Criteria JORC Code Explanation Commentary

Sampling  Nature and quality of sampling (e.g. cut  RC crusher rejects and pulp samples were Techniques channels, random chips, or specific used for the current metallurgical testwork. specialised industry standard  Diamond core crusher rejects and pulp

measurement tools appropriate to the samples were used for the current

minerals under investigation, such as metallurgical testwork.

down hole gamma sondes, or handheld  Half core from diamond drillhole XRF instruments, etc.). These examples PAH05002 was used for the current should not be taken as limiting the broad metallurgical testwork.

meaning of sampling.

 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Drilling  Drill type (e.g. core, reverse circulation,  The historic drilling (PAH05002) was Techniques open-hole hammer, rotary air blast, auger, completed using diamond drilling. The size Bangka, sonic, etc.) and details (e.g. core was WL76 with a core diameter of

diameter, triple or standard tube, depth of 57.5mm.

diamond tails, face-sampling bit or other  The RC drilling was completed using a 5",

type, whether core is oriented and if so, face sampling hammer bit.

by what method, etc.).

Drill  Method of recording and assessing core  The diamond drill sample recovery for all Sample and chip sample recoveries and results holes was recorded by the geologists who Recovery assessed. originally logged the holes and also via

 Measures taken to maximise sample core blocks placed by the drillers.

recovery and ensure representative nature  There were no sample recovery issues

of the samples. with the RC drilling.

 Whether a relationship exists between  Core loss is quite common in oxidised sample recovery and grade and whether zones and where the core is noticeably sample bias may have occurred due to broken. The samples taken from the

Criteria JORC Code Explanation Commentary

preferential loss/gain of fine/coarse transition to fresh zones had excellent

material. recovery.

 The mineralisation is often associated with this zone of poorer recovery and oxidation.

Logging  Whether core and chip samples have been  All diamond and RC holes have been

geologically and geotechnically logged to logged in their entirety and sampled by

a level of detail to support appropriate geologists at the time of drilling. All drill

Mineral Resource estimation, mining core has been stored in the Swedish

studies and metallurgical studies. Geological Survey's core archive facility in

 Whether logging is qualitative or Malå, Sweden.

quantitative in nature. Core (or costean,

channel, etc.) photography.

 The total length and percentage of the relevant intersections logged.

Sub-  If core, whether cut or sawn and whether  RC crusher rejects and pulp samples were Sampling quarter, half or all core taken. used for the current metallurgical testwork. Techniques  If non-core, whether riffled, tube sampled,  Diamond core crusher rejects and pulp and rotary split, etc. and whether sampled wet samples were used for the current Sample or dry. metallurgical testwork.

Preparation  For all sample types, the nature, quality  Half core from diamond drillhole

and appropriateness of the sample PAH05002 was used for the current

preparation technique. metallurgical testwork.

 Quality control procedures adopted for all  The sample types are considered sub-sampling stages to maximise appropriate for the type of mineralisation representivity of samples. and the metallurgical testing.

 Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

 Whether sample sizes are appropriate to the grain size of the material being sampled.

Quality of  The nature, quality and appropriateness of  All physical preparation and testwork has Assay Data the assaying and laboratory procedures been completed by a reputable laboratory, and used and whether the technique is Activation Laboratories in Ontario, Canada. Laboratory considered partial or total.  The testwork has been designed and Tests  For geophysical tools