REDIVIUM LIMITED — Interim / Quarterly Report 2013

Oct 24, 2012

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1st Quarter Activities Report 2012/2013

Fast Facts

ASX Code: HNR

Capital Structure

Shares on issue: 479.8m

Options on issue: 31.2m

Market cap: $10.5m (at 2.2c)

Board of Directors

Chairman: Richard Scallan

Managing Director: Damian Hicks

Non-Executive Director: William Hicks

Non-Executive Director: Jonathan Murray

Non-Executive Director: Olof Forslund

Dear Shareholders,

During the 1st Quarter (July – September 2012) Hannans:

• § Completed the 2012 infill diamond drilling programme (6,634m) at Rakkurijoki iron deposit, Sweden;

• § Initiated a scoping study at Rakkurijoki iron deposit, Sweden (results due for release in early 2013);

• § Received assay results from Rakkurijoki and Laukkujärvi iron prospects and Särksjön gold project, Sweden;

• § Completed summer field campaigns at various projects within the project pipeline in both Sweden and Norway; and

• § Received laboratory confirmation of nickel sulphide mineralisation from Mt Gordon nickel prospect, Western Australia.

Subsequent to the end of the current Quarter Hannans announced:

• § Receipt of positive preliminary metallurgical test work results on samples from both Altavaara and Paljasjärvi iron prospects, Sweden;

• § A process to divest the Hannans nickel sulphide assets in Western Australia;

• § A Share Purchase Plan to fund exploration and working capital; and

• § The sale of the Discovery Zone copper project to Avalon Resources Ltd for $4m (subject to completion of due diligence).

During the 2nd Quarter (October – December 2012) Hannans will focus on:

Non-Executive Director: Markus Bachmann

Projects

Australia Nickel Gold

Sweden Iron Copper-Gold

Norway Copper-Gold

• § Providing oversight to the scoping study being completed by the independent mining consultant for the Rakkurijoki iron deposit;

• § Preparing drilling campaigns and obtaining approvals for Rakkurijoki, Rakkurijärvi, Ekströmsberg and Altavaara iron prospects, Sweden;

• § Preparing a campaign and obtaining approvals for the next round of exploration geophysics and drilling at the high priority Pahtohavare copper project in Sweden;

• § Preparing a campaign and obtaining approvals for the next round of exploration (including shallow drilling) at the high priority Fiskarfjellet copper project in Norway;

• § Preparing exploration campaigns for Hannans target generation projects in Norrbotten and Västerbotten in Sweden and Finnmark, Troms and Nordland in Norway with a view to divesting non-core projects through joint ventures or relinquishments; and

• § Completing the corporate actions announced during the current Quarter

Yours faithfully

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Managing Director

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HANNANS 1[s][t] QUARTER ACTIVITIES REPORT 2012/2013

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EXPLORATION

SUMMARY AND HIGHLIGHTS

By Amanda Scott, Exploration Manager

Hannans holds a portfolio of mineral assets in Sweden, Norway and Australia. Its dual strategy is focused on creating a pathway to production for the Kiruna Iron Project in Sweden, supplemented with precious and base metals exploration in Sweden, Norway and Australia.

Summary

Sweden & Norway

• § Flagship Kiruna Iron Project with a current combined JORC Resource of 473.7Mt @ 40.5% Fe[1] (magnetite) and Exploration Target of 203-273Mt @ 32.1%-39.6% Fe[2] (magnetite).

• § Pipeline of projects covering gold, copper-gold and lead-zinc prospects in Sweden and Norway.

• Australia

• § Forrestania – nickel & gold project located 7km north of Western Area’s high grade nickel mines.

• § Lake Johnston – nickel & gold project located 25km south east of Norilsk’s Maggie Hays nickel mine and 100kms west of Norseman, Western Australia.

• § Queen Victoria Rocks – nickel and gold project located 30km south-west of Coolgardie, Western Australia.

• § East Pilbara Project – gold and base metals projects located east of Newman, Western Australia.

Highlights

Sweden & Norway

• § Infill diamond drilling programme consisting of 19 holes (total 6,634m) was completed in September 2012 at the Rakkurijoki iron deposit, Sweden:

• High grade iron mineralisation intercepted from infill drilling at Rakkurijoki iron deposit including 51m @ 46.6% Fe from 189.9m.

• § Positive preliminary metallurgical results received from both Altavaara and Paljasjärvi iron prospects indicating premium grade concentrates (>68% Fe) are obtainable.

• § Exploration diamond drilling of three holes (total 653m) testing a highly prospective gold target was completed during July 2012 at the Särksjön project, Sweden.

• Low grade gold mineralisation was intercepted in all three holes at Särksjön including 7m @ 1g/t Au from 74m.

Australia

• § Petrographical analysis of drill chips confirms the presence of nickel sulphides at Mt Gordon nickel prospect, Lake Johnston.

• § Application for Exploration Incentive Scheme (EIS) funding for additional drilling at the Mt Gordon nickel discovery was made during the Quarter.

