hannans' kiruna iron project

Kiruna Iron Project, Sweden

HANNANS REWARD LIMITEDASX: HNRABN: 52 099 862 129

O C TO B E R 2 0 1 2

Disclaimer

This Document and the information contained herein and any presentation (collectively referred to as “Information”) is proprietary toHannans Reward Limited (“the Company”, “Hannans Reward” or “Hannans”).This Document is intended to provide general background on the Company. It is not a disclosure document and is not intended as an offer,invitation, solicitation or recommendation with respect to any potential transaction.Securities of micro cap exploration companies, typically involve a high degree of risk and as such, any investment in the Company must beconsidered as purely speculative. The Information in this presentation does not purport to cover all relevant information about any potentialinvestment in the Company. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, todetermine the suitability of this investment. You should not solely act in reliance on the material in this presentation. This presentation doesnot purport to be all inclusive or to contain all information which its recipients require in order to make an informed assessment of theCompany’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to theaccuracy or completeness of the information, statements, and opinions contained in this presentation before deciding whether to make aninvestment into Hannans.The Document contains reference to certain intentions, expectations and plans of the Company. Those intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of theCompany. No representation or warranty, express or implied, is made by the Company or any of their respective directors, employees, agents, advisers and consultants that any intentions, expectations or plans will be achieved either totally or partially or within a prescribed timeframe or that any particular rate of return will be achieved. The Information disclosed relates to the proposed business of the Company at the date of this Document. Material information may havechanged since the date the Document was compiled. No responsibility is accepted to advise any person of any change or update any ofthe Information.Neither the provision of this Document nor any information contained in this Document or subsequently communicated to any person inconnection with this Document is, or should be taken as, constituting the giving of investment advice to any person. By accepting thisDocument you acknowledge and agree to be bound by each of the foregoing statements.The currency used throughout the presentation is Australian Dollars unless otherwise stated.

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HANNANS(ASX:HNR)

AUSTRALIANickelGold

SWEDENIron

Copper-Gold

NORWAYCopper-Gold

Organisational Structure

Hannans owns JORC compliant copper-gold resources in Sweden and an extensiveprecious and base metals portfolio in Sweden, Norway and Australia. Thispresentation relates solely to Hannans’ iron project in Sweden.

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Vision for the Kiruna Iron Project

The Kiruna Iron Project will provide a premium quality iron ore concentrate for the global steel industry.

A central iron ore processing facility will be fed by a number of satellite iron ore deposits, mined using open pit methods.

Processed ore will be transported by rail to ports in Sweden and Norway and then onwards to customers in Europe, the Middle East and Far East.

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Kiruna Iron Project Summary

• Low Sovereign Risk

• Excellent Infrastructure

• High Quality Product

• Growing Resource Profile

• Scalable Production

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Board of Directors

Richard ScallanChairman, Hannans Reward Ltd

• Director of Hannans Reward Ltd (2004) • Mining Engineer with 54 years experience in

underground and open cut mining• Previously employed by the Anglo American

Corporation of South Africa Limited for 26 years and joined Renison Goldfields Limited in 1981 where he was employed for 21 years

Jonathan MurrayNon-Executive Director, Hannans Reward Ltd• Director of Hannans Reward Ltd (2010)• Principal legal practice areas include equity

capital markets, takeovers, project acquisitions and divestments, corporate governance, commercial law and strategy

Olof ForslundNon-Executive Director, Hannans Reward Ltd• Director of Hannans Reward Ltd (2012)• Founding director Scandinavian Resources Ltd

(2008) & Kiruna Iron AB• Geophysicist with extensive international

experience in the mineral exploration industry• Previously Regional Manager of SGU Mineral

Resources Information Office

William HicksNon-Executive Director, Hannans Reward Ltd• Founding director of Hannans Reward Ltd

(2002)• Director and secretary of Spargo’s Reward

Gold Mines NL and was instrumental in the listing on the ASX of both Central Kalgoorlie Gold Mines NL and Maritana Gold NL

Damian HicksManaging Director, Hannans Reward Ltd• Founding director of Hannans Reward Ltd

(2002)• Founding director Scandinavian Resources Ltd

(2008) & Kiruna Iron AB• Admitted Barrister & Solicitor in Western

Australia; Bachelor of Commerce (Accounting & Finance)

Markus BachmannNon-Executive Director, Hannans Reward Ltd• Director of Hannans Reward Ltd (2012)• Founding director of Kiruna Iron AB• Corporate finance professional and founding

partner of Craton Capital • Craton Capital awarded Fund Manager of the

Year at the Mining Journal’s “Outstanding Achievement Awards” during December 2010

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Magnus ArnqvistManaging Director (KIAB)

• Ex-MD of Europe’s largest zinc mine • Mining engineer with Rapallo (Australia) and

Mine Manager of the Kristineberg, Storliden and Maurliden Mines (owned by Boliden)

• Bachelor of Mining from Bergsskolan Filipstad and Luleå University of Technology

Swedish Operational Team

Amanda ScottExploration Manager

• Geologist with 8 years experience• Responsible for developing the Kiruna Iron

Project portfolio and the SCR gold and base metals portfolio since inception

• Previously Exploration Manager for Hannans Reward Ltd (2008 – 2010) and Scandinavian Resources Ltd (2010 – 2012)

Jorgen LindsköldSenior Geologist

• Geologist with more than 30 years experience in the Swedish mineral exploration industry

• Previously joined North Atlantic Natural Resources AB (NAN) now also known as Lundin Mining AB for 11 years and Bolidens mine in Renström mainly responsible in mine mapping and ore control

Christina LundmarkManaging Director (SRAB)

• Geologist with more than 15 years experience in the Swedish mineral exploration industry

• Previously Head of Division Mineral Information for the Geological Survey of Sweden (SGU)

• Responsible for SGU participation at PDAC, FEM and other international symposiums

Ana Braña BergshjorthGeophysicist

• Senior mining geophysicist with over 15 years experience working on international exploration in mineral commodities providing extensive geophysical expertise and capability

• Qualified Person according to the statutes of Fennoscandian Review Board and is a member of SveMin

Jan EhrenborgSenior Geologist

• Geologist with more than 40 years experience primarily for SGU and SGAB

• 15 years mapping Tertiary volcanic terrains in Nicaragua and Panama, gold exploration in Guinea (West Africa), logging drill cores for the Swedish Nuclear Fuel and Waste Management Co.

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The Swedish Advantage

• 1,000 year mining history• The largest producer of iron ore in Europe• A leading producer of base metals (copper, lead, zinc) and precious

metals (gold and silver)• Political and economic stability• Strong Government support for mining• Excellent infrastructure• World-class databases• Excellent exploration potential & under-explored by modern standards• Mining friendly minerals legislation• Strong mining know-how• Highly trained personnel

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Scandinavia - Major Mining Centre9

• Multiple infrastructure options

• Existing open-access government owned heavy gauge rail infrastructure

• Capacity constrained but expanding

• Increased flexibility and options on the Kiruna-Luleå rail

• Northland Resources have been allocated access on the Kiruna-Narvik rail

• Annual allocation and access by social and economic assessment criteria

• Two existing port options

• Luleå ‘ready to go’ +/-2mtpa with room for expansion

• Narvik a gateway to the USA, Middle & Far East

Rail, Road, & Ports10

Rail at Port of Lulea

LKAB Assets

Rail to Luleå and Port of Luleå, Sweden

Utilise existing open access gauge rail from Kiruna to Luleå (340km)

• Port of Luleå

• Currently 2mtpa capacity with expansion potential

• Sweden’s largest port for dry bulk handling

• Top 5 amongst Swedish ports for tonnage handled

• DWT 55,000 tonnes (11,8m)

