Kiruna Iron Project, Sweden

OCTOBER 2012

HANNANS REWARD LIMITED ASX: HNR ABN: 52 099 862 129

Disclaimer
2

This Document and the information contained herein and any presentation (collectively referred to as Information) is proprietary to Hannans 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 be considered as purely speculative. The Information in this presentation does not purport to cover all relevant information about any potential investment in the Company. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment. You should not solely act in reliance on the material in this presentation. This presentation does not purport to be all inclusive or to contain all information which its recipients require in order to make an informed assessment of the Companys prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy or completeness of the information, statements, and opinions contained in this presentation before deciding whether to make an investment 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 the Company. 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 have changed since the date the Document was compiled. No responsibility is accepted to advise any person of any change or update any of the Information. Neither the provision of this Document nor any information contained in this Document or subsequently communicated to any person in connection with this Document is, or should be taken as, constituting the giving of investment advice to any person. By accepting this Document 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.

Organisational Structure
3

HANNANS
(ASX:HNR)

AUSTRALIA
Nickel Gold

SWEDEN
Iron Copper-Gold

NORWAY
Copper-Gold

Hannans owns JORC compliant copper-gold resources in Sweden and an extensive precious and base metals portfolio in Sweden, Norway and Australia. This presentation relates solely to Hannans iron project in Sweden.

Vision for the Kiruna Iron Project

4

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.

Kiruna Iron Project Summary

5

Low Sovereign Risk Excellent Infrastructure High Quality Product Growing Resource Profile Scalable Production

Board of Directors
6

Richard Scallan Chairman, 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 Murray Non-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

Damian Hicks Managing 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)

Olof Forslund Non-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 Hicks Non-Executive Director, Hannans Reward Ltd Founding director of Hannans Reward Ltd (2002) Director and secretary of Spargos Reward Gold Mines NL and was instrumental in the listing on the ASX of both Central Kalgoorlie Gold Mines NL and Maritana Gold NL

Markus Bachmann Non-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 Journals Outstanding Achievement Awards during December 2010

Swedish Operational Team

7

Magnus Arnqvist Managing Director (KIAB)

Ex-MD of Europes 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 Lule University of Technology

Christina Lundmark Managing 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

Amanda Scott Exploration 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 Lindskld Senior 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 Renstrm mainly responsible in mine mapping and ore control

Jan Ehrenborg Senior 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.

Ana Braa Bergshjorth Geophysicist

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

The Swedish Advantage

8

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

Scandinavia - Major Mining Centre

9

Rail, Road, & Ports

10

Multiple infrastructure options Existing open-access government owned heavy gauge rail infrastructure Capacity constrained but expanding Increased flexibility and options on the Kiruna-Lule 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 Lule ready to go +/-2mtpa with room for expansion Narvik a gateway to the USA, Middle & Far East

Ports
11

Rail to Lule and Port of Lule, Sweden Utilise existing open access gauge rail from Kiruna to Lule (340km) Port of Lule
Currently 2mtpa capacity with expansion potential Swedens 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

Rail to Narvik and Port of Narvik, Norway Utilise existing open access heavy gauge rail from Kiruna to Narvik (180km) Rail at Port of for LKAB and a Narvik Port handles shippingLulea 10mtpa terminal for Northland Resources is being built Can handle Capesize vessels Ice-free Expansion planned on rail and port
Company Today 18mt 0mt 0mt 0mt 18mt 2015 2020 34mt 7mt 5mt 4mt 50mt

Called by c. 700 vessels/yr Secured all-year access Regular destinations mainly within Baltic region

LKAB Northland Hannans Other

LKAB Assets
5mt 0mt 0mt 33mt

28mt

LKAB export c. 6mtpa ex Lule

Total

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

Hannans Competitive Advantage

12

Multiple iron ore deposits (at surface) within close proximity to a full service mining town and modern open-access infrastructure Hannans portfolio of open pit mining opportunities sit alongside the deepest, most modern underground iron mine in the world (owned by LKAB) Opportunity exists for Hannans to become independent producer of premium grade DR pellet feed (concentrate) Satellite deposits feeding into a central processing facility Hannans main iron deposit (open pit opportunity) is within an Area of National Interest for Mining, within 6km from Kiruna, 600 metres from rail and less than 60 metres from sealed 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

History and plan

13

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 Grngesberg 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
1Code

2013 and beyond Drill Rakkurijoki inferred to measured Ekstrmsberg inferred to measured Paljasjrvi 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

