Hannan Discovers a New Thick Style of High-Grade Sediment Hosted Copper in Peru - Seite 3

The copper mineralization at surface is strongly leached and copper sulfides are dominantly preserved in weathering resistant silicified zones. The company expects that high grade copper mineralization extends into zones of less intense weathering at depth.

Detailed geochemical sampling by handheld pXRF units has commenced and results will be released once the program has been completed. Weighted averages of twelve channels sampled over 2.3 km averaged 13.2 m @ 0.3% Cu and 9 g/t Ag. Max 13.4 m @ 1.4% Cu and 29 g/t Ag, min 7.2 m @ 0.0 % Cu and 0 g/t Ag. (Table 1).

Compared to the Tabalosos project area, which is located 45 km to the east, the new discovery is hosted 200 m to 300 m higher in the stratigraphy.

San Martin Copper-Silver Project

Sediment-hosted stratiform copper-silver deposits are among the two most important copper sources in the world, the other being copper porphyries. They are also a major producer of silver. KGHM Polska Miedz's ("KGHM") three copper-silver sediment-hosted mines in Poland (the "Kupferschiefer") were the leading silver producer in the world and seventh largest global copper miner in 2020. Quoted resources in 2019 for KGHM were 1,518 Mt @ 1.86% copper and 55 g/t silver from a mineralized zone that averages 0.4 m to 5.5 m thickness.

To provide context, Hannan's widths and grade (0.9 m @ 1.9 % copper and 27 g/t silver) from 105 channel surface samples reported at Tabalosos East (lower cut 0.5% copper), within an area about 9 km long and 1 km wide, compare with those found during the initial modern-day drill discovery of the Kupferschiefer copper-silver deposits (Figure 2).

• In 1957 the discovery drillhole (Sieroszowice IG 1) intersected 2.0 m @ 1.5% copper at the depth of 657 m.
• In 1959 the Lubin-Sieroszowice deposit, based on the results from 24 drillholes contained 1,365 Mt @ 1.4% copper and 26 g/t silver in indicated resources, with a thickness ranging between 0.2 m to 13.1 m in an area about 28 km long and 6 km wide between 400 m and 1,000 m depth.

Hannan's sampling, to date, has been confined to surface channel sampling, although mineralization at Tabalosos East is interpreted to extend with shallow dips to the west for between 2 km to 4 km, with a target depth ranging from surface to 500 m.