2nd Quarter Activities Report 2013/2014

Dear Shareholders,

Fast Facts
ASX Code: HNR

During the 2 nd Quarter (October December 2013) Hannans: Exploration Continued advancing five separate exploration drilling workplans through the Swedish Mining Inspectorate in conjunction with local landowners and stakeholders to test copper-gold and iron targets. Participated as an observer in a survey of reindeer migrations paths with the approval of the Laevas Saami Village. Continued desktop studies and proposal evaluations for both the Rakkuri Iron Project and Pahtohavare Copper-Gold Project.

Capital Structure
Shares on issue: 721.9m Market cap: $2.2m (at 0.3c)

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

Corporate Received $1 million from Avalon Minerals Ltd as part payment for the Discovery Zone. Hosted executives from a global mining company whilst they completed extensive due diligence on the Kiruna Iron Project in northern Sweden. Received expressions of interest from companies interested in gaining access to the Pahtohavare Copper-Gold Project in northern Sweden via an acquisition or joint venture. Attended the Fennoscandian Exploration & Mining Conference in Levi, Finland to seek partners for Hannans existing projects in Sweden and Norway and to identify new opportunities. Held the Annual General Meeting in Perth, Western Australia where all resolutions were passed. Advanced discussions to finalise divestment of Hannans nickel projects. Attended Mines & Money in London, England to support conference presentation by Hannans Non-Executive Director, to seek partners for Hannans projects in Australia and to identify new opportunities.

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

During the 3 rd Quarter (January March 2014) Hannans aims to: Exploration Continue progressing desktop studies required to lodge further workplans and concession applications for projects in northern Sweden Attend initial dialog meeting with the Swedish Traffic Authority to discuss future co-operation regarding possible transport solutions for the Lannavaara Iron Hub, northwest of Kiruna.

Corporate Conclude binding discussions on nickel, copper-gold and iron projects.

Managing Director 31 January 2014

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

EXPLORATION
PAHTOHAVARE PROJECT
METALLURGICAL TESTWORK During the Quarter Hannans received proposals from several metallurgical consultancy companies and laboratories to produce a basic flowsheet development program to determine if copper and gold can be economically extracted from the oxide ore at the Central Orebody. The Central Orebody currently has an Inferred JORC Resource of 1.4Mt @ 2.4% CuEq which is all oxide material (see ASX Announcement dated 31 August 2014). The preliminary testwork will aim to determine if a low-cost mining of the oxide material is achievable which may enable an early cash flow to the Pahtohavare Project. This testwork will be initiated subject to funding. WORKPLAN APPLICATION In June 2013 Hannans lodged a second workplan for drilling activities at the Pahtohavare Copper-Gold Project after it became apparent, that due to difficult drilling conditions, the first workplan (expiry date of August 30 2013) would not provide enough time to complete the planned programme. The new workplan was objected to by the Laevas Saami Village and as a result the Swedish Mining Inspectorate (Bergsstaten) was required to decide whether the workplan can be approved and if so approved, subject to what conditions. Hannans is familiar with this approvals process having encountered it with prior workplans in Kiruna, on such occasions the workplans have been approved but on the proviso that Hannans agreed to reindeer guarding through a commercial arrangement with the Laevas Saami Village. In 2013 Hannans made a corporate decision not to engage in such commercial arrangements going forward and would seek to get the workplans approved through the provisions of the Swedish Mineral Act. Taking this route does not by any means lesson our responsibility or commitment to reduce the potential impacts of our activities on both the nature and the community but due to there being no legal precedence the case has taken seven months to be settled. Throughout these seven months, dialog between Hannans, Laevas Saami Village, Swedish Mining Inspectorate and the County Administration Board has been ongoing via multiple meetings, teleconferences and email communication. In early January 2014 the Swedish Mining Inspectorate approved the workplan subject to Hannans lodging a performance bond with the Government. The amount of the bond is still to be determined by the County Administration Board. When Hannans applied for the second workplan in June 2013 it did so for the period June 2013 through to April 30 2014, effectively covering the 2013-2014 Autumn-Winter period. Unfortunately the extensive delays in having the workplan granted will mean that the newly approved second workplan will be valid for a very short period. A third workplan for Pahtohavare is to be lodged in advance of the April 30th 2014 expiry date, for a longer period and it is anticipated that the Bergsstaten will grant the workplan reasonably quickly now that the issues have been discussed at length between the various parties and government agencies. Since Hannans commenced exploration in Kiruna in January 2011, it has experienced a steady increase in opposition to its exploration activities from stakeholders. Hannans believes the increasing opposition to exploration, development and mining within Scandinavia is part of a trend towards more opposition against activities that disturb the landscape. Hannans firmly believes in the importance of minerals in society and will continue to explore sustainably and responsibly.