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

Growth in Resources
14

Exploration Update Refer to Appendix for deposit by deposit exploration update

Hannans Iron Deposit Map

15

Iron Deposits by Category

16
JORC Exploration Target Tjorika (15-30/45-55) JORC Resources Inferred Indicated Ekstrmsberg (41.6/52) Ekstrmsberg (30.4/52.0) Tjrrojkka (52.6/51.0) Pattok (62.4/44.2) Renhagen (26.3/32.1) Harrejuare (16.2/43.4) Rakkurijoki (74.5/39.7) Rakkurijrvi (69.6/28.5) Rakkurijrvi-Discovery (10.9/38.7) Rakkurijrvi- Tributary (4.9/28.6) Vieto (14.0/35.7) Puoltsa (19.1/30.2) Kiruna - South Conceptual Target Hotnjos/Leavka Luoppovare Kajpak Measured

Kiruna - Central

Piedjastjkka Gddmyr Holmajrvi Staggotjkka Eustillako Eustiljkk + Eustilvaara rosjokk Pirttivuopio Karanisvare Salvotjkka Holmajrvi Saivo Rappakojrvi Honkavare Villenjrvi Lannavaara 7 Lannavaara 8 Masugnsbyn 2 Lainiojrvi Tervakoski Ratek Salmijrvi

Laukkujrvi (4-8/30-35) kosjegge (10-15/22-30)

Focus

Kiruna - North

Altavaara (55-60/26-29)

Sautusvaara South (6.8/26.6) Sautusvaara North (1.0/44.8)

Sautusvaara South (32.0/37.4) Sautusvaara North (11.4/39.7)

Lannavaara

Other

Kevus (35-45/28-35) Paljasjrvi (40-60/30-40) Teltaja (39-47/40-48) Leppjoki (5-8/35-45)

Preliminary Metallurgical Test Work

17 % of iron from feed material present in conc. after DTR 44.6 83.8 76.1 96.2 88.5 82.8 89.6 98.4 20.4 Head Fe grade in feed % magnetite in feed material % of mass recovered from DTR DTR conc Fe grade DTR conc SiO2 grade DTR conc Al2O3 grade DTR conc P grade DTR conc S grade

Ekstrmsberg (Kiruna South) Rakkurijoki (Kiruna Central) Rakkurijrvi (Kiruna Central) Puoltsa (Kiruna Central) Sautasvaara (Kiruna North) Vieto (Kiruna Central) Rakkurijrvi Discovery Zone (Kiruna Central) Laukkujarvi (Kiruna South) Gaddmyr (Kiruna Central)

52.6 35.9 22.3 49.3 47.7 32.8 46.9 10.3 64.6

28.2 27.7 Insufficient data 62.4 No data 47.9 No data 69.9 No data

25.9 45.2 25.5 67.9 54.5 42.2 60 65.7 17.9

70.8 69.2 68.9 70.3 71.1 70 70.8 71 71.9

0.7 1 2.2 0.58 0.5 1.2 1 0.6 0.01

0.1 0.3 0.4 0.16 0.2 0.2 0.2 0.02 0.07

0.04 0.009 0.005 0.0017 0.05 0.01 0.003 0.002 0.02

0.003 0.365 0.022 0.005 0.3 0.06 0.035 0.001 0.005

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.

Kiruna Hub
18

Most advanced deposits are Rakkurijoki and Ekstrmsberg 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

Rakkurijoki Ideal Start

19

Rakkurijoki Scoping Study in progress Environmental impact assessment in progress (including Rakkurijrvi) Social impact assessment in progress (including Rakkurijrvi) 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

Rakkurijoki Project
20

LKAB Kiruna Mine

Hannans Rig #1

Hannans Rig #2

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

Significant Potential
21

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

Ekstrmsberg (40km west of Kiruna) Higher grade iron deposit with potential for increased tonnage

Hans Lindberg

Capital Structure and Financial Position

22

Ordinary shares on issue: Unlisted options on issue:

479,772,810 21.9 million ex @ $0.07 on or before 31 October 2012 3.0 million ex @ $0.13 on or before 1 February 2013 6.0 million ex between $0.08 0.80 on or before 30 June 2013 0.3 million ex @ $0.07 on or before 15 September 2013
Units 120,000,003 51,563,324 24,600,000 17,047,550 11,083,743 10,841,063 10,524,543 8,453,484 7,640,947 7,389,162 6,863,050 6,030,000 5,000,000 3,636,363 3,515,000 3,437,307 3,400,000 3,165,135 3,000,000 3,000,000 310,190,674 % of Issued Capital 25.01 10.75 5.13 3.55 2.31 2.26 2.19 1.76 1.59 1.54 1.43 1.26 1.04 0.76 0.73 0.72 0.71 0.66 0.63 0.63 64.65

Top 20:

Rank Name 1 Equity & Royalty Investments Ltd 2 JP Morgan Nominees Australia Limited <Cash Income A/C> 3 Grangesberg Iron AB 4 HSBC Custody Nominees (Australia) Limited 5 Rio Tinto Mining and Exploration Limited 6 National Nominees Limited 7 Marfield Pty Limited 8 HSBC Custody Nominees (Australia) Limited - A/C 2 9 Mossisberg Pty Ltd 10 Anglo American Exploration BB 11 Acacia Investments Pty Ltd 12 BNP Paribas Noms Pty Ltd <DRP> 13 Eric Preston Pty Ltd 14 Aust Global Resources Pty Ltd 15 Jetosea Pty Ltd 16 Scandinavian Resources Limited <Dissenting Shareholders A/C> 17 Upsky Equity Pty Ltd <Upsky Investment A/C> 18 Braveheart Australia Pty Ltd 19 Bond Street Custodians Limited <CPCPL - TU0022 A/C> 20 Dyspo Pty Ltd <Henty Super Fund A/C> Total of Top 20 Holders of ORDINARY SHARES

Contacts
23

Hannans Reward Ltd, through its subsidiary companies, holds a portfolio of mineral assets in Sweden, Norway and Australia. Hannans has a dual strategy focused on creating a pathway to production for the Kiruna Iron Project in Sweden, 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 worlds 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 Areas Flying Fox nickel mine Lake Johnston nickel & gold project located 25km south east of Norilsks 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. Jigalong base metals project located 150km east of Newman, Western Australia Contact details in relation to this presentation: Damian Hicks Managing Director Hannans Tel: +61 8 9324 3388 Magnus Arnqvist Managing Director Kiruna Iron Tel: +46 703 22 55 37

Appendix I Exploration Update

Location
25 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 67N.

Location
26 The Kiruna Iron Project (KIP) is the lead project within Hannans exploration portfolio. The KIP is comprised of two main hubs; the Kiruna Hub and the Lannavaara Hub. The Kiruna Hub is further divided into the Kiruna Hub North, Kiruna Hub Central and Kiruna Hub Southwhich are located between 1000m to 30km of existing infrastructure. The Lannavaara Hub is located 90km northwest of Kiruna and has no existing infrastructure apart from a bitumin road located ~20km away. The hubs are catogorised on geographical location rather than by ore type.

Geological Location
27 The KIP is located within the Fennoscandian Shield which is a Precambrian crustal segment of the East European craton. The Fennoscandian Shield comprises three distinct Precambrian provinces: Archaean Karelian-Belomorian-Kola Province or Craton Palaeoproterozoic Svecofennian Province Mesoproterozoic Sveconorwegian Province The KIP rocks belong to the Palaeoproterozoic Svecofennian Province and more specifically the northern volcano-sedimentary terrane (Norrbotten and Skellefte Districts). The other major iron bearing region in Sweden is the Bergslagen District which is located within the southern volcano-sedimentary terrane.

Norrbotten District Skellefte District

Bergslagen District

Geological Location
28 The northern and southern volcano-sedimentary terranes of the Svecofennian Province represent the two main iron and sulphide bearing regions in Sweden. Both terranes share a broadly similar geological evolution and are composed of a Palaeoproterozoic (~1.93-1.8Ga) sequence of calcalkaline, felsic to intermediate acid volcanics, volcanic sediments and terrestrial to shallow water epiclastics which is referred to as the Porphyry Group in the Norrbotten-Skellefte Districts. The northern volcano-sedimentary terrane is underlain by an older Palaeoproterozoic (~2.531.93Ga) Greenstone Supergroup comprising siliclastic and mixed basic volcanics and sediments of the basal Kovo Group and the overlying Greenstone Group. The Greenstone Supergroup is part of a larger tholeiitic province related to rifting events in the Archaean Karelian-Belomorian-Kola Craton. The KIP deposits belong to either the older Greenstone Group or the younger Porphyry Group.

Kiirunavaara, Malmberget Tjrrojkka, Harrejaure

Viscaria, Rakkurijoki Altavaara

Regional Mineralisation
29 The Fennoscandian Shield is one of the most important mining areas in Europe and the Norrbotten area of Sweden is one of the most mineralised areas representing a major producer of copper and iron ores. Unlike most shield areas, the Fennoscandian Shield is more mineralised in the Palaeoproterozoic than in the Archaean and to date no Archaean economic mineral deposits have been found in Sweden. The main mineral deposit types within the Palaeoproterozoic lithologies in the Norrbotten Province can be subdivided into: Inferred syngenetic, stratabound, iron sulphide-rich Cu-(Zn) sulphide deposits in metasediments of the Greenstone Group Magnetite-skarn iron ore deposits in the Greenstone Group Magnetite-apatite iron ore deposits in metavolcanics and metasediments of the Porphyry Group Epigenetic Cu-Au deposits in Upper Greenstone Group and Porphyry Group

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

Iron Mineralisation Types

30

There are two main types of magnetite iron ore deposits rocognised in 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 quartzbanded, metasomatic, magmatic-tectonic and titaniferous iron ores although these types are considered to be of minor significance. Almost all of the known iron deposits and occurrences were identified and investigated by the Swedish Geological Surveys (SGU) early (1950s) regional mapping programs or at the request of the Swedish Government as part of the Iron Ore Inventory Program which commenced in 1963 and ran for 10 years. Two iron deposits in Norrbotten were discovered as early as the 17th century; Masugnsbyn in 1644 and Gruvberget in 1654 after the Bergskollegium or Crown Mining Authority was established in 1630 and sent prospectors to this part of Sweden. Whilst the giant Kiirunavaara-Luossavaara deposit has been mined for more than 100 years, the first written documentation concerning the deposit was recorded in 1690.