• Annual goods turnover c. 9mt

• Called by c. 700 vessels/yr

• Secured all-year access

• Regular destinations mainly within Baltic region

• LKAB export c. 6mtpa ex Luleå

Ports11

Company Today 2015 2020

LKAB 18mt 28mt 34mt

Northland 0mt 5mt 7mt

Hannans 0mt 0mt 5mt

Other 0mt 0mt 4mt

Total 18mt 33mt 50mt

Source: Port of Narvik Presentation. Date: 15 September 2011

Rail to Narvik and Port of Narvik, Norway

• Utilise existing open access heavy gauge rail from Kiruna to Narvik (180km)

• Narvik Port handles shipping for LKAB and a 10mtpa terminal for Northland Resources is being built

• Can handle Capesize vessels

• Ice-free

• Expansion planned on rail and port

Hannans Competitive Advantage

• Multiple iron ore deposits (at surface) within close proximity to a full service mining townand modern open-access infrastructure

• Hannans portfolio of open pit mining opportunities sit alongside the deepest, mostmodern underground iron mine in the world (owned by LKAB)

• Opportunity exists for Hannans to become independent producer of premium grade DRpellet feed (concentrate)

• Satellite deposits feeding into a central processing facility

• Hannans main iron deposit (open pit opportunity) is within an Area of National Interestfor Mining, within 6km from Kiruna, 600 metres from rail and less than 60 metres fromsealed roads and power

• Scoping study will consider initial production of 2Mt of concentrate per annum

• Metallurgy indicates 68% Fe concentrate product

• Exploitation concession application for main deposit to be lodged Q2/3 2013

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Since April 2010• Aggregation strategy through acquisition, joint venture and

applications• Completed Tasman Metals Ltd JV• Acquires 100% of the Rakkuri Project from Anglo American• Acquires portfolio of iron permits from Grängesberg Iron AB• Environmental and social impact studies commenced• Maiden JORC resource of 412mt @39% Fe published• SRK Consulting independently values Kiruna Iron Project at

US$140M in accordance with 2005 Valmin code1

• Signs co-operation agreement with Boliden to earn 100% interest in Lannavaara

• Conceptual study into iron slurry pipeline completed• Appointed Magnus Arnqvist, Managing Director• Updated JORC resource to 473Mt @ 40% Fe• Completed 23,400m of drilling at Kiruna Iron project

2013 and beyond• Drill

• Rakkurijoki – inferred to measured• Ekströmsberg – inferred to measured• Paljasjärvi – convert exploration target to JORC resources• Greenfields targets to Exploration Targets

• Studies• Social impact• Environmental• Metallurgical• Logistics

• Exploitation licence application/s • Engage with

• Sami Villages• Government Agencies• Kiruna Residents

• Produce high grade concentrate

1Code for the technical assessment and valuation of mineral and petroleum assets and securities for independent expert reports

History and plan13

Growth in Resources14

Exploration UpdateRefer to Appendix for deposit by deposit exploration update

Hannans Iron Deposit Map15

JORC JORC ResourcesConceptual Target Exploration Target Inferred Indicated Measured

Kiruna - South Hotnjos/Leavka Tjåorika (15-30/45-55) Ekströmsberg (41.6/52) Ekströmsberg (30.4/52.0)Luoppovare Tjårrojåkka (52.6/51.0)

Kajpak Pattok (62.4/44.2)Renhagen (26.3/32.1)Harrejuare (16.2/43.4)

Kiruna - Central Piedjastjåkka Laukkujärvi (4-8/30-35) Rakkurijoki (74.5/39.7)Gäddmyr Åkosjegge (10-15/22-30) Rakkurijärvi (69.6/28.5)

Holmajärvi Rakkurijärvi-Discovery (10.9/38.7)

Staggotjåkka Rakkurijärvi- Tributary (4.9/28.6)Eustillako Vieto (14.0/35.7)

Eustiljåkk + Eustilvaara Puoltsa (19.1/30.2)Årosjokk

PirttivuopioKaranisvareSalvotjåkkaHolmajärvi

Kiruna - North Saivo Altavaara (55-60/26-29) Sautusvaara South (6.8/26.6) Sautusvaara South (32.0/37.4)

Rappakojärvi Sautusvaara North (1.0/44.8) Sautusvaara North (11.4/39.7)HonkavareVillenjärvi

Lannavaara Lannavaara 7 Kevus (35-45/28-35)Lannavaara 8 Paljasjärvi (40-60/30-40)

Teltaja (39-47/40-48)Other Masugnsbyn 2 Leppäjoki (5-8/35-45)

LainiojärviTervakoski

RatekSalmijärvi

Iron Deposits by Category16

Focus

Note: 1. Where the iron is predominantly present as magnetite, then the mass recovery will follow the % magnetite in the ore.2. The mass recovery and iron recovery are related by the iron feed grade. i.e. If the iron grade is 10% Fe and this is present as only magnetite (equivalent to14% magnetite in the feed) then a mass recovery of 14%, in a perfect separation, would achieve 100% iron recovery.3. If the iron grade is made up of 50:50 magnetite : hematite then a mass recovery of 7% would achieve 50% iron recovery. If the mass recovery was 14%, as a result of gangue included with the magnetic concentrate, the iron recovery would still be ~50%, if the gangue material did not contain iron.

Head Fe grade in feed

% magnetite in feed

material

% of mass recoveredfrom DTR

% of ironfrom feed material

present in conc. after

DTR

DTR conc Fe grade

DTR conc SiO2 grade

DTR conc Al2O3 grade

DTR conc P grade

DTR conc S grade

Ekströmsberg(Kiruna South) 52.6 28.2 25.9 44.6 70.8 0.7 0.1 0.04 0.003

Rakkurijoki(Kiruna Central) 35.9 27.7 45.2 83.8 69.2 1 0.3 0.009 0.365

Rakkurijärvi (Kiruna Central) 22.3 Insufficient

data 25.5 76.1 68.9 2.2 0.4 0.005 0.022

Puoltsa(Kiruna Central) 49.3 62.4 67.9 96.2 70.3 0.58 0.16 0.0017 0.005

Sautasvaara(Kiruna North) 47.7 No data 54.5 88.5 71.1 0.5 0.2 0.05 0.3

Vieto(Kiruna Central) 32.8 47.9 42.2 82.8 70 1.2 0.2 0.01 0.06

Rakkurijärvi Discovery Zone(Kiruna Central)

46.9 No data 60 89.6 70.8 1 0.2 0.003 0.035

Laukkujarvi(Kiruna South) 10.3 69.9 65.7 98.4 71 0.6 0.02 0.002 0.001

Gaddmyr(Kiruna Central) 64.6 No data 17.9 20.4 71.9 0.01 0.07 0.02 0.005

Preliminary Metallurgical Test Work17

• Most advanced deposits are Rakkurijoki and Ekströmsberg

• Environmental and social impact studies are being prepared for the Rakkuri Area

• Exploration drilling success may change ranking of projects significantly

• Open pit mining proposal

Kiruna Hub18

Rakkurijoki – Ideal Start

Rakkurijoki

• Scoping Study in progress• Environmental impact assessment in progress

(including Rakkurijärvi)• Social impact assessment in progress (including

Rakkurijärvi)• Excellent Location:

• 6km from Kiruna• ~1km from the rail• 250m from the road• 10 minutes from the office

• Open pit mining potential• Current Inferred resources of 74.5Mt @ 39.7%

Fe (down to 350m)• Mineralisation currently open at a depth of

>400m• Area of national interest for mining• Upgrades to +68% Fe product

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Hannans drilling April to June 2012 drilling ~5,500m

HannansRig #1

Hannans Rig #2

Rakkurijoki Project20

LKAB Kiruna Mine

Palisjarvi (80km north-east of Kiruna)