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

PAHTOHAVARE JORC MINERAL RESOURCE ESTIMATE In August 2013 Hannans announced the maiden JORC compliant Mineral Resource Estimate for Pahtohavare. The Mineral Resource Estimate was completed by the consulting firm, SRK Consulting Sweden AB (SRK) in accordance with the principles of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition (JORC 2012). ASX subsequently asked Hannans remove all references in its announcement to the global tonnage and grade inventory information contained within the mineral resource estimate as such references are not compliant with JORC. By way of background the global tonnage and grade inventory was included by Hannans in the August 2013 announcement to highlight the block model estimate results for Pahtohavare prior to completing the Whittle Optimisation. Often a Competent Person will use the block model estimate results for resource classification without completing a Whittle Optimisation. SRK, as the Competent Person for the mineral resource estimate, deemed it appropriate to run a Whittle Optimisation and high-level evaluation of potential open cut and underground mining scenarios on the block model as a means of resource classification so as to satisfy the JORC criterion of reasonable prospect for eventual economic extraction. Hannans originally included the information in an effort to assist investors in understanding the high quality rigorous assessment process implemented by SRK in arriving at their mineral resource estimate and to enable comparison with mineral resource estimates for similar deposits for valuation purposes. The Mineral Resource Estimate for Pahtohavare however has been re-released as requested by ASX.

Figure 1 - Pahtohavare Project area showing the four zones of mineralisation and historic drill collar locations

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

RAKKURI IRON PROJECT

METALLURGICAL TESTWORK During the Quarter Hannans received several proposals from metallurgical laboratories to produce a basic flowsheet development program to confirm concentrate grade and optimal grind size distribution and to subsequently process a bulk (650kg) sample in a mini-pilot plant to produce concentrate samples for potential customers. The proposals have been reviewed and testwork will be initiated subject to funding. UPDATED JORC MINERAL RESOURCE ESTIMATE FOR RAKKURIJOKI In October 2013 Hannans commissioned the independent consultant company Breakaway Mining Services Pty Ltd in Sydney, Australia (Breakaway) to complete an updated Mineral Resource Estimate for the Rakkurijoki Iron Deposit. Subsequent to the maiden resource estimate in 2011 by GeoVista AB (Sweden) Hannans has completed an additional 24 diamond drillholes at the Rakkurijoki deposit. A Mineral Resource Estimate was prepared by Breakaway in accordance with the principles of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 Edition (JORC 2004). It is expected that an updated estimate in accordance with 2012 Edition of the JORC Code (JORC 2012) will be made available to Hannans during the Quarter. MINING CONCESSION APPLICATION FOR RAKKURIJOKI As part of the mining concession application for Rakkurijoki, Hannans has over the past three years initiated multiple environmental and social consequence studies. During the Quarter Hannans, through its consultant Enetjrn Natur AB (Sweden) was invited to participate in a survey of the reindeer migration paths used by the Laevas Saami Village. Results of this survey will be used to form part of the Social Consequence Report to be included as part of the final mining concession application for Rakkurijoki. Environmental and social investigations are currently ongoing with the intention of being in a position to formally lodge the Rakkurijoki mining concession application to the Swedish Mining Inspectorate during 2014.