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

Iron Mineralisation Types

31 Apatite Iron Ores of the Porphyry Group

High Fe, mod-high P, low S

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 high grade 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 and associated 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 accessory amounts of pyrite, chalcopyrite and titanite. Host rock alterations are not a prominent feature but albite and scapolite are quite common. The breccia deposits are characteristically low in phosphorus (0.05-0.3% P) and have an average iron grade of only 30%. Magnetite is almost always the only iron oxide mineral. Strataform-Stratabound Type: These deposits have hematite as a major component together with varying amounts of magnetite. The phosphorus content is typically high (1-4.5% P), amphibole is absent and the gangue minerals are mainly apatite, quartz and carbonate. Host rock alteration is common with sericite, biotite, tourmaline and carbonate the most prevalent. The hanging wall rocks may also be strongly silicified. Sulphides are rare but do occur as late cross-cutting veins. Ore breccia is lacking or restricted to the footwall. Examples include Nukutus, Henry, Rektorn, Lappmalmen and Ekstrmsberg. Combination of Breccia & Strataform-Stratabound: Some deposits share features of both breccia and strataform-stratabound apatite ores they are mainly stratabound in character but have ore breccia developed along the wall rock contacts. Magnetite is the dominent or only iron oxide, 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 developed but can include the formation of albite, amphibole, biotite, sericite and locally scapolite and tourmaline. Examples include Kiirunavaara and Tjrrojkka.

IP depth slice at 100m

Iron Mineralisation Types

32 Skarn Iron Ores of the Greenstone Group

Low-high Fe, low P, high S

Stratiform deposits of iron (and base metals) are restricted to the Palaeoproterozoic Greenstone Group successions, typically occurring in volcaniclastic 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 the skarn silicates formed through regional metamorphism with internal reactions between the chemical precipitates of iron, calcium, magnesium and silica. 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 form seperate 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 the skarn 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 in some 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 often scapolite-spotted and the feldspars are often scapolite-altered. Scapolite dominated rocks such as scapolite-biotite schists and biotite schists are typical, 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 the high sulphur fugacity prohibiting the formation of hematite.

IP depth slice at 100m

A Growing Resource Base

33

JORC INDICATED RESOURCES

Prospect Sautusvaara South Sautusvaara North Ekstrmsberg TOTAL

Mt 32.0 11.4 30.4 73.8 Mt 69.6 74.5 10.9 4.9 6.8 1.0 14.0 19.1 26.3 16.2 41.6 52.6 62.4 399.9

Fe (%) 37.4 39.7 52.0 43.0 Fe (%) 28.5 39.7 38.7 28.6 26.6 44.8 35.7 30.2 32.1 43.4 52.0 51.0 44.2 38.1 Mt 473.7

P (%) 0.06 0.09 Unavailable P (%) 0.07 0.28 0.05 0.05 0.09 0.05 0.14 Unavailable 0.21 0.04 Unavailable Unavailable 1.96 Fe (%) 40.5

S (%) 1.63 0.44 Unavailable S (%) 0.93 0.89 0.95 1.08 1.82 0.46 1.46 Unavailable 0.03 0.01 Unavailable Unavailable Unavailable -

JORC INFERRED RESOURCES

Prospect Rakkurijrvi Rakkurijoki Discovery Zone Tributary Zone Sautusvaara South Sautusvaara North Vieto Puoltsa Renhagen Harrejaure Ekstrmsberg Tjrrojkka Pattok TOTAL TOTAL Indicated & Inferred

