3rd Quarter Activities Report 2012/2013

Dear Shareholders,

Fast Facts
ASX Code: HNR

During the 3rd Quarter (January March 2013) Hannans: Released spectacular historic copper-gold results from the Central Orebody at the Pahtohavare project (Hannans main Copper-Gold project in Kiruna, Sweden). Completed historical drill data validation and interpretation of the Central Orebody at Pahtohavare. Completed an Electro Magnetic (EM) field survey over the Central Orebody at Pahtohavare which identified four priority conductors that require drill testing. Completed and released a Scoping Study which confirmed the development potential of the Rakkurijoki Iron Project, Sweden (now known as the Rakkuri Project). Completed a placement of c.126m shares to raise $2.8 million through two tranches to institutional and sophisticated investors.

Capital Structure
Shares on issue: 706m Options on issue: 9.3m Market cap: $14m (at 2.0c)

Board of Directors
Managing Director: Damian Hicks Non-Executive Directors: Olof Forslund Markus Bachmann Jonathan Murray

During the 4th Quarter (April June 2013) Hannans plans to: Pahtohavare Project (Copper-Gold) Continue validation and interpretation of historic drill data the Southern and South-Eastern Orebodies and the Eastern Zone at Pahtohavare. Design and commence a drill campaign at the Central Orebody to: test targets where historical drilling was in-effective; infill historical drill profile spacing down to 25 metres; test EM Conductors down dip of existing mineralisation; test potential new lodes beneath existing mineralisation; and confirm historical drill results with twin hole drilling.

Key Projects
Sweden Pahtohavare (Copper-Gold) Rakkurijoki (Iron)

Rakkuri Project (Iron) Seek a joint venture partner to advance the project through to completion of a Preliminary Feasibility Study. Corporate Seek a joint venture party for the Western Australian Nickel and Gold projects.

Managing Director 30 April 2013

HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013

EXPLORATION
SUMMARY AND HIGHLIGHTS
By Amanda Scott, Exploration Manager Hannans holds a portfolio of mineral assets in Sweden, Norway and Australia. Its dual strategy is focused on creating a pathway to production for the Kiruna Iron Project in Sweden, supplemented with precious and other base metals exploration in Sweden, Norway and Australia. Summary Sweden & Norway Two main projects located within 6-8 kilometres from the Kiruna town site (a full service mining town): o Pahtohavare (Copper-Gold) Project - current Exploration Target of 4.8-6.2Mt @ 2.002.78% Cu and 1.23-2.23g/t Au, located 8 kilometres south-west of Kiruna, Sweden; and o Rakkuri (Iron) Project - current combined JORC Resource of 144.4Mt consisting of two
known deposits Rakkurijoki 74.5Mt @ 39.7% Fe and Rakkurijarvi 69.9Mt @ 28.5%, located 5 kilometres south of Kiruna, Sweden.

Pipeline of projects covering gold, copper-gold and lead-zinc prospects in Sweden and Norway.

Australia Forrestania nickel & gold project located 7km north of Western Areas Flying Fox nickel mine. Lake Johnston nickel & gold project located 25km south east of Norilsks Maggie Hays nickel mine and 100kms west of Norseman, Western Australia. Queen Victoria Rocks nickel and gold project located 30km south-west of Coolgardie, Western Australia. East Pilbara Project gold and base metals projects located east of Newman, Western Australia.

Highlights - Sweden Pahtohavare Project: Historical drilling data validation and interpretation completed for the Central Orebody with significant results released1. Data validation and interpretation on-going for the Southern and South Eastern Orebodies. Multiple, well located conductors generated from Hannans recently completed ground geophysical survey2. Moderately conductive anomalies (Conductor 1 & 2) identified downdip from existing copper-gold mineralisation at the Central Orebody. Conductor 1 & 2 may represent a continuation of high grade copper-gold mineralisation at depth.