Figure 2 Photo showing members of the Laevas Saami Village herding reindeer in November 2013 near the Rakkurijoki deposit and the LKAB-owned Kiirunavaara iron mine, Kiruna Sweden.

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

RESOURCE & MINING OPTIMISATION FOR RAKKURIJRVI As outline in the previous Quarterly Report (October 31st 2013) Hannans requested a cost estimate and proposal for a resource optimisation for the Rakkurijrvi deposit as part of the mining concession application process for Rakkurijrvi. During the Quarter Hannans received several proposals from independent resource consultants to complete the resource optimisation; proposals have been reviewed and the work will be initiated subject to funding. WORKPLAN APPLICATIONS Hannans currently has workplans in application for drilling at Rakkurijoki, Rakkurijrvi and Ekstrmsberg all of which have been objected to by local Saami Villages and/or stakeholders. As in the case of Pahtohavare the Swedish Mining Inspectorate will be required to make a decision on the outcome of these workplans in due course. A workplan for Paljasjrvi was also lodged during the Quarter, was not objected to and has now been approved.

Figure 3 Map showing the Rakkuri Iron Deposits near Kiruna, Sweden

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

INFRASTRUCTURE SOLUTIONS FOR LANNAVAARA HUB Hannans is pleased to announce that it has initiated dialog with the Swedish Traffic Authority to investigate possible infrastructure solutions for the Companys Lannavaara Iron Ore Hub located approximately 80km northwest of Kiruna, Sweden (see Figure 4 below). The Lannavaara Hub currently has a combined Exploration Target1 of 114-152Mt @ 32-41% Fe. Prospect Tonnage Range (Mt) Kevus 35-45 Paljasjrvi 40-60 Teltaja 39-47 Total Hub 2 114-152 Table 1- Exploration Targets for the Lannavaara Hub, Sweden. Grade Range (Fe%) 28-35 30-40 40-48 32-41

The main deposit within the Lannavaara Hub is the Paljasjrvi deposit which is comprised of a 3.5km long magnetic anomaly; magnetite skarn mineralisation was confirmed by historic drilling in 1963 (6 holes). In 2012 Hannans completed initial DTR metallurgical testwork (see ASX announcement 24th October 2012) on the historic core which confirmed the ore upgrades to +69% Fe. A substantial amount of drilling is required to further define the deposit and to ultimately generate a JORC compliant Mineral Resource Estimate for Paljasjrvi; in January 2014 a workplan for diamond drilling was approved. The deposits within the Lannavaara Hub are located approximately 80km, by road, to the nearest open access heavy gauge railhead at Svappavaara. Hannans, in cooperation with the Swedish Transport Authority, will initiate discussions on possible infrastructure solutions (rail, rail + truck) for the Lannavaara Hub by way of an introductory meeting in Lule in February 2014. It is hoped that this will in due course initiate a formal study by the Swedish Transport Authority.

Figure 4 Lannavaara Iron Ore Hub, Sweden

1 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 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

PROJECT PIPELINE
During the Quarter Hannans continued seeking to divest its Australian Projects including Forrestania, Skeleton Rocks, Lake Johnston and Queen Victoria Rocks. Tenement rationalisation continued and no exploration work was completed in Australia during the Quarter. Subsequent to the end of the Quarter the decision was made to withdraw completely from exploring in Norway by way of not renewing the companys exploration claims for 2014. This decision was preceded by more than a year of unsuccessful dialog with both the Norwegian Mining Inspectorate in relation to the granting of work plans and Hannans internal assessment of the unlikely probability of successfully developing a greenfields exploration project into a profitable mining operation in Norway.

