c rop p ing kom atiitic litholog ies. Thekoma tiitic units a re typ ic a lly low MgO litholog ies and a re c onsidered to ha ve m inima lp rospec tivity fo r nic kel sulphide minera lisation.

No further explora tion is p lanned for the a rea in the short to m ed ium term.

Spargos North (E15/971)

Surfac e TEM was c om pleted over selec ted VTEM a noma lies a t Spargos North, a to ta l of2.65 line km s of Moving Loop TEM (M LEM) and 6.7 line kms of fixed Loop TEM (FLEM) were

c omp leted over five sep arate areas.

The surfac e surveys have c onfirme d a number of the VTEM a nom alies, som e o f whic hhave been field chec ked and downgrade d.

Spargos South (E15/971)

Surfac e TEM was c om pleted over the southern extension of the Spargos ultrama fic unit, atota l of 4.8 line km s of Moving Loop TEM w ere c omplete d . No signific ant anomalies werege nerated from the survey.


Re-logging a nd XRF ana lysis of histo rica l diamo nd d rill core a t Spargos. Review of histo rica l surfac e TEM at Spargos, plan a nd implement ne w surveys as

required.

Field c hec k outsta nd ing surfac e TEM a nom alies a t Spargos North Geolog ic a l interpreta tion at Bena ri.


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18 | P a g e

Figure 8. QVR Projec t Spargo s Prospe c t interpreted ge olog y

Figure 9. QVR Projec t Spa rgo s Prospe c t interpreted long-sec tion of the ba sal c onta c t.


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19 | P a g e

Jigalong Project

A c onsultant g eologist has be en eng ag ed to further adva nce the reg iona l ma nga neseta rget ing and p rospec tivity ana lysis for the projec t area . The geo log ist has extensiveexperienc e wo rking in the ma nga nese industry and is a lso very we ll resea rc hed on thegeology of the Jiga long region and greate r ma nga nese p rovince.

A p reliminary review of the zinc minera lisat ion in the a rea wa s c om plete d ; it is evident tha tthe limited shallow aircore drilling completed during 2009 on tenement E52/1812 hasintersected a number of intervals in excess of 1% Zn (Figure 10). The d rilling ha s ama ximum d ep th o f 55 me tres vertica l and has intersec ted >1% Zn intervals in 5 holes overa strike extent of 200 to 300 me tres. The host unit ap pea rs to have a sha llow d ip towardsthe north-west.

The a rea wa rrants further field w ork and req uires a better understand ing of the g eo log ic a lset ting a nd host litho logies to help p rog ress exp lora tion in the a rea .


Field ma pp ing a nd targeting for mang anese d uring the 2nd c alenda r qua rter of2011.

Plan a nd imp lem ent d rilling a t Hill 616 during 3rd ca lend ar quarter 2011. Field m app ing and ta rge ting for zinc minera lisa tion during 2nd and 3rd calendar

quarter 2011.


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20 | P a g e

Figure 10. Jiga long Projec t tene me nts showing reg ional ma nga nese d ep osits and oc c urrenc es.


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Summary

Hannans Reward Ltd has developed a suite of prospective exploration projects withinAustralia covering nickel, gold and manganese; whilst the flagship exploration is theForresta nia nickel projec t loc ated in the world c lass Forresta nia nickel belt. Hannans is a

sha reho lder of Atlas Iron Ltd . Hanna ns sha reho lders a re expo sed to sha re p riceapprec iat ion throug h explora tion succ ess a t the follow ing p rojec ts:

Forrestania nickel & gold project 7km north of Western Areas Flying Fox nickelmine, a portion of the Stormb rea ker Prospec t inc lude s a Joint Venture w ith CullenResources Ltd (Hanna ns 80%, Cullen 20% free c arry).

Lake Johnston nickel & gold project located 25km south east of Norilsks MaggieHays nicke l mine a nd 100kms we st o f Norsem an

Jiga long ma nga nese & b ase me ta ls p rojec t loc a ted 150km ea st of Newm an, WA Queen Victoria Rocks - nickel and gold project located 30km south-west of

Coolgardie, WA

Competent Persons Summary

The information in this doc ument (including the Hannans Snap shot ) tha t relates toexploration results is based on information compiled by Mr Donald Huntly, ExplorationMa nager who is a Full Memb er of the Australian Institute of G eo sc ientists and a Reg iste redProfe ssiona l Ge osc ientist. Mr Huntly is a full-time emp loyee with Hanna ns Rew ard Ltd . MrHuntly has sufficient experience, which is relevant to the style of mineralisation and typesof deposits under consideration and to the activity which has been undertaken to qualifyas a Comp ete nt Person a s defined by the 2004 ed ition of the Australian Code fo r the

Rep orting o f Explora tion Results, Mineral Resource s and Ore Reserves . Mr Hunt ly consentsto the inclusion in the report of the matters based on the information in the form andc ontext in which it a pp ea rs.