1 Refer to page 14 for Hannans’ JORC Compliant Indicated and Inferred Resource tables.

2 The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by Hannans reviewed by Mr Thomas Lindholm, of GeoVista AB. The potential quantity and grade of the exploration targets is conceptual in nature, there has been insufficient interpretation to define a JORC Mineral Resource and it is uncertain if further interpretation will result in the determination of a JORC Mineral Resource.

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KIRUNA IRON PROJECT

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RAKKURIJOKI

• § Infill diamond drilling at the Rakkurijoki iron deposit was finalised for the year totalling 19 holes for 6,634m bringing the total number of holes drilled by Hannans to 35 for a total of 12,087m (includes 6 holes at the Rakkurijärvi iron prospect, located 2km along strike from Rakkurijoki).

• § Approximately 5,240m remain to be drilled to complete the 100m infill programme but all of these holes need to be drilled during winter when the ground is frozen. A work plan for this final phase of 100m infill drilling is currently being prepared with drilling anticipated to commence in late January 2013.

• § Once the 100m infill programme is completed (approximately April 2013) a resource update will commence; it is anticipated that having completed the 100m-spaced infill drilling the majority of inferred tonnes will move into the indicated category.

• § During the Quarter a scoping study to mine the Rakkurijoki iron deposit was initiated. The Rakkurijoki iron deposit is the most advanced within the Kiruna Iron Project. From a strategic standpoint, the Rakkurijoki deposit presents the best opportunity for Hannans to build an operating mine and thus become an iron ore producer.

• § The scoping study aims to confirm or discard the technical and financial viability of the Rakkurijoki deposit as a standalone operation. The scope of works is being provided by Rock Team[3] and supported by Vectura[4] includes but is not limited to the following tasks:

• Whittle optimisations and schedules (4 scenarios);

• Final and stage pit designs;

• Waste and moraine dump designs;

• Evaluating and reporting inventories for the pit designs;

3 Rock Team is providing Technical Services and is responsible for the delivery of the scoping study.

4 Vectura is a specialist in transport infrastructure and movement planning in Sweden, Vectura will provide Rock Team with key logistic information which will feed into the scoping study.

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• Develop mining schedules for each option (2 selected options);

• Conceptual site layout plans;

• Benchmark processing cost and performance;

• Conceptual design of loading terminal (2 separate proposals);

• Study of rail transport systems (2 alternatives);

• Study of port alternatives and port logistics;

• Options for loading terminals and loading technologies; and

• Sea transport options and cost for shipping to Antwerp, Bremerhaven and the Mediterranean Sea.

• § The final result of the scoping study will contain CapEx, FOB OpEx, indicative shipping costs, projected cash flows and an estimated NPV for the envisaged operation with accuracy of ± 30%.

• § The scoping study is expected to be delivered to the Board of Directors by late December 2012.

• § Laboratory results from seven diamond holes at Rakkurijoki were returned during the Quarter and are summarised in Table 1 below.

Table 1: Drilling results received from Rakkurijoki iron deposit during the Quarter

	Northing	Easting					From	To
Hole ID	(RT 90)	(RT 90)	RL	Azi	Dip	EOH	(m)	(m)	Intercept	Fe %
RJO12011	7527698	1686063	472	320	-53	240	135.2	146.51	11.31	47.1
							154.65	190.55	35.9	32.8
RJO12012	7527570	1685916	470	321	-47	141	NSA
RJO12013	7527526	1685952	470	319	-58	222	40.13	56.21	16.08	29.7
RJO12014	7527493	1685981	471	322	-65	174	NSA
RJO12015	7527660	1686096	471	318	-62	342	189.94	240.97	51.03	46.6
							244.27	264.85	20.58	35.3
RJO12016	7527642	1685986	471	320	-49	123	40.9	52.33	11.43	36.8
							57.95	77.54	19.59	36.2
							84.2	90.32	6.12	47.4
RJO12017	7527556	1686054	471	321	-66	300	184.52	207.03	22.51	43.5
							223.31	254.28	30.97	25.27
RJO12018	7527758	1686134	471	314	-53	280	153.58	201.17	47.59	40.9
RJO12019	7527481	1686115	471	313	-67	456	382.89	449.75	51.58	31.4

Note: All samples submitted to ALS Laboratories (Brisbane) for ME-XRF15b for iron analysis and ME-ICP61 for all other elements.

EKSTRÖMSBERG

• § The Ekströmsberg iron prospect is located in the Kiruna South Hub, 30km southwest of Kiruna.

• § Geophysical modelling at Ekströmsberg is almost complete and will aid in designing an infill diamond drill programme scheduled for winter 2013. Several exploration holes located outside of the deposit area are also planned targeting magnetite and hematite iron mineralisation.

• § The current JORC resource for Ekströmsberg is:

• 30.4Mt @ 52% Fe (Indicated)

• 41.6Mt @ 52% Fe (Inferred)

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LAUKKUJÄRVI

• § The Laukkujärvi iron prospect is located in the Kiruna Central Hub, 30km west of Kiruna.

• § Laboratory results from sixteen diamond holes drilled at the Laukkujärvi iron prospect during 2011 were returned during the Quarter and are summarised in Table 2 below.