Rakkuri Iron Project: Released a Scoping Study which confirmed the development potential of the Rakkuri Iron Project. The Scoping Study was based on a 12 year mine life, supplying an iron fines product, at a premium price, to the European and the Middle East North African markets.

1 2

Refer to ASX Announcements during March 2013 for further detailed information. Refer to ASX Announcement, Hannans-Multiple EM Conductors Down-Dip of Copper-Gold, dated 20 March 2013 for further information.

HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013

PAHTOHAVARE PROJECT
Overview The Pahtohavare project is located 8 kilometres south-west of Kiruna, a full-service mining town in Norrbotten County, northern Sweden. Kiruna is located approximately 1,200 kilometres north of Swedens capital Stockholm. The project is also very well positioned with regard to major infrastructure; including sealed roads, power and open-access railway (refer to Figure 2). Copper mineralisation was first discovered at Pahtohavare in 1984 by the state-owned exploration company Swedish Geological AB and later mined by Finnish mining company, Outokumpu in 1984. Three deposits were defined at Pahtohavare (refer to Figure 2) namely; Central (oxide, carbonate and sulphide ore); Southern (sulphide ore); and South-Eastern (sulphide ore).

Mineralisation has also been identified in an area referred to as the Eastern Zone. The combined JORC Exploration Target3 for Pahtohavare (incorporating the Central, Southern, South-Eastern and Eastern Zone) is summarised below: Ore Fresh Oxide Total (Oxide + Fresh)
Table 1 JORC Exploration Target

Mt 3.5-4.5 1.3-1.7 4.8-6.2

Cu (%) 2.0-3.0 2.0-2.2 2.00-2.78

Au (g/t) 1.5-2.5 0.5-1.5 1.23-2.23

Figure 1 Pahtohavare and other Hannans Project locations in close proximity to the Kiruna Township.

3 The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by the Geological Survey of Sweden, reviewed by Mr Thomas Lindholm, of GeoVista AB. The potential quantity and grade of the exploration targets is conceptual in nature, there has been insufficient interpretation to define a JORC Mineral Resource and it is uncertain if further interpretation will result in the determination of a JORC Mineral Resource.

HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013

Historical Drilling Validation and Interpretation A total of 50 drill holes were completed at the Central ore body by previous explorers during the period 19841996; 46 holes were drilled within 8 drill profiles (each profile 50 metres apart) and 4 holes were drilled outside of these profiles (refer Figure 2). The current strike extent is approximately 300 metres. The copper-gold mineralisation at the Central oxide orebody is complex and controlled primarily by structure and secondly by lithology. Oxide, carbonate and sulphide copper minerals are present within the orebody which is closely associated with native gold. Oxide mineralisation is dominant down to approximately 100 metres below surface, at which point a transition zone starts becoming evident with disseminated sulphides. Little is known about the mineralisation below approximately 110 metres depth at the Central ore body due to the lack of effective previous drilling below this depth but from the current drill profiles it is evident that faulting and/or folding are important and may be responsible for the dis-continuation of ore at depth on a number of drill profiles. On all drill profiles presented to date the mineralisation has been shown to be closely associated with a chert unit which honours the original logging by Swedish Geological AB. Recent re-logging and interpretation by Hannans geologists indicate that the unit referred to as chert in historic logs is more likely a silica-albite-carbonate alteration and not a classic sedimentary chert. However the re-logging has confirmed the presence of thin chert horizons in the basic tuff.

Figure 2 - Aerial photograph of the central ore body at Pahtohavare with drill collars (black dots) and drill profiles (red lines).

HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013

Significant intercepts from historic drill profiles

Profile 2 Drillhole PAH87110 Inc. 2 2 2 3 3 PAH87118 PAH87118 PAH87109 PAH87108 PAH87107 Inc. 3 PAH87120 Inc. 3 3 3 3 4 4 PAH87122 PAH87122 PAH86114 PAH86114 PAH88113 PAH87112 Inc. Inc. 4 4 PAH87116 Inc. PAH87126 Inc. Inc. 5 5 PAH87106 PAH87105 Inc. Inc. Inc. 5 6 PAH87104 PAH88103 Inc. 6 7 7 7 PAH87113 Inc. PAH88120 PAH88101 PAH87124 Inc. Table 1 Significant intercepts Pahtohavare Central Orebody. 7528189 7528203 7528211 1680055 1680093 1680115 -45 -45 -60 250 250 250 51.45 111.8 99 7528172 1680155 -60 250 61.05 7528206 7528166 1680392 1680130 -60 -60 250 250 224.1 59.05 7528138 75281856 1681020 5 1680252 -60 -60 250 250 58.95 154.34 7528131 1680330 -60 250 135.3 7528113 1680282 -60 250 100.34 7528057 7528057 7528075 7528075 7528069 7528091 1680301 1680301 1680342 1680342 1680163 1680239 -76 -76 -55 -55 -60 -60 250 250 250 250 250 250 46.25 76.85 97.49 130 7528057 1680301 -62 250 109.4 7527987 7527987 7527994 7528040 7528050 1680290 1680290 1680314 1680251 1680275 -90 -90 -60 -60 -60 0 0 250 250 250 46.15 34.25 52.75 69.35 Northing (RT 90) 7527987 Easting (RT90) 1680290 Dip -60 Azi 250 EOH Depth 45.35 From (m) 3.5 18.75 4 51.5 40.15 17.75 6 24.7 62.45 78.65 71.35 87 7.6 74.39 16.55 11.55 43.7 51.25 54.57 80.22 86.2 115 121.33 5.8 67.4 85.79 117.69 128.4 194.2 11.5 26.7 14.5 25.75 5.8 14.75 21.65 25.55 To (m) 27.1 21.7 25.4 65.8 46.15 27.3 39 39 87 83.62 78 96.75 13.03 83.39 42.15 33.6 44.15 60.65 63.92 91.02 104.46 124.18 122.5 25.1 113.4 99.74 119.84 129.79 219.15 19.3 56.9 47.55 47.55 25.3 44.5 81.3 55.8 Interval 23.6 2.95 21.4 14.3 6 9.55 33 14.3 24.55 4.97 6.65 9.75 5.43 9 25.6 22.05 0.45 9.4 9.35 10.8 18.26 9.18 1.17 19.3 46 13.95 2.15 1.39 24.95 7.8 30.2 33.05 21.8 19.5 29.75 59.65 30.25 Cu % 3.8 26.9 0.97 1.2 0.74 0.36 4.9 10.4 2.19 7.4 0.68 0.32 2.57 1.32 0.42 0.41 5.25 0.39 0.29 0.6 0.91 5.25 37.2 0.49 1.1 2.2 15.9 8.8 0.57 1.78 0.28 1.91 2.7 0.19 0.63 1.21 1.9 1 0.21 0.1 0.19 0.23 1.8 0.13 0.63 0.9 7.7 4 0.22 1.36 0.09 0.32 0.5 0.15 0.22 0.4 Au g/t 6.2 1.1 5.84 13.3 0.54 1.2 0.21 0.38 0.2

HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013

FLTEM Results Anglo American Exploration BV conducted an airborne geophysical survey (TEM) over the Pahtohavare Project in the year 2000. This survey generated four separate EM anomalies (refer to Figure 3 below and Hannans ASX release dated 12th March 2013). Anglo did not drill test these anomalies at the time, most likely due to the requirement to complete a follow-up ground EM survey to further refine and model the anomalies. At the time the copper price was also historically low and trending lower.

Figure 3 TAU decay image showing several (A E) untested airborne TEM anomalies (survey by Anglo American Exploration BV in 2000), the location of recent ground fixed-loop surveys (box shapes and hatched lines) and drill hole collar locations (black dots)

Hannans used the Anglo survey data to design a ground based geophysical survey (FLTEM) to refine the Anglo anomalies. The FLTEM survey has the added advantage of penetrating deeper into the earths surface enabling more detailed modelling of the anomalies (refer to Figure 4 below).

