Hannans Annual Report 2012

HANNANS
REWARD LIMITED
ANNUAL REPORT 2012

ABN: 52 099 862 129
AnnuAl RepoRt foR the finAnciAl yeAR ended 30 June 2012
Corporate Directory ....................................................................................................................1 Directors Report ..........................................................................................................................2 Independence Declaration to the Directors of Hannans Reward Ltd ........................... 46 Directors Declaration ............................................................................................................... 47 Independent Audit Report to the Members of Hannans Reward Ltd ............................ 48 Consolidated Statement of Comprehensive Income .......................................................... 50 Consolidated Statement of Financial Position ...................................................................... 51 Consolidated Statement of Changes in Equity ..................................................................... 52 Consolidated Statement of Cash Flows................................................................................. 53 Notes to the Consolidated Financial Statements ................................................................ 54
Cover by Jessica Hicks. Cover and Directors Report photos by Hans Linberg.
Corporate DireCtory
social network sites

Twitter: @hannansreward Facebook: Hannans Reward
Board of directors
Independant non-executIve chaIrman
principal office
6 Outram Street West Perth, Western Australia 6005
sHare registry
computershare Level 2, 45 St Georges Terrace Perth, Western Australia 6000 Telephone: 1300 557 010 www.computershare.com.au
Mr Richard Scallan
managIng dIrector
registered office
6 Outram Street West Perth, Western Australia 6005
Mr Damian Hicks
non-executIve dIrector
Mr William Hicks
postal address
PO Box 1227 West Perth, Western Australia 6872
auditors
Stantons International Level 2, 1 Walker Avenue West Perth, Western Australia 6005
Mr Jonathan Murray
Mr Markus Bachmann
contact details
Telephone: +61 8 9324 3388 Facsimile: +61 8 9324 3366 [email protected] www.hannansreward.com ABN 52 099 862 129
lawyers
Steinepreis paganin Level 4, The Read Buildings 16 Milligan Street Perth, Western Australia 6000
Mr Olof Forslund
company secretaries
Mr Ian Gregory Mr Michael Craig
Hannans reward annual report 2012
DIRECTORS REPORT
The Directors of Hannans Reward Ltd (hannans or the company) submit their annual financial report of the Group being the Company and its controlled entities for the financial year ended 30 June 2012.
strategic plan
vISIon
Our vision is to build a successful exploration and production company.
mISSIon
Our mission is to develop a company that has a material interest in a portfolio of mineral projects that are being rapidly progressed whether they are exploration, development or production assets. We recognise that a professional, knowledgeable and ethical team of directors, employees and consultants is the key to our business. Our focus is to provide shareholders with a satisfactory return on investment by managing our people, projects and capital in an entrepreneurial and responsible manner.
goalS
people
To attract and retain a professional, knowledgeable and ethical team of experts whilst empowering staff at all levels. To continuously build an understanding of our strategic partners needs and wants and thereafter conduct business in a fair, transparent and ethical manner.
projects
1. To access prospective natural resource exploration opportunities both within Australia and overseas. 2. To implement an effective acquisition program that secures access to prospects with the potential to host significant natural resource deposits. 3. To add value by identifying, accessing and exploring prospects that have potential to host significant deposits and then seek partners to diversify project risk. 4. To retain a financial interest in prospects but not necessarily an operational responsibility. 5. To conduct our affairs in a responsible manner taking into account various stakeholder rights and beliefs.
capital
1. To create shareholder wealth as measured by the potential of our prospects, the strength of our balance sheet and share price. 2. To maintain sufficient funding and working capital to implement exploration programs through the peaks and troughs in exploration sentiment and commodity prices fluctuations.
Ultimately, Hannans is aiming to identify a world-class gold, copper, nickel or iron deposit. It is Managements opinion that Hannans projects have the potential to host such deposits.
project interests
Hannans is aiming to advance its high quality minerals projects in Sweden, Norway, and Australia by having a mix of projects funded by these interests.
sole funded inteRests
Hannans
joint ventuRe inteRests fRee caRRied inteRests Royalty inteRests equity inteRests
funding sources
Hannans needs to continually fund the development of its projects pipeline and therefore must access funding when it becomes available through the mechanisms highlighted below.
Hannans
Royalties equity Raisings PRoject sales joint ventuRe
DIRECTORS REPORT
Dear Shareholders Our vision at Hannans is to build a successful exploration and production company. With that vision firmly in mind Hannans made the decision to secure the Kiruna Iron Project, through the successful takeover of Scandinavian Resources Limited (Scr) in May 2012. The Kiruna Iron Project, located in the low sovereign risk jurisdiction of Sweden, in one of Europes oldest iron districts, has the potential to develop into a long-life production asset. This development asset is complemented by Hannans first-class pipeline of greenfields precious and base metals projects in Sweden, Norway and Australia. Hannans must continue to source capital to develop its pipeline of projects. Hannans has the technical and corporate team to achieve this vision throughout the current volatile equity markets and fluctuations in commodity prices.
BuIldIng the team

Hannans welcomed two new directors during the year, Mr Olof Forslund and Mr Markus Bachmann. Olof lives in Mal, Sweden and was a founding director of SCR. He is a geophysicist with broad international experience and was previously Regional Manager of the Geological Survey of Swedens (Sgu) Mineral Resources Information Office in Mal, Sweden. The office is considered the one-stop shop for all minerals exploration activities in Sweden and is home to all of Swedens well organised historical data and core archives. Markus lives in Johannesburg, South Africa, is an experienced fund manager and established the Craton Capital Fund. Markus has been a 10% shareholder of Hannans since 2005. Craton Capital provides Hannans with exposure to detailed understanding of the global equities markets and investment community. Hannans welcomes the SCR management team which includes Mrs Christina Lundmark, Mr Magnus Arnqvist, Ms Amanda Scott and Mr Jrgen Lindskld.
Christina is responsible for Hannans precious and base metals projects, Magnus is responsible for Hannans iron projects and Amanda is Hannans Exploration Manager. Christina is an experienced geologist, a highly regarded member of northern Swedens mining community and was previously Head of Division Mineral Information for the SGU continuing on from Olof after his retirement in 2007. Magnus is an experienced mining engineer, was previously managing director of Europes largest zinc mine and managed the opening of underground operations of a copper mine in Western Australia. Amanda is an experienced geologist and was previously Exploration Manager of Hannans and accordingly knows all of Hannans projects very well. Jrgen is also an experienced geologist and has been closely involved with the discovery of high grade mines in Sweden and has been working on the Scandinavian projects since 2010. When combined with the Australian based team, Hannans has access to many years of experience and knowledge that increases the chance of identifying economic deposits which will enable these deposits to become production assets. This year Hannans also welcomed Mr Ben Della-Vedova as Business Development Manager. Ben is a Chartered Accountant with seven years experience. Prior to joining Hannans, Ben worked for PwC Australia in their Transaction Services and Valuation team and Deloitte in their Assurance and Advisory team.
From Top: Olof Forslund Markus Bachmann Christina Lundmark Magnus Arnqvist Amanda Scott Jrgen Lindskld Ben Della-Vedova
proJect locatIonS
hannans holds a global portfolio of mineral assets in Sweden, norway and australia.
hannans iron projects located in Sweden.
diRectoRs RePoRt DIRECTORS REPORT
hannans copper and gold projects located in Sweden.
hannans copper and gold projects located in norway.
hannans gold and base metals projects located in Western australia.

Hannans reward annual report 2012 7
DIRECTORS REPORT
exploratIon
The process for defining a drill target requires a thorough approach and focuses on area selection (by reviewing historical data and field visits), acquisition of regional survey data (such as airborne magnetics, regional geochemical data sets and regional geological maps), focussed local surveys (closed spaced geophysics and geochemistry and detailed field mapping if the rocks are exposed at surface) and then drill testing if the prospect justifies. This is an iterative process that is part art and part science but which requires a high level of understanding, focus and persistence. At all times the exploration team is focussed on identifying mineralisation that has the potential to become an economic deposit so alongside the technical aspects of exploring the team has an eye of the commodity prices and uses of different minerals that will have any impact on potential economics. exploration achievements for 2011/2012 Hannans exploration team has this year: Defined a global JORC iron resource of 473Mt @ 40.5% and a JORC Exploration Target of 203-273Mt @ 32-39% Fe at the Kiruna Iron Project, Sweden. Continued development and expansion of a first-class portfolio of copper-gold and base metal projects in both Sweden and Norway. Greenfields discovery of copper mineralisation at the Fiskarfjellet Project, Norway. Generated a >2km long copper-gold soil anomaly at the Njivlojvri Project, Norway. Generated drill-ready targets at the Srksjn Project, Sweden, through a combination of geology, geochemistry and geophysical methods. Identified significant gold and nickel prospectivity at Skeleton Rocks, Western Australia. Identified a new sequence of nickel sulphide bearing komatiites at Lake Johnston, Western Australia. exploration Strategy for 2012/2013 Hannans aims to implement the following exploration strategy during the next twelve months: Focus in-house copper-gold exploration on key projects located within the Kiruna IOCG District and on large copper-gold systems north of the Skellefte District. Actively seek joint venture partners to advance key projects within the exploration pipeline. Evaluate existing prospects and projects with the aim of filtering out those which are not likely to progress further along the exploration pathway.
exploration expenditure for 2011/2012 Hannans expensed $5,355,852 on mineral exploration activities in 20122 (2011: $4,432,0703). mineral exploration activities expensed in 2012 $ Geological activities Geochemical activities Geophysical activities Drilling Field supplies4 Field camp and travel Drafting activities Environmental Feasibility Studies Rehabilitation Annual tenement rent Annual tenement rates Tenement administration total
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exploration expensed % 17.6% 11.5% 4.3% 42.3% 7.3% 5.8% 0.2% 0.5% 0.1% 0.9% 3.9% 2.9% 2.7% 100%
3. 4. 5. 2.
project Australia Sweden & Norway total

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$ 4,548,527 807,325 5,355,852
% 85% 15% 100%
942,667 614,180 228,836 2,263,508 393,037 309,354 13,125 27,128 5,783 48,432 208,118 156,149 145,535 5,355,852
6.
This figure includes mineral exploration expenditure of Scandinavian Resources for the period 12 May 2012 through to 30 June 2012. For 2012 exploration expenditure expensed by Scandinavian Resources alone was $6,800,174 (2011:$18,562,689). Australia only Non-professional wages, equipment hire, consumables and supplies, fuel and oil Helicopter support, hire vehicles, flights, camp maintenance, store shed, accommodation and food This figure includes mineral exploration expenditure of Scandinavian Resources group for the period 12 May 2012 through to 30 June 2012. For 2012 exploration expenditure expensed by Scandinavian Resources alone was $6,800,174 (2011:$18,562,689).
KIruna Iron proJect