• § The iron mineralisation at Laukkujärvi is typically narrow (average 15m thick) and of moderate grade. The iron mineralisation is comprised of both magnetite and hematite and also commonly contains coincident copper and gold mineralisation. No resource calculation has been made to date for Laukkujärvi although the JORC Exploration Target is:

 4-8Mt @ 30-35% Fe

Table 2: Drilling results received from Laukkujärvi iron prospect during the Quarter

	Northing	Easting					From	To			Cu
Hole ID	(RT 90)	(RT 90)	RL	Azi	Dip	EOH	(m)	(m)	Intercept	Fe %	ppm
LAU11001	7531970	1656316	467	48	-59.7	221.1	74	82	8	24.2	2285
							102	135.2	32.5	34.1	2756
LAU11002	7532026	1656407	470	52	-58.5	200	58.8	84.6	10.4	27.6	_
LAU11003	7531923	1656374	466	53	-44	43	NSA
LAU11004	7531876	1656307	465	53	-50.5	203.6	186.5	202.5	16	25.0	2793
LAU11005	7531979	1656452	469	235	-48.8	118.6	94.2	110.7	16.5	42.2	2354
LAU11006	7532048	1656502	473	239	-48.8	274.7	49.85	56.78	6.93	30.9	_
							175.68	186	10.32	_	4982
							226.19	234.17	7.98	23.3	2044
LAU11007	7531943	1656524	470	54	-59.6	245.2	34.9	58.1	23.2	46.6	_
							69.62	82	12.38	21.1	_
LAU11008	7531886	1656602	468	48	-60.1	240.1	36.2	66.52	30.32	42.3
LAU11009	7531868	1656662	466	50	-60.6	251.2	NSA
LAU11010	7531852	1656723	467	52	-50.5	182	NSA
LAU11011	7532063	1656327	469	55	-42.4	240.6	46.83	73.58	26.75	31.1	1963
							118.47	127.6	9.13	45.8	_
							164.78	175.05	10.27	39.5	_
LAU11012	7532015	1656262	470	55	-50.1	241.9	93.82	102.31	8.49	33.0	7536
							152.47	182.87	30.4	28.7	2597
							214.27	219.48	5.21	39.0	_
LAU11013	7531933	1656266	466	52	-54.5	241.1	169.82	183.78	13.96	23.9	1279
LAU11014	7531890	1656685	469	26	-44.6	130.1	43.34	57.19	13.85	27.4	_
							63.19	75.19	12	24.4	_
							104.61	117.05	12.44	24.8	_
LAU11015	7531962	1656456	468	54	-49.5	260	22.77	27.97	5.2	41.7	_
LAU11016	7532119	1656399	472	51	-43.9	200	40.5	58.32	17.82	39.9	_

Note: All samples submitted to ALS Laboratories (Brisbane) for ME-XRF15b for iron analysis and ME-ICP61 for all other elements.

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ALTAVAARA

• § The Altavaara iron prospect is located in the Kiruna North Hub, 15km south of Kiruna and just 600m from the E10 highway.

• § Preliminary metallurgical test work results on drill core samples from Altavaara were received subsequent to the end of the Quarter (refer ASX Announcement dated 24 October 2012).

• § The DTR results confirm that a high grade (>70% Fe) magnetite concentrate can be produced from ore at Altavaara despite the low feed grades (average 24%).

• § In late 2011, 13 diamond drill holes were completed and in January 2012 an updated Exploration Target was released for Altavaara being:

• 55-60Mt @ 26-29% Fe[5]

PALJASJÄRVI

• § The Paljasjärvi iron prospect is located in the Lannavaara Hub, 70km trucking distance from the nearest rail head at Svappavaara.

• § Preliminary metallurgical test work results on historic drill core samples from Paljasjärvi were received subsequent to the end of the Quarter (refer ASX Announcement dated 24 October 2012).

• § The DTR results confirm that a high grade (>66% Fe) magnetite concentrate can be produced from ore at Paljasjärvi. The results also showed that the sulphur levels in the concentrate were elevated which is expected from skarn iron ores from the Kiruna District.

• § The Paljasjärvi iron prospect is the priority exploration target in the Kiruna district for Hannans owing to its large strike length of iron mineralisation (magnetite) which is approximately 3,500m.

• § Diamond drilling of approximately 10 holes has been planned and all governmental approvals have been received. This initial drill programme will focus on the southern half of the deposit and will have a profile spacing of approximately 200m.

• § The current JORC Exploration Target for Paljasjärvi is:

• 40-60Mt @ 30-40% Fe.

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Figure 1: Drill Rig at Rakkurijoki prospect, Kiruna, April 2012.

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Copyright © Photo by Hans Lindberg
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5 The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by Hannans reviewed by Mr Thomas Lindholm, of GeoVista AB. The potential quantity and grade of the exploration targets is conceptual in nature, there has been insufficient interpretation to define a JORC Mineral Resource and it is uncertain if further interpretation will result in the determination of a JORC Mineral Resource.