A Growing Exploration Portfolio

34

KIRUNA HUB

Prospect kosjegge Altavaara Laukkujrvi Leppjoki Tjorika Total Hub 1

Tonnage Range (Mt) 10-15 55-60 4-8 5-8 15-30 89-121

Grade Range (Fe%) 23-30 26-29 30-35 35-45 45-55 31.8-38.8

LANNAVAARA HUB

Prospect Kevus Paljasjrvi Teltaja Total Hub 2 TOTAL Hub 1 & 2

Tonnage Range (Mt) 35-45 40-60 39-47 114-152 Mt 203-273

Grade Range (Fe%) 28-35 30-40 40-48 32-41 Fe (%) 32.1-39.6

Rakkurijoki
35 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Kiruna (Kiruna Central) Rakkurijoki Skarn Iron Ore ~1000m in length, width varies from 8-100m, open at 400m depth Rail (1km), Road (250m), Power (Overhead) Kiruna CBD (6km) 74.5Mt @ 39.7% Fe (JORC Inferred) 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 late 2010, 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 the way for a resource update (Indicated Catagory) once completed. As of September 2012 approximately 5,500m remains to be drilled to complete the 100m-spaced infill programme. To date only 6 drillholes have had formal assay results returned including 51m @ 46.5% Fe from 189.9m. Further assay 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-aranite unit occupies the hanging wall position at Rakkurijoki and is commonly intruded by both intermediate and mafic dykes. A single, much thicker (often up to 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 the dyke 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 2535% Fe; the contact between the two magnetite ore types is gradational. No magnetite ore occurs in the footwall mafic tuff or the meta-aranite hangingwall. A detailed study (Masters Thesis, Lule University) investigating the three main ore types within the Rakkuri Project will significantly aid in the understanding of all three deposits and guide further exploration within the Rakkuri Project. This study is the first of its kind and has to date confirmed 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 test groundwater flow rates. A scoping studing investigating the mining potential of Rakkurijoki commenced in mid-2012 and is expected to be completed in early 2013.

Rakkurijoki
36 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Kiruna (Kiruna Central) Rakkurijoki Skarn Iron Ore ~1000m in length, width varies from 8-100m, open at 400m depth Rail (1km), Road (250m), Power (Overhead) Kiruna CBD (6km) 74.5Mt @ 39.7% Fe (JORC Inferred) 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 the mineralisation 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 Rakkurijrvi deposits is scheduled for mid-2013 as part of standard QAQC procedures 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 Rakkurijrvi Rakkurijoki Rakkurijoki Rakkurijoki Number of Holes (KIAB) 6 8 2 19 Year 2011 2011 2011 2012 Number of Metres (KIAB) 1487 3083 883 6634 Comment Phase 1 Exploration Phase 1 Exploration Phase 2 Infill Drilling Phase 2 Infill Drilling 12,087 5,240

Total (m) at Rakkuri by KIAB Approximate (m) remaining of Rakkurijoki Phase 2 Infill Drilling

Rakkurijoki
37

Rakkurijoki
38

Rakkurijrvi
39 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Kiruna (Kiruna Central) Rakkurijrvi Skarn Iron Ore 2 x 400m in length, width varies from 45-138m, open at 300m depth Rail (3km), Road (250m), Power (3km) Kiruna CBD (8km) 69.6Mt @ 28.5% Fe (JORC Inferred) DTR Conc. 68.9% Fe, 2.2% SiO2, 0.4% Al2O3, 0.005% P, 0.022% S

Current Status: The Rakkurijrvi prospect is located approximately 2km southwest of the Rakkurijoki prospect. Six diamond drillholes were completed at 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 more drilling is required at Rakkurijrvi to further define the limits of the orebodies; the ore is split into two seperate deposits both of which are approximately 400m in length. A detailed ground magnetics survey was completed at Rakkurijrvi late in 2011 to gain more detailed data over the northeastern zone. The Rakkurijrvi prospect is included in the area being covered by ongoing, detailed environmental and social consequence reports but is not included in the current scoping study of Rakkurijoki. Almost all of the ore at Rakkurijrvi is located under the lake and will require much more detailed environmental studies into the impacts of draining the lake for a potential mining scenario. The Rakkurijrvi prospect is however included in a detailed study (Masters Thesis, Lule University) investigating the three main iron deposits within the Rakkuri Project; preliminary results are indicating that the three ore deposits (Discovery, Rakkurijrvi and Rakkurijoki) are unique. The final report is due for publication in late 2012 and will significantly aid in the understanding of all three deposits and guide further exploration within the Rakkuri Project. Planned Work: There is currently no drilling planned at Rakkurijrvi for the upcoming winter drilling season (Jan-Apr 2013) as the focus remains on bringing Rakkurijoki into a feasibility stage. However work will continue on furthering the geological understanding of the Rakurijrvi deposit.

Rakkurijrvi
40

Kiruna Central Hub

41 Kiruna Central Hub: This potential mining hub is centrally located with respect to both the city of Kiruna and existing infrastructure of road, rail and power. The deposit at Rakkurijoki is the priority for a start-up mining scenario with the close-by deposits of Rakkurijrvi, Discovery, Tributary, Puoltsa, Vieto and Lauukujrvi likely satellite deposits. This area is an important Sami herding area belonging to the Laevas Sameby. The Kiruna Central Hub currently has a combined JORC Inferred Resource of 193Mt @ 33.6% Fe which excludes Laukkujrvi which has a current JORC Exploration Target of 4-8Mt @ 30-35% Fe.