• More than 3km long

• Geophysical survey indicates ~40 metres thick

• Iron confirmed in drilling from 1960 (assayed by Hannans in 2012)

• Metallurgical test work in progress

• Joint venture with Boliden for 100% iron rights

Altavaara (10km south-east of Kiruna)

• Wide intercepts of iron drilled in 2011

• Metallurgical test work in progress to assess potential to create saleable iron product

Ekströmsberg (40km west of Kiruna)

• Higher grade iron deposit with potential for increased tonnage

© Hans Lindberg

Significant Potential21

Capital Structure and Financial Position

Ordinary shares on issue: 479,772,810

Unlisted options on issue: 21.9 million ex @ $0.07 on or before 31 October 2012 3.0 million ex @ $0.13 on or before 1 February 20136.0 million ex between $0.08 – 0.80 on or before 30 June 20130.3 million ex @ $0.07 on or before 15 September 2013

Top 20:Rank Name Units

% of Issued Capital

1 Equity & Royalty Investments Ltd 120,000,003 25.012 JP Morgan Nominees Australia Limited <Cash Income A/C> 51,563,324 10.753 Grangesberg Iron AB 24,600,000 5.134 HSBC Custody Nominees (Australia) Limited 17,047,550 3.555 Rio Tinto Mining and Exploration Limited 11,083,743 2.316 National Nominees Limited 10,841,063 2.267 Marfield Pty Limited 10,524,543 2.198 HSBC Custody Nominees (Australia) Limited - A/C 2 8,453,484 1.769 Mossisberg Pty Ltd 7,640,947 1.59

10 Anglo American Exploration BB 7,389,162 1.5411 Acacia Investments Pty Ltd 6,863,050 1.4312 BNP Paribas Noms Pty Ltd <DRP> 6,030,000 1.2613 Eric Preston Pty Ltd 5,000,000 1.0414 Aust Global Resources Pty Ltd 3,636,363 0.7615 Jetosea Pty Ltd 3,515,000 0.7316 Scandinavian Resources Limited <Dissenting Shareholders A/C> 3,437,307 0.7217 Upsky Equity Pty Ltd <Upsky Investment A/C> 3,400,000 0.7118 Braveheart Australia Pty Ltd 3,165,135 0.6619 Bond Street Custodians Limited <CPCPL - TU0022 A/C> 3,000,000 0.6320 Dyspo Pty Ltd <Henty Super Fund A/C> 3,000,000 0.63

Total of Top 20 Holders of ORDINARY SHARES 310,190,674 64.65

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Contacts

Hannans Reward Ltd, through its subsidiary companies, holds a portfolio of mineral assets in Sweden, Norway andAustralia. Hannans has a dual strategy focused on creating a pathway to production for the Kiruna Iron Project inSweden, supplemented with precious and other base metals exploration in Sweden, Norway and Australia.

Sweden & Norway• Flagship Kiruna Iron Project is 30km from the 2Bt Kiruna iron mine (owned by LKAB) – the world’s largest and most

modern underground iron mine

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

Australia• Forrestania – nickel & gold project 7km north of Western Area’s Flying Fox nickel mine

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

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

• Jigalong – base metals project located 150km east of Newman, Western Australia

Contact details in relation to this presentation:

Damian HicksManaging DirectorHannans Tel: +61 8 9324 3388

Magnus ArnqvistManaging DirectorKiruna IronTel: +46 703 22 55 37

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Appendix IExploration Update

Location

• The Kiruna Iron Project (KIP) is located in northern-most Sweden within the county of Norrbotten.

• The KIP is located more than 1200km north of the capital Stockholm.

• The KIP is located above the Arctic Circle at 67˚N.

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Location

• The Kiruna Iron Project (KIP) is the leadproject within Hannans explorationportfolio.

• The KIP is comprised of two main hubs;the Kiruna Hub and the Lannavaara Hub.

• The Kiruna Hub is further divided into theKiruna Hub North, Kiruna Hub Centraland Kiruna Hub Southwhich are locatedbetween 1000m to 30km of existinginfrastructure.

• The Lannavaara Hub is located 90kmnorthwest of Kiruna and has no existinginfrastructure apart from a bitumin roadlocated ~20km away.

• The hubs are catogorised ongeographical location rather than by oretype.

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Geological Location

• The KIP is located within the Fennoscandian Shieldwhich is a Precambrian crustal segment of the EastEuropean craton.

• The Fennoscandian Shield comprises three distinctPrecambrian provinces:

• Archaean Karelian-Belomorian-Kola Province or Craton

• Palaeoproterozoic Svecofennian Province• Mesoproterozoic Sveconorwegian Province

• The KIP rocks belong to the PalaeoproterozoicSvecofennian Province and more specifically thenorthern volcano-sedimentary terrane (Norrbottenand Skellefte Districts).

• The other major iron bearing region in Sweden is theBergslagen District which is located within thesouthern volcano-sedimentary terrane.

Norrbotten District

Bergslagen District

Skellefte District

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Geological Location

• The northern and southern volcano-sedimentaryterranes of the Svecofennian Province represent thetwo main iron and sulphide bearing regions inSweden. Both terranes share a broadly similargeological evolution and are composed of aPalaeoproterozoic (~1.93-1.8Ga) sequence of calc-alkaline, felsic to intermediate acid volcanics,volcanic sediments and terrestrial to shallow waterepiclastics which is referred to as the PorphyryGroup in the Norrbotten-Skellefte Districts.

• The northern volcano-sedimentary terrane isunderlain by an older Palaeoproterozoic (~2.53-1.93Ga) Greenstone Supergroup comprisingsiliclastic and mixed basic volcanics and sedimentsof the basal Kovo Group and the overlyingGreenstone Group. The Greenstone Supergroup ispart of a larger tholeiitic province related to riftingevents in the Archaean Karelian-Belomorian-KolaCraton.

• The KIP deposits belong to either the olderGreenstone Group or the younger Porphyry Group.

Kiirunavaara, Malmberget

Viscaria, RakkurijokiAltavaara

Tjårrojåkka, Harrejaure

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Regional Mineralisation

• The Fennoscandian Shield is one of the mostimportant mining areas in Europe and theNorrbotten area of Sweden is one of the mostmineralised areas representing a majorproducer of copper and iron ores.

• Unlike most shield areas, the FennoscandianShield is more mineralised in thePalaeoproterozoic than in the Archaean andto date no Archaean economic mineraldeposits have been found in Sweden.

• The main mineral deposit types within thePalaeoproterozoic lithologies in the NorrbottenProvince can be subdivided into:

• Inferred syngenetic, stratabound, ironsulphide-rich Cu-(Zn) sulphidedeposits in metasediments of theGreenstone Group

• Magnetite-skarn iron ore deposits inthe Greenstone Group

• Magnetite-apatite iron ore deposits inmetavolcanics and metasediments ofthe Porphyry Group

• Epigenetic Cu-Au deposits in UpperGreenstone Group and PorphyryGroup

Schematic illustration of a proposed genetic model for Fe-Oxide Cu-Au deposits in the NorrbottenProvince of northern Sweden (after Carlon, 1999).

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Iron Mineralisation Types

• There are two main types of magnetite iron ore deposits rocognisedin the Norrbotten Province:

• Apatite iron ores of the Porphyry Group• Skarn iron ores of the Greenstone Group

• There are several other types of iron mineralisation including quartz-banded, metasomatic, magmatic-tectonic and titaniferous iron oresalthough these types are considered to be of minor significance.

• Almost all of the known iron deposits and occurrences wereidentified and investigated by the Swedish Geological Survey’s(SGU) early (1950’s) regional mapping programs or at the requestof the Swedish Government as part of the Iron Ore InventoryProgram which commenced in 1963 and ran for 10 years.

