Mr. Michael Hudson reports

HANNAN RECEIVES DIA APPROVAL FOR MAIDEN DRILL PROGRAM AT SAN MARTIN IN PERU

Hannan Metals Ltd. has received its environmental permit, the declaracion de impacto ambiental (DIA), from the Ministry of Mines in Peru. The DIA is the primary environmental certification required to allow low-impact mineral exploration programs, that includes drilling programs, to proceed at the San Martin copper-silver project in Peru.

Highlights:

• The area for the DIA allows for 40 drill platforms and covers an area approximately nine kilometres long and three kilometres wide (2,700 hectares) at Tabalosos East.
• Drilling tenders are being sought now. Next steps are to apply for the authorization to initiate activities from the DGM (General Directorate of Mining from the Ministry of Mines), a process that takes one month to three months, and then the water use permit (one-month duration) from the Peru National Water Authority (ANA), which should see drill rigs on the ground in San Martin at the start of Q2 2024. As no indigenous population exists within the DIA area, prior consultation (consulta previa) does not apply.
• The copper-silver mineralized shale drill target at San Martin averages 0.9-metre thickness at 1.9 per cent copper and 27 grams per tonne silver from 105 surface channels and has been further defined by soil sampling and lidar over an area of nine kilometres long by one kilometre wide that is interpreted to extend with shallow dips to the west for between two kilometres and four kilometres, with a target depth ranging from surface to 500 metres.

Michael Hudson, chief executive officer, stated: "The approval of our DIA is a watershed moment for Hannan and our joint venture partners, JOGMEC (Japan Organization for Metals and Energy Security), for exploration in the foreland basins and back arc of the Andes in Peru.

"Our maiden low-impact drill program will consist of up to 40 drill platforms to thoroughly test the extensive copper-shale horizon with holes up to 500-metre depth. The DIA allows for hand-carried and helicopter-supported drill testing of its San Martin copper-silver project. We are thankful for all the detailed work of our employees and external experts and the amazingly strong support of the local communities during the public participation meetings as well as the advice from various government agencies.

"We now can apply for the authorization to initiate activities, a process that typically takes one to three months followed by the water use permit, which should see us drilling early in Q2 2024.

"The drill program will provide the opportunity to outline the scale and grade of the extensive copper-silver-rich shale horizon into the third dimension after mapping continuity of the copper-silver-mineralized shale over a nine-kilometre-by-one-kilometre surface area at San Martin."

San Martin copper-silver project

Sediment-hosted stratiform copper-silver deposits are among the two most important copper sources in the world, the other being copper porphyries. They are also a major producer of silver. KGHM Polska Miedz's three copper-silver sediment-hosted mines in Poland (Kupferschiefer) were the leading silver producer in the world and seventh-largest global copper miner in 2020. Quoted resources in 2019 for KGHM were 1,518 million tonnes of 1.86 per cent copper and 55 grams per tonne silver from a mineralized zone that averages 0.4 metre to 5.5 metres in thickness.

To provide context, Hannan's widths and grade (0.9 metre of 1.9 per cent copper and 27 grams per tonne silver) from 105 channel surface samples reported at San Martin (lower cut 0.5 per cent copper), within an area about nine kilometres long and one kilometre wide, compare with those found during the initial modern-day drill discovery of the Kupferschiefer copper-silver deposits.

In 1957, the discovery drill hole (Sieroszowice IG 1) intersected 2.0 metres of 1.5 per cent copper at the depth of 657 metres.

In 1959, the Lubin-Sieroszowice deposit, based on the results from 24 drill holes, contained 1,365,000 tonnes of 1.4 per cent copper and 26 grams per tonne silver in indicated resources, with a thickness ranging between 0.2 metre and 13.1 metres in an area about 28 kilometres long and six kilometres wide between 400 metres and 1,000 metres in depth.

Hannan's sampling to date has been confined to surface channel sampling, although mineralization at Tabalosos East is interpreted to extend with shallow dips to the west for between two kilometres and four kilometres, with a target depth ranging from surface to 500 metres.

Technical background

All samples were collected by Hannan geologists. Samples were transported to ALS in Lima through third party services using traceable parcels. At the laboratory, rock samples were prepared and analyzed by standard methods. The sample preparation involved crushing 70 per cent to less than two millimetres, riffle splitting off 250 grams pulverize splitting to better than 85 per cent passing 75 microns. Samples were analyzed by method ME-MS61, a four-acid digest performed on 0.25 gram of the sample to quantitatively dissolve most geological materials. Analysis is by ICP-MS. Channel samples are considered representative of the in situ mineralization samples and sample widths quoted approximately the true width of mineralization while grab samples are selective by nature and are unlikely to represent average grades on the property. Gold was analyzed by ALS in Lima using a standard sample preparation and 25-gram fire assay sample charge.

About Hannan Metals Ltd.

Hannan Metals 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 Peru. Hannan is a top ten in-country explorer by area in Peru.

Michael Hudson FAusIMM, Hannan's chairman and chief executive officer and a qualified person as defined in National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release.

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