CORPORATE
DISCOVERY ZONE SALE During the Quarter Hannans reached a variation agreement with Avalon Minerals Ltd (ASX:AVI) (Avalon) in relation to the sale of the Discovery Zone Prospect from Hannans to Avalon. Hannans satisfied both conditions of the variation agreement and confirms having received $1 million from Avalon. Avalon announced on 9 July 2013 that the Discovery Zone formed an important part of the Viscaria Project. With that in mind Hannans and Avalon will meet to finalise the requirements to lodge an updated exploitation concession application with the Mining Inspectorate of Sweden. To complete the acquisition of the Discovery Zone, Avalon is required to pay Hannans a further $3 million within five business days of the exploitation concession being granted.

ASX ANNOUNCEMENTS FOR 2ND QUARTER 2013/2014

Date Announcement November 21, 2013 Results from Annual General Meeting November 21, 2013 2013 AGM Presentation November 20, 2013 Change in Director's Interest Notice October 31, 2013 1st Quarter Activities Report October 31, 2013 1st Quarter Cashflow Report October 16, 2013 Notice of Annual General Meeting October 8, 2013 $1M Received from Avalon October 1, 2013 Update on Formal Demand Issued to Avalon nd Table 2-ASX Announcements for 2 Quarter 2013/2014

CONTACTS For further information please contact: Damian Hicks Managing Director Tel: +61 8 9324 3388 Web: www.hannansreward.com Email: admin@hannansreward.com Amanda Scott Exploration Manager

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

COMPLIANCE STATEMENTS
The information in this document that relates to exploration results is based on information compiled by Amanda Scott, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy (Membership No.990895). Amanda Scott is a full-time employee of Hannans Reward Ltd. Amanda 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 in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Amanda Scott consents to the inclusion in the report of the matters based on her information in the form and context in which it appears. The information in this document that related to Exploration Target Estimates for Lannavaara is extracted from the report entitled Kiruna Iron Project JORC Resource Update created on the 17th January 2012 and is available to view on (www.hannansreward.com). The company confirms that it is not aware of any new information or data that materially effects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcement. The information in this document that relates to Mineral Resource and Exploration Target Estimates for Pahtohavare is extracted from the report entitled Maiden JORC Resource at Pahtohavare created on 20 August 2013 and is available to view on the Companys website (www.hannansreward.com). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and in the case of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcement. The information in this document that relates to Mineral Resource Estimates for Rakkurijoki and Rakkurijrvi is extracted from the report entitled Kiruna Iron Project JORC Resource Update created on 17 January 2012 and is available to view on the Companys website (www.hannansreward.com). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and in the case of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcement.

TENEMENT STATUS FOR 2ND QUARTER 2013/2014

CURRENT TENEMENTS
Tenement number Interest 2nd Quarter 2013/2014 Start End Note Tenement number Interest 2nd Quarter 2013/2014 Start End Note

KIRUNA IRON AB Location: Norrbotten, Sweden Altavaara Altavaara Norra Eustillako Eustilvaras Gddmyr nr 1 Gddmyr nr 2 Gddmyr nr 3 Gddmyr nr 4 Honkavaara Kaalasjrvi nr 1 Lannavaara nr 8 Luppovare nr 1 Pahtohavare nr 2 Pahtohavare nr 4 Paljasjrvi nr 2 Piedjastjkko nr 1 100% 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%

Location: Norrbotten, Sweden (contd) Piedjastjkko nr 6 Piedjastjokko nr 4 Piedjastjokko nr 5 Pirttivuopio nr 1 Puoltsa nr 4 Puoltsa nr 6 Rakkurijrvi nr 2 Rakkurijrvi nr 3 Saivo nr 2 Salmijrvi nr 1 Tervakoski nr 3 Tornefors nr 1 Villenjvi nr 1 Harrejaure nr 1 Laukujrvi nr 3 Sautusvaara nr 1 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 75% 75% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 75% 75% 75% 1 1 1