• Two iron deposits in Norrbotten were discovered as early as the17th century; Masugnsbyn in 1644 and Gruvberget in 1654 after the”Bergskollegium” or Crown Mining Authority was established in1630 and sent prospectors to this part of Sweden.

• Whilst the giant Kiirunavaara-Luossavaara deposit has been minedfor more than 100 years, the first written documentation concerningthe deposit was recorded in 1690.

This map of Kiirunavaara and Luossavaara was drawn by surveyor Esaias Hackzell in conjunction with Governor Gyllengrip’s visit in 1736. Source: LKAB

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IP depth slice at 100mApatite Iron Ores of the Porphyry Group

• The Kiirunavaara ore deposit is the type-locality for apatite iron ores and is the largest and best known example; it contains more than 2Bt of highgrade iron ore.

• Besides magnetite, hematite and apatite the ores are generally strongly enriched in light rare earth elements.

• The apatite iron ores exhibit a considerable variation in host rock lithology, host rock relations, host rock alterations, phosphorus content andassociated minor components.

• Two distinct groups of deposits have been recognised:

• Breccia Type: Mainly situated in intermediate to mafic volcanic rocks, amphibole is always present as a minor componant with accessoryamounts of pyrite, chalcopyrite and titanite. Host rock alterations are not a prominent feature but albite and scapolite are quite common. Thebreccia deposits are characteristically low in phosphorus (0.05-0.3% P) and have an average iron grade of only 30%. Magnetite is almostalways the only iron oxide mineral.

• Strataform-Stratabound Type: These deposits have hematite as a major component together with varying amounts of magnetite. Thephosphorus content is typically high (1-4.5% P), amphibole is absent and the gangue minerals are mainly apatite, quartz and carbonate. Hostrock alteration is common with sericite, biotite, tourmaline and carbonate the most prevalent. The hanging wall rocks may also be stronglysilicified. Sulphides are rare but do occur as late cross-cutting veins. Ore breccia is lacking or restricted to the footwall. Examples includeNukutus, Henry, Rektorn, Lappmalmen and Ekströmsberg.

• Combination of Breccia & Strataform-Stratabound: Some deposits share features of both breccia and strataform-stratabound apatite oresthey are mainly stratabound in character but have ore breccia developed along the wall rock contacts. Magnetite is the dominent or only ironoxide, amphibole is a characteristic minor component and titanite may be present in accessory amounts. The iron content is high (55-67%)and the average phosphorus content is quite low but varies considerably within individual deposits. Host rock alteration is not well developedbut can include the formation of albite, amphibole, biotite, sericite and locally scapolite and tourmaline. Examples include Kiirunavaara andTjårrojåkka.

High Fe, mod-high P, low S

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IP depth slice at 100mSkarn Iron Ores of the Greenstone Group

• Stratiform deposits of iron (and base metals) are restricted to the Palaeoproterozoic Greenstone Group successions, typically occurring involcaniclastic units in association with graphite schist and carbonate rocks, occasionally the skarn iron ores also occur within mafic volcanic rocks.

• Skarn-rich iron formations occur as stratiform-stratabound lenses and are interpreted to be volcano-sedimentary (exhalative) in origin with theskarn silicates formed through regional metamorphism with internal reactions between the chemical precipitates of iron, calcium, magnesium andsilica.

• The skarn iron ores are composed of magnetite, Ca-Mg silicates (tremolite-actinolite, diopside, and less commonly hornblende) and Mg-silicates(phlogopite-biotite, serpentite and less commonly olivine, chlorite and talc). The skarn silicates are either evenly distributed in the ore or can formseperate masses or layers. A common feature is an interlayering of magnetite and skarn minerals and sometimes also of calcite.

• The average iron grade for these deposits is between 25-45% and small amounts of pyrite, chalcopyrite and pyrrhotite are associated with theskarn iron ores pushing the sulphur content in most ores above 1% S. The phosphorus content (in apatite) is commonly less than 0.2% but can insome deposits rise to several percent.

• Scapotilisation of the host rocks is very common with skarn iron ores in Norrbotten; the metasedimentary and mafic metavolcanic rocks are oftenscapolite-spotted and the feldspars are often scapolite-altered. Scapolite dominated rocks such as scapolite-biotite schists and biotite schists aretypical, although the scapolite is not found in the ore itself.

• In some skarn iron ores there is evidence of metamorphic processes having caused ore recrystallisation and subsequent upgrade in iron content.

• The high content of sulphur during the precipitation of the skarn iron ores is the main reason why magnetite is the only iron oxide mineral with thehigh sulphur fugacity prohibiting the formation of hematite.

Low-high Fe, low P, high S

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A Growing Resource Base

Prospect Mt Fe (%) P (%) S (%)Sautusvaara South 32.0 37.4 0.06 1.63Sautusvaara North 11.4 39.7 0.09 0.44

Ekströmsberg 30.4 52.0 Unavailable UnavailableTOTAL 73.8 43.0 - -

Prospect Mt Fe (%) P (%) S (%)Rakkurijärvi 69.6 28.5 0.07 0.93Rakkurijoki 74.5 39.7 0.28 0.89

Discovery Zone 10.9 38.7 0.05 0.95Tributary Zone 4.9 28.6 0.05 1.08

Sautusvaara South 6.8 26.6 0.09 1.82Sautusvaara North 1.0 44.8 0.05 0.46

Vieto 14.0 35.7 0.14 1.46Puoltsa 19.1 30.2 Unavailable Unavailable

Renhagen 26.3 32.1 0.21 0.03Harrejaure 16.2 43.4 0.04 0.01

Ekströmsberg 41.6 52.0 Unavailable UnavailableTjårrojåkka 52.6 51.0 Unavailable Unavailable

Pattok 62.4 44.2 1.96 UnavailableTOTAL 399.9 38.1 - -

JORC INDICATEDRESOURCES

JORCINFERREDRESOURCES

TOTAL Mt Fe (%)Indicated & Inferred 473.7 40.5

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A Growing Exploration Portfolio

Prospect Tonnage Range (Mt) Grade Range (Fe%)Åkosjegge 10-15 23-30Altavaara 55-60 26-29

Laukkujärvi 4-8 30-35Leppäjoki 5-8 35-45Tjåorika 15-30 45-55

Total Hub 1 89-121 31.8-38.8

Prospect Tonnage Range (Mt) Grade Range (Fe%)Kevus 35-45 28-35

Paljasjärvi 40-60 30-40Teltaja 39-47 40-48

Total Hub 2 114-152 32-41

TOTAL Mt Fe (%)Hub 1 & 2 203-273 32.1-39.6

KIRUNAHUB

LANNAVAARAHUB

34

Rakkurijoki

HUB Kiruna (Kiruna Central)PROSPECT Rakkurijoki

MINERALISATION TYPE Skarn Iron Ore

DEPOSIT DIMENSIONS ~1000m in length, width varies from 8-100m, open at 400m depth

DISTANCE TO INFRASTRUCTURE Rail (1km), Road (250m), Power (Overhead) Kiruna CBD (6km)

CURRENT RESOURCE 74.5Mt @ 39.7% Fe (JORC Inferred)

BASIC METALLURGY DTR Conc. 69.2% Fe, 1% SiO2, 0.3% Al2O3, 0.009% P, 0.365% S

Current Status: The Rakkurijoki prospect is the flagship prospect within the Hannans exploration portfolio. Since acquiring the Rakkuri Project in late2010, Hannans has completed more than 12,000m of diamond drilling. In mid 2011 Hannans announced a maiden JORC Inferred Resource of 74.5Mt@ 39.7% Fe and in late 2011 commenced an infill drill programme which would take the profile spacing from 200m down to 100m and will pave theway for a resource update (Indicated Catagory) once completed. As of September 2012 approximately 5,500m remains to be drilled to complete the100m-spaced infill programme. To date only 6 drillholes have had formal assay results returned including 51m @ 46.5% Fe from 189.9m. Furtherassay results are expected in October and November 2012.