Figure 4 EM image showing the recently identified conductors and the Central Orebody with the locations of the four proposed drillholes.

HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013

At Pahtohavare, copper-gold mineralisation is associated with rock units that are both conductive (graphite schist) and non-conductive (chert, basic tuff and gabbro). For this reason it has been important to generate a thorough understanding of the geology of the Central, Southern and South-Eastern orebodies in order to understand where the existing mineralisation is hosted. This understanding will aid in interpreting the source of the anomalies and designing drill holes to test the targets. The copper-gold mineralisation at the Central orebody is closely associated with a variably altered graphitic schist unit which is strongly conductive and can have the effect of masking any lower strength conductors i.e. disseminated sulphides. The multiple ore lodes and the stratigraphy are both dipping in the same orientation which makes it challenging to distinguish between the two conductive units (graphite and disseminated sulphides). The existing, shallow, high-grade ore at Central is oxidised and therefore not conductive and will not generate a geophysical anomaly although the deeper mineralisation highlighted in Drill Profiles 4 & 5 is associated with disseminated sulphides (Refer to ASX release dated 14 March 2013). Mineralisation at Central is hosted in both conductive and non-conductive rock units. The FLTEM survey has identified conductive anomalies (Conductors 1 & 2) located down-dip from existing copper-gold mineralization at the Central orebody (refer to Figure 5 below). The additional conductive anomalies (Conductors 3 & 4) identified at Central may represent stratiform-type copper-zinc mineralisation which has been identified (from historic drilling) to the east of both the Central and the South Eastern orebodies. All of these anomalies must be drilled tested to confirm the source of the anomalies and to identify additional copper-gold mineralisation. Four drillholes have therefore been proposed to test the modelled conductors at the Central orebody. These four holes will be part of a larger drill program designed to test for additional close to surface mineralisation. All four drillholes will be followed up with down-hole EM surveys to improve the modelling of existing anomalies and to help identify any off-hole conductors that may represent additional copper-gold drill targets.

Figure 5 FLTEM Line 3 and Drill Profile 4 showing the location of the four conductors at the Central Orebody. PDH means Planned Drill Hole.

HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013

RAKKURI IRON PROJECT

Overview The Rakkurijoki Iron deposit is located 5 kilometres south of Kiruna, a full service mining town in Sweden (refer to Figures 1). The Scoping Study determined the Rakkurijoki deposit has the potential to supply iron product over a 12 year mine life, at a premium price, to the European and the Middle East North African markets. The Scoping Study evaluated the practicality of combining a low-cost logistics solution with the least mining, processing, financial and execution risk. A decision has now been made to initiate a Pre-feasibility Study (PFS) on the Rakkurijoki deposit and to expand the PFS to include the Rakkurijrvi Iron deposit, located 2.5km south-west of Rakkurijoki (refer to Figure 1). In the future, the two deposits collectively will be referred to as the Rakkuri Iron Project. The combination of the two deposits may further enhance the economics of the Rakkuri Project with relatively minimal additional capital expenditure. The Rakkurijoki deposit is located less than 1 kilometre from a modern, government owned, open access heavy gauge rail line. The line connects the Rakkurijoki deposit to two modern iron ore export ports. This premium location with regard to logistics differentiates the project from other iron projects in Scandinavia and represents a significant competitive advantage. A Joint Venture partner is being sought to fund the completion of a further drilling campaign and the PFS.

PROJECT PIPELINE
During the Quarter Hannans continued the Divestment Process of its Australian Projects including Forrestania, Lake Johnston, Queen Victoria Rocks and its East Pilbara Project (no exploration work was completed in Australia during the Quarter). Hannans also initiated a divestment process for its Norwegian Projects including Fiskarfjellet and Njivlojvri copper-gold projects (no exploration work was completed in Norway during the Quarter). At the end of the quarter the company was in discussions with a number of groups relating to the divestment process, however no formal agreements have yet been reached in relation to any proposed transactions.