Ekstrmsberg
42 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Kiruna (Kiruna South) Ekstrmsberg Apatite Iron Ore (Strataform-Stratabound) 1500m in length, multiple lenses with total width of 150m, currently open at 250m depth No existing infrastructure 41.6Mt @ 52% Fe (JORC Indicated) 30.4Mt @ 52% Fe (JORC Inferred) 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 Ekstrmsberg prospect is the highest priority prospect located within the Kiruna South Hub, despite the prospect being located on the southern side of the Kalix River where there is no current infrastructure (roads and power). Ekstrmsberg was thoroughly investigated by the Swedish Geological Survey during the 1960s where detailed ground geophysics and diamond drilling was completed (49 holes). Whilst there is already a significant JORC Resource (41.6Mt @ 52% Fe (JORC Indicated) 30.4Mt @ 52% Fe (JORC Inferred) at Ekstrmsberg preliminary reviews by 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 Ekstrmsberg in 2010 shows that a high grade (>70% Fe) iron product is achievable although further testwork is required to see what proportion of the hematite ore can be recovered. Planned Work: Detailed geophysical modelling at Ekstrmsberg 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 add additional 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 and sampled 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 Ekstrmsberg prospect area.

Ekstrmsberg
43

Gravity

Magnetics

Tjrrojkka
44 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Kiruna (Kiruna South) Tjrrojkka Apatite Iron Ore (Combined Breccia & Strataform-Stratabound)) ~600m in length, width varies from ~60-80m, open at depth No existing infrastructure 52.6Mt @ 51% Fe (JORC Inferred) Not tested

Current Status: The Tjrrojkka prospect is also located within the Kiruna South Hub some 18.5km southwest of the Ekstrmsberg prospect and was discovered by the Swedish Geological Survey in 1963. The Tjrrojkka deposit is remarkably similar to the Kiirunavaara deposit in terms of the type of mineralisation with the magnetite forming both strataform-stratabound and breccia ore. The rich ore (>60% Fe) is located in the central part of the orebody with a lower grade (20-52% Fe), breccia ore forming a peripheral zone. Preliminary desktop studies completed by Hannans has shown that a large 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 Tjrrojkka 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; the relationship 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 of magnetic and gravity data. Preliminary metallurgical studies will also be planned to test the upgrade potential of the Tjrrojkka magnetite ore.

Tjrrojkka
45

Renhagen
46 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Kiruna (Kiruna South) Renhagen Apatite Iron Ore (Breccia) ~700m in length, width varies from 5-40m, open at depth No existing infrastructure 26.3Mt @ 32.1% Fe (JORC Inferred) Not tested

Current Status: The Renhagen prospect is located in a central position within the Kiruna South Hub and was first discovered by the Swedish Geological Survey in 1949 but it wasnt until 1968 that 5 diamond drillholes were completed. In 2011 Hannans drilled 6 diamond holes into the main fold 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 and folding 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 to commence during summer 2013. A detailed ground magnetic survey is also required to enhance the detail of the southeastern (airborne) magnetic anomaly which Hannans drilling in 2011 identified magnetite mineralisation. The ground magnetic survey is likely to take place during the upcoming winter season. Preliminary metallurgical studies will also be planned to test the upgrade potential of the Renhagen magnetite ore.

Renhagen
47

MAGNETICS

Harrejaure
48 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Kiruna (Kiruna South) Harrejaure Apatite Iron Ore ~450m in length, width varies from 35-155m, open at depth, along strike No existing infrastructure 16.2Mt @ 43.4% Fe (JORC Inferred) Not tested

Current Status: The Harrejaure prospect was discovered by a private exploration company in the 1940s so little historic information exists today; to that end Hannans essentially re-drilled the Harrejaure deposit in 2011 with 6 diamond drillholes, although the northern-most hole HAR11006 failed to drill 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 banded over a very wide zone of between 60-100m but occasionally wider than 100m including 129m @ 44% Fe from 30m. Detailed ground magnetics and gravity surveys over the deposit area were completed by Hannans in January 2011 which showed that the magnetic and gravity anomalies are coincident over the main part of the orebody although, towards the north, the magnetic signature becomes weaker but the gravity signature remains the same, possibly indicating that a more oxidised, hematitic ore continues to the north. The northern-most hole HAR11006 was designed to test this theory 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 and very 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 significanly increase the potential tonnage at Harrejaure. The Harrejaure prospect can be drilled during the summer months with a heli-portable drill rig and infill drilling will be planned to commence during summer 2013. Preliminary metallurgical studies will also be planned to test the upgrade potential of the Harrejaure magnetite-hematite ore.

Harrejaure
49

NORTH

MAGNETICS

Kiruna South Hub

50 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 has no existing infrastucture i.e. roads, power. The Kiruna South Hub is also an important Sami herding area belonging to the Girjas Samby. Whilst logistically 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-Lule ore railway is located only 23km to the east of the Harrejaure prospect. Additionally all four deposits are classified as apatite iron ore so are metallurgically similar. Significant exploration upside also exists at all four known deposits and elsewhere within permits located in the Kiruna South Hub.