The Kiruna Iron Project represents an opportunity for Hannans to become an independent producer of premium grade (+68% Fe) pellet feed (concentrate). The Kiruna Iron Project comprises a number of different deposits (see below). Hannans main deposit is the Rakkurijoki prospect located in close proximity to the Kiruna town site. Prior to the deposits being aggregated by Hannans they had not been effectively drill tested since early 1970. The initial focus was therefore to convert old deposits into JORC compliant mineral resources and assess the metallurgical characteristics of each deposit to determine if a saleable iron product could be produced from the magnetite ore. The aim is to develop a business model whereby a number of satellite deposits, in addition to the main Rakkurijoki prospect, are feeding into a central processing hub to create a long life profitable and sustainable mining and processing operation. The initial concept is to bring the Rakkurijoki prospect into production, build a cash flow and introduce additional deposits as the business grows. the compelling attributes of the project are: Multiple iron ore deposits (at surface) within close proximity to Kiruna a full service mining town and modern open-access infrastructure. Low political risk with favourable mining jurisdiction. Hannans main iron deposit (open pit opportunity) is within an area of National interest for mining. Opportunity exists for Hannans to become an independent producer of premium grade pellet feed (concentrate) or provide ore to existing mines within the area. Low infrastructure risk with access to third party infrastructure already available with available capacity. Low metallurgy risk with proven magnetite processing technology in existence in the region. Lannavaara Hub has the most potential to increase Hannans JORC resource towards 1Bt with further resource drilling. the next steps for the rakkurijoki prospect are: Complete a scoping study for the Rakkurijoki project, if a positive scoping study is returned, Hannans aims to lodge an exploitation concession application in mid-2013. Continue drilling to upgrade the JORC Iron resource at the Rakkurijoki project in 2013. Magnetite Benefits Magnetite ore typically has much lower iron content than hematite (such as is mined in the Pilbara region of Western Australia), typically of between 25% and 40% Fe and in this form is unsuitable for steel making. The main iron mineral in magnetite ore is the ferrous iron oxide magnetite (Fe3O4). Magnetite ore requires complex processing to separate magnetite minerals from other minerals in the ore to produce an almost pure magnetite concentrate with an iron content of between 68% Fe and 70% Fe. The premium quality (high iron and low impurity iron concentrate) is highly sought after by steel makers who are prepared to pay a premium to the spot iron price based on a 62% Fe grade.
DIRECTORS REPORT
corporate
corporate achievements Hannans corporate team has this year: Completed the in-specie distribution of Errawarra Resources Limited to Hannans Shareholders. Completed the off-market acquisition of SCR. Managed the integration of Hannans and SCR. capital management and Share price performance The share price and market capitalisation of Hannans have both decreased significantly during the last twelve months principally as a result of: The lack of investor confidence and volatile global equity markets caused by the European financial crisis and weak US economic data. The shifting by investors away from high risk ventures (such as greenfields exploration). The requirement to sell down Atlas Iron Ltd shares to fund the high rate of exploration and provision of loans which has brought the Company closer to an equity raising.
company updateS
A 45% decrease in the iron ore price to less than USD100/t in the last twelve months. A 54% decrease in the price of Atlas Iron shares in the last twelve months. A 27% decrease in the nickel price in the last 12 months to date. The high rate of exploration expenditure on the Australian portfolio without intersecting economic mineralisation at either the flagship Forrestania nickel project or Lake Johnston gold project.
company Share price
Forrestania Lake Johnston Scandinavian precious & base metals
Hannans Reward Ltd ASX/S&P 300 Metals and Mining Index
East Pilbara Kiruna Iron
Corporate
Scandinavian Resources platform announcements
Hannans in comparison to the aSX 300 Metals and Mining Index and volume chart. plotted against the share price are the dates of aSX announcement, colour coded according to project and activity.
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Hannans Financial Summary 2003 2012
We appreciate the support of Shareholders during what has been a very difficult year for Hannans and equity markets generally. You can follow news flow from Hannans through our web site (www.hannansreward.com), Facebook (Hannans Reward) and Twitter (@hannansreward). We also recommend that you sign up to our email distribution service on our web site. I would like to thank all of Hannans staff and consultants in Australia, Sweden and Norway for their professionalism and endeavour as we continue striving towards an economic minerals discovery and the successful development of the Kiruna Iron Project that will reward shareholders appropriately.
Kind regards,
Damian Hicks Managing Director
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DIRECTORS REPORT
exploration summary july 2011-june 2012

SWEDEN
Key achIevementS July 2011 - June 2012
It has been a very big year for exploration in Sweden for Hannans, namely at the flagship Kiruna Iron Project where more than 20,000m of diamond drilling has been completed and two JORC resource updates where announced. The key exploration strategy for the year was to convert the JORC Exploration Targets into JORC Inferred Resources and to continue to add to the JORC Exploration Targets.
KIruna Iron proJect

A combination of exploration and resource drilling has been completed at various iron prospects within the Kiruna Iron Project including vieto, Sautusvaara, laukkujrvi, puoltsa, renhagen, harrejaure, altavaara Jorc resource tables Kiruna hub JORC Compliant Indicated Mineral Resource Table prospect Sautusvaara South Sautusvaara North Ekstrmsberg TOTAL mt 32.0 11.4 30.4 73.8 fe (%) 37.4 39.7 52.0 43.0 p (%) 0.06 0.09 Unavailable s (%) 1.63 0.44 Unavailable rakkurijrvi and rakkurijoki. Several of the prospects were not subject to drilling but were updated to JORC standard including ekstrmsberg, tjrrojkka pattok, discovery and tributary. More than 20,000m of diamond drilling has produced a current global JORC Resource of 473Mt @ 40% Fe and a global JORC Exploration Target of 203-273Mt @ 32.1-39.6% Fe.
JORC Compliant Inferred Mineral Resource Table prospect Rakkurijrvi Rakkurijoki Discovery Zone Tributary Zone Sautusvaara South Sautusvaara North Vieto Puoltsa Renhagen Harrejaure Ekstrmsberg Tjrrojkka Pattok TOTAL 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 (%) 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 p (%) 0.07 0.28 0.05 0.05 0.09 0.05 0.14 Unavailable 0.21 0.04 Unavailable Unavailable 1.96 s (%) 0.93 0.89 0.95 1.08 1.82 0.46 1.46 Unavailable 0.03 0.01 Unavailable Unavailable Unavailable -
JORC Compliant Indicated & Inferred Table total Indicated & Inferred mt 473.7 fe (%) 40.6
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JORC exploration target Table Kiruna hub prospect kosjegge Altavaara Laukkujrvi Leppjoki Tjorika Total Hub 1 lannavaara hub prospect Kevus Paljasjrvi Teltaja Total Hub 2 tonnage range (mt) 35-45 40-60 39-47 114-152 grade range (fe%) 28-35 30-40 40-48 32-41 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
total hub 1 & 2 Metallurgical studies were completed on many of the iron prospects which produced excellent results across the board; at Rakkurijoki an iron concentrate grading 69.2% Fe is capable of being produced. In late March 2012, a resource infill (100m) diamond drilling campaign commenced at the Rakkurijoki prospect which, once completed in early 2013, will assist in generating a resource update namely to convert inferred tonnes into indicated tonnes ahead of commencing formal mine studies and preliminary economic assessment. The infill drilling has returned some excellent iron intercepts including 47.59m @ 40.9% Fe from 153m (RJO12018) and has enabled Hannans geologists to gain a much better understanding of the controls on iron mineralisation.
mt 203-273
fe (%) 32.1-39.6
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DIRECTORS REPORT
Several key studies, including environmental and social consequence reports, were also initiated at the Rakkurijoki and Rakkurijrvi Prospects during the year as part of a Mining Concession Application which is still in progress and expected to be completed in mid-2013.
In addition to iron mineralisation several of the prospects also returned copper-gold mineralisation including 3m @ 5.2g/t Au and 1.3% Cu from 15m at the Altavaara Prospect.
SrKSJn proJect
Located in the Caledonide stratigraphy which is host to multiple precious and base metal sulphide mines, deposits and mineral occurrences. A multi-faceted geophysical survey was completed during the year and identified a co-incident IP and EM anomaly. The geophysical work was initiated after outcrop sampling in the previous year returned exceptional grades including 42.5g/t Au, 45.2g/t Ag, 1.35% Cu, 4.17% Pb and 4.18% Zn (SAR10005). Reassaying of historical (SGU, 1965) diamond drill core by Hannans during the year returned 7.09m @ 2.54g/t Au from 10.81m (LEI65003). Diamond drilling of the geophysical anomalies is scheduled for mid-2012.
proJect generatIon
Hannans continued to expand its exploration portfolio in Sweden during the year in line with its strategy of using the publically available exploration datasets in Sweden to identify areas of prospectivity at little or no cost. A single permit was applied for at Korpilombolo located in Northern Sweden. The Project area is prospective for shear-hosted gold-copper mineralisation with historical outcrop sampling returning values of up to 15.75g/t Au and 0.6% Cu.
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Srksjn Project: IP condictivity at 150m
NORWAY
In January 2011, Hannans identified the Finnmark and Troms counties of northern Norway as having significant prospectivity, primarily for copper-gold mineralisation and both counties are largely unexplored. As first-mover in this unexplored terrain Hannans was able to put together a firstclass copper-gold exploration portfolio. Hannans currently has 8 projects located in northern-most Norway and all are at the earliest Target Generation Phase of the Exploration Pathway. Since applying for the projects in early 2011, the Norwegian government has allocated 100 million NOK (over four years) in funding for exploration to help promote northern Norway as a place to explore; total permit acreage has increased by more than 1200% since 2009. The maiden field season carried out during June-September 2011 by Hannans geologist Rune Wilberg was very successful with a copper discovery at Fiskarfjellet and the extension of copper-gold
mineralisation at Njivlojvri. First-pass reconnaissance mapping was completed at all 8 projects during the year although two projects emerged as priority exploration targets namely the Njivlojvri and Fiskarfjellet Projects.
nJIvloJvrI proJect
The Njivlojvri Project is located in the Kautokeino Greenstone Belt and just 8km northeast of the past-producing Bidjovagge copper-gold mine. Swedish exploration company Arctic Gold AB is currently trying to bring the old mine back into production. The copper-gold mineralisation at Njivlojvri is shear-hosted and extends from the southern-most prospect (Njivlojvri) to the northern-most (Suovrravarri) prospect covering a strike length of approximately 3.5km. In July 2011 reconnaissance field mapping by Hannans identified a new area of coppergold mineralisation between Njivlojvri and Suovrravarri, the newly discovered mineralisation (Suovrrajvri) has to date
been mapped over a strike length of 330m. The mapping identified a north/ south striking, bedding-parallel mineralised zone of pervasively carbonate-albite altered diabase. The north/south structure is weakly mineralised (disseminated and veined chalcopyrite) over a width of 30-35m with copper-gold values of between 0.1-0.6% Cu and up to 0.11g/t Au. However scattered along the length of this north/south zone is fist-sized float of semi-massive to massive chalcopyrite which appears locally derived (i.e. not glacially derived) and very similar to the mineralisation at Suovrravarri to the north and at Njivlojvri to the south. These rich float samples returned values of: KA11029- 32.1 % Cu, 3.75 g/t Au (Suovrrajvri) KA11030- 7.46 % Cu, 5.93 g/t Au (Suovrrajvri)
15
DIRECTORS REPORT
A C-Horizon soil sampling program was then completed to follow up the discovery which highlighted a distinct gold anomaly bound to the north-south trending fault or shear zone. Early mapping and interpretation by Hannans indicates that the mineralisation (Njivlojvri to Suovrravarri) is probably at the same stratigraphic level as the Bidjovagge mineralisation. Infill C-Horizon soil sampling and a ground magnetic survey is planned for the 2012 summer field season at the Njivlojvri Project.
FISKarFJellet proJect
The Fiskarfjellet Project is located in the Alta-Kvnangen tectonic window, approximately 20km southwest of the town of Alta and is prospective for Nussirtype copper mineralisation. A grassroots copper discovery was made by Hannans at the Fiskarfjellet Project as a result of reconnaissance field mapping completed during the 2011 summer field season. The field mapping revealed several kilometres of copper-mineralised dolomite across three separate dolomite horizons namely at Fiskarvatnet, Flomvatnet and Kvartpttevatnet. The main copper mineralisation at Fiskarvatnet has to
date been traced over a strike length of more than 6km through both outcrop and boulder fields. The copper mineralisation at Kvartpttevatnet, located in the western part of the Fiskarfjellet Project, has to date been traced over a strike length of more than 3km with consistent copper and silver grades of: 2.09% Cu, 7.6g/t Ag (AL11058) 1.61% Cu, 7.4g/t Ag (AL11059) 1.47% Cu, 6.0g/t Ag (AL11060) 1.03%Cu, 6.3g/t Ag (AL11061)
Copper mineralised (chalcocite, chalcopyrite and malachite) dolomite from Kvartpttevatnet Prospect, Fiskarfjellet Project.
proJect generatIon
The Ringvassya Project is located within the Ringvassy Greenstone Belt, an Archaean supracrustal belt within the West Troms Basement Complex, 80km north of the city of Troms. Hannans has permits covering three known gold occurrences namely the Srdalshgda, Holmvasshgda and Hrskoltan. Reconnaissance field mapping and outcrop and boulder sampling of all three prospects was completed during the 2011 summer field season; the highlight being the discovery of a new zone of stratabound Au-Zn-AsAg mineralisation at Srdalshgda within an iron formation. Sampling of locally derived, up-heaved boulders containing sphalerite, arsenopyrite, pyrite and minor
chalcopyrite. Stratabound Au-Zn-As-Ag mineralisation was already known to occur at the Srdalshgda South prospect approximately 1km to the south where sampling by Hannans returned: 1.7g/t Au, 11.6g/t Ag, 3960ppm Zn (RI11016) 1.36g/t Au, 10.9g/t Ag, 6460ppm Zn (RI11017) This style of mineralisation is considered to be a high priority at the Ringvassya Project as it is more likely to reach the necessary dimensions and grades for a viable gold deposit rather than the narrow vein hosted high-grade mineralisation at Hrskoltan. Follow-up work includes
additional mapping, deep-till sampling and ground geophysics (magnetics and IP). New claims were applied for at Nordkapp and Snefjord (Nordkapp Project) located at the northern-most tip of Finnmark and are considered prospective for REE mineralisation after the NGU released a new geochemical dataset to the public late in 2011. Additionally three new claims were applied for at Salen, Straumsfjellet and Kvfjord (Kvfjord Project) located in south-western Troms. The prospects are prospective for copper-gold-silver PGEs in amphibolite grade rocks. The prospects have been sampled historically by the NGU:
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>10% Cu, 211g/t Ag, 940ppb Au, 4ppb Pd (TR0398.01) 7.3% Cu, 126g/t Ag, 1304ppb Au, 91ppb Pd, 91 Pt (TR0398.04) A 600m long unexplained, weak VLF anomaly extends east-northeast away from the historic mine workings of Berg; 81 C-Horizon soil samples have been collected by Hannans during the year with results still pending.
AUSTRALIA
The primary focus for exploration during the year has been on defining gold and nickel targets at both the Forrestania and Lake Johnston Projects. Only limited work was completed at the Queen Victoria Rocks and East Pilbara Projects. Auger soil sampling proved to be an excellent exploration tool identifying multiple gold and nickel anomalies throughout the year and will continue to be used in future exploration campaigns. The key exploration highlights for the year were the discovery of a new nickel-bearing komatiite at Mt Gordon, Lake Johnston and the identification of several significant gold and nickel soil anomalies at Skeleton Rocks, Forrestania.
17
DIRECTORS REPORT
ForreStanIa proJect
A total of 24 RC drillholes were completed at the Forrestania Project for a total of 3,367m. The RC drilling was located at both Lucy Rocks and Stormbreaker West. At Stormbreaker West the drilling was testing surface TEM anomalies although no significant nickel or gold assays were received. At Lucy Rocks the RC drilling was trying to confirm the presence of greenstone lithologies interpreted from airborne magnetics; the drilling intercepted magnetite-bearing granodiorite lithologies in all but one hole which did intercept mafic lithologies but no significant nickel or gold assays were received. In the latter half of the year several campaigns of soil sampling were initiated in the northern Stormbreaker and Skeleton Rocks areas after a comprehensive desktop study of historic exploration material identified nickel-copper anomalies from historical RAB drilling, anomalous gold intercepts in historical regolith drilling and multiple gold soil anomalies. More than 4,000 auger soil samples were collected across both prospect areas. A co-incident nickel-gold anomaly, with a strike extent of 1.2km and a peak gold value of 1.05g/t Au, was identified at the northern extent of Skeleton Rocks which was quickly followed up by two lines of MLTEM producing a co-incident conductive anomaly. During the third quarter the balance of assay results for the auger sampling were received producing a second strong gold anomaly with a strike extent of approximately 900m and is favourably located on an interpreted granitegreenstone contact. Further north at the Capelli prospect rock chip sampling returned peak gold values of 21.7g/t Au and 5.6g/t Au from locally sourced rocks (disturbed by agricultural ploughing).
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laKe JohnSton proJect