The infill drill programme completed to date has significantly increased the geological understanding of the orebody; a thick, competant meta-araniteunit occupies the hanging wall position at Rakkurijoki and is commonly intruded by both intermediate and mafic dykes. A single, much thicker (often upto 20m wide) intermediate dyke can be traced from profile to profile and appears to be an important control on the width of magnetite ore; where thedyke is wide the magnetite ore becomes much narrower suggesting that the dyke has come in at a later stage and has ’stoped out’ the magnetite ore.The magnetite ore itself varies from compact, high grade magnetite (>50% Fe) to a much lower grade banded ore which typically grades between 25-35% Fe; the contact between the two magnetite ore types is gradational. No magnetite ore occurs in the footwall mafic tuff or the meta-aranitehangingwall. A detailed study (Masters Thesis, Luleå University) investigating the three main ore types within the Rakkuri Project will significantly aid inthe understanding of all three deposits and guide further exploration within the Rakkuri Project. This study is the first of its kind and has to dateconfirmed that the geology of the Rakkuri area is poorly understood and highly complex.

Detailed environmental and social consequence studies have continued throughout 2012 which included the drilling of two water bores to testgroundwater flow rates. A scoping studing investigating the mining potential of Rakkurijoki commenced in mid-2012 and is expected to be completed inearly 2013.

35

Rakkurijoki

HUB Kiruna (Kiruna Central)PROSPECT Rakkurijoki


DEPOSIT DIMENSIONS ~1000m in length, width varies from 8-100m, open at 400m depth

DISTANCE TO INFRASTRUCTURE Rail (1km), Road (250m), Power (Overhead) Kiruna CBD (6km)


BASIC METALLURGY DTR Conc. 69.2% Fe, 1% SiO2, 0.3% Al2O3, 0.009% P, 0.365% S

Planned Work: 100m-spaced infill diamond drilling is scheduled to commence again in January 2012 where approximately 5,500m remain to be drilled.The majority of the remaining holes will test the up-dip projection of the orebody and the two eastern-most profiles will look to close off themineralisation in that direction. Two geotechnical drillholes are included in the 5,500m and will be used to feed into open pit design studies.

Check assaying of samples collected from both the Rakkurijoki and Rakkurijärvi deposits is scheduled for mid-2013 as part of standard QAQCprocedures within the company and as a formal requirment to move the existing Inferred Resouce into an Indicated catagory.

50m-spaced infill diamond drilling at Rakkurijoki will only commence if a positive outcome is received from the Scoping Study.

Project Number of Holes (KIAB) Year Number of Metres (KIAB) CommentRakkurijärvi 6 2011 1487 Phase 1 ExplorationRakkurijoki 8 2011 3083 Phase 1 ExplorationRakkurijoki 2 2011 883 Phase 2 Infill DrillingRakkurijoki 19 2012 6634 Phase 2 Infill Drilling

Total (m) at Rakkuri by KIAB 12,087Approximate (m) remaining of Rakkurijoki Phase 2 Infill Drilling 5,240

36

Rakkurijoki37

Rakkurijoki38

Rakkurijärvi

HUB Kiruna (Kiruna Central)PROSPECT Rakkurijärvi


DEPOSIT DIMENSIONS 2 x 400m in length, width varies from 45-138m, open at 300m depth

DISTANCE TO INFRASTRUCTURE Rail (3km), Road (250m), Power (3km) Kiruna CBD (8km)


BASIC METALLURGY DTR Conc. 68.9% Fe, 2.2% SiO2, 0.4% Al2O3, 0.005% P, 0.022% S

Current Status: The Rakkurijärvi prospect is located approximately 2km southwest of the Rakkurijoki prospect. Six diamond drillholes were completedat the prospect in 2011 for a total of 1,487m and enabled a maiden JORC Inferred Resource of 69.6Mt @ 28.5% Fe to be calculated. A lot moredrilling is required at Rakkurijärvi to further define the limits of the orebodies; the ore is split into two seperate deposits both of which areapproximately 400m in length. A detailed ground magnetics survey was completed at Rakkurijärvi late in 2011 to gain more detailed data over thenortheastern zone.

The Rakkurijärvi prospect is included in the area being covered by ongoing, detailed environmental and social consequence reports but is not includedin the current scoping study of Rakkurijoki. Almost all of the ore at Rakkurijärvi is located under the lake and will require much more detailedenvironmental studies into the impacts of draining the lake for a potential mining scenario. The Rakkurijärvi prospect is however included in a detailedstudy (Masters Thesis, Luleå University) investigating the three main iron deposits within the Rakkuri Project; preliminary results are indicating that thethree ore deposits (Discovery, Rakkurijärvi and Rakkurijoki) are unique. The final report is due for publication in late 2012 and will significantly aid inthe understanding of all three deposits and guide further exploration within the Rakkuri Project.

Planned Work: There is currently no drilling planned at Rakkurijärvi for the upcoming winter drilling season (Jan-Apr 2013) as the focus remains onbringing Rakkurijoki into a feasibility stage. However work will continue on furthering the geological understanding of the Rakurijärvi deposit.

39

Rakkurijärvi40

Kiruna Central Hub: This potential mining hub is centrally located with respect to both the city of Kiruna and existing infrastructure of road, rail andpower. The deposit at Rakkurijoki is the priority for a start-up mining scenario with the close-by deposits of Rakkurijärvi, Discovery, Tributary, Puoltsa,Vieto and Lauukujärvi likely satellite deposits. This area is an important Sami herding area belonging to the Laevas Sameby. The Kiruna Central Hubcurrently has a combined JORC Inferred Resource of 193Mt @ 33.6% Fe which excludes Laukkujärvi which has a current JORC Exploration Target of4-8Mt @ 30-35% Fe.

41

Kiruna Central Hub

Ekströmsberg

HUB Kiruna (Kiruna South)PROSPECT Ekströmsberg

MINERALISATION TYPE Apatite Iron Ore (Strataform-Stratabound)

DEPOSIT DIMENSIONS 1500m in length, multiple lenses with total width of 150m, currently open at 250m depth

DISTANCE TO INFRASTRUCTURE No existing infrastructure

CURRENT RESOURCE 41.6Mt @ 52% Fe (JORC Indicated) 30.4Mt @ 52% Fe (JORC Inferred)

BASIC METALLURGY DTR Conc. 70.8% Fe, 0.7% SiO2, 0.1% Al2O3, 0.04% P, 0.003% S**Requires further testwork to determine hematite recovery.

Current Status: The Ekströmsberg prospect is the highest priority prospect located within the Kiruna South Hub, despite the prospect being located onthe southern side of the Kalix River where there is no current infrastructure (roads and power). Ekströmsberg was thoroughly investigated by theSwedish Geological Survey during the 1960’s where detailed ground geophysics and diamond drilling was completed (49 holes). Whilst there isalready a significant JORC Resource (41.6Mt @ 52% Fe (JORC Indicated) 30.4Mt @ 52% Fe (JORC Inferred) at Ekströmsberg preliminary reviewsby Hannans indicate there is potential to further increase the tonnage both along strike and at depth. Preliminary DTR (Davis Tube Recovery)testwork completed on ore from Ekströmsberg in 2010 shows that a high grade (>70% Fe) iron product is achievable although further testwork isrequired to see what proportion of the hematite ore can be recovered.

Planned Work: Detailed geophysical modelling at Ekströmsberg began in early 2012 and is soon to be completed. Modelling of magnetics and gravity,in conjunction with existing drillhole information, every 200m throughout the current orebody, has highlighted areas where potential exists to addadditional tonnes and will be used to plan step-out drilling.