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

Tenement number

Interest 2nd Quarter 2013/2014 Start End

Note

Tenement number

Interest 2nd Quarter 2013/2014 Start End

Note

KIRUNA IRON AB (contd) Location: Norrbotten, Sweden (contd) Vieto nr 1 SCANDINAVIAN IRON AB Location: Norrbotten, Sweden rosjokk nr 1 Ekstrmsberg nr 4 Ekstrmsberg nr 5 Eustiljkk nr 1 100% 100% 100% 100% 100% 100% 100% 100% Location: Norrbotten, Sweden (contd) Kajpak nr 1 Ratek nr 1 Tjrrojkka nr 104 100% 100% 100% 100% 100% 100% 75% 75% 1

SCANDINAVIAN RESOURCES AB Location: Finnmark, Norway Fiskarfjellet 1 Fiskarfjellet 2 Fiskarfjellet 3 Fiskarfjellet 4 Fiskarfjellet 5 Fiskarfjellet 6 Fiskarfjellet 7 Fiskarfjellet 8 Fiskarfjellet 9 Geassam-ras 1 Gjeddevann 1 Gjeddevann 4 Gjeddevann 5 Gjeddevann 6 Gjeddevann 7 Gjeddevann 8 Gjeddevann 9 Gjeddevann 10 Gjeddevann 11 Gorvvesj-vri 1 Kfjord 1 Kfjord 2 Kfjord 3 Kfjord 4 Kfjord 5 Kfjord 6 Kfjord 7 Luovosv-rri 1 Njivloj-vri 1 Njivloj-vri 2 Njivloj-vri 3 Njivlo-vri 4 Njivlo-vri 5 Ragatmaras 1 Ragatmaras 2 Raipas 1 Raipas 2 Raipas 3 Rietnjaj-vri 1 100% 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% 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% 100% 100% 100% 100% 100% 100% Location: Finnmark, Norway (contd) Rietnjaj-vri 2 Rietnjaj-vri 3 Uhcavuovdd-s 1 Uhcavuovdd-s 2 Uhcavuovdd-s 3 Location: Nordland, Norway Gjetarfjellet 1 Location: Troms, Norway Birtavarre 9 Birtavarre 10 Brennfjellmyra Flintfjellet 1 Flintfjellet 2 Flintfjellet 3 Flintfjellet 4 Flintfjellet 5 Flintfjellet 6 Flintfjellet 7 Ringvassya 1 Ringvassya 2 Ringvassya 3 Ringvassya 4 Vaddas 1 Vaddas 2 Vaddas 3 Vaddas 4 Vaddas 5 Vaddas 6 Vaddas 7 Vaddas 8 Vaddas 9 Vaddas 10 100% 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% 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%

Vaddas 11 100% Location: Vsterbotten, Sweden Daningen nr 2 Daningen nr 3 Srksjn nr 2 Unna Gaisartjkko nr 2 Vtmyrberget nr 1 100% 100% 100% 100% 100%

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

10

Tenement number

Interest 2nd Quarter 2013/2014 Start End

Note

Tenement number

Interest 2nd Quarter 2013/2014 Start End

Note

SCANDINAVIAN RESOURCES AB (contd) Location: Vsterbotten, Sweden (contd) Vtmyrberget nr 6 100% 100% Location: Norrbotten, Sweden Korpilombolo nr 1 100% 100%