A total of 52 RC drillholes were completed at the Lake Johnston Project for a total of 8,048m. The percussion drilling was designed to test soil anomalies generated last year at the Mt Gordon prospect; 51 of the 52 holes were testing gold soil anomalies and a single hole was drilled to test a co-incident nickel-copper anomaly. The results of the gold drilling were disappointing with peak intercept of 2m @ 5.75g/t Au from 136m (MGRC049) associated with narrow, brittle quartz veining and weak silica alteration. The single RC drillhole testing a coincident nickel-copper soil (auger) anomaly, also located at Mt Gordon, intercepted: 4m @0.3% Ni from 16m 2m @ 0.56% Ni from 96m 16m @ 0.26% Ni from 118m 28m @ 0.28% Ni from 140m Geochemical analysis of drill samples, completed by Dr. Nigel Brand, showed that the drilling had intercepted fertile, high-MgO, reduced komatiites with the potential to host high-tenor nickel sulphides. Further petrographic analysis, completed by Dr. Craig Rugless, confirmed the presence of pentlandite and violarite (after pentlandite). The presence of nickel sulphides in MGRC059 has confirmed this as a genuine greenfields nickel sulphide discovery. Several similar nickel-copper soil and magnetic anomalies exist along strike to the north of the discovery hole MGRC059 and remain to be drill tested. A MLTEM survey was completed over the nickel-copper soil anomalies ahead of the RC drilling but did not return any anomalies and was deemed ineffective due to the highly resistive nature of the ground.
19
DIRECTORS REPORT
Queen vIctorIa proJect

A detailed airborne magnetics survey was flown over the Spargos nickel prospect during the year and aided in developing a new geological interpretation at Spargos. The new interpretation included identifying a lava channel and subsequent prospective basal contact which was surveyed using a fixed-loop TEM configuration although the survey was deemed ineffective due to mid-channel noise. Follow-up drilling of the basal contact followed by downhole TEM was recommended but to date no such drilling as occurred.
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eaSt pIlBara proJect

During the year the manganese and remaining iron rights were successfully spun-out of Hannans into a public, unlisted company called Errawarra Resources Ltd. As such Hannans now only holds the precious and base metal rights within the 1,758km East Pilbara Project. Only minor work was completed at the Project exploring for precious and base metals but included the collection of 27 rock chip samples with the best sample returning 423ppm Zn, 248ppm Pb and 0.82g/t Ag. As part of an evaluation of the base metal mineralisation at the Mindaroo prospect, 6 samples were also sent for petrographical analysis. The results confirmed the presence of sphalerite and galena in weakly hydrothermally altered argillite.
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DIRECTORS REPORT pipeline of projects

gold and BaSe metalS proSpectS
target generation phase1 Renhagen Harrejaure Altavaara Maunuvaara Korpilombolo ggojaure Pahtohavare Discovery Tjrrojkka Daningen Vtmyrberget Njivlojvri Fiskarfjellet Vaddas Birtavarre Gjeddevann Nordkapp Snefjord Srdalshgda Holmvasshgda Hrskoltan Salen Straumsfjellet Kvfjord Famnvatnet Mt Gordon Mt Gordon Stormbreaker Skeleton Rocks Stormbreaker Srksjn target testing phase2 jorc resources advanced exploration3 inferred indicated measured
location Norrbotten, Sweden
commodity Cu-Au Cu-Au Cu-Au Cu-Au Cu-Au Cu-Au Cu
Vsterbotten, Sweden
Cu Poly-Metallic
Finnmark, norway
Cu-Au Cu Cu Cu Au REE REE
Troms, norway
Au Au Au Cu-Au Cu-Au Cu-Au
Nordland, norway Lake Johnston, australia
Poly-Metallic Ni Au
Forrestania, australia
Ni Cu-Au-Ni Fe
Queen Victoria Rocks, australia East Pilbara, australia
Ni Pd-Zn-Ag Mundaroo
Spargos
Note: 1 Target generation includes compiling geological, geophysical and geochemical datasets through historical data research and field activities to generate targets to be tested with diamond drilling. 2 Target testing includes diamond drilling of targets with the aim of intersection economic grades and widths of mineralisation. 3 Advanced exploration includes follow up drill testing and preliminary metallurgical test work.
22
Iron proSpectS
target generation phase1 Hotnjos/Leavka Luppovare Kajpak target testing phase2 jorc exploration target3* Tjorika (15-30/45-55) jorc resources inferred* indicated* Ekstrmsberg Ekstrmsberg (41.6/52) (30.4/52.0) Tjrrojkka (52.6/51.0) Pattok (62.4/44.2) Renhagen (26.3/32.1) Harrejaure (16.2/43.4) Rakkurijoki (74.5/39.7) Rakkurijrvi (69.6/28.5) RakkurijrviDiscovery (10.9/38.7) RakkurijrviTributary (4.9/28.6) Vieto (14.0/35.7) Puoltsa (19.1/30.2) measured
location Kiruna South Sweden
commodity Fe Fe Fe Fe Fe
Kiruna Central Sweden
Fe Fe Fe Fe Fe Fe Fe Fe Fe Fe Fe
Piedjastjkka Gddmyr Holmajrvi Staggotjkka Eustillako Eustiljkk + Eustilvaras rosjokk Pirttivuopio Karanisvare Salvotjkka Holmajrvi Saivo Rapakkojrvi Honkavaara Villenjrvi
Laukkujrvi (4-8/30-35) kosjegge (10-15/22-30)
Kiruna North Sweden
Fe Fe Fe Fe
Altavaara (5560/26-29)
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 Sweden
Fe Fe Fe
Kevus (35-45/28-35) Paljasjrvi (40-60/30-40) Teltaja (39-47/40-48) Masugnsbyn 2 Lainiojrvi Tervakoski Ratek Salmijrvi Leppjoki (5-8/35-45)
Iron Other Sweden and norway
Fe Fe Fe Fe Fe
Note: * Example: 41.6/52 represents 41.6Mt @52% Fe and 35-45/28-35 represents 35-45Mt @28-35% Fe 1 Target generation includes compiling geological, geophysical and geochemical datasets through historical data research and field activities to generate targets to be tested with diamond drilling. 2 Target testing includes diamond drilling of targets with the aim of intersection economic grades and widths of mineralisation. 3 Exploration target includes follow up drill testing and preliminary metallurgical test work Hannans reward annual report 2012
23
DIRECTORS REPORT
mining in sweden and norway