For further informa tion please contac t:

Damian Hic ks, Mana ging Direc tor

Hanna ns Rew ard

Tel: +61 8 9324 3388

Media:

Mr James Harris

Professiona l Pub lic Rela tions

Tel: +61 400296547


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Appendix 5B

Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

30/9/2001 Appendix 5B Page 1

Rule 5.3

Appendix 5B

Mining exploration entity quarterly reportIntroduced 1/7/96 Origin: Appendix 8 Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10

Name of entity

HANNANS REWARD LTD

ABN Quarter ended (current quarter)

52 099 862 129 31 MARCH 2011

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter$A000

Year to date(9 months)

$A000

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation(b) development(c) production(d) administration

(1,640)--

(304)

(4,125)--

(760)1.3 Dividends received - -1.4 Interest and other items of a similar nature

received67 181

1.5 Interest and other costs of finance paid (3) (5)1.6 Income taxes paid - -1.7 Other (reimbursement of shared office expenses) - 47

Net Operating Cash Flows (1,880) (4,662)

Cash flows related to investing activities

1.8 Payment for purchases of:(a) prospects(b) equity investments(c) other fixed assets

--

(14)

-(4)

(122)1.9 Proceeds from sale of:

(a) prospects

(b) equity investments(c) other fixed assets

-

--

-

4,244-

1.10 Loans to other entities (200) (860)1.11 Loans repaid by other entities - -1.12 Other (provide details if material) - -

Net investing cash flows (214) 3,258

1.13 Total operating and investing cash flows (carriedforward)

(2,094) (1,404)


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Appendix 5B



Appendix 5B Page 2 30/9/2001

1.13 Total operating and investing cash flows(brought forward)

(2,094) (1,404)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. - -1.15 Proceeds from sale of forfeited shares - -1.16 Proceeds from borrowings - 1131.17 Repayment of borrowings (4) (12)1.18 Dividends paid - -1.19 Other (provide details if material) - -

Net financing cash flows (4) 101

Net increase (decrease) in cash held (2,098) (1,303)

1.20 Cash at beginning of quarter/year to date 5,583 4,788

1.21 Exchange rate adjustments to item 1.20 - -1.22 Cash at end of quarter 3,485 3,485

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entitiesCurrent quarter

$A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 87

1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions

1.23 Payment of executive and non-executive directors fees.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidatedassets and liabilities but did not involve cash flows

N/A

2.2 Details of outlays made by other entities to establish or increase their share in projects in which thereporting entity has an interest

N/A


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Appendix 5B




Financing facilities availableAdd notes as necessary for an understanding of the position.

Amount available$A000

Amount used$A000

3.1 Loan facilities - -

3.2 Credit standbyarrangements - -

Estimated cash outflows for next quarter$A000

4.1 Exploration and evaluation 800

4.2 Development -

4.3 Production -

4.4 Administration 250

Total 1,050

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.

Current quarter$A000

Previous quarter$A000

5.1 Cash on hand and at bank 3,485 5,583

5.2 Deposits at call - -

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 3,485 5,583


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Appendix 5B



Appendix 5B Page 4 30/9/2001

Changes in interests in mining tenements

Tenement

reference

Nature of interest

(note (2))

Interest at

beginningof quarter

Interest at

end ofquarter

6.1 Interests in miningtenements relinquished,reduced or lapsed

E63/1424E15/1218E15/1226E16/0401

WithdrawalWithdrawalWithdrawalWithdrawal

100%100%100%100%

0%0%0%0%

6.2 Interests in miningtenements acquired orincreased

E77/1919E77/1934E77/1935P77/4048P77/4049P77/4050

P77/4051

E63/1423E77/1655E77/1707E77/1716E77/1783

ApplicationApplicationApplicationApplicationApplicationApplication

Application

GrantedGrantedGrantedGrantedGranted

0%0%0%0%0%0%

0%

0%0%0%0%0%

0%0%0%0%0%0%

0%

100%100%100%100%100%


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Appendix 5B




Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price persecurity (see note

3) (cents)

Amount paid up persecurity (see note 3)

(cents)

7.1 Preference+securities(description)

- - - -

7.2 Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-

backs,redemptions

-

-

-

-

-

-

-

-

7.3 +Ordinarysecurities 131,648,715 131,648,715 - -

7.4 Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs

-

-

-

-

-

-

-

-

7.5 +Convertibledebt securities

(description)- - - -

7.6 Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted

-

-

-

-

-

-

-

-

7.7 Options(description and

conversion

factor)

2,250,0002,000,0001,000,000100,000

1,000,000300,000300,000300,000

Exercise price80 cents

20 cents

80 cents

40 cents

80 cents

20 cents

75 cents

100 cents

Expiry date30 June 2011

31 July 2011

30 June 2012

30 June 2012

30 June 2013

20 July 2013

20 July 2013

20 July 2013

7.8 Issued duringquarter

- - - -

7.9 Exercised during

quarter - - - -


42/42

Appendix 5B


7.10 Expired duringquarter - -

Exercise price

-

Expiry date

-

7.11 Debentures(totals only)

- -

7.12 Unsecurednotes (totals

only)

- -

Compliance statement1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Act 2001.

2 This statement does give a true and fair view of the matters disclosed.

Michael CraigCompany Secretary21 April 2010

Notes

1 The quarterly report provides a basis for informing the market how the entitysactivities have been financed for the past quarter and the effect on its cash position.An entity wanting to disclose additional information is encouraged to do so, in a noteor notes attached to this report.

2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests inmining tenements acquired, exercised or lapsed during the reporting period. If theentity is involved in a joint venture agreement and there are conditions precedentwhich will change its percentage interest in a mining tenement, it should disclose thechange of percentage interest and conditions precedent in the list required for items6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in

items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 1022: Accounting for ExtractiveIndustries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do not address a topic,the Australian standard on that topic (if any) must be complied with.

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Documents

Hannans Quarterly Report 2011 | Q3