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PRIORITY PRECIOUS AND BASE METALS PROJECTS

SÄRKSJÖN PROJECT

• § Diamond drilling of three holes along a single profile, for a total of 652m, was completed during July at the Särksjön gold project located in the Swedish Caledonide Front. The drilling was designed to test a coincident IP and EM anomaly generated by the company in 2011 and also to follow up on high-grade mineralised outcrop sampled in 2010.

• § Assay results from the diamond drilling have been received and are located in Table 3 below; whilst low-grade, a contiguous gold-mineralised zone was intercepted in all three holes. The mineralisation is characterised by strong silicification and intense arsenopyrite mineralisation within a wider marginal zone of weakly disseminated pyrite, pyrrhotite, and arsenopyrite. Lead, zinc and molybdenum values were anomalous but not economic.

• § The host rocks at Särksjön are intensely deformed which is consistent with rocks located in the Caledonides, despite this; the low-grade gold-arsenic mineralisation can be traced between the three diamond drillholes and appears to be undeformed. Locally, high-grade gold (>10g/t Au) mineralisation as seen in outcrop and historic drill core, appears to be located within small scale (cm) fold hinges.

• § Further work is required to fully understand the controls on gold mineralisation at Särksjön and to determine if any economic concentrations of high-grade gold located in larger scale, possible first order, fold hinges occur within the project.

Table 3: Drilling results received from the Särksjön Project during the Quarter

	Northing	Easting					From	To
Hole ID	(RT 90)	(RT 90)	RL	Azi	Dip	EOH	(m)	(m)	Intercept	Au g/t	As ppm
SAR12001	7203500	1428005	826	90	-45	300	135.45	140.5	5	0.56	3157
							146.45	156.5	8	0.28	5235
SAR12002	7203500	1428200	811	90	-60	146	15.08	21.08	6	0.72	6094
SAR12003	7203500	1428100	800	90	-50	206	74	81	7	1	3062

Note: All samples submitted to ALS Laboratories for Au-AA25 for gold analysis and ME-ICP61 for all other elements.

FISKARFJELLET PROJECT

• § The Fiskarfjellet Project is located approximately 25km southwest of Alta, northern Norway.

• § During the 2011 summer field season a sediment hosted copper discovery was made by Hannans at Fiskarfjellet. Mapping at the project has revealed several kilometres of copper-mineralised dolomitic limestone across three separate dolomite horizons namely at Fiskarvatnet, Flomvatnet and Kvartpååttevatnet. High-grade copper mineralisation was also discovered at the Flintfjellet prospect located a further 10-15km southwest of Fiskarfjellet.

• § During the 2012 summer field season further mapping and sampling of the dolomite horizons has occurred in addition to sampling of the wall-rock siltstone. Minor chalcopyrite mineralisation has been identified in the wallrock siltstones at both Fiskarvatnet and Kvartpååttevatnet (AL12001).

• § At the Flintfjellet prospect all samples collected to date (AL12002-AL12006, AL11090-AL11091) have come from an extensive dolomite boulder field/train. During the Quarter mapping of the dolomite boulder train (approximately 1km) located additional dolomite boulders with high-grade Cu-Ag mineralisation and up to 1.26 g/t Au. The mineralised boulders are found in a limited area within the dolomite boulder field.

• § The copper mineralisation in the dolomite boulders is largely chalcocite-bornite veining. Occasionally the dolomitechert is brecciated with a semi-massive to massive chalcocite-bornite matrix. See Table 4 below for assay results.

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Table 4: Rock chip results received from the Fiskarfjellet Project during the Quarter

Sample No.	UTM East	UTM North	UTM Zone	Sample Type	Sub-Area	Au g/t	Ag g/t	Cu %
AL12001	562047	7753759	34	Boulder	Kvartpååttevatnet	0.66	x	0.26
AL12002	554718	7746914	34	Boulder	Flintfjellet	x	181	23.70
AL12003	554793	7747014	34	Boulder	Flintfjellet	x	35	3.99
AL12004	554597	7747027	34	Boulder	Flintfjellet	x	218	26.00
AL12005	554594	7747031	34	Boulder	Flintfjellet	0.01	314	>40
AL12006	554584	7747036	34	Boulder	Flintfjellet	1.26	226	26.20
AL11090	554597	7747025	34	Boulder	Flintfjellet	0.03	435	>40
AL11091	554583	7747036	34	Boulder	Flintfjellet	0.06	484	>40
AL12007	552337	7743350	34	Bedrock	Flintfjellet	0.02	1.4	0.51
AL12008	550813	7743707	34	Bedrock	Flintfjellet	0.06	151	27.40
AL12009	551061	7744230	34	Bedrock	Flintfjellet	x	4.2	0.76
AL12010	551291	7744279	34	Bedrock	Flintfjellet	0.03	6.7	1.23

Note: All samples submitted to ALS Laboratories for Au-AA25 for gold analysis and ME-ICP61 for all other elements.