SWedeN
In 2012, the Swedish Government is working on the development of a strategy for the long-term and sustainable use of Swedens mineral resources. This work is being led by the Ministry of Enterprise, Energy and Communications and is taking place in cooperation with the other Ministries. The SGU is assisting the Government in developing the mineral strategy. Regions, educational institutions, county administrative boards, the mining industry and relevant parties are invited to provide input for this work and the strategy will be presented before the end of 2012. polItIcal attrIButeS Sweden hosts an excellent infrastructure; extensive public investment ensures a nationwide network of roads, railroads, waterways, harbours, airports, and wireless and mobile networks. Sweden is a net exporter of electric power to its neighbours in the Nordic region and through interconnectors to continental Europe; 90% of power generation comes from hydro power plants and nuclear power plants. Expansion of power generation in later years have come from wind power and upgrading the existing nuclear reactors. The grid covers all populated areas and expansions of the grid to new consumers (industrial or domestic) are readily done. The Government has in its budget from 2011 reserved 5 billion SEK (approx. A$750 million) for infrastructure improvements in the coming years. Within this effort is a proposed upgrade of railroads which is important for the mining industry because rail transport is currently a bottleneck for increased production of iron ore. economIc attrIButeS The current economic situation in the European Union is turbulent for most of the countries involved, but the Swedish economy is very stable, as is Norways - a country outside EU. The sovereign risk is considered low in Sweden and Norway. Sweden is one of the most competitive locations for corporate taxation in Europe. Swedens corporate tax system is transparent and enables easy access to information. The national tax authority is efficient and service-minded although the taxes associated with employing people in Sweden is relatively high. Industrialisation and urbanisation, mainly in Asia, are increasing the worlds need for iron ore and other metals. This trend contributed to continued high investments in exploration and there has been a growing focus on iron ore in Sweden. Totally almost 800 million SEK (approx. A$120 million) was invested in exploration in Sweden during 2011. SocIal attrIButeS Exploration and mining companies have to work very closely with Local and National
Kiruna Town, Sweden
24
technologIcal attrIButeS Sweden is highly advanced with respect to technology within mining and metallurgy contributing to both profitable and ecological underground mining; LKAB is currently mining iron ore at almost 1,400 meters depth at Kiirunavaara and is said to be the most cost efficient underground iron mine in the world. Sweden and Finland is home to some of the largest mine equipment suppliers in the world including Atlas Copco, Sandvik, Metso, Volvo Construction Equipment and Outotec. Likewise there are a number of domestic contractors that service the mining sector in both underground and surface mining operations; Bergteamet, NCC, PEAB, Orica and Cliffton as well as internationally recognised mining consultants including SRK and Golder Associates. Swedens science infrastructure is world-class. Large investments into higher education and basic research has propelled Sweden into a prime position among European economies in terms of university enrolment, workforce skills and research and development (R&D). Synergies generated by the close connection between Swedish universities, research institutes and the private sector further leverage the R&D output. Innovation is also an important engine of growth and new jobs and for the second year in a row Sweden, Switzerland and Singapore lead in overall innovation performance according to the Global Innovation Index 2012.The report ranks 141 countries and takes into consideration institutions, human capital and research, infrastructure, market and business sophistication as well as the results of innovation such as patents and software. envIronmental attrIButeS 10% of Swedens land area consists of national parks, nature reserves and other types of protected land. Exploration in a national park is strictly forbidden but is allowed in areas of lower protection. Early exploration activities do not have any significant impact on the
Freight train at port of narvik, norway
Saami organisations, municipalities and local residents. Hannans has an ongoing dialogue in Sweden and Norway with the Saami villages about their reindeer migration trails, winter grazing areas and how we can diminish the disturbance the exploration causes on their activities. Hannans has signed an agreement with one of the Saami villages in Kiruna which outlines how KIAB and the Saami village will cooperate during the social impact assessment which will also include an in-depth analysis of reindeer husbandry. Hannans also keep the affected landowners and the house owners informed. SveMin is the Swedish association for mining, metal and mineral producers and exploration. It has approximately
18.
40 members and focusses on issues associated with land access, exploration, environment, health and safety, energy and climate, competence and treaties with unions. Within the SveMin Exploration Committee a special Reindeer Husbandry Sub-Committee has been formed with members from both mining and exploration companies. Mrs Christina Lundmark is Chairperson of this SubCommittee. The workgroup has had several contacts and a meeting with the Swedish Saami Association. Contact has also been taken with the Saami Parliament in Sweden and the intention is to develop guidelines for work in Spmi18.
Spmi is the area traditionally inhabited by the Saami people.
25
DIRECTORS REPORT
environment but as it advances to drilling and more systematic sampling and surveying environmental permission from the County Administration Board (Lnsstyrelsen) is often required (even in areas of unprotected land) and typically involves specific guidelines to minimise
damage. Once exploration in an area has been completed the area must be rehabilitated. In order to begin mining, two separate permits must be obtained; a Mining Concession issued by the Mines Department (Bergsstaten) and an Environmental Permit issued by the
Environmental Court (Miljdomstolen). A comprehensive Environmental Impact Assessment is compulsory for a Mining Concession to be approved and although not legally required a Social Impact Assessment is recommended.
NORWAY
The new Minerals Act in Norway came into force in January 2010. According to the Minerals Act, the state is the owner of the metals and minerals but there are a few exceptions including graphite and alluvial gold which are owned by the landowner and a private agreement with the landowner is required rather than a state-issued permit. An exploration permit is granted initially for 7 years (but can be extended beyond if an extension is sought) as a right to a specific area and not as a right to a particular metal. A permit can have a maximum area of 10 km2 but no less than 1 km2. Multiple exploration permits, adjoining each other, is allowed. Whilst there are no minimum annual expenditure commitments in Norway permit fees are quite high. The application fee for each permit is set at 1000NOK and the annual fee for an exploration permit is 10 NOK/ ha for the second and third calendar year, 30 NOK/ha for the fourth and fifth calendar year and 50 NOK/ha for the sixth, seventh and any years beyond. In Finnmark, an exploration permit does not confer a right to undertake exploration or extraction until the Directorate of Mining has granted
19.
Narvik, Norway a special permit for such activities. A special permit may be refused if granting the application would be contrary to Saami interests. In the assessment, special consideration shall be given to the interests of Saami culture, reindeer management, commercial activity, and social life. If the application is granted, conditions may be imposed to safeguard these interests. In order to begin mining in Norway, firstly an extraction permit must be obtained and secondly an operating licence. As with Sweden, Norway also requires substantive environmental, social and financial studies to be completed as part of the extraction permit application. Once mining, the extraction permit holder must pay an annual landowner fee19 of 0.5% of the sales value of that which is extracted. In the case of land owned by Finnmarkseiendommen20, an increased landowner fee of 0.25% shall be paid in addition to the ordinary landowner fee of 0.5%. Although both Sweden and Norway have long histories of mining they are still considered under-explored from a modern exploration point of view. The former mineral legislations of both Sweden and Norway made it difficult for foreign companies to explore but new mineral legislations (Sweden 1991 and Norway 2010) have opened up both countries to exploration by foreign explorers in recent years. There are four classic ore/mineral districts in Sweden: Norrbotten District with iron ore and porphyry copper (Kiruna, Malmberget, Aitik) in northernmost Sweden; Skellefte District with volcanic hosted sulphide (VMS) deposits (Kristineberg, Renstrm, the closed Boliden mine) in north-central Sweden; Bergslagen District with VMS deposits (Garpenberg, Zinkgruvan, the closed Falu mine) and iron mines (Dannemora) in south-central Sweden; and Caledonian Front with VMS and sediment hosted base metals deposits (the closed Stekenjokk and Laisvall mines) along the Swedish-Norwegian border. In Sweden, Hannans has focused primarily on the Caledonian Front which hosts volcanic massive sulphide deposits and sediment hosted base metal deposits.
The basis for the calculation of the fee shall, as a general rule, be the extracting partys sales revenue (excluding VAT), from the sale of extracted volumes and volumes with a potential sales value which the extracting party produces itself or otherwise utilises without selling. If further processing beyond normal enrichment takes place, the sales value prior to the processing shall be used. Finnmarkseiendommen (FeFo) is a separate legal entity (landowner body) in Finnmark which administers the land and natural resources under its control (95% of Finnmark or 46,000km2) in accordance with the Finnmark Act.
20.
26
This part of Sweden has not been actively explored for the last 40 years and certainly modern exploration techniques have not been utilised before. The other key areas for focussing copper-gold and base metal exploration within Hannans are areas which have not traditionally been seen as prospective and where little to no previous exploration has been performed e.g. north of the Skellefte VMS district where the volcanic terrain is now considered prospective for large mineralized copper-gold systems, the area north of Kiruna where Archaean rocks are considered prospective for shear hosted gold, and the eastern part of Norrbotten where major crustal scale, north-south trending, shear zones in Proterozoic rocks are also considered highly prospective for gold mineralisation.
In Norway, some of the more important metal deposits are: VMS deposits along the Caledonian Front (Lkken, Grong, and Sulitjelma). Sediment-hosted copper deposits (Repparfjord, Nussir) in Finnmark. Shear-hosted copper-gold deposits (Bidjovagge) in Finnmark. This year, Hannans focus has been on its Finnmark projects where exploration ceased approximately 20 years ago after the closure of the Bidjovagge mine although the Finnmark region is now the focus of intense exploration once more with the aid of a 100 million NOK funding injection by the Norwegian Government. The unique programme,
Mineral Resources in North Norway (MINN), designed to find new mineral deposits in northern Norway, will be managed by the Norwegian Geological Survey (NGU) over a period of four years and include geophysical measurements, regional geochemical sampling and regional geological mapping. The newly collected data is periodically released for public use, free of charge.
Port of Narvik, Norway
27
DIRECTORS REPORT
T M R S ,I M S A M S G Z M S F D M D H 3 ,M M S D
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C C (A 49 G G M , W , M D (A D B B C S FINSIA, M D M H (A D 11 M H D 2002) R L ASX A 3 M H I C D D .H C P ASX K S 11 M H E (A S G A D I 2002) R L D C C C ,G R F W A , ,K A L A G G , C 1981. P L M , , . 23 M 2002)
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DIRECTORS REPORT
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2008
H A NN A NS R E WA RD ANNUAL REP ORT 201 2
DIRECTORS REPORT
A 2011 A D R O C H R D W J M O () D L . N D R D W J M O F B S H H M O G F T C C F B S H H M () 1,000,001 18,436,788 1,866,776 47,700,000 . S N ( I
O / ) C H
O N
S I ( / )
(3,165,309) 6,378,702 1,475,001 47,700,000
(2,000,000)
M B
. H R
N O S U O
DIRECTORS REPORT
T A. B. C. D. E. T P D S S A
308(3C)
2001.
A.
T
P
B R C .T G . T B T B . A .T B , ( . , ) B G . :
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DIRECTORS REPORT
B.
D R T
D
L H . H C 2012 2011 S S & $ S
H H M C S )
. R L L , G
( D
124 28 29
G T
R A 2001.
. T O B $ P S () $ $ 3,208 9,053 22,599 38,850 7,035 P O $ $ $ E L I O (D&O ) ( ) $ 2,448 2,448 2,448 2,448
T $ 41,298 294,710 41,298 41,298
2012 D R
D W J E M (C T
35,642 253,575 38,850
136,931 464,998
2,508 11,561
12,324 76,981 7,035
2,448 12,240
154,211 572,815
S S 2011 D R
D W J E M (C T C S )
T O B $ () $
P S
$ 3,124 P -
E L O $ $ $ I
O (D&O ) ( ) $ 2,568 5,745 2,568 2,568 2,568
& $
T $ 40,401 278,800 39,568 39,593
S
H H M
34,709 241,500 37,025 7,252
21,735 37,000
116,319
429,553
3,400
10,652
10,469
72,328 5,745
2,568
12,840
132,756
531,118
() ( )
S F
O D , &O I I
$11,561 (2011: $10,652). .N .
DIRECTORS REPORT
C.
D T B
S
H D $230,000 , .M H $253,575 2012 (1,000,000) M H 30 J 1J C 2011. 80 . 30 ( H M 9% D 21 D ), B .E 2009. T
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3,000,000 2013 (1,000,000). A
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. M B B M D 3 3 3 3 M C R C P 6 5 6 6 .
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M S H H M B
A 3 3 3 2
T 9 8 9 8
B 26 J 19 M 12 J
M 2011 2012 2012
C 29 A 26 O 12 M 27 A 12 J 29 J
R 2011 2011 2012 2012 2012 2012
DIRECTORS REPORT
P
I T N % N T
:
I N % N T N I % N
SWEDEN P :K A A H S S V
I 100 100 100 100 75 100 100 100 100 100 100 100 75 100 100 100 100 75 100
P H K L P P P R T P E E E G M M S S S T T
:K 1 1
I 75 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 1
N 2 1 1 1 1-4 1 S 1 2 3 2, 4 1 4-6 1-3 1 4-5
G H H K K L P P P R V E
1-3 1010 4-6 1 1 104 :I 1 1
-K 2-3 1
1-2
3 1
P L L P P D R U P K P M P S S P T P V V V P M
:L 1 7-8 2 :D 2-3 2 G :K 1 :M 2-3 :S 2 3 :T 104 :V 1 2 4 :O 1 100 100 100 100 100 100 100 100 100 2 100 100 100 100 100 100
NORWAY P :B B 1-10 P :F F 1-58 F 60-73 F 79-83 F 107-108 F 120-121 F 131-263 F 272-277 F 287-293 F 299-303 F 349-360 F 398-407 F 419-429 F 436-533 P :F F 1-6 F 1-3 P :G G 1-11
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
P K S S P E G G N R R R U P N P R P S P V
:K 100 100 100 :N 1 1 1-2 1-5 2 2 1-3 1-3 :N 1-7 :R 1-4 :S 1-6 :V 1-11 100 100 100 100 100 100 100 100 100 100 100 100
P B G K L R V P N N P B H R
:C
-G
1-7 1 1-3 1-2 :I O 1-7 1-8 :O 10-47 1-2 E 1-17
NOTE: 1 T 2 P 3 H 4 S B . 5 E I T
AB M
25% H 100%
. BFS. . .
DIRECTORS REPORT
I T N % N T N
I % N T N
I % N
AUSTRALIA P :F E77/1695 E77/1705 E77/1715 E77/1718 E77/1719 E77/1724 E77/1725 E77/1783 E77/1784 E77/1785 E77/1846 E77/1919 E77/1935 E77/1950 E77/1951 E77/1959 E77/1960 E77/1327 E77/1354-I E77/1406-I E77/1430-I E77/1431 E77/1655 E77/1696 E77/1707 E77/1716 E77/1764 E77/1955 M77/544 M77/693 M77/812-I P77/3582 P77/3583 P77/3584 P77/3585 A 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 80 80 80 85 85 100 100 100 100 100 100 N 85 85 80 80 80 80 2 2 2 2 2
:F 80 80 80 80 80 80 80 85 85 85 85 85 85 85 85 85 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 J 100 : 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
3 2,4 2,4 2 2 2 2 H
P77/3586 P77/3587 P77/3588 P77/3607-I P77/3613 P77/3762 P77/3763-I P77/3848-I P77/3849-I P77/3850 P77/3851-I P77/3852 P77/3853 P77/3854-I P77/3855-I P77/3856 P77/3943 P77/3944 P77/3945 P77/3998 P77/3999 P77/4000 P77/4001 P77/4002 P77/4003 P77/4004 P77/4005 P77/4006 P77/4007 P77/4008 P77/4009 E77/1512-I E77/1568 P :L E63/1091 R L
P :L J E63/1206 E63/1207 E63/1327 E63/1354 E63/1365 E63/1423 E63/1429 E63/1449 P63/1473 P63/1474 P63/1475 P63/1476 P63/1477 P63/1478 P63/1479 P63/1664 P :Q V E15/0734 E15/0755 E15/0913 E15/0921 E15/0971 P15/4964 P15/4965 P15/4966 P15/4967 P :E P E52/2516 E45/3747 E46/780 E52/1812-I E52/1813-I E52/1819-I E52/2060-I E52/2150-I E52/2218-I E69/2235-I
100 100 100 100 100 100 100 100 90 90 90 90 90 90 90 100 R 100 100 100 100 100 100 100 100 100 100 N N N N N N N N N
2 2 2 2 2 2 2
5 5 5 5 5 5 5 5 5 5
AUSTRALIA P :F E77/1934 P77/4048 P77/4049 P77/4050 P77/4051 P77/4155 P77/4156
AUSTRALIA P :F P77/4010 P77/4011 P77/4012 P77/4013 P77/4014 P :E E52/2695
SWEDEN P :V V P : 1 2
DIRECTORS REPORT
T O A
H F
R P
L S
N O 479,772,810
S A
O 31,210,017 .
N B M I I I I I I I E E E C C C T 7 13 20 8 17 25 7 20 40 80 20 75 100 , , 31 J , 30 J , 30 J , , , , , , , , , 31 O 1F 30 J 30 J 30 J 30 J 15 S 2011 2012 2012 20 J 20 J 20 J 2012 2012 2012 2012 2013 2013 2013 2013 2013 2013 21,910,017 3,000,000 2,000,000 1,200,000 900,000 900,000 300,000 (2,000,000) (100,000) (1,000,000) (300,000) (300,000) (300,000) 31,210,017 5,000,000
DIRECTORS REPORT
S T
) :
D 1N 1J 29 J 29 J 29 J 29 J 29 J 29 J T N . S H R S L 2011 2012 2012 2012 2012 2012 2012 2007
E 30 J 30 J 31 O 1F 30 J 30 J 30 J 15 S 2013 2013 2012 2013 2013 2013 2013 2013
E 80 20 7 13 8 17 25 7
N 1,000,000 2,000,000 21,910,017 3,000,000 1,200,000 900,000 900,000 300,000 31,210,017
26 S
2012:
N E JP M G &R N I AB I A L L <C I A/C>
N 120,000,003 51,563,324 24,600,000
P 25.01 10.75 5.13
26 S
2012
R 1 1,000 1,001 5,000 5,001 10,000 10,001 100,000 100,001 9,999,999 T
H 77 263 281 937 344 1,902
U 27,380 915,085 2,419,650 37,136,688 439,274,007 479,772,810
%I
C 0.02 0.79 2.02 26.05 71.12 100.00
26 S
2012
M M $500.00 $0.03 16,667
H 781
U 5,522,434
DIRECTORS REPORT
20
26 S
2012 % I C 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
R 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 T T
N E JP M G HSBC C R T N M HSBC C M A A BNP P E A J S U B B D S P 20 H L E A C <H S P G P A I N P R L R P L <U P L F L <CPCPL - TU0022 A/C> A/C> L I <D S A/C> A/C> L P L P M N P L N L E P P L L <DRP> BB (A )L - A/C 2 L &R N I N E AB (A L )L I A L L <C I A/C>
U 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
ORDINARY SHARES
DIRECTORS REPORT
T J A
G $5,355,852. I 2012 30 J $627,640 (2011: $1,845,727 2012 G ).
$570,840. D , $3,511,606. T $167,740.
G . N 30
5Y
30 J
2012 C E N N S M (U ) 167,740 (5,355,852) 479,772,810 31,210,017 $0.038 18,231,367
2011 570,840 (4,432,070) 131,648,715 5,000,000 $0.17 22,380,282
2010 4,584,746 (3,009,739) 131,648,715 8,567,867 $0.16 21,063,794
2009 1,027,426 (1,579,170) 90,324,979 9,967,867 $0.12 10,838,997
2008 2,943,188 (1,848,686) 84,778,597 9,717,867 $0.25 21,132,149
30 J
2012
P H L L $0.199 $0.036 $0.029 27 S 5,7,8,21,22,25 J 26 J
D 2011 2012 2012
DIRECTORS REPORT
ASX A
D 25 S 30 A 02 A
2012 2012 2012
A D N C A 4 4 C C A C A C B A B ERI I U K Q Q
T N S N C C P D E D 3B D 3Y 2 ' I ' I F T D R R C M N N 605 N D P L J P
D 03 A 2012 03 A 2012 27 M 2012 21 M 20 M 20 M 15 M 15 M 12 M 2012 2012 2012 2012 2012 2012
A B S SCR: T D SCR: B H R T F A U SCR: T L S SCR: R P R T E R 2 2 Q Q R 3Y C B L
T O S S S H S S B T S H (M E A C R R M Y D C R S R SCR
02 A 2012 01 A 2012 01 A 2012 10 J 2012 04 J 02 J 02 J 29 J 28 J 20 J 15 J 13 J 12 J 12 J 12 J 12 J 12 J 08 J 31 M 29 M 28 M 21 M 18 M 18 M 17 M 15 M 14 M 11 M 11 M 08 M 07 M 04 M 03 M 02 M 02 M 01 M 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012
G -G
09 M 2012 09 M 2012 06 M 2012 29 F 2012 29 F 28 F 28 F 13 F 03 F 01 F 01 F 2012 2012 2012 2012 2012 2012 2012
N A H A A T H R
O R
S S T 20 S I D S ASX D A O M T N O
)S
SCR: D T 20 S A 3B SCR C C C C E C C C C T C C C C C SCR: S C C 3 3 E C Q Q
SCR SCR O M T O SCR SCR SCR SCR SCR SCR SCR H SCR SCR T S SCR SCR A C O M S S 3B B S S R R T H O SCR P SCR SCR P
31 J 2012 31 J 2012 10 J 2012 28 D 2011 22 D 22 D 17 N 14 N 11 N 01 N 01 N 2011 2011 2011 2011 2011 2011 2011
2011 AGM R AGM P C A A G E R D U 2011 AGM U D C 1 Q M 1 Q SCR: U U 2011 A C
M L J J L U R R O O R B C R R E E P E U U U J P D J P P P
O A J C
31 O 2011 27 O 2011 27 O 2011 30 S 2011 29 S 15 S 07 S 2011 2011 2011
I P M D CUL: D F U 4 4 F J L U P O Q Q P J O C A P
01 M 2012 30 A 2012 27 A 2012 27 A 2012 26 A 19 A 10 A 04 A 2012 2012 2012 2012
02 S 2011 01 A 2011 29 J 2011 29 J 2011 20 J 06 J 04 J 01 J 2011 2011 2011 2011
SCR: C SCR: T A N
DIRECTORS REPORT
R L (ASX: HNR) H V R P L J P
HR S P L (100%)
HR E P L (100%) R ASX L E
R (100%)
HR F P L (100%) H F P
&R P L (100%) J P L (50%) & P L (50%)
SR E
P (100%)
HR E SR E
AB (100%) H S &N B &P M P
S R
I P (100%)
R (N ) AS (100%)
I AB (100%) H I P
I (100%) H I P
AB
DIRECTORS REPORT
C
T T G T I P B B C ASX
G
D
S
C 2 . G . . . G ASX C C , G ,H C . : .T ' A B . ASX C G . T C P
1: L 1.2 E B B . . T C
2: S 2.1 T I B
D G
C .T
,N
M B
.T B .
M R
2.4 T 2.5 E P 3: P 3.2 B . . . T C B C .T B , .
T 3.3 T T W W W
B , 30 J 36% 9% B D 0% 2012 : .
DIRECTORS REPORT
B B ,
B .
D D
. H
T C
, .
. D .H , , ,
4: S 4.1 4.2 , 4.3 T B .U . B G H R ,
8: R 8.2 T B . U . G B H R
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C I C D , N R .T . B .U B H . D M D D R B G R . D .T , B .
T D
S D
T ,
P H C D R C . .T B
A
R T M B
, B .
DIRECTORS REPORT
R T T S O S
M C
) B . , B B .T
: B ,
. B C S A
G E F B D ASX R SCR R 28 J 2012, H H R , SCR 348,124,095 SCR . 29, G . , , G R S
O 29 R T G
2012 H R L (SCR). O 11 M 2012 H 83.99%. B .A S ,H
3H
R H
SCR. I SCR R
L T E T T G G G . R
R G P . , .T G ,
. I D : ) ) A A 199B T D N . 182 183 2001. $12,240. 2001, D O , C H R L
DIRECTORS REPORT
N D C T M
S S P ,S H C S R R P O P R . S M T A I L . M S R R , MS M JORC C , . S B D E E W M P , . M M I (M ,T , T , L , UK, 450553). M D W , P P C E M R 22 J 2011 .D W , T , JORC C .D W , P D P ,R ,R G ,D ,T Z , P C JORC C , R .M L P M R 13 J P 2012 .M L I G L , L M S M 2004 A A I S C M R M A M .S L .M S R E S R R , E , , M G .
R C T
C C T C I C
P P
,D ,T Z V AB, L ,S M (M 230476). M M L ,
JORC C .D W S 13 J V V 2012 A H C P , ,S S ,R H 26 J M G I M 2011 R M R
C T H C
R M M JORC C . -M C (CP)(M .M R 205422). M M R ,
P V
.M G ,S JORC C ,
R ,R .M R
C T G V M
P AB, L ,S
T JORC E C T P C .M L P , . A JORC C M T I .M L L M
(M
230476). M L ,
A T S O D D 307C C .298(2) C A 2001 A 2001. 46.
D M P
H ,W
D A 28 S 2012
DIRECTORS DECLARATION
T ( ) ( )
D D D ;
: , ; , A A S I F R S C A 2001, 2 C
() ( ) S D 2012.
2001. .295A C .295(5) C
A A 2001
AASB 124 30 J
A 2001.
D M P
H D ,W A 28 S 2012
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

