Mr. Michael Hudson reports

HANNAN ANNOUNCES CLOSING OF C$1.76 MILLION OVERSUBSCRIBED PRIVATE PLACEMENT

Hannan Metals Ltd. has closed its non-brokered unit private placement financing announced on April 24, 2023. Pursuant to the offering, the company has issued 7,044,460 units at a price of 25 cents per unit for gross proceeds of $1,761,115. Each unit comprises one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one additional share of the company at an exercise price of 35 cents for a period of three years expiring on May 9, 2026. The company has the right to force conversion of the warrants, if, at any time from and after the date of issuance, the weighted-average closing price of the company's common shares on the TSX Venture Exchange equals or exceeds 50 cents for 20 consecutive trading days. The expiry date of the warrants will then be 30 days from the date of issue of a news release announcing the forced conversion.

Teck Resources Ltd., Hannan's largest shareholder, has increased its interest in the company and subscribed for 1.12 million units for gross proceeds to Hannan of $280,000. Prior to the private placement, Teck held 9.0 per cent of Hannan. Upon closing of the private placement, Teck will hold 9.9 per cent of the issued common shares and warrants of Hannan on a partially diluted basis.

Michael Hudson, chief executive officer, commented: "In this oversubscribed private placement, we have been able to continue to find alignment of strategy with shareholders, while maintaining a tight share register. Our major shareholder Teck has increased their position, and we have also received strong support from other key shareholders. We are very thankful for this support and see it as a demonstrable vote of confidence in the technical merits of the company's projects, as well as our team. Over the last two years, Hannan has recognized the significant potential for large copper-gold-silver deposits in Peru, while retaining optionality for large-scale discoveries in Chile (copper) and Ireland (zinc/lead silver). This bold grassroots strategy has attracted some of the largest industry participants to partner with Hannan, with both Teck and JOGMEC involved at equity and joint venture levels, respectively. With drilling ongoing in Ireland, geophysical surveys in Chile, and large geological and social team very active in Peru, we are very excited about Hannan's short-, medium- and long-term exploration opportunities."

All securities issued in connection with the offering are subject to a statutory four-month hold period, expiring on Sept. 10, 2023. The company paid a cash commission of $2,250 to a finder. The private placement is subject to final approval of the exchange.

The company plans to use the net proceeds to finance exploration expenditures at the company's Peruvian, Chilean and Irish projects, as well as for general working capital and corporate purposes.

Certain insiders of the company participated in the offering and purchased an aggregate of 180,000 units. Participation of the insiders in the offering constituted a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions), but was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities issued to the insider, nor the consideration paid by the insider exceeded 25 per cent of the company's market capitalization. None of the company's directors expressed any contrary views or disagreements with respect to the foregoing. The company did not file a material change report 21 days prior to the closing of the offering as the details of the participation of the insiders of the company had not been confirmed at that time.

About Hannan Metals Ltd.

Hannan is a natural resource and exploration company, developing sustainable resources of metal needed to meet the transition to a low carbon economy. Over the last decade, the team behind Hannan has forged a long and successful record of discovering, financing and advancing mineral projects in Europe and Latin America. Hannan is a top-10 in-country explorer by area in Peru and has recently optioned a copper porphyry project in northern Chile.

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