CONTACTS For further information please contact: Damian Hicks Managing Director Amanda Scott Exploration Manager Ben Della-Vedova Business Development Manager

Tel: +61 8 9324 3388 Web: www.hannansreward.com Email: admin@hannansreward.com

HANNANS 3 r d Q U A R T E R A C T I V I T I E S R E P O R T 2012/2013

Competent Persons Statement-Exploration Results The information in this document that relates to exploration results is based on information compiled by Ms Amanda Scott, Exploration Manager, Hannans Reward Ltd, who is a Member of the Australian Institute of Mining and Metallurgy. Ms Scott is a full-time employee of Hannans Reward Ltd. Ms Scott has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2004 edition of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms Scott consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Competent Persons Statement-Exploration Targets The information in this document that relates to JORC Exploration Targets is based on information reviewed by Mr Thomas Lindholm of GeoVista AB, Lule, Sweden acting as an independent Competent Person. Mr Lindholm is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Lindholm is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Mr Lindholm consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Notes Survey: Historic drillhole collars from the Central orebody have been located in the field by Hannans and surveyed with an RTK GPS in the Swedish coordinate system RT 90 (2.5 Standard). Not all drillhole collars were located and these positions have been back-calculated through a grid transformation. Drillhole elevation data has been collected for the holes found in the field via RTK GPS but elevation for the holes not found will be generated through a digital elevation model (DEM) derived from digital spot elevation data supplied by Metria as part of the process to convert the current JORC Exploration Target to a JORC Mineral Resource. Assays: The historic drill assays quoted in this press release were undertaken by Swedish Geological AB and assayed at SGAB Analys in Lule, Sweden via an acid digest and ICP for all elements except for gold which was via a fire assay. The majority of historic drillcore is 76mm and was sampled to geological boundaries and half-cored. The results have not yet been independently verified by Hannans, however the sampling and assaying are considered to have been undertaken using standard industry practice and QA/QC procedures. Core from more than 150 holes are stored in archive and will be used to validate the historic assaying as part of the process to convert the current JORC Exploration Target to a JORC Mineral Resource. Current intercepts are weighted averages calculated using a 0.1% Cu and 0.1g/t Au lower cut-off. Generally the assays were consistent through a mineralised interval but where a high value has been diluted by lower values they have been reported as such in Table 1.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

HANNANS REWARD LTD

ABN Quarter ended (current quarter)

52 099 862 129

31 MARCH 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 1.2 Receipts from product sales and related debtors (a) exploration & evaluation (b) development (c) production (d) administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other Net Operating Cash Flows Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (Director Loan) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) Payments for Current quarter $A000 (571) (393)(6) 17 (18) (965) Year to date (9 months) $A000 (3,308) (1,736)(6) 44 (74) (5,074)

1.3 1.4 1.5 1.6 1.7

1.8

(1) (1) (966)

(11) 6,077 (7) 155 6,221 1,147

1.9

1.10 1.11 1.12

+ See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward) Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other Share issue costs Net financing cash flows Net increase (decrease) in cash held 1.20 1.21 1.22 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 Cash at end of quarter

(966)

1,147

1.14 1.15 1.16 1.17 1.18 1.19

2,496 (149) (169) 2,178 1,212 2,096 2 3,310

4,241 (2,262) (225) 1,754 2,901 408 1 3,310

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
Current quarter $A'000 1.23 1.24 1.25 Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10 Explanation necessary for an understanding of the transactions 1.23 Payment of executive and non-executive directors fees. 100 -

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A

2.2

Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A

+ See chapter 19 for defined terms. Appendix 5B Page 2 30/9/2001

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 3.2

Loan facilities Credit standby arrangements

Amount available $A000 310 (8) -

Amount used $A000 310 (8) -

Estimated cash outflows for next quarter

$A000 4.1 4.2 4.3 4.4 Exploration and evaluation Development Production Administration -Corporate Administration -Loan Repayment -Tranche 2 Placement Total 450 150 (300) (9) 1,550 1,250 -