30 J 2012
N R O G T 4( ) 4( ) 4( )
2012 $ 577,925 650,787 7,011,106 8,239,818
2011 $ 320,914 189,772 3,335,087 3,845,773
R E D C O M E O (L I (L O N N ( )/ ) ) / /
14( )
(1,406,741) (916,124) (513,225) (47,844) (113,332) (62,037) (89,423) (4,432,070) (433,569) (1,845,727)
4( )
(71,631) (732,446)
4( )
(160,894) (46,869) (5,355,852) (176,901)
4( ) 5
(627,640)
(627,640)
(1,845,727)
(5,099,949) (7,271,205) F T ( )/ 20 (302,362) (13,301,156)
8,654,619 (2,539,256)
4,269,636
N T
) ( )/
(627,640) (13,301,156)
(1,845,727) 4,269,636
(L B D
) ( (
: ) ) 22 22 (0.41) (0.41) (1.40) (1.40)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30 J 2012
N C C T O T 30( ) 9 10
2012 $
2011 $
167,740 339,532 7,277,652 7,784,924
570,840 332,495 27,335,466 28,238,801
N O P O C T TOTAL ASSETS , 11 12 13 14 262,232 210,910 300,000 28,275,372 29,048,514 36,833,438 674,247 28,913,048 212,225 162,022 300,000
C T P B O T 15 16 17 18 1,794,290 184,822 1,373,930 1,302,365 4,655,407 20,086 419,248 332,904 66,258
N P D O T TOTAL LIABILITIES NET ASSETS 16 5 18 66,262 106,203 4,761,610 32,071,828 39,941 32,906 3,280,989 76,340 3,390,235 3,809,483 25,103,565
E I R A TOTAL EQUITY 19 20 21 40,294,707 6,313,215 (14,536,094) 32,071,828 20,135,891 18,876,128 (13,908,454) 25,103,565
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