Step-out diamond drilling is being planned for the upcoming winter drilling season (Jan-Apr 2013) and hematite rich intervals have been cut andsampled ready for dispatch to an appropriate laboratory for further metallurgical recovery testwork.

Preparations are also underway to begin detailed environmental and social impact studies over the Ekströmsberg prospect area.

42

43

Gravity Magnetics

Ekströmsberg

Tjårrojåkka

HUB Kiruna (Kiruna South)PROSPECT Tjårrojåkka

MINERALISATION TYPE Apatite Iron Ore (Combined Breccia & Strataform-Stratabound))

DEPOSIT DIMENSIONS ~600m in length, width varies from ~60-80m, open at depth


CURRENT RESOURCE 52.6Mt @ 51% Fe (JORC Inferred)

BASIC METALLURGY Not tested

Current Status: The Tjårrojåkka prospect is also located within the Kiruna South Hub some 18.5km southwest of the Ekströmsberg prospect and wasdiscovered by the Swedish Geological Survey in 1963. The Tjårrojåkka deposit is remarkably similar to the Kiirunavaara deposit in terms of the type ofmineralisation with the magnetite forming both strataform-stratabound and breccia ore. The rich ore (>60% Fe) is located in the central part of theorebody with a lower grade (20-52% Fe), breccia ore forming a peripheral zone. Preliminary desktop studies completed by Hannans has shown that alarge number of historic drillholes ended in magnetite mineralisation thus the orebody remains open at depth past the current 300m resource depth.The current JORC Inferred Resource for Tjårrojåkka is 52.6Mt @ 51% Fe.

A seperate copper orebody is located 400m to the west of the main iron orebody and has a current JORC Inferred Resource of 5Mt @ 0.6% Cu; therelationship between the copper and iron mineralisation is unclear.

Planned Work: Desktop studies will continue throughout 2012 and into 2013 in conjunction with a review of historic drillcore and detailed modelling ofmagnetic and gravity data. Preliminary metallurgical studies will also be planned to test the upgrade potential of the Tjårrojåkka magnetite ore.

44

Tjårrojåkka45

Renhagen

HUB Kiruna (Kiruna South)PROSPECT Renhagen

MINERALISATION TYPE Apatite Iron Ore (Breccia)

DEPOSIT DIMENSIONS ~700m in length, width varies from 5-40m, open at depth




Current Status: The Renhagen prospect is located in a central position within the Kiruna South Hub and was first discovered by the SwedishGeological Survey in 1949 but it wasn’t until 1968 that 5 diamond drillholes were completed. In 2011 Hannans drilled 6 diamond holes into the mainfold structure at Renhagen which hosts magnetite breccia ore. The Hannans drilling in 2011 enabled a maiden JORC Inferred Resource of 26.3Mt @32.1% Fe to be calculated. Further infill drilling is required to gain a better understanding of controls on mineralisation and especially how faulting andfolding has effected the orebody.

A single exploration drillhole was designed to test a large, unexplained magnetic anomaly located to the southeast of the main orebody at Renhagen;the single hole intercepted 15.75m @ 32.92% Fe from 30.5m and 16.50m @ 34.24% Fe from 52.65m.

Planned Work: The Renhagen prospect can be drilled during the summer months with a heli-portable drill rig and infill drilling will be planned tocommence during summer 2013. A detailed ground magnetic survey is also required to enhance the detail of the southeastern (airborne) magneticanomaly which Hannans drilling in 2011 identified magnetite mineralisation. The ground magnetic survey is likely to take place during the upcomingwinter season. Preliminary metallurgical studies will also be planned to test the upgrade potential of the Renhagen magnetite ore.

46

Renhagen47

MAGNETICS

Harrejaure

HUB Kiruna (Kiruna South)PROSPECT Harrejaure

MINERALISATION TYPE Apatite Iron Ore

DEPOSIT DIMENSIONS ~450m in length, width varies from 35-155m, open at depth, along strike




Current Status: The Harrejaure prospect was discovered by a private exploration company in the 1940’s so little historic information exists today; tothat end Hannans essentially re-drilled the Harrejaure deposit in 2011 with 6 diamond drillholes, although the northern-most hole HAR11006 failed todrill through the glacial till/overburden before a large mechanical failure of the drilling rig prematurely ended the summer drilling season.

The Harrejaure orebody is comprised of both magnetite and hematite which forms compact, high grade (>60% Fe) iron ore that is regularly bandedover a very wide zone of between 60-100m but occasionally wider than 100m including 129m @ 44% Fe from 30m. Detailed ground magnetics andgravity surveys over the deposit area were completed by Hannans in January 2011 which showed that the magnetic and gravity anomalies arecoincident over the main part of the orebody although, towards the north, the magnetic signature becomes weaker but the gravity signature remainsthe same, possibly indicating that a more oxidised, hematitic ore continues to the north. The northern-most hole HAR11006 was designed to test thistheory but failed to penetrate the bedrock before the mechanical breakdown.

The drilling completed by Hannans in 2011 enabled a maiden JORC Inferred Resource of 16.2Mt @ 43.4% Fe to be calculated.

Planned Work: Whilst the main magnetite bearing part of the Harrejaure orebody is only ~450m in strike length, the mineralisation is high grade andvery wide. If further drilling can prove that a hematite rich ore continues to the north, extending the strike length to more than 1,000m it will significanlyincrease the potential tonnage at Harrejaure. The Harrejaure prospect can be drilled during the summer months with a heli-portable drill rig and infilldrilling will be planned to commence during summer 2013. Preliminary metallurgical studies will also be planned to test the upgrade potential of theHarrejaure magnetite-hematite ore.

48

Harrejaure

49

NORTH MAGNETICS

Kiruna South Hub

Kiruna South Hub: This potential mining hub is unique in the fact that all four current deposits are located within an ’unbroken mountain area’ which hasno existing infrastucture i.e. roads, power. The Kiruna South Hub is also an important Sami herding area belonging to the Girjas Samby. Whilstlogistically this hub is more difficult to get up and running it does in fact contain a significant proportion of the current global resource tonnes (167Mt @46.1% Fe) and all four deposits are reletively close (max <15km) to one another forming a potential satellite mining scenario; the current Kiruna-Luleå orerailway is located only 23km to the east of the Harrejaure prospect. Additionally all four deposits are classified as ’apatite iron ore’ so are metallurgicallysimilar. Significant exploration upside also exists at all four known deposits and elsewhere within permits located in the Kiruna South Hub.

50

Sautusvaara

HUB Kiruna (Kiruna North)PROSPECT Sautusvaara North, Sautusvaara South


DEPOSIT DIMENSIONS

North-triangular shape, currently open at 225m.South-1100m in length, width varies from 130m in the north and 40m in the south, open at 300mdepth but narrows significantly

DISTANCE TO INFRASTRUCTURE Rail (26.5km), Road (3.5km), Power (7km) Kiruna CBD (26.5)

CURRENT RESOURCE 43.4Mt @ 38.5% Fe (JORC Indicated) 7.8Mt @ 35.7% Fe (JORC Inferred)

BASIC METALLURGY DTR Conc. 71.1% Fe, 0.5% SiO2, 0.2% Al2O3, 0.05% P, 0.3% S

Current Status: The Sautusvaara prospect is comprised of two seperate orebodies; Sautusvaara North and Sautusvaara South which are seperatedby faulting over a distance of approximately 1,000m. The Sautusvaara prospect was extensively investigated by the Swedish Geological Surveyduring the 1960-1970’s with more than 70 diamond drill holes completed between the two orebodies. Hannans completd 5 diamond drillholes in 2011to verifiy the historic drilling and to also test step-out positions on both orebodies. Twin hole SAU11002 returned 112m @ 42% Fe from 156m andexploration hole SAU11004 returned 40m @ 39% Fe from 44m. Whilst the smaller northern orebody remains open to the southwest the largersouthern orebody is essentially closed off at depth and along strike.