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. 5.1 5.2 5.3 5.4 Cash on hand and at bank Deposits at call Bank overdraft Other (provide details) Total: cash at end of quarter (item 1.22) Current quarter $A000 3,310 3,310 Previous quarter $A000 2,096 2,096

+ See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

Tenement reference Nature of interest (note (2)) Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Granted Granted Granted Granted Granted Granted Applied Interest at beginning of quarter 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% 0% Interest at end of quarter 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 100% 100% 100% 100% 100% 0%

6.1

Interests in mining tenements relinquished, reduced or lapsed

E15/913 E63/1423 Gordon Kitchener 1-2 Luppovare 2 Puoltsa 5 Maunuvaara 2-3 ggojaure 1-2 Neiden 1-7 Notsynene 1-8 Birtavarre 1-8 Bleikvassli 10-47 Eappergielas 1 Gjeddevann 2-3 Gorvvesjvri 2 Husvika 1-2 Kvfjord Nordkapp 1-7 Ravnsen 1 Salen Snefjord 1-6 Straumsfjellet Vilgesrassa 1-2 vre Elsvatnet 1-17 Famnvatnet 1-24 Famnvatnet 30-33 Famnvatnet 42-47 Famnvatnet 56-173 Famnvatnet 176-186 Famnvatnet 189-209 Famnvatnet 212-223 Famnvatnet 226-442 Famnvatnet 445-446 Famnvatnet 450-461 Famnvatnet 464-465 Famnvatnet 469-478 Famnvatnet 481-587 P77/4048 P77/4049 P77/4050 P77/4051 P77/4155 P77/4156 Flintfjellet 4-7

6.2

Interests in mining tenements acquired or increased

+ See chapter 19 for defined terms. Appendix 5B Page 4 30/9/2001

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number

Number quoted

Issue price per security (see note 3) (cents) -

Amount paid up per security (see note 3) (cents) -

7.1

Preference
+securities

7.2

7.3

(description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions +Ordinary securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs +Convertible debt securities (description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Options (description and conversion factor)

706,966,133

706,966,133

7.4

126,334,403

126,334,403

$0.02

$0.02

7.5

7.6

7.7

1,000,000 2,000,000 1,200,000 900,000 900,000 300,000 3,000,000 -

Exercise price 80 cents 20 cents 8 cents 17 cents 25 cents 7 cents 13 cents

Expiry date 30 June 2013 30 June 2013 30 June 2013 30 June 2013 30 June 2013 15 September 2013 1 February 2013

7.8 7.9 7.10 7.11 7.12

Issued during quarter Exercised during quarter Expired during quarter Debentures (totals only) Unsecured notes (totals only)

+ See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 5

Appendix 5B Mining exploration entity quarterly report

Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act 2001. This statement does give a true and fair view of the matters disclosed. 2

Michael Craig Company Secretary 30 April 2013

Notes
1 The quarterly report provides a basis for informing the market how the entitys activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. Payments for Administration includes the following transaction costs: Current quarter $A000 Transaction Costs relating to the off market takeover of Scandinavian Resources Ltd Legal fees paid on behalf of wholly owned subsidiary Kiruna Iron AB incurred in relation to the proposed IPO of the subsidiary on AIM during 2012 Total 7 8 0 0

Year to date (9 months) $A000 376 70

446

The balance of the shares held in Atlas Iron Ltd (ASX:AGO) shares were sold during October 2012. Full details of the loan terms and conditions are available at note 18 in Hannans Reward 2012 Annual Report. The inflow of $300,000 relates to Tranche 2 of the placement announced to ASX on 25 March 2013. Tranche 2 is a placement to Directors and is subject to shareholder approval at a General Meeting to be held on 6 June 2013. Further details of the meeting can be found in the Notice of Meeting released to ASX on 30 April 2013.

+ See chapter 19 for defined terms. Appendix 5B Page 6 30/9/2001