30 J 2012
A A F 30 J 2012 O S $ R $ L $ E T $
1J
2011
20,135,891
18,876,128
(13,908,454)
25,103,565
T L O T ( ( )/ )/ (12,673,516) (12,673,516) (627,640) (627,640) (627,640) (12,673,516) (13,301,156)
T I I I T B 30 J 2012 20,158,816 40,294,707 20,887,446 (728,630) 110,603 110,603 6,313,215 (14,536,094) 20,887,446 (728,630) 110,603 20,269,419 32,071,828
A O F 30 J 2011 O S $ R $ A L $ E $ T
1J
2010
20,135,891
12,717,661
(12,062,727)
20,790,825
T L O T ( ( )/ )/ 6,115,363 6,115,363 (1,845,727) (1,845,727) (1,845,727) 6,115,363 4,269,636
T I T B 30 J 2011 20,135,891 43,104 43,104 18,876,128 (13,908,454) 43,104 43,104 25,103,565
CONSOLIDATED STATEMENT OF CASH FLOWS

30 J 2012
N C R P P I N 30( )
2012 $
2011 $
476,787 (5,278,480) (1,884,554) 137,002 (6,549,245)
46,902 (4,901,163) (1,188,431) 244,732 (5,797,960)
C P P P A P R N D N 14 , (4,451,734) 8,541,253 (102,386) (1,946,747) (30,702) 1,163,361 1,796,047 169,281 5,138,373 1,807,551 (2,360,484) (24,276) (32,399) 4,224,710
C P R N /( / ) 5,050,981 (4,043,209) 1,007,772 (23,497) (23,497)
N C C 30( )
(403,100) 570,840 167,740
(4,013,906) 4,584,746 570,840
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

30 J 2012
1.
G
H T R 6O W P G R
I
L ( C ) C , : P S WA 6005 6O W P S WA 6005 A .
2.
S
T A L A IFRS I T T S A I A F S AASB 7 F D AASB 101 P T S T S ( AASB 2010-4 F A I AASB 2010-4 F A I A P A P A ) A ) . AASB 1054 A A D AASB 2011-1 A A A S T -T C P AASB 1054 A A AASB 2011-1 I A AASB 124 ( AASB 124 ( ( ) AASB 124 ( A I 114 D D D A S . A IFRS N Z S . :( ) AASB 2009-14 A I P M F R AASB 2009-12 A A S AASB 2010-5 A A S AASB 2010-6 A A S T F D A . 58 AASB 2009-12 AASB 124 R S S I AASB 2010-6 . . AASB 7 F AASB 119. S 2009) 2009) 2009) A S A A A S S F R A S ( IFRS ). D I . 28 S , 2012. , C S I G , .S C 33. I F R S ( A IFRS ). C A A 2001, H , R .T L H R A 2001,
AASB 124 R ( D
P D 2009)
A A A
T T A T D
AASB 8 O (2009). A I

30 J 2012
2.
S
T ,
)
. T .
( )
B
T A T 30 J G T . F 30 J 2012 $3,129,517 (2011:$27,819,553).B $7,277,652 D G T I B D G , / G 30 J $627,640 (2011: G 2012 (2011: $27,335,466), , D G 2012 , 12 , . G . . $1,845,727) $167,740 (2011: $570,840) , , 2012 A .C , . 30 J 2011. , .
( )
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A
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. E E S /I , AASB 200911 A AASB 9 A S S 1J AASB 2010AASB 1J 1J I F A M S S E (2011) J V (2011) 1J 1J 1J 1J 2013 2013 2013 2013 2013 2013 30 J 30 J 30 J 30 J 30 J 30 J 2014 2014 2014 2014 2014 2014 2013 30 J 2014
AASB 9 F I A A S 7 A A 9 (D 2010) AASB 10 C AASB 11 J AASB 12 D AASB 127 S AASB 128 I AASB 13 F V A A A F
AASB 2011-8 A AASB 13

30 J 2012
2.
S
( ) N A S A F
(
P
)
( )
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/I B A A A U A K M A J O A C P A 20 . A A I P A S 1J 2013 30 J 2014 S 1J 2012 30 J 2013 P A A A D S 1J 2013 30 J 2014 S 1J 2013 30 J 2014 (2011) S A S AASB 2011-10 AASB 1J 2012 30 J 2013 1J 2013 30 J 2014
AASB 119 E A 19 (2011) AASB 2010-8 A D T : AASB 2011-4 A R I R AASB 2011-7 A C AASB 2011-9 A P I I M S
20 S C AASB 2011-12 A I
T S G
' :
.O
AASB 9: F
I AASB 9 (D 137, 139, 1023 & 1038 I 1J 2013). T T S ,
(D 2010) AASB 2010-7: A A A S 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 2. 5, 10, 12, 19 & 127] (
. :
; ; - ;
. D

30 J 2012
2.
S
( ) N A
( )
(
S A
:( )
)
P (
' ;
)
' ;
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, )
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AASB 10: C F S , AASB 11: J A , AASB 12: D I O E , AASB 127: S F S (A 2011), AASB 128: I A J V (A 2011) AASB 2011-7: A A A S C J A S [AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 I 5, 9, 16 & 17] ( 1J 2013). AASB 10 I 112: C AASB 127: C - S S P S AASB 11 AASB 131: I " ( AASB 12 " G T T S . AASB 10, 11 12, G . AASB 127 AASB 128 . . AASB 12 I .T " 112, S ", ' J "( V ) ' ). J ). , , (J 2004, " ( E F . AASB 10 S . (M .T 2008, G )
). AASB 11
AASB 13: F V M AASB 2011-8: A A A S AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 I 2, 4, 12, 13, 14, 17, 19, 131 & 132] ( 1J 2013). AASB 13 AASB 13 T S ( G . , , : ; , . S ,

