Hana Mining Ltd HNMFF

hmg

[greener12345]

Highlights:

• First Met Test results Highly Encouraging: Hana released the first met test

results which showed copper recoveries of over 92% and silver of 80%. These

results are materially better than we had modeled based upon the results from

the Discovery Metal (DML-ASX) feasibility study on the Boseto copper/silver

project located adjacent to Hana’s Ghanzi development project.

• Valuation Implications: We have updated our model to reflect higher metal

recoveries and, given our increased confidence, we are now leaning towards

our Expanded Case development scenario as being more likely. We continue

to give zero value to the Chalcocite zone at this time.

• Outstanding News Flow To Come: Hana is expected to release a new

resource estimate and an initial PEA around year end which we believe should

further underscore the value of the region.

• Maintaining Buy (S) Recommendation But Raising Target To $6.00 from

$4.00: With added confidence to our assumptions we are increasing our target

to reflect the mid-point of a 0.8x NAV multiple to our Base and Expanded Case

development scenarios. With further blue sky potential we continue to view this

as conservative.