• § 5km to the southwest of the Flintfjellet boulder train, stratabound Cu-Ag mineralisation of the Fiskar-type was discovered along the contacts of two extensive dolomite layers of the Storviknes Formation although from the few exposures mapped the potential for significant thickness of copper mineralised dolomite rocks appears small (AL1212007-AL12010).

• § The Norwegian Geological Survey (NGU) completed airborne electromagnetic, magnetic and radiometric surveys over the Fiskarfjellet Project during the Quarter as part of a larger government-funded study of the AltaKvænangen tectonic window. The data is expected to be released to the public in late 2012.

• § Hannans will process, model and interpret the NGU airborne data when it becomes available and will then seek to carry out IP surveys in areas identified as prospective from the airborne data.

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Figure 2: Airborne geophysical survey being flown over the Fiskarfjellet Project, October 2012

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NJIVLOJÁVRI PROJECT

• § The Njivlojávri Project is located 35km northwest of Kautokeino (northern Norway).

• § During the 2011 summer field season Hannans identified a >2km long copper-gold anomaly generated through C- Horizon soil sampling (50 x 200m spacing) at the Njivlojávri Project. The anomaly appears to be bound to a mineralised shear zone. Hannans also discovered copper-gold mineralisation in float samples at the Suovrrajávri Prospect which sits between known mineralisation to both the north and south.

• § Additional rock sampling of quartz-carbonate-chalcopyrite veins and prospecting in the eastern part of the licenses was completed during the 2012 summer field season. A total of 8 samples were collected and results are listed in Table 5 below.

• § An infill C-Horizon soil sampling programme and a ground magnetic survey were also planned for the summer field season at Njivlojávri but have been postponed until 2013 due to a governmental delay in permitting.

Table 5: Rock chip results received from the Njivlojávri Project during the Quarter

Sample No.	UTM East	UTM North	UTM Zone	Sample Type	Sub-Area	Au g/t	Ag g/t	Cu %
KA12001	565372	7692409	34	Bedrock	Njivlojávri	x	x	0.01
KA12002	565351	7692418	34	Bedrock	Njivlojávri	1.37	0.5	17.05
KA12003	566214	7685382	34	Bedrock	Daccavarri	0.02	x	0.25
KA12004	565240	7692618	34	Bedrock	Njivlojávri	0.1	x	0.63
KA12005	565242	7692617	34	Bedrock	Njivlojávri	0.07	x	12.45
KA12006	565178	7693074	34	Bedrock	Njivlojávri	0.03	x	1.10
KA12007	565269	7693890	34	Subcrop rock	Njivlojávri	0.25	x	2.84
KA12008	566251	7693591	34	Bedrock	Njivlojávri	0.29	0.8	15.05

Note: All samples submitted to ALS Laboratories for Au-AA25 for gold analysis and ME-ICP61 for all other elements.

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PROJECT PIPELINE

Hannans is committed to building its pipeline. Many projects are assessed with a view to converting the projects into priority projects or relinquishing them. This process is a key part of Hannans’ project generation strategy.

ÅGGOJAURE

• § The Åggojaure Project is located approximately 100km northwest of Karesuando (northern Sweden). The project is located in the under-explored and poorly understood Archaean terrane of Norrbotten.

• § Permits were applied for and granted during the Quarter after Hannans identified this area as an area of mineral prospectivity given the age of the rocks. Archive research showed molybdenum was identified in the project area in the early 1980’s by the Swedish Geological Survey. In 1992 a private prospector collected a sulphidic quartz outcrop sample located 1.7km east of the molybdenum mineralisation; re-assay of the original sample by Hannans during the Quarter returned a value of 38.7g/t Au.

• § Hannans subsequently spent a week in late July 2012 in the field mapping and sampling at the Åggojaure Project. The mapping showed that thin (5-15cm) sulphide mineralisation (pyrite and minor chalcopyrite) occurred frequently along the several kilometre-long NNW and NNE shear zones and typically along sheared contacts of diabase dykes.

• § Significant assay results include:

• 0.27g/t Au, 60.4g/t Ag, 5.09% Cu and 2990ppm W (ÅG12005)

• 1.43g/t Au, 2.6g/t Ag, 1.21% Cu (ÅG12026)

• § Whilst the width of mineralisation at Åggojaure was disappointing the Archaean terrane in Norrbotten remains an area of exploration interest for Hannans.

VÅTMYRBERGET

• § During August 2012 a ground magnetic survey was initiated at the Våtmyrberget Project, located in the northern Skellefte District, Sweden. The survey was focused on an area of outcropping poly-metallic mineralisation with magnetic profiles covering a strike length of 13km.

• § The poly-metallic mineralisation at Våtmyrberget is hosted in felsic volcanics (rhyolite-trachyte) and is associated with magnetite mineralisation. Previously reported sampling by Hannans returned the following results:

• 4.56% Cu, 32.5g/t Ag, 1,540 ppm W and 0.1g/t Au (KS08105)

• 2.47% Cu, 29.8g/t Ag, 370ppm W and 0.39g/t Au (KS08106)

• 0.9% Cu, 8.7g/t Ag, 2,470ppm W and 0.1g/t Au (KS08204)

• § It is anticipated that the detailed ground magnetic survey will assist in targeting areas of magnetite and accompanying poly-metallic mineralisation. The remaining profiles will be surveyed during the winter.

