Hannan Soil Sampling Defines Copper-Silver Mineralization Over 18 Kilometres at Tabalosos East - Seite 2

The soil survey was designed to determine the continuity of copper-silver mineralization under soil cover over larger areas. Hannan has previously reported high grades of copper and silver in outcrop up to 2.0 metres @ 4.9% copper and 62 g/t silver. The 2,500 point soil sampling program was designed to determine the continuity of copper silver mineralization under soil cover over larger areas. The program consists of approximately 35-line kilometers of survey lines covering an area measuring 6 kilometres by 2.6 kilometres. The main survey lines are spaced at 250-metre centers running east-west, with shorter infill survey lines spaced at 150-metre centers. Soil samples were collected every 20 meters along each of the survey lines. Approximately 1,212 samples to date have been collected and assayed.

Specific areas of interest discovered in the survey to date (Figure 2) include:

• Zona Sur: A 1.4 kilometre long anomaly composed of two parallel zones striking E-W. The anomalies show excellent correlation with channel sampled outcrops (reported here) and including 2.0 metres @ 4.9% copper and 62 g/t silver (partially sampled) and 0.4 metres @ 6.3% copper, 152 g/t silver (partially sampled), but importantly double the strike length of the outcrop zone.
• Zona Oeste: A new blind discovery over three regional lines with over 2.2 kilometres of strike that is open to the N and S. The copper anomalies are situated in the same stratigraphic position in all three lines, close to the mineralized contact seen elsewhere on the project. Additional sampling is needed to determine the continuity of the mineralization.
• Zona Norte: To date one sampling line has been completed in the northern area. This line revealed a broadly elevated zone of 800 metres length with three distinct anomalies with soil values >100 ppm copper.
• Salt dome targets: The salt dome targets show elevated background values of copper with internal high copper values over five lines with up to 800 metres of strike continuity. Some boulders of gypsum with disseminated chalcopyrite have been observed near the anomalies. The anomalies show excellent correlation with channel sampled outcrops (reported here) and include 1.0 metre @ 6.3% copper and 101 g/t silver (partially sampled), 1.8 metres @ 3.7% copper and 42 g/t silver (partially sampled) and 2.2 metres @ 2.4% copper and 29 g/t silver (full sample).

Future work during the dry season at Tabalosos East will focus on continued systematic soil sampling, trenching, and sampling of key soil anomalies and detailed geological mapping to aid the interpretation of the soil anomalies.