HANNANS SCANDINAVIAN AB Location: Nordland, Norway Famnvatnet 25 Famnvatnet 26 Famnvatnet 27 Famnvatnet 28 Famnvatnet 29 Famnvatnet 34 Famnvatnet 35 Famnvatnet 36 Famnvatnet 37 Famnvatnet 38 Famnvatnet 39 Famnvatnet 40 Famnvatnet 41 Famnvatnet 48 Famnvatnet 49 Famnvatnet 50 Famnvatnet 51 Famnvatnet 52 Famnvatnet 53 Famnvatnet 54 Famnvatnet 55 HANNANS REWARD LTD Location: Queen Victoria Rocks, Australia E15/0755 E15/0971 P15/4964 P15/4965 P15/4966 HR FORRESTANIA PTY LTD Location: Forrestania, Australia E77/1327 E77/1354-I E77/1406-I E77/1430-I E77/1431 E77/1568 E77/1655 E77/1707 E77/1715 E77/1716 E77/1719 E77/1725 E77/1764 E77/1783 80% 80% 80% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 80% 80% 80% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 2 2 2 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Location: Queen Victoria Rocks, Australia (contd) P15/4967 100% Location: Lake Johnston, Australia E63/1091 E63/1327 E63/1365 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% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Location: Nordland, Norway (contd) Famnvatnet 174 Famnvatnet 175 Famnvatnet 187 Famnvatnet 188 Famnvatnet 210 Famnvatnet 211 Famnvatnet 224 Famnvatnet 225 Famnvatnet 443 Famnvatnet 444 Famnvatnet 447 Famnvatnet 448 Famnvatnet 449 Famnvatnet 462 Famnvatnet 463 Famnvatnet 466 Famnvatnet 467 Famnvatnet 468 Famnvatnet 479 Famnvatnet 480 100% 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% 100% 100% 100% 100%

Location: Forrestania, Australia (contd) E77/1784 E77/1785 E77/1950 E77/1951 E77/1960 M77/544 M77/693 M77/812-I P77/3582 P77/3583 P77/3584 P77/3585 P77/3586 P77/3587 100% 100% 100% 100% 100% 0% 100% 0% 80% 80% 80% 80% 80% 80% 100% 100% 100% 100% 100% 0% 100% 0% 80% 80% 80% 80% 80% 80% 3 4 4 2 2 2 2 2 2

HANNANS 2 n d Q U A R T E R A C T I V I T I E S R E P O R T 2013/2014

11

Tenement number

Interest 2nd Quarter 2013/2014 Start End

Note

Tenement number

Interest 2nd Quarter 2013/2014 Start End

Note

HR FORRESTANIA PTY LTD (contd) Location: Forrestania, Australia (contd) 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 80% 80% 80% 80% 80% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 80% 80% 80% 80% 80% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 2 2 2 2 2 Location: Forrestania, Australia (contd) P77/3999 P77/4000 P77/4001 P77/4002 P77/4003 P77/4004 P77/4005 P77/4006 P77/4007 P77/4008 P77/4009 P77/4010 P77/4011 P77/4012 P77/4013 P77/4014 P77/4155 P77/4156 3 4 100% 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%

Note: 1 Tasman AB holds 25% interest. 2 Cullen Exploration Pty Ltd holds 20% interest.

HR Forrestania holds 100% gold rights. HR Forrestania holds 100% all mineral rights excluding gold.

RELINQUISHED, REDUCED OR LAPSED TENEMENTS

Tenement number Interest 2nd Quarter 2013/2014 Start End Note Tenement number Interest 2nd Quarter 2013/2014 Start End Note

KIRUNA IRON AB Location: Norrbotten, Sweden Holmajrvi Sdra Lainiojrvi nr 1 Lannavaara nr 7 Masugnsbyn SCANDINAVIAN IRON AB Location: Norrbotten, Sweden kosjegge nr 1 100% 0% SCANDINAVIAN RESOURCES AB Location: Vsterbotten, Sweden Vtmyrberget nr 2 Vtmyrberget nr 4 100% 100% 0% 0% 100% 100% 100% 100% 0% 0% 0% 0%

HANNANS REWARD LTD Location: Lake Johnston, Australia E63/1429 HR FORRESTANIA PTY LTD Location: Forrestania, Australia E77/1696 E77/1705 E77/1718 E77/1724 E77/1846 E77/1919 E77/1935 P77/4048 P77/4049 P77/4050 P77/4051 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 0%

Table 1-Tenement Status for 2nd Quarter 2013/2014. Note the Norwegian tenements are still shown as being held as they were relinquished subsequent to the end of the 2nd Quarter 2013/2014.