RINGVASSØYA

• § During September 2012 a ground magnetic survey was initiated and completed at the Ringvassøya Project located 80km north of Tromsø, Norway. The survey covered three prospect areas including Holmvasshøgda, Sørdalshøgda and Sørdalshøgda South. The results are yet to be interpreted by Hannans.

• § 14 samples were also collected during the Quarter, 7 of which have been returned but with no significant results. The balance of assay results is expected in late October.

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KVÆFJORD

• § The Kvæfjord Project is located 15km west of the town on Harstad, central Norway and is comprised of three separate prospect areas; Kvæfjord, Straumsfjellet and Salen.

• § During July 2012, 24 rock samples were collected in the area between the abandoned Berg Mine and the Storsurnåsen workings (Kvæfjord Prospect); results are listed in Table 6 below.

Table 6: Rock chip results received from the Kvæfjord Project during the Quarter

Sample No.	UTM East	UTM North	UTM Zone	Sample Type	Sub-Area	Au g/t	Ag g/t	Cu %
KV12001	550904	7631491	33	Bedrock	Kvæfjord	0.02	0.9	0.01
KV12002	551063	7631028	33	Bedrock	Kvæfjord	x	1	0.02
KV12003	548675	7630829	33	Bedrock	Kvæfjord	0.07	0.9	0.02
KV12004	549197	7630792	33	Bedrock	Kvæfjord	0.67	12.1	0.78
KV12005	549197	7630792	33	Bedrock	Kvæfjord	0.38	12.7	0.79
KV12006	549197	7630792	33	Bedrock	Kvæfjord	0.28	2.7	0.12
KV12007	547795	7630393	33	Boulder	Kvæfjord	x	x	0.00
KV12008	547188	7630351	33	Bedrock	Kvæfjord	x	7.5	0.56
KV12009	548697	7632945	33	Boulder	Kvæfjord	x	1.1	0.02
KV12010	548716	7632987	33	Bedrock	Kvæfjord	x	0.8	0.02
KV12011	543986	7628336	33	Dump sample	Kvæøya	x	x	0.03
KV12012	543986	7628336	33	Dump sample	Kvæøya	0.02	1.8	0.35
KV12013	543986	7628336	33	Dump sample	Kvæøya	x	x	0.00
KV12014	543986	7628336	33	Dump sample	Kvæøya	x	x	0.09
KV12015	543986	7628336	33	Dump sample	Kvæøya	x	x	0.03
KV12016	547259	7630252	33	Bedrock	Kvæfjord	x	0.8	0.02
KV12017	547259	7630252	33	Dump sample	Kvæfjord	0.02	19.5	0.84
KV12018	547199	7630310	33	Bedrock	Kvæfjord	0.07	48.8	0.62
KV12019	547178	7630309	33	Bedrock	Kvæfjord	0.03	24.9	1.10
KV12020	547178	7630309	33	Dump sample	Kvæfjord	0.09	48.1	1.68
KV12021	547258	7630204	33	Dump sample	Kvæfjord	x	9.2	0.65
KV12022	547258	7630204	33	Bedrock	Kvæfjord	0.01	14.9	1.03
KV12023	547241	7630149	33	Dump sample	Kvæfjord	0.02	33.4	1.43
KV12024	547241	7630149	33	Dump sample	Kvæfjord	0.08	111	3.94

Note: All samples submitted to ALS Laboratories for Au-AA25 for gold analysis and ME-ICP61 for all other elements.

• § C-Horizon soil sampling (81 samples) was also carried out during the quarter at the Kvæfjord Prospect covering an extensive, untested VLF conductor between Berg and Storsurnåsen. The peak copper value obtained from the soil sampling was 1,160ppm and the peak gold value was 0.014ppm.

• § At the Straumsfjellet Prospect mapping and rock chip sampling was completed in September 2012 over polymetallic skarn horizons hosted in calcareous sediments and amphibolite. The strike length of the skarn horizons is approximately 1km although the mineralisation appears to be quite thin. Assay results are expected in late October 2012.

• § A NGU funded airborne geophysics survey was flown over the Kvæfjord Project area during the Quarter with the data being released to the public on the 26[th] of October 2012; on receipt of the data in-house modelling and processing will commence.

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HANNANS 1[s][t] QUARTER ACTIVITIES REPORT 2012/2013

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UCCAVUOVDAS

• § The Uccavuovdas Project is located 8km north of Kautokeino (northern Norway).

• § Similar to Njivlojávri to the northwest, Uccavuovdas is prospective for shear-hosted copper-gold mineralisation. The permits have very few exposures of outcrop and are covered by a veneer of glacial material. Tectonically the area is very complex with several first order NNW-SSE oriented shear zones or structures cutting the stratigraphy.

• § All known mineralisation within the permit area are localised along shear structures and the stratigraphy is comprised of albite-carbonate altered greenstones and amphibolites and graphite schists.

