Hana Mining Ltd HNMFF

hmg

[greener12345]

Maintain Recommendation But Raising Target to $6.00 from $4.00: The positive met test results and the

enhanced resource size from recent drilling have increased our confidence in the potential project scope

more in line with our expanded case development scenario. With the Banana zone looking more economic

by the day and the potential for the Chalcocite zone to further enhance the overall economics of the region

we continue to view Hana’s current share price as extremely attractive and a good entry point into this fast

developing new copper camp. We continue to believe that the potential development scenarios we have

outlined will continue to grow as the Company further defines the resources and understands it better.

Although the Company expects to increase the resource estimate significantly by the end of the year, we

continue to remain conservative in our estimates due to the risk involved with the early stage of the project.

We continue to rate Hana with a Buy (S) recommendation, however, in light of recent results we have

increased our target to $6.00 from $4.00. Our target reflects roughly the mid-point between a 0.8x NAV

multiple for our Base and Expanded Case NAV’s. Higher targets are possible as the company continues to

lower the risk profile of the project and confirm project economics in terms of potential scope.