Hannan Metals Limited provided an update at the Belen copper-gold porphyry project at the 100%-owned Valiente in central Peru. The Valiente Project, located 19 km east from the township of Tingo Maria in central Peru, defines a previously unknown Miocene-age porphyry-epithermal copper-gold mineralized belt within a 140 km by 50 km area in Peru where Hannan's exploration team has identified at least seven intrusion related porphyry/epithermal/skarn targets, of which Belen is the most advanced and described here in more detail. A linked porphyry copper-gold and epithermal gold mineral system has been identified at Belen within a 9 km by 2 km trend.

Detailed field work at the Belen prospect, which represents a small proportion (4%) of Hannan's total landholding at the Valiente project, has infilled soil sampling trends and identified a leached copper-gold porphyry with well-developed quartz veining at upper topographic levels with evidence for an enriched chalcocite blanket sampled over 1 km within lower lying creeks at the Southern Copper-Gold Porphyry Target. A gold-bearing epithermal target area identified by large gold mineralized boulders of quartz-pyrite and iron oxides as well as strongly gold anomalous soil samples has been discovered 2.5 km NW of the Southern Porphyry Target. Southern Copper-Gold Porphyry Target: This target concists of a highly anomalous Cu-Au-Mo soil anomaly, initially reported here, over a 1,600 m by 800 m area above a mapped and radiometrically dated Miocene-age porphyry intrusion.

Systematic soil sampling has been completed. A total of 494 samples have been taken across the porphyry target covering an area of approximately 3.3 km x 1.7 km at sample spacing of 100 m x 100 m. The results show strong correlation with several elements including Cu-Au-Mo-K-V. The core of the anomaly extends over 1600m and 800m width and have consistent values > 500 ppm Cu with Cu values up to 1461 ppm Cu and Mo up to 32 ppm. Gold is locally anomalous within but also occur peripheral to the main copper anomaly.

The main "offset" gold target is marked by a 1000 m long up to 300 m wide gold anomaly. Gold assays have been received for 331 samples and values range from <0.001 ppm to 0.185 ppm, average 0.0162 g/t and 9 samples have values > 0.1 ppm (100ppb) in soil. The host rock is a grey to greenish porphyritic intrusion with hornblende and feldspar phenocrysts that is overprinted by strong weathering.

Observations of hydrothermal alteration are emerging from systematic mapping and Terraspec analysis and so far, areas of propylitic, phyllic, intermediate argillic alteration, silicification and secondary biotite have been observed. Geological and alteration vectors such as pyrite and chalcopyrite ratios from surface rock observations suggest that the mineralization represents the upper part of a porphyry intrusion. Both more intense hypogene copper mineralization can be expected at depth and zones of supergene enrichment.

Sampling below the soils has uncovered: A strongly leached copper-gold porphyry, with an extensive zone of enrichment has been discovered beneath anomalous soil sampling that cover an area of 1,600m by 800m area. In the leached zone secondary copper is evident within manganese oxides (neotocite) and red iron oxides (hematite) in outcrops and boulders with values exceeding 0.1 % Cu. Assay results from 19 panel samples have been received to date with an average of 333 ppm Cu and 0.024 g/t Au over an average surface area of 1.9m .

The size of the panels ranges from 0.24- 4m and with Cu ranging between 104-1070 ppm and gold from <0.01 to 0.313 g/t. Both M (magnetite-bearing), B (quartz/biotite) and A-veins (saccharoidal quartz/K-feldspar) have been observed in outcrop and quartz veins have been mapped with encouraging densities of approximately 6 veins per metre (assays pending) with associated stockworking. Supergene enrichment has been observed in the lowest topographic levels in creeks where chalcocite is seen to replace chalcopyrite within samples separated by 1 km. Assays from these zones are pending.

1. Central Epithermal gold target: This consists of a gold-bearing epithermal target identified by large gold mineralized boulders of quartz-pyrite and iron oxides as well as strongly gold anomalous soil samples has been discovered 2.5 km NW of the Southern Porphyry Target (initially reported here). Work over the last month has included: Systematic 100 m x 100 m soil sampling program. Two strong gold anomalous trends that extend for 1800 m and 970 m respectively have been identified.

Assays have been received to date from 376 samples covering an area of 2 km x 1.7 km. Values range from <0.001 ppm to 0.094 ppm, average 0.0056 g/t in soil. The gold anomaly correlates very well with several elements including arsenic.

Spatially the gold anomalies correlate with a mapped Andean-age thrust fault and remains open in both to the north and south Soil anomalies are coincident with gold found in quartz-iron oxide boulders (reported here). To date 19 boulders >0.1 ppm Au has been sampled over a trend of 1.6 km that is parallel to the main gold anomaly. A total 43 rock samples from boulders average of 0.48 g/t Au, 6 g/t Te and range from below detection limit to 2.69 g/t Au and

Two gold mineralized outcrops have also been located 270m apart. The mineralization is hosted by 5- 30cm wide quartz vein in an intrusive host rock with magnetite and iron oxides. The mineralization is correlated with high values of copper and molybdenum.

The outcrops assayed: Grab sample: 1.17 g/t Au, 0.67 % Cu and 33.4 ppm Mo. Channel sample: 30 cm @ 3.21 g/t Ag, 0.57 % Cu and 22 ppm Mo. At Belen, Hannan plans to continue systematic soil sampling to cover the entire 10-km intrusive trend and detailed trench sampling.

Hannan also plans to survey an extensive airborne magnetic survey over the Valiente project area. Field and social teams are actively engaged in the area, with Hannan's policy to undertake exploration activities only within areas where full support from local stakeholders exists. The Valiente project is located further east than most of the conventional Andean porphyry settings and shows regional similarities to deposits such as the large Bajo de Alumbrera copper-gold porphyry in Argentina.

It is interpreted that Valiente was formed in a tectonically favourable area associated with an arc-oblique wrench fault system, that may have aided the ascent of oceanic arc-related magmas into the transfer zone so far inboard from the magmatic arc.