• § The Uccavuovdas area has been explored by several companies and the NGU from as early as 1960. The most recent work completed was by Outokumpu where they drilled 16 diamond drill holes and also completed several campaigns of both airborne and ground geophysical surveys producing multiple anomalies, most of which remain to be tested.

• § During September2012 Hannans took 121 C-Horizon soil samples which have identified a strong copper anomaly (peak copper value of 595ppm) that is also coincident with an airborne conductivity anomaly and a NW-SE magnetic lineament. In 2011 a small outcrop of albite-carbonate altered felsite breccia with veins and disseminations of chalcopyrite and pyrite returned an assay of 0.75g/t Au and 1.56% Cu (KA11049). Follow-up work is currently being planned for Uccavuovdas.

NORDKAPP AND SNEFJORD

• § Follow-up of REE anomalies in regional till samples (historic till samples collected and re-assayed by NGU in 2011) was completed during the Quarter and involved mapping and a scintillometer survey. The REE-till anomalies are underlain by immature Caledonian nappe sediments (greywacke and mica schist) and radiation is very low consequently no further sampling was conducted by Hannans. Further research by NGU during 2012 indicates that the heavy mineral enrichment in the till might in fact be caused by deep weathering and glacially reworked saprolite. No further work is recommended at Nordkapp and Snefjord for REE.

• § A single sample collected from a 1m thick massive-sulphide vein hosted in gabbro (Honningsvåg Suite), assayed 0.7% Cu and 0.3% Ni and requires further follow-up.

BRENNFJELLMYRA

• § The Brennfjellmyra Project is located 5km southeast of the small town of Skibotn (northern Norway).

• § Historic sampling by the NGU returned samples assay in the range 1-3g/t Au. During the Quarter Hannans followed-up on the NGU work and found additional workings with similar mineralisation (disseminated chalcopyrite-pyrrhotite) in a garnet bearing amphibolite and close to the contact with a metagabbro; 6 samples were collected and results are expected in late October.

RANA GRAPHITE

• § During the Quarter a 7km long graphite-rich sedimentary horizon was mapped and sampled within the Rødingfjell Nappe, located 15km west of Mo i Rana, Norway. 10 rock chip samples were collected and assayed for carbon content which ranged between 2.2-6.4% C (organic). Due to the low total carbon content no flake size analysis was completed and no permit was applied for over the prospective horizon.

LAKE JOHNSTON

• § The receipt of petrographic results during the quarter confirmed the presence of komatiite-hosted nickel sulphide mineralisation from RC drilling at the Lake Johnston project. This newly found sequence of komatiites is located in the southern portion of the Lake Johnston tenement package within the Mt Gordon prospect area. These results are highly encouraging for Hannans as they confirm the presence of a new sequence of nickel sulphide bearing komatiites, in an area which has no previous noted record of exploration for that style of mineralisation.

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HANNANS 1[s][t] QUARTER ACTIVITIES REPORT 2012/2013

13

NICKEL PROJECT DIVESTMENT

At the end of the quarter the Hannans Board of Directors authorised a process to divest the company’s nickel project portfolio in Western Australia, which includes the:

• § Forrestania Project (east of Hyden, Western Australia);

• § Lake Johnston Project (west of Norseman, Western Australia); and

• § Queen Victoria Rocks Project (south-west of Coolgardie).

The divestment process is consistent with Hannans business stratergy of moving away from pure high-risk greenfields exploration projects to a balanced mix of exploration and development assets.

Hannans is of the firm opinion that the projects subject to divestment are high quality and as a result will be looking to continue holding an interest in the projects by retaining a joint venture interest or hold equity in the incoming party. Hannans will be be seeking to retain a 100% interest in the gold rights only within the Skeleton Rocks area of the Forrestania Project.

CONTACTS

For further information please contact:

Damian Hicks Managing Director

Amanda Scott Exploration Manager

Ben Della-Vedova Business Development Manager

Tel: +61 8 9324 3388 Web: www.hannansreward.com Email: admin@hannansreward.com

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HANNANS 1[s][t] QUARTER ACTIVITIES REPORT 2012/2013

14

HANNANS JORC RESOURCE TABLES

JORC COMPLIANT INDICATED MINERAL RESOURCE TABLE

Prospect	Mt	Fe (%)	P (%)	S (%)
Sautusvaara South	32.0	37.4	0.06	1.63
Sautusvaara North	11.4	39.7	0.09	0.44
Ekströmsberg	30.4	52.0	Unavailable	Unavailable
TOTAL	73.8	43.0	-	-

JORC COMPLIANT INFERRED MINERAL RESOURCE TABLE

Prospect	Mt	Fe (%)	P (%)		S (%)
Rakkurijärvi	69.6	28.5	0.07		0.93
Rakkurijoki	74.5	39.7	0.28		0.89
Discovery Zone	10.9	38.7	0.05		0.95
Tributary Zone	4.9	28.6	0.05		1.08
Sautusvaara South	6.8	26.6	0.09		1.82
Sautusvaara North	1.0	44.8	0.05		0.46
Vieto	14.0	35.7	0.14		1.46
Puoltsa	19.1	30.2	Unavailable		Unavailable
Renhagen	26.3	32.1	0.21		0.03
Harrejaure	16.2	43.4	0.04		0.01
Ekströmsberg	41.6	52.0	Unavailable		Unavailable
Tjårrojåkka	52.6	51.0	Unavailable		Unavailable
Pattok	62.4	44.2	1.96		Unavailable
TOTAL	399.9	38.1	-		-
TOTAL		Mt		Fe (%)
INDICATED & INFERRED		473.7		40.5