Sautusvaara
51 HUB PROSPECT MINERALISATION TYPE Kiruna (Kiruna North) Sautusvaara North, Sautusvaara South Skarn Iron Ore 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 300m depth but narrows significantly Rail (26.5km), Road (3.5km), Power (7km) Kiruna CBD (26.5) 43.4Mt @ 38.5% Fe (JORC Indicated) 7.8Mt @ 35.7% Fe (JORC Inferred) DTR Conc. 71.1% Fe, 0.5% SiO2, 0.2% Al2O3, 0.05% P, 0.3% S

DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY

Current Status: The Sautusvaara prospect is comprised of two seperate orebodies; Sautusvaara North and Sautusvaara South which are seperated by faulting over a distance of approximately 1,000m. The Sautusvaara prospect was extensively investigated by the Swedish Geological Survey during the 1960-1970s with more than 70 diamond drill holes completed between the two orebodies. Hannans completd 5 diamond drillholes in 2011 to verifiy the historic drilling and to also test step-out positions on both orebodies. Twin hole SAU11002 returned 112m @ 42% Fe from 156m and exploration hole SAU11004 returned 40m @ 39% Fe from 44m. Whilst the smaller northern orebody remains open to the southwest the larger southern 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 achievable from Sautusvaara although the sulphur content in the concentrate remains quite high and further processing (floatation) would be required to generate a 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 grow in size a potential mining scenario involving both prospects would be investigated.

Sautusvaara
52

MAGNETICS

Altavaara
53 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Kiruna (Kiruna North) Altavaara Skarn Iron Ore ~500m in length, width varies from 30-230m, open at depth Rail (15km), Road (1.5km), Power (4km) Kiruna CBD (15km) 55-60Mt @ 26-29% Fe (JORC Exploration Target) Testing in progress

Current Status: The Altavaara prospect was first investigated in 1897 by trenching and diamond drilling. Further drilling was completed by the Swedish Geological Survey between 1900-1910, 1916-1917 and in 1964. The Altavaara mineralisation is spread across three seperate magnetic anomalies; a northern, 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 orebody is 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 low grade the width of mineralisation is very wide varying from 30-230m but has an average width of approximately 120m. Drillhole ALT11003 returned an iron 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 almost uniform, disseminated magnetite mineralisation within an amphibolitic mafic volcanic rock. The host rocks are quite strongly scapolitised and in places are 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% Fe was calculated for Altavaara. Preliminary DTR (Davis Tube Recovery) testwork is currently underway to see if the low grade iron ore can be sucessfully 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 expected in November 2012.

Altavaara
54

NORTH MAGNETICS

Paljasjrvi
55 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Lannavaara Paljasjrvi Skarn Iron Ore ~3500m in length, width varies from 20-40m, open at depth No existing infrastructure but only 17km from Lannavaara 40-60Mt @ 30-40% Fe (JORC Exploration Target) Testing in progress

Current Status: The Paljasjrvi prospect was discovered by a private exploration company in 1963 when 7 drillholes were completed. Little historic information exists today except for the drillcore of three holes which are stored in Mal, Sweden. Paljasjrvi is a skarn iron ore typical of the Kiruna greenstones consisting of magnetite together with serpentine, pyroxene and amphibole and minor amounts of pyrite, pyrrhotite and chalcopyrite. The ore horizon is approximately 3,800m long and according to earlier geological descriptions dips steeply towards the east and appears to be regular in character. According to earlier drilling results the ore averages 30m in width with 36-39% Fe although 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 geophysical data was modelled in detail in early 2012 which indicated significant mineralisation upside, consequently 18 drill profiles (200m spacing) were planned but 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 upgrade potential 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 spaced intervals 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 half of the orebody during the 2013 summer drilling season.

Paljasjrvi
56

NORTH

MAGNETICS

Lannavaara
57 HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY HUB PROSPECT MINERALISATION TYPE DEPOSIT DIMENSIONS DISTANCE TO INFRASTRUCTURE CURRENT RESOURCE BASIC METALLURGY Lannavaara Kevus Unclassified but possibly epigenetic, metasomatic iron ore (Magnetite) ~700m in length, width varies from 20-50m, open at depth Rail (72km), Road (17m), Power (17km) Kiruna CBD (121km) Kevus 35-45Mt @ 28-35% Fe (JORC Exploration Target) Not tested Lannavaara Teltaja Unclassified but possibly epigenetic, metasomatic iron ore (Magnetite & Hematite) ~1000m in length, width varies from 20-80, open at depth Rail (72km), Road (17km), Power (17km) Kiruna CBD (121km) Teltaja 39-47Mt @ 40-48% Fe (JORC Exploration Target) Not tested

Current Status: The Lannavaara iron ores (Kevus, Teltaja and Sattavaara) were first discovered by a private exploration company in 1920 and were followed 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 Teltaja are regarded as unique iron ore deposits within the Kiruna District. Kevus is a magnetite (pyrrhotite-pyrite) deposit whereas Teltaja is a magnetitehematite 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 be planned to test the upgrade potential of ore from both Kevus and Teltaja in the first instance.

