Hannan Identifies Significant Copper-Gold Porphyry-Epithermal Discoveries at Valiente, Peru

VANCOUVER, May 12, 2022 - Hannan Metals Ltd. ("Hannan" or the "Company") (TSX.V:HAN) (OTCPK:HANNF) is pleased to provide an update on exploration programs at the Belen project area at the 100%-owned Valiente copper-gold porphyry project in central Peru (Figures 1 and 2).

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.

Highlights:

Continued field work at the Belen prospect, which represents only a small proportion (4%) of Hannan's total landholding at the Valiente project, has identified four significant linked mineral systems, each with significant size and tenor, within a 9 km by 2 km trend (Figures 2-5).

1. Southern porphyry copper-gold - epithermal gold target
   • A highly anomalous Cu-Au-Mo soil anomaly believed to represent the upper levels of a concealed copper-gold porphyry system over a 1,600m by 800m area, hosted by a Miocene-age porphyry intrusion with artisanal gold workings located downstream.
2. Central Epithermal gold target
   • A 2 km long epithermal target area identified by gold mineralized boulders of quartz-pyrite and iron oxides as well as strongly gold anomalous soil samples over 1,500m. Up to 2.69 g/t Au and 59 g/t Te in rockchip samples from large quartz iron oxide float in creeks, and 3.2 g/t Au, 0.6% Cu and 20 ppm Mo in outcrop (photo in Figure 7).
3. Central Skarn target
   • Cretaceous limestone hosting a 400m long soil anomaly and open in all directions. Six soil samples 100 - 200m apart with Zn values ranging from 200 - 2,577 ppm, Pb 22 ppm - 127 ppm and gold from
4. Northern porphyry copper-gold target
   • A Cu soil target defined by boulders and soil samples, over a 2,300m by 800m area with porphyry related alteration assemblages and veining common including potassic alteration and porphyry related veining with "A" type (quartz) and "M" type (magnetite) veins.

Michael Hudson, CEO, states "At Valiente, we see the emergence of a major new copper-gold mineral camp discovery. After five months our team has managed to define an array of impressive geological copper-gold targets in an area with little to no prior historic mineral exploration. Hannan's land holding at Valiente secures the Miocene-age porphyry-epithermal copper-gold mineralized belt with more than 1,000 km² under 100%-owned tenure, so what we see at Belen may only represent the first discovery from a series of similar targets within the regional Valiente project. With the wet season now behind us, we look forward to more detailed field work in the coming months, including detailed grid sampling and hand trenching at Belen and the extension of our field programs into surrounding areas."

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 calc-alkaline oceanic arc-related magmas into the transfer zone so far inboard from the magmatic arc.

The four linked porphyry copper-gold/epithermal gold mineral systems defined during recent field work within a 9 km by 2 km trend (Figure 2-5) are described in further detail below:

1. Southern porphyry copper-gold - epithermal gold target
   • A highly anomalous Cu-Au-Mo soil anomaly believed to represent the upper levels of a concealed copper-gold porphyry system, initially reported here, over a 1,600m by 800m area above a mapped and radiometrically dated Miocene-age porphyry intrusion. Sampling shows:
     • 44 soil samples from the porphyry target range from 26 - 1,461 ppm Cu with an average of 331 ppm Cu. Au and Mo are also anomalous.
     • Where exposed the wall rock to the porphyry intrusion show hornfels alteration and a channel sample from hornblende-bearing feldspar porphyry with milky quartz iron oxide veinlets assayed 1m @ 0.3 g/t Au (reported here).
   • A peripheral gold-antimony-tellurium soil anomaly up to 85 ppb gold extends 2 km by 0.4 km around the porphyry-style geochemical signature.
     • 16 soil samples from the epithermal gold anomaly range between 6 ppb and 85 ppb Au and show strong correlation with Te.
   • Detailed grid soils to be followed up during May followed by hand trench sampling.
2. Central Epithermal gold target
   • A 1,500m long epithermal target area identified by large gold mineralized boulders of quartz-pyrite and iron oxides as well as strongly gold anomalous soil samples.
     • 43 rockchip samples from boulders have been collected with an average of 0.48 g/t Au, 6 g/t Te and range from and below detection limit ("
   • 1 km north of the epithermal gold boulder occurrence, a plutonic diorite with a magnetite and iron oxide vein was sampled:
     • The 0.3m wide channel sample across the vein assayed 3.2 g/t Au, 0.6% Cu and 20 ppm Mo (photo in Figure 7).
     • In the same area an iron gossanous boulder assayed 0.1 g/t Au and 0.12% Cu.
     • This area may represent a third porphyry target within the 10 km Belen trend.
   • Soil sampling outlines a strongly gold anomalous topographic ridge that extends for 1,200m strike and is anomalous over its entire strike length. This ridge is believed to represent weathering resistant alteration related to underlying epithermal gold mineralization.
     • 12 soil samples range from 5 ppb to 71 ppb Au (Figure 4)
   • 250m north of the ridge named above a large gossanous boulder with boxwork of jarosite, hematite and goethite with botryoidal chalcedony in cavities containing 42 ppb Au, 12 ppm Mo.
3. Central Skarn target
   • Cretaceous limestone hosting a 400m long soil anomaly and open in all directions.
     • Six soil samples 100 - 200m apart with Zn values ranging from 200 - 2,577ppm, Pb 22 ppm - 127 ppm and gold from
4. Northern porphyry copper-gold target
   • A Cu soil target defined by boulders and soil samples, over a 2,300m by 800m area.
   • Porphyry related alteration assemblages and veining common:
     • Potassic alteration in the form of pink potassic-feldspar veins (photo in Figure 6).
     • Porphyry related veining with "A" type (quartz) and "M" type (magnetite) veins.
   • 55 ridge-top soil samples at 100 - 200m point spacing and 400 - 600m line spacing range from 5 - 276 ppm Cu related to strong soil colour changes.

At Belen, Hannan plans to expand the current ridge-top soil program to cover the entire 10-km intrusive trend with a systematic grid sampling program followed by 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.

Technical Background

All mineralized samples were collected by Hannan geologists. Samples were transported to ALS in Lima via third party services using traceable parcels. At the laboratory, rock samples were prepared and analyzed by standard methods. The sample preparation involved crushing 70% to less than 2mm, riffle split off 250g, pulverize split to better than 85% passing 75 microns. The crushers and pulverizes were cleaned with barren material after every sample. Samples were analyzed by method ME-MS61, a four acid digest preformed on 0.25g of the sample to quantitatively dissolve most geological materials. Analysis is via ICP-MS. Channel samples are considered representative of the in-situ mineralization samples and sample widths quoted approximate the true width of mineralization, while grab samples are selective by nature and are unlikely to represent average grades on the property.

All soil samples were collected by Hannan geologists using an in-house protocol for soil sampling in jungle areas. The samples were subsequently analyzed with a portable XRF deploying a protocol developed by Hannan for the San Martin project. The method is designed to minimize risk of contamination and ground disturbance. In most cases the sample media is the "B-horizon" of the soil profile. Only 100g of sample material is collected from each site. From the soil sample a pellet is being produced which is dried and analyzed by a portable XRF (pXRF). Certified reference material, blanks and field duplicates are routinely added to monitor the quality of the pXRF data. Gold was analyzed by ALS in Lima using a standard sample preparation and 50g fire assay sample charge.

About Hannan Metals Limited (TSX.V:HAN) (OTCPK: HANNF)

Hannan Metals Ltd. is a natural resources and exploration company developing sustainable resources of metal needed to meet the transition to a low carbon economy. Over the last decade, the team behind Hannan has forged a long and successful record of discovering, financing, and advancing mineral projects in Europe and Peru. Hannan is a top ten in-country explorer by area in Peru.

Mr. Michael Hudson FAusIMM, Hannan's Chairman and CEO, a Qualified Person as defined in National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release.

Forward Looking Statements. Certain disclosure contained in this news release may constitute forward-looking information or forward-looking statements, within the meaning of Canadian securities laws. These statements may relate to this news release and other matters identified in the Company's public filings. In making the forward-looking statements the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These risks and uncertainties include but are not limited to: the political environment in which the Company operates continuing to support the development and operation of mining projects; the threat associated with outbreaks of viruses and infectious diseases, including the novel COVID-19 virus; risks related to negative publicity with respect to the Company or the mining industry in general; planned work programs; permitting; and community relations. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE: Hannan Metals Ltd.