Preliminary DTR (Davis Tube Recovery) testwork completed on ore from both orebodies indicates a very high grade (>71% Fe) product is achievablefrom Sautusvaara although the sulphur content in the concentrate remains quite high and further processing (floatation) would be required to generatea saleable product from Sautusvaara.

Planned Work: No further work has currently been planned for the Sautusvaara prospect although if the nearby Altavaara prospect continues to growin size a potential mining scenario involving both prospects would be investigated.

51

Sautusvaara

MAGNETICS

52

Altavaara

HUB Kiruna (Kiruna North)PROSPECT Altavaara



DISTANCE TO INFRASTRUCTURE Rail (15km), Road (1.5km), Power (4km) Kiruna CBD (15km)

CURRENT RESOURCE 55-60Mt @ 26-29% Fe (JORC Exploration Target)

BASIC METALLURGY Testing in progress

Current Status: The Altavaara prospect was first investigated in 1897 by trenching and diamond drilling. Further drilling was completed by the SwedishGeological Survey between 1900-1910, 1916-1917 and in 1964. The Altavaara mineralisation is spread across three seperate magnetic anomalies; anorthern, southern and eastern with the eastern mineralisation located approximately 1,000m to the east of the main mineralisation at Altavaara North.

In December 2011 Hannans drilled 13, widespaced diamond drillholes testing both Altavaara North and Altavaara South. The Altavaara North orebodyis higher grade (~20-29% Fe) than Altavaara South which has an average iron grade of only 16% Fe. Whilst the ore at Altavaara is considered lowgrade the width of mineralisation is very wide varying from 30-230m but has an average width of approximately 120m. Drillhole ALT11003 returned aniron intercept of 242m @ 24.9% Fe from 17m. The ore at Altavaara is quite different to other skarn iron ores of the Kiruna District with an almostuniform, disseminated magnetite mineralisation within an amphibolitic mafic volcanic rock. The host rocks are quite strongly scapolitised and in placesare gneissic and partly rich in hornblende. Apatite, pyrite, pyrrhotite and chalcopyrite form minor components of the ore mineralogy.

Due to the wide spaced nature of the 2011 drilling and lack of confidence in the historic drillholes a JORC Exploration Target of 55-60Mt @ 26-29% Fewas calculated for Altavaara. Preliminary DTR (Davis Tube Recovery) testwork is currently underway to see if the low grade iron ore can besucessfully upgraded to a saleable product.

Planned Work: Additional drilling at Altavaara will be dependent on the results of the preliminary metallurgical testwork; testwork results are expectedin November 2012.

53

54

Altavaara

NORTH

MAGNETICS

Paljasjärvi

HUB LannavaaraPROSPECT Paljasjärvi



DISTANCE TO INFRASTRUCTURE No existing infrastructure but only 17km from Lannavaara

CURRENT RESOURCE 40-60Mt @ 30-40% Fe (JORC Exploration Target)

BASIC METALLURGY Testing in progress

Current Status: The Paljasjärvi prospect was discovered by a private exploration company in 1963 when 7 drillholes were completed. Little historicinformation exists today except for the drillcore of three holes which are stored in Malå, Sweden.

Paljasjärvi is a skarn iron ore typical of the Kiruna greenstones consisting of magnetite together with serpentine, pyroxene and amphibole and minoramounts of pyrite, pyrrhotite and chalcopyrite. The ore horizon is approximately 3,800m long and according to earlier geological descriptions dipssteeply towards the east and appears to be regular in character. According to earlier drilling results the ore averages 30m in width with 36-39% Fealthough higher grade sections do occur

Hannans completed a detailed ground magnetic and gravity survey late in 2011 to gain a better understanding of the mineralisation. The geophysicaldata was modelled in detail in early 2012 which indicated significant mineralisation upside, consequently 18 drill profiles (200m spacing) were plannedbut remain to be drilled. The detailed geophysical modelling also enabled a JORC Exploration Target of 40-60Mt @ 30-40% Fe to be calculated.

Preliminary DTR (Davis Tube Recovery) testwork is currently underway on samples taken from the historic drillcore to determine the upgradepotential of the magnetite ore.

Planned Work: The detailed ground magnetic survey completed in late 2011 by Hannans was run over 9 profiles at an average of 300m spacedintervals but the modelling suggested the profiles should be tightened to give additional detail especially in regards to fault offsets within the orebody.Additional ground magnetic surveying will be completed during the upcoming winter season followed by first pass diamond drilling of the southern halfof the orebody during the 2013 summer drilling season.

55

56

Paljasjärvi

NORTH MAGNETICS

LannavaaraHUB LannavaaraPROSPECT Kevus

MINERALISATION TYPE Unclassified but possibly epigenetic, metasomatic iron ore (Magnetite)


DISTANCE TO INFRASTRUCTURE Rail (72km), Road (17m), Power (17km) Kiruna CBD (121km)

CURRENT RESOURCE Kevus 35-45Mt @ 28-35% Fe (JORC Exploration Target)


HUB LannavaaraPROSPECT Teltaja

MINERALISATION TYPE Unclassified but possibly epigenetic, metasomatic iron ore (Magnetite & Hematite)

DEPOSIT DIMENSIONS ~1000m in length, width varies from 20-80, open at depth

DISTANCE TO INFRASTRUCTURE Rail (72km), Road (17km), Power (17km) Kiruna CBD (121km)

CURRENT RESOURCE Teltaja 39-47Mt @ 40-48% Fe (JORC Exploration Target)

BASIC METALLURGY Not testedCurrent Status: The Lannavaara iron ores (Kevus, Teltaja and Sattavaara) were first discovered by a private exploration company in 1920 and werefollowed up by the Swedish Geological Survey in 1967-1968 and then drilled in 1971. Sattavaara is classified as a skarn iron ore but Kevus and Teltajaare regarded as unique iron ore deposits within the Kiruna District. Kevus is a magnetite (pyrrhotite-pyrite) deposit whereas Teltaja is a magnetite-hematite deposit rich in quartz.. An epigenetic, metasomatic origin is considered likely for these two deposits. Both Kevus and Teltaja have distinct,coincident magnetic and gravity anomalies whereas Sattavaara has a much more subdued magnetic response but has a large gravity anomaly.Trenching of outcrop at Sattavaara during 1971 identifed largely hematite mineralisation-no drilling has been completed at Sattavaara.

Detailed modelling of geophysical data has been completed by Hannans in 2012 and 14 diamond drillholes have been planned but are yet to be drilled.The Lannavaara iron ores (Kevus and Teltaja only) have a combined JORC Exploration Target of 74-92Mt @ 34-41.5% Fe.

Planned Work: A detailed ground magnetic survey covering Sattavaara is planned for October 2012 and preliminary metallurgical studies will also beplanned to test the upgrade potential of ore from both Kevus and Teltaja in the first instance.

57

58

Lannavaara

MAGNETICS

NORTH

Sattavaara Gravity Anomaly

Lannavaara Hub

59

MAGNETICS

PALJASJÄRVI

KEVUS

SATTAVAARA

TELTAJA

NORTH

10KM

Lannavaara Hub: This potential mining hub is located approximately 70km (trucking distance) from the closest, open access, railhead atSvappavaara. Total combined Exploration Target resources for the Lannavaara Hub currently stand at 114-152Mt @ 32.7-41% Fe although theestimates for each of the three deposits have been made using unverified historic drillhole data and are considered very conservative. Detailedgeophysical modelling of both gravity and magnetic data over the three deposit areas by Hannans in 2011 and 2012 indicate there is significantexploration upside.