Competent Persons Statement

The information in this document that relates to exploration results is based on information compiled by Ms Amanda Scott, Exploration Manager, Hannans Reward Ltd, who is a Member of the Australian Institute of Mining and Metallurgy. Ms Scott is a full-time employee of Hannans Reward Ltd. Ms Scott has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2004 edition of the “Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms Scott consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Persons Statement-Rakkurijärvi, Rakkurijoki, Discovery, Tributary Zone, and Puoltsa Mineral Resources

The mineral resource estimate for Rakkurijärvi, Rakkurijoki, Discovery, Tributary Zone and Puoltsa is effective from 13 January 2012 and has been prepared by Mr Thomas Lindholm, MSc of GeoVista AB, Luleå, Sweden acting as an independent “Competent Person”. Mr Lindholm is a member of the Australasian Institute of Mining and Metallurgy (Member 230476). Mineral resources of the Rakkuri iron deposits have been prepared and categorised for reporting purposes by Mr Lindholm, following the guidelines of the JORC Code. Mr Lindholm is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits.

Competent Persons Statement-Ekströmsberg, Tjårrojåkka and Pattok Mineral Resources

The mineral resource estimate for Ekströmsberg, Tjårrojåkka, and Pattok is effective from 22 July 2011 and has been prepared by Dr Christopher Wheatley of Behre Dolbear International Ltd, UK, acting as an independent “Competent Person”. Dr Wheatley is a member of the Institute of Materials Minerals and Mining (Member 450553). Mineral resources of the Ekströmsberg, Tjårrojåkka, and Pattok have been

prepared and categorised for reporting purposes by Dr Wheatley, following the guidelines of the JORC Code. Dr Wheatley is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Dr Wheatley consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Persons Statement-Vieto, Sautusvaara, Renhagen and Harrejaure Mineral Resources

The mineral resource estimate for Vieto and Sautusvaara is effective from 26 July 2011 and the mineral resource estimate for Renhagen and Harrejaure is effective from 13 January 2012 and has been prepared by Mr Geoffrey Reed of MinarcoMineConsult acting as an independent “Competent Person”. Mr Geoffrey Reed is a member of the Australasian Institute of Mining and Metallurgy (CP)(Member 205422). Mineral resources of Vieto, Sautusvaara, Renhagen and Harrejaure have been prepared and categorised for reporting purposes by Mr Reed, following the guidelines of the JORC Code. Mr Reed is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Mr Reed consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Persons Statement-Exploration Targets

The information in this document that relates to JORC Exploration Targets is based on information reviewed by Mr Thomas Lindholm of GeoVista AB, Luleå, Sweden acting as an independent “Competent Person”. Mr Lindholm is a member of the Australasian Institute of Mining and Metallurgy (Member 230476). Mr Lindholm is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Mr Lindholm consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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TRANSACTION SERVICES & CORPORATE MANAGEMENT

Corporate Board Services is designed to assist the Boards and Management of ASX listed companies by assuming responsibility for their day-to-day financial and compliance management.

This value added service enables the Board to focus on important strategic decisions and Management to focus on implementing the strategy in a cost effective manner.

STRATEGY

• CBS provides cost efficient, professional and timely services

• CBS is wholly owned by Hannans

• CBS revenue reduces Hannans’ fixed cost

• CBS offers Hannans shareholders opportunities to access new offerings

• CBS utilises expertise of Hannans corporate team to provide transaction services and corporate management services to listed and unlisted private and public companies

SERVICES OFFERED

Financial Management

§ Budgeting and forecasting

§ Bookkeeping ASX Compliance Management

§ Board remuneration, salaries and wages § Management reporting

§ Annual Report § Quarterly Report § Half-year Report § ASX & ASIC Documentations Shareholder Communications Management

Company Secretarial & Administrative Support

CLIENTELE

Our clients include Equity & Royalty Resources Ltd, Naracoota Resources Ltd (ASX: NRR), Errawarra Resources Limited and the Hannans Reward Group of companies.

The range of services provided this year includes assisting with the preparation of Annual, Half Year and Quarterly Reports, preparation of loan documents, preparation of detailed Board packs for Board meetings, arranging shareholder meetings, preparation of Notices of Meeting and providing full accounting and financial management support to Australian and Swedish based companies.

By utilising the services of CBS, clients can focus on their core business activities.

CONTACT

Michael Craig (Principal) and Mindy Ong (Principal)

6 Outram Street, West Perth, WA, Australia Tel: +61 8 9322 3383

Email: admin@corpbservices.com Web: www.corpbservices.com

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