Lannavaara
58

Sattavaara Gravity Anomaly

NORTH MAGNETICS

Lannavaara Hub
Lannavaara Hub: This potential mining hub is located approximately 70km (trucking distance) from the closest, open access, railhead at Svappavaara. Total combined Exploration Target resources for the Lannavaara Hub currently stand at 114-152Mt @ 32.7-41% Fe although the estimates for each of the three deposits have been made using unverified historic drillhole data and are considered very conservative. Detailed geophysical modelling of both gravity and magnetic data over the three59 deposit areas by Hannans in 2011 and 2012 indicate there is significant exploration upside.

PALJASJRVI

10KM

TELTAJA SATTAVAARA KEVUS

NORTH MAGNETICS

References
60 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, ., 2003, Geology, alterations and mineral chemistry of the Tjrrojkka Fe-oxide Cu-A occurrences, northern Sweden: Licentiate Thesis, Lule University of Technology.

Competent Persons Statements

61
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 of Scandinavian 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 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-Rakkurijrvi, Rakkurijoki, Discovery, Tributary Zone, and Puoltsa Mineral Resources The mineral resource estimate for Rakkurijrvi, Rakkurijoki, Discovery, Tributary Zone and Puoltsa is effective from 13 January 2012 and has been prepared by Mr Thomas Lindholm, MSc of GeoVista AB, Lule, 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-Ekstrmsberg, Tjrrojkka and Pattok Mineral Resources The mineral resource estimate for Ekstrmsberg, Tjrrojkka, 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 Ekstrmsberg, Tjrrojkka, 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 Minarco-MineConsult 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, Lule, 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. *The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by the Geological Survey of Sweden 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.

Appendix II Additional Information

Kiruna A City in Transformation

63

Kiruna, LKABs Kiruna orebody overlaid on image

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 worlds largest known continuous body of iron ore. About 26Mt of crude ore is mined each year. It is a single, continuous, rich magnetite orebody that is more than 4km long and has an average width of about 80m. LKAB knows that it extends to a depth of at least 1,500m, and there are indications that it continues to a depth of up to 2km. The present main level, from which the ore is gathered, is at a depth of 1,045m (measured from the zero point at the original peak of Mt. Kiirunavaara). LKAB is now building a new main level 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 consists of magnetite ore, but non-magnetic hematite also occurs. The present main level of the Malmberget mine is at a depth of 1,000 meters. About 14 Mt of crude ore is extracted from the orebodies each year Source: LKAB web site & Annual Report 2010 Kiruna population: c. 18,000

High Level Estimates of OPEX

64

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 20 Processing 12 Admin 2.5 Royalties 0.5 Rail to Narvik 4.5 (say 9 to Lulea) Port fees 1.5 Contingency 1.5 Total OPEX 41 (FOB Narvik) The calculation of the margin for Asian delivery (USD/t concentrate) Reference price China 100 68% Fe price China 130 (using a USD5 premium per % point above 62%) Less freight to Narvik 35 Price 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

Value Proposition
65 IRON GRADE (%) MARKET CAP LOCATION (AUD) STAGE / LISTED EXCHANGE Hannans Reward Ltd 473Mt (Resources) 40 $14m Northern Sweden Explorer ASX:HNR Northland Resources Inc 85Mt (Resources) 165Mt (Reserves) 26-41 $350m Northern Sweden Developer TSX:NAU Northern Iron 434Mt (Resources) 166Mt (Reserves) 31-32 $301m Northern Norway Miner ASX:NFE LKAB Northern Sweden Major Miner Company TONNES (Mt) NOTES

Minimal exploration since on projects since 1970 Located adjacent to Kiruna town and rail infrastructure No off-take agreements 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 Aditya Birla has bid for NFE (live) Prominvest AG has bid for NFE (live) International high-tech minerals group One of the worlds leading producers of upgraded iron ore products

Sami Village Corridors

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

Sami Interests
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Sami organisations consider that the Swedish Mining Law contravenes the European Union Directive on Human Rights and therefore all exploration and mining activity in Sweden is a breach of these human rights. Sami organisations are therefore opposed to the activities of exploration and mining companies including Scandinavian Resources AB and Kiruna Iron AB. In general the Sami position is that mining operations may destroy both the future of the reindeer husbandry 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 metal producers in Sweden. The Ethical Rules of SveMin states that the task of the mining industry is to supply society with minerals and ore in a responsible manner and with long-term profitability. Minerals and metals are essential to a wellfunctioning and modern society. Metals are produced from ore and may be continuously recycled. SveMin members will promote sustainable development and efficient, balanced, long-term management of energy and natural resources while 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 Sami interests through many face-to-face meetings, the provision of detailed written information and the carrying out of exploration activities at times where the interests of the reindeer herders are not impacted. Kiruna Irons legal team have confirmed that the Company has exceeded the requirements of the mining legislation with regard to communications with affected persons and the Company will continue to do so.