References60

Friese, A.E.W., Campbell, G., Wagner, R.J., and Moyes, A.B., 2000, Structural Interpretation and base metal target generation in Norrbotten, Northern Sweden: Anglo American Internal Publication.

Frietsch, R., 1997, The Iron Ore Inventory Programme 1963-1972 in Norrbotten County: Rapporter och meddelanden nr 92, SGU.

Martinsson, O., 2004, Geology and Metallogeny of the Northern Norrbotten Fe-Cu-Au Province: Economic Geology, v. 33, p. 131-148

Edfelt, Å., 2003, Geology, alterations and mineral chemistry of the Tjårrojåkka Fe-oxide Cu-A occurrences, northern Sweden: Licentiate Thesis, Luleå University of Technology.

Competent Persons Statements

The information in this document that relates to exploration results is based on information compiled by Ms Amanda Scott, Exploration Manager, Scandinavian Resources Ltd,who is a Member of the Australian Institute of Mining and Metallurgy. Scandinavian Resources is a subsidiary of Hannans Reward Ltd and Ms Scott is a full-time employee ofScandinavian Resources Ltd. Ms Scott has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activity whichhas 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 andOre 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 ResourcesThe mineral resource estimate for Rakkurijärvi, Rakkurijoki, Discovery, Tributary Zone and Puoltsa is effective from 13 January 2012 and has been prepared by Mr ThomasLindholm, 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 theJORC 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 ofmineral resources of gold, base metal and iron deposits.

Competent Persons Statement-Ekströmsberg, Tjårrojåkka and Pattok Mineral ResourcesThe mineral resource estimate for Ekströmsberg, Tjårrojåkka, and Pattok is effective from 22 July 2011 and has been prepared by Dr Christopher Wheatley of Behre DolbearInternational Ltd, UK, acting as an independent “Competent Person”. Dr Wheatley is a member of the Institute of Materials Minerals and Mining (Member 450553). Mineralresources 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 mineralresources 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 itappears.

Competent Persons Statement-Vieto, Sautusvaara, Renhagen and Harrejaure Mineral ResourcesThe 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 13January 2012 and has been prepared by Mr Geoffrey Reed of Minarco-MineConsult acting as an independent “Competent Person”. Mr Geoffrey Reed is a member of theAustralasian Institute of Mining and Metallurgy (CP)(Member 205422). Mineral resources of Vieto, Sautusvaara, Renhagen and Harrejaure have been prepared and categorisedfor 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 oftraining 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 thematters based on the information in the form and context in which it appears.

Competent Persons Statement-Exploration TargetsThe 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 anindependent “Competent Person”. Mr Lindholm is a member of the Australasian Institute of Mining and Metallurgy (Member 230476). Mr Lindholm is qualified to be a CompetentPerson 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.

*The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by the Geological Survey of Sweden reviewed by Mr ThomasLindholm, 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 MineralResource and it is uncertain if further interpretation will result in the determination of a JORC Mineral Resource.

61

Appendix IIAdditional Information

• LKAB 2011 key statistics:• Operating profit SEK14.7Bn (AUD2.1Bn)• 26Mt of iron products (23Mt pellets)• 4,191 employees

• The Kiruna ore deposit mined by LKAB is the world’s largest known continuous body of iron ore. About 26Mt ofcrude ore is mined each year. It is a single, continuous, rich magnetite orebody that is more than 4km long and hasan average width of about 80m. LKAB knows that it extends to a depth of at least 1,500m, and there are indicationsthat it continues to a depth of up to 2km. The present main level, from which the ore is gathered, is at a depth of1,045m (measured from the zero point at the original peak of Mt. Kiirunavaara). LKAB is now building a new mainlevel at 1,365m with an estimated cost of SEK 12.4Bn (AUS1.8Bn).

• The Malmberget mine consists of about 20 orebodies, of which ten are currently mined. Most of the deposit consistsof magnetite ore, but non-magnetic hematite also occurs. The present main level of the Malmberget mine is at adepth of 1,000 meters. About 14 Mt of crude ore is extracted from the orebodies each year

• Kiruna population: c. 18,000

Kiruna, LKAB’s Kiruna orebody overlaid on image

Source: LKAB web site & Annual Report 2010

Kiruna – A City in Transformation63

High Level Estimates of OPEX

The estimated OPEX for a similar project (highest level only taken from publicly available information) is as follows:*

Figures in USD/tonne of concentrate

Mining 20Processing 12Admin 2.5Royalties 0.5Rail to Narvik 4.5 (say 9 to Lulea)Port fees 1.5Contingency 1.5

Total OPEX 41 (FOB Narvik)

The calculation of the margin for Asian delivery (USD/t concentrate)Reference price China 10068% Fe price China 130 (using a USD5 premium per % point above 62%)Less freight to Narvik 35Price FOB Narvik 95

Margin 95 – 41 is 54/t

* These numbers have not been independently verified by Hannans and appropriate caution should be used when considering these figures

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Value Proposition

Company TONNES(Mt)

IRON GRADE

(%)

MARKET CAP

(AUD)LOCATION

STAGE /LISTED

EXCHANGENOTES

Hannans Reward Ltd

473Mt(Resources)

40 $14mNorthernSweden

ExplorerASX:HNR

• Minimal exploration since on projects since 1970

• Located adjacent to Kiruna town and rail infrastructure

• No off-take agreements

Northland Resources

Inc

85Mt(Resources)

165Mt(Reserves)

26-41 $350mNorthernSweden

DeveloperTSX:NAU

• Intensive exploration during last 5 years

• Plan to truck ore 150km to rail head en route to Narvik

• Off-take agreements with Standard Bank, Stemcor and Tata Steel

• Project finance in place

• Fully permitted

• Production Q4 2012

Northern Iron

434Mt(Resources)

166Mt(Reserves)

31-32 $301mNorthernNorway

MinerASX:NFE

• Aditya Birla has bid for NFE (live)

• Prominvest AG has bid for NFE (live)

LKAB NorthernSweden

MajorMiner

• International high-tech minerals group

• One of the world’s leading producers of upgraded iron ore products

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Port of Narvik, Norway (photo courtesy of Narvik Port)

Sami Village Corridors66

• Sami organisations consider that the Swedish Mining Law contravenes the European Union Directive on Human Rightsand therefore all exploration and mining activity in Sweden is a breach of these human rights. Sami organisations aretherefore opposed to the activities of exploration and mining companies including Scandinavian Resources AB andKiruna Iron AB. In general the Sami position is that mining operations may destroy both the future of the reindeerhusbandry industry and the ability to practise, and pass on, the traditional Sami way of living.

• Kiruna Iron AB is a member of SveMin, an employers and industry association for mines and mineral and metalproducers in Sweden. The Ethical Rules of SveMin states that the task of the mining industry is to supply society withminerals and ore in a responsible manner and with long-term profitability. Minerals and metals are essential to a well-functioning and modern society. Metals are produced from ore and may be continuously recycled. SveMin memberswill promote sustainable development and efficient, balanced, long-term management of energy and natural resourceswhile showing due consideration for people, the economy, the environment and the society in general.

• SveMin has recently started a sub-committee for the relations between the reindeer husbandry and the mining industry.The chairman of the sub-committee is Christina Lundmark, Managing Director of Scandinavian Resources AB.

• Kiruna Iron AB has carried out its activities at all times in an open and transparent manner with regard to the Samiinterests through many face-to-face meetings, the provision of detailed written information and the carrying out ofexploration activities at times where the interests of the reindeer herders are not impacted. Kiruna Iron’s legal teamhave confirmed that the Company has exceeded the requirements of the mining legislation with regard tocommunications with affected persons and the Company will continue to do so.

Sami Interests67

hannans' kiruna iron project

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