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
Rule5.5

Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

HANNANS REWARD LTD

ABN Quarter ended (current quarter)

52 099 862 129

31 DECEMBER 2013

Consolidated statement of cash flows

Current quarter $A000 (344) (174) 15 (503) Year to date (6 months) $A000 (1,106) (443) 29 (4) (1,524)

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) (b) (c) (d) exploration & evaluation development production administration

1.3 1.4 1.5 1.6 1.7

Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other (provide details if material) Net Operating Cash Flows

1.8

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

1,000a 4 (3) (2) 999 496

1,000a 4 (5) 999 (525)

1.9

1.10 1.11 1.12

1.13
a

Total operating and investing cash flows (carried forward)

Refer to ASX announcement lodged on 8 October 2013 for further details.

+Seechapter19fordefinedterms. 01/05/2013Appendix5BPage1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13

Total operating and investing cash flows (brought forward) Cash flows related to financing activities

496

(525)

1.14 1.15 1.16 1.17 1.18 1.19

Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other (provide details if material) Net financing cash flows Net increase (decrease) in cash held

(1) (1) 495 927 2 1,424

(102) (2) (104) (629) 2,049 4 1,424

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

Payments to directors of the entity, associates of the directors, payments to related entities of the entity and associates of the related entities
Current quarter $A'000 24

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 directors fees. In an effort to assist the Company with managing its cash flow, Mr Hicks has been deferring a portion of his salary since 1 April 2013, which to 31 December 2013 totalled $187,980 while the non-executive directors have been deferring their fees since 1 August 2013 which to 31 December 2013 totalled $48,563.

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 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

2.2

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount available $A000 3.1 3.2 Loan facilities Credit standby arrangements

Amount used $A000

Estimated cash outflows for next quarter

$A000 605b 145 750

4.1 4.2 4.3 4.4

Exploration and evaluation Development Production Administration - Corporate Administration Total

Approximately $400,000 relates to the renewal of exploration permits in Sweden and Swedish employment taxes.

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 Cash on hand and at bank 5.2 5.3 5.4 Deposits at call Bank overdraft Other (provide details) Total: cash at end of quarter (item 1.22) Current quarter $A000 1,424 1,424 Previous quarter $A000 927 927

Continued

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

Tenement reference and location 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed Masugnsbyn Lannavaara nr 7 Lainiojrvi nr 1 Holmajrvi Sdra kosjegge nr 1 Vtmyrberget nr 2 Vtmyrberget nr 4 E63/1429 E77/1705 E77/1718 E77/1724 E77/1846 E77/1919 E77/1935 E77/1696 P77/4048 P77/4049 P77/4050 P77/4051 Nature of interest (note (2)) Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Interest at beginning of quarter 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Interest at end of quarter 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

6.2

Interests in mining tenements and petroleum tenements acquired or increased

Nil

Nil

Nil

Nil

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 7.1 7.2 Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.3 7.4 +Ordinary securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs 7.5 +Convertible debt securities (description)

Number quoted

Issue price per Amount paid up per security (see note 3) security (see note 3) (cents) (cents)

721,966,133

721,966,133

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) Issued during quarter Exercised during quarter Expired during quarter 300,000 7.11 7.12 Debentures (totals only) Unsecured notes (totals only)

7.8 7.9 7.10

Exercise price 7 cents

Expiry date 15 September 2013

Compliance statement
1 2 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). This statement does give a true and fair view of the matters disclosed.

Damian Hicks Managing Director 31 January 2014

Notes
1 2 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 and petroleum 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 or petroleum 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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. == == == == ==

3 4 5

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