30 J 2012
2.
S
( ) N
(
A S A F P
)
( )
I O C I
AASB 2011-9: A A A S P [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049] ( 1 J 2012). T T S 2011) S
. G .
AASB 119 (S () ( ) ( ) L T G C
: ; ; AASB 137: P A , . , C
( )
C
C . , ,
( )
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P . L . L . 12 12 ,
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I , , S O , A S .G , , . .T . , : . . ,

30 J 2012
2.
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( ) F
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30 J 2012
2.
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() T
C C . I ). D D . I , .C
.D . H ) , ( . .F , , .D . ,
D , .T , . D . C C . T L C 2008 H 100% R , A L . A , , , ( )
()
21 O
2002. T 1J

30 J 2012
2.
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() I
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( )
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30 J 2012
2.
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( ) P
T C C O .A . I, T . T C I , . C , . , , S , C F S (
) . A
A 27
AASB 127 . .
. ,
( )
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P . D T T C O B O M D 10.00 20.00 2.50 7.50 66.67 16.67 25.00 , : (%) .D . . . C
( )
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P , T , , W . . .W . , ,

30 J 2012
2.
S
() R
D D .
.I
( )
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E B T , F , . . .F S , .T , , , .
()
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3.
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I , T . T : T .W , 30 J . T G .T T D , . H R B L S HR S . P L HR F 30 J P L , 2012. A 2012. E .N .R , G , 2, . T .A . ,
D ASX .D .
. T

30 J 2012
2012 $
2011 $
4.
(L
( )
)/I
R I B L O 42,063 528,397 7,465 577,925 219,274 92,872 8,768 320,914
( )
O S E D U O
I 196,313 49,441 186,040 218,284 709 650,787 189,772 68,586 121,186
( )
G P L : C T ( ) 8,564,344 (9,744,176) 8,190,938 7,011,106 4,244,431 (3,448,600) 2,539,256 3,335,087
( )
(L (L
)/I )/I ( ) 71,631 : M 160,894 : P D S E : 110,603 43,104 : 121,894 103,591 62,037 47,844
D O

30 J 2012
2012 $
2011 $
5.
I
I T C D T T : (L I E E I T A T . D T D L :B 1,685,385 (1,685,385) 6,490,678 (3,209,689) 3,280,989 D R 3,280,989 3,280,989 R /( ) O B (3,280,989) (3,280,989) C E 3,280,989 3,280,989 C B A 30% . )/I 30% (627,640) (188,292) 733,624 (545,332) (1,845,727) (553,718) 15,922 537,796 :

30 J 2012
2012 $
2011 $
5.
I
U T : T T N
) 585,921
306,865 892,786
166,540 166,540
T R L , 21 O 100% A . 2002. T C , A
6.
K
( ) T D ( ) T C S P O K G . 476,559 76,981 19,275 572,815 T 31 33. G D R 440,205 72,328 18,585 531,118 R D W J S H H M D D E H R E M (C C S ) L :

30 J 2012
7.
S
T E .O . T I . T E O 30 J 30 J 31 O 1F 30 J 30 J 30 J 15 S () O 29 J H 2013 2013 2012 2013 2013 2013 2013 2013 2012 H R D L A SCR D W C , N N D R D W J S H H M V .F N N 28. , R L .O O .T 14. N 1,000,000 2,000,000 21,910,017 3,000,000 1,200,000 900,000 900,000 300,000 29 J 29 J 29 J 29 J 29 J 29 J 1N 1J G 2007 2011 2012 ( ) 2012 ( ) 2012 ( ) 2012 ( ) 2012 ( ) 2012 ( ) S H 15 S R R H SCR. T .F . L R L SCR O H L E 30 J 30 J 31 O 1F 30 J 30 J 30 J 2013 2013 2012 2013 2013 2013 2013 2013 (SCR) $ 0.80 0.20 0.07 0.13 0.08 0.17 0.25 0.07 : D ( D ) . C H R G . L .N .O

30 J 2012
7.
S
T 5.5
)
, J C I , O : 2,000,000
I G E E O D R T
30 J 19 20
2013
74.6% 24 N 4.82% : 2012 W N $ N $ 8,567,867 900,000 (4,467,867) 0.56 0.65 0.61 0.53 0.09 0.40 0.65 0.12 0.12 5,000,000 5,000,000 0.53 0.53 2011 W
B G E C B E () E D ( ) C D ( ) B T 300,000 20 300,000 75 300,000 100 900,000 20J 20J 20J 2,000,000 20 100,000 40 1,000,000 80 3,100,000 31 J 30 J 30 J () ( ) ( )
5,000,000 30,210,017 (3,100,000) (900,000) 31,210,017 31,210,017
, 2011; 2012; 2012.
, 2013; 2013; 2013.
0.50 .
(2011: 1.03
).
$0.12(2011: $0.53)

30 J 2012
2012 $
2011 $
8.
R
A A T T S S R S . KPMG A KPMG S G S S AB, K I I AB R S . L KPMG A I AB KPMG AB, 55,000 7,090 102,123 31,831 40,033 31,831
9.
C
A A N O A 30 J 2012, . $11,114 (GST) 251,572 61,992 339,532 25,968 15,192 258,124 47,223 11,956 332,495
10.
C
L I I L P I ( ) R K I E R &R AB ( ) &R &R P L I P L L ( ) () 1 2 29,888 (29,888) 7,277,649 7,277,652 () I K S ( ( ) HR S I O R I AB ( 2012. T . 100% 14) P L L .T 13 D L ) ( C . ( ) 2010 HR E R . ( ) I ) ) ) ) ) 3,594,000 20,000 50,000 20,000 125,000 A B H L N : I L M G L R L R L R L
2,419,871 1 1 15,484 (15,484) 24,915,593 27,335,466
( ) ( )
, HR E S 12.5% S
P .T
L R
), L ) L 30 J R
$2.5 H R $1 E & R
15 3
R H
2012. L ) 1
P L &R
SR E P L ,
L ( 1
S $1 .T .T

30 J 2012
2012 $
2011 $
11.
N
O 262,232 262,232 212,225 212,225
12.
,
O M V $ $ 142,559 103,866 1J 2011 ( ( 30 J 2012 14) 27( )) (1,465) 156,314 103,866 53,913 24,276 166,835 42,661 73,728 (5,206) (2,004) 276,014 12,428 9,102 3,326 9,102 B $ 151,661 128,142 279,803 45,987 127,641 (5,206) (3,469) 444,756 T $
G B A B A A D E B A B D B D A D E B N A A 30 J 30 J 2011 2012 85,092 101,552 68,222 97,577 8,708 11,781 2012 $ A , : 23,565 47,813 253 71,631 M 18. 18,774 28,846 224 47,844 162,022 210,910 2011 $ 30 J 2012 ( ( 14) 27( )) 814 54,762 1J 2011 1J 2010 18,774 18,774 23,565 11,609 69,767 28,846 98,613 47,813 37,434 (2,921) (2,502) 178,437 647 170 224 394 253 69,937 47,844 117,781 71,631 49,043 (2,921) (1,688) 233,846 1J 2010
M O B

30 J 2012
2012 $
2011 $
13.
N
L () 300,000 300,000 () D 28( ). 300,000 300,000
14.
C
B C B () O 29 S T G SCR. I SCR H T A SCR A : S .T G F R 2012 H L R (SCR). O 11 M 2012 H 83.99%. B R SCR G .T 2012 $ C O P T P B V , & 1,796,047 203,254 78,598 (1,376,118) (74,429) (4,486,336) (3,858,984) S . A SCR 28 J , H ASX R 2012, H R () 28,275,372 28,275,372
H R
R , SCR 348,124,095 SCR
3H .
C E T T , ( ) P $4,935,683.A S ( ) T $1,406,741 R L . S R L $28,275,372. , S R L , . 19,605,235 $3,528,942 20,887,446 20,887,446

30 J 2012
2012 $
2011 $
15.
C
T O () 1,143,928 650,362 1,794,290 () T N . T . 30 . T , 30 60 . 103,774 229,130 332,904
16.
P
C E 184,822 184,822 N E 39,941 39,941 32,906 32,906 66,258 66,258
17.
B
M 1,373,930 1,373,930 A , HR E 20% 3,594,000 A 8.74% $2.40 .O T 30 A 2012. P L , .I $1.50 .
. A 30 J 2012 I L (ASX: AGO) 50% -

30 J 2012
2012 $
2011 $
18.
O
C C A L A A C F L E R L ( ) 30 J 992,744 (221,392) 28,012 799,364 25,586 477,415 1,302,365 20,086 20,086 ()
N F
66,262 66,262 76,340 76,340 (SCR) M . T .T H 2012. D E . $504,081 P L ( 27( )). T , , R L 29 J $1,217,614 2012 ( SCR 7).E W 12.5%
()
I (
S ) . T . T 30 J $1.25 15 O SCR. T 3 2012
( )
2012 $
2011 $
19.
I
479,772,810 (2011: 131,648,715) 40,294,707 40,294,707 20,135,891 20,135,891

30 J 2012
19.
)
2012 N . $ N . 2011 $
F B I I S B () ( ) S R O 13 F F H 14). 2012 H R R 131,648,715 $728,630. ( E 27( )). . R L 479,772,810 40,294,707 131,648,715 20,135,891 S () ( ) 131,648,715 348,124,095 20,135,891 20,887,446 (728,630) 131,648,715 20,135,891
2012 $
2011 $
20.
R
B O A D F B 18,876,128 110,603 (15,652,143) 3,280,989 (302,362) 6,313,215 18,876,128 12,717,661 43,104 8,452,536 (2,337,173)
T O R F D
: 1,368,809 5,246,768 (302,362) (3,280,989) 6,313,215 18,876,128 1,258,206 20,898,911

30 J 2012
20.
R
S A I H H H H H H H H S N R R R R R R R R 30 J
2012,
31,210,017 N C
: E E 30 J 30 J 31 O 1F 30 J 30 J 30 J 15 S 2013 2013 2012 2013 2013 2013 2013 2013
L L L L L L L L , .
1,000,000 2,000,000 21,910,017 3,000,000 1,200,000 900,000 900,000 300,000
O O O O O O O O .
80 20 7 13 8 17 25 7
2012 $
2011 $
21.
A
B L B (13,908,454) (627,640) (14,536,094) (12,062,727) (1,845,727) (13,908,454)
22.
L
2012 2011
C B F T B T I ( ) :
(0.41) (0.41)
(1.40) (1.40)
: 2012 $ 2011 $ (1,845,727)
(627,640)
2012 N . W 152,574,207 T EPS C . AASB 133 E 30 J 2012 S C .T
2011 N . 131,648,715

30 J 2012
2012 $
2011 $
23.
C
E N L L 1 5 11,843,288 7,678,197 , 1 5 & ( ) () 3,524,828 8,318,460 2,559,399 5,118,798
F 30 J N L L
2012 1 1 5
:( ) 227,101 5 854,069 28,714
1,081,170 () I S N . ( ) T G , 4.5 . 1 S N
28,714
. I .T
24.
C
I D , . 30 J 2012
25.
S
T G G .A , G , A B . (C G O .F A D , .A M .T G )
S R 2012 $ A S C 577,867 58 577,925 320,914 2011 $ 320,914 T 2012 $ 8,239,051 767 8,239,818 3,845,773 2011 $ 3,845,773

30 J 2012
2012 $
2011 $
25.
S
S A S
1,026 (628,666) (627,640)
(1,845,727)
(1,845,727) (1,845,727)
L I L
(627,640)
(627,640)
(1,845,727)
S A 2012 $ A S C 7,802,788 29,030,650 36,833,438 28,913,048 2011 $ 28,913,048 L 2012 $ 540,363 4,221,247 4,761,610 3,809,483 2011 $ 3,809,483
26.
J
I N F S L T T C .T . () O C I $0.17 O 294,118 S 28 J : AU$33,333 $100,000 28 J 2010). S $0.17 12 , SCR . (I SCR 588,235 . (P 2010 S N S R .T L J V T : M L (TSXV: TAS) J M JV ( ) P E E E E 2012 % 80 90 90 75 2011 % 80 90 90 0
AU$16,667 $50,000 22 S 2010). .
AU$175,000

30 J 2012
26.
J
S F O 21 J : S S S S 2011 S 1S 2S 3S 4C R AU$750,000 AU$500,000 AU$400,000 S L 75% 30 J 30 J 30 J 3T
2013 2014 2018
51% 24% 10% T . M L
. . 15% 1.5% S 1 S 2 . .
C T 23 24 .
27.
S
O N P H S HR S HR F E HR E S SR E K K S S S () ( ) ( ) I I P P P R L L L : P P L L ( ) ( )( ) L ( )( ) U S S S ) AS ( ) .A HR S R A G M E R L R 131,648,715 $728,630.H R P L .T / P L R &R P L P L S P SR E P L AB K I P . I AB K I R AB S R (N ) AS P L P L . 31 J 2012, 131,648,715 E R G . HR E R . AB. R S R L . AB. N ( ) A A A A A A K 100 100 100 100 100 100 100 100 . H R E R E R L .O L P 100 100 100 100 100 100 : R L () A C 2012 % 2011 %
P ( ) AB ( I R R ) AB ( ) AB ( ) (N
( ( ( ( ( ( ( (
) ) ) ) ) ) ) )
H R L T 100% HR F A H L E P L 13 F 2012 H ,E L . T 100% HR E R 10 T 100% SR E T 100% K T 100% K T 100% S T 100% S T 100% S
E L
P L L .
SR E
L .
I I

30 J 2012
28.
R
( ) E E D E D ( ) K D ( ) K F B K 2012 R D W J M S H H M C 4,165,310 12,058,086 391,775 40,130 16,655,301 2011 R D W J M S H H M C 4,165,310 12,058,086 391,775 40,130 16,655,301 4,165,310 12,058,086 391,775 40,130 16,655,301 (3,165,309) 6,378,702 1,475,001 350,001 5,038,395 1,000,001 18,436,788 1,866,776 390,131 21,693,696 1J N . H R L R G N . N . N N . B 30 J N . 6 . 26 . 27 .

30 J 2012
28.
R
( ) S H
(
R G B
)
L V B E N . N N . B 30 J N . 30 J N . N . N . N . V O
1J N . N .
D 2012 R D W S H H
2,000,000
(2,000,000)
2,000,000 2011 R D W S H H 250,000 3,000,000 250,000 3,500,000 M JM ( ) L D M MC C
(2,000,000)
(250,000) (1,000,000) (250,000) (1,500,000) 2,000,000 2012 2,000,000 2011. 2,000,000 2,000,000 2,000,000 2,000,000
, $100,000 B 1J 2011 $ 30 J B 2012 $ , I $ : H $
D D H () 300,000 300,000 () T B .T O 28 A 2011 30 A $26,956. T D , , , 2012. T . T 30 J 2012. G : $300,000 6% $17,848 (2011:$18,001). M H , $200,000 20% 300,000 300,000 17,848 17,848 31 M 2015. T 300,000 300,000

30 J 2012
28.
R
( ) L
)
( O B $ C B $ 300,000 300,000 29,888 2,435,355 2,735,355 300,000 329,888 2,735,355 ) I $ 17,848 18,001 451,916 74,871 469,764 92,872 N 30 J 1 1 1 2 2 3
T T T T T 2012 T 2011 () T S W S $1.75 12.5% ( E 14). R .T 2012 2011
2012 2011
300,000 300,000 2,435,355
, HR E L K $2.5
P I
L , AB ( S
S 15 S R
R 2012. T L
L ). T H 30 J . R 2012
$3,717,614 (2011: $2,345,000) $382,176 (2011: $74,781)
2012 $ C B B A P I E A .H (2011: N ) , (2011: N ) . R L 3,493,592 329,614 (570,000) 62,712 3,315,918 .N
2011 $

30 J 2012
28.
R
() T
)
( ) P
L B L L L (P E D S S O C R B L S S L ( ) P T H R L . S , , R R . L H R L , P . T P . A 30 J 2012 $82,933 S P , M J M , . M M . )/ /
2012 $ 821,962 1,807,331 2,178,442 (10,237,878) (1,284,672) (6,714,815)
2011 $ 3,061,493
4,597,240 (4,913,365) (1,923,406) 821,962
$284,111
( .M H
S $272,764 (2011: $265,863) , .A . N 14).A 30 J 2012 $N (2011: $258,124) C B S R
29.
S
T , ( ) ( ) () S A 27 S $4,983,700 S F 2012 30 J 2012. 2,030,000 A I L B . , . $2,293,950 $3,720,025. 30 J 2012 , .

30 J 2012
2012 $
2011 $
30.
N
( ) R F , : C T ( ) R (L L D G E E P I I F B F D C : D T I T N / : 140,964 (6,549,245) (366,101) (5,797,960) / : 152,484 (187,700) , )/I (627,640) 1,406,741 71,631 (7,011,106) 110,603 (49,441) 296 (416,071) 115,151 7,472 23,091 (304,139) (169,281) 6,559 19,721 47,844 (3,335,087) 43,104 (121,186) 15,484 (74,871) (1,845,727) 167,684 56 167,740 170,591 400,249 570,840 , .C

30 J 2012
30.
N
( ) N D ( ) ( ) () T C S T G $103,866 T C , G
: , 14; .A . I 18; E 27( ). R L G $20,887,446,
348,124,095 R L $15,285 131,648,715 $728,630
31.
F
( ) F T T , .T T A ( ) S D 2 ( ) F T G G .T G 2012 AUD O S A , . AUD, .T , .T SEK 30 J /( G , ) 3,384,892 SEK 26,437,288 AUD 2011 SEK : , , . , , I L . .T 30 J 2012,3,594,000 , A I L B D , . 30 J 2012 . ,
S 2012 SEK (10 2011 SEK (10 ) ) 335,513
410,072

30 J 2012
31.
F
( ) I T C A 2012: 1 .T
.T .
.T P 1% L 1% 1% E 1%
30 J V C
2012 1,677 1,677 (1,677) (1,677) 1,677 1,677 (1,677) (1,677)
30 J V C
2011 5,708 5,708 M T F W V L 1 $ $ 1 5 $ 5+ $ N T $ $ . (5,708) (5,708) 5,708 5,708 (5,708) (5,708)
C 2012 F C T O L :
1.8%
167,534
206 339,532
167,740 339,532 262,232 300,000
4.5% 6% 167,534
259,232 300,000 259,232 300,000
3,000
342,738
1,069,504
F T B O
: 1,794,290 8.7% 8.0% 1,373,930 1,373,930 824,950 824,950 66,262 66,262 477,415 2,271,705 1,794,290 1,373,930 1,368,627 4,536,847

30 J 2012
31.
F
( ) I M
)
( ) ( ) F W V L 1 $ $ 1 5 $ 5+ $ N T $ $
C 2011 F C T O L :
4.7%
570,585
255 332,495
570,840 332,495 212,225 300,000
5.5% 6% 570,585
202,794 300,000 202,794 300,000
9,431
342,181
1,415,560
F T
: 332,904 332,904 C 332,904 332,904
. T , .T . . T
.T . GST . 30 .
T I ( ) F T T . T . G G

30 J 2012
31.
F
() L T . T ( ) M M T G C .
. A S E 10. A 1 $727,765(2011: . T . T
$2,491,559), / /
$509,436 (2011:$1,744,091).
32.
F
T L , , , . L 1 2012 $ L 2 2012 $ L 1 2011 $ L 2 2011 $ 2 .T .F .T L , L 2 1 B , S .T , . I L 1
F A
A : 7,277,650 24,642,501 273,092 7,277,650 24,642,501 273,092
33.
P
T ,H R 2. 2012 $ R L O T (5,234,095) (5,398,356) (5,234,095) (5,398,356) 2011 $ L , 30 J 2012. T

30 J 2012
2012 $
2011 $
33.
P
F C N T C N T L A
237,013 25,080,054 25,317,067 1,284,601 6,564,997 7,849,598
828,203 1,389,774 2,217,977 405,166 109,246 514,412
T S R A T ( ) E G T 30 J ( ) P T ( ) C T
: 41,023,287 1,368,809 (24,924,627) 17,467,469 20,135,891 1,258,206 (19,690,532) 1,703,565
30 J 2011.
2012
30 J , ,
2012
30 J
2011.
30 J
2012
30 J
2011.
HANNANS REWARD LTD

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HANNANS

ANNUAL REPORT 2012

AnnuAl RepoRt foR the finAnciAl yeAR ended 30 June 2012

social network sites

Hannans reward annual report 2012

Hannans reward annual report 2012

sole funded inteRests

Royalties equity Raisings PRoject sales joint ventuRe

Hannans reward annual report 2012

BuIldIng the team

Hannans reward annual report 2012

hannans iron projects located in Sweden.

Hannans reward annual report 2012

diRectoRs RePoRt DIRECTORS REPORT

hannans copper and gold projects located in Sweden.

hannans copper and gold projects located in norway.

Hannans reward annual report 2012

hannans gold and base metals projects located in Western australia.

project Australia Sweden & Norway total

$ 4,548,527 807,325 5,355,852

% 85% 15% 100%

Hannans reward annual report 2012

KIruna Iron proJect

Hannans reward annual report 2012

company Share price

Forrestania Lake Johnston Scandinavian precious & base metals

Hannans Reward Ltd ASX/S&P 300 Metals and Mining Index

East Pilbara Kiruna Iron

Hannans reward annual report 2012

Hannans Financial Summary 2003 2012

Damian Hicks Managing Director

Hannans reward annual report 2012

exploration summary july 2011-june 2012

KIruna Iron proJect

Hannans reward annual report 2012

Hannans reward annual report 2012

Hannans reward annual report 2012

Srksjn Project: IP condictivity at 150m

Hannans reward annual report 2012

Hannans reward annual report 2012

Hannans reward annual report 2012

Hannans reward annual report 2012

laKe JohnSton proJect

Hannans reward annual report 2012

Queen vIctorIa proJect

Hannans reward annual report 2012

eaSt pIlBara proJect

Hannans reward annual report 2012

DIRECTORS REPORT pipeline of projects

location Norrbotten, Sweden

commodity Cu-Au Cu-Au Cu-Au Cu-Au Cu-Au Cu-Au Cu

Cu-Au Cu Cu Cu Au REE REE

Au Au Au Cu-Au Cu-Au Cu-Au

Nordland, norway Lake Johnston, australia

Queen Victoria Rocks, australia East Pilbara, australia

Hannans reward annual report 2012

location Kiruna South Sweden

Kiruna Central Sweden

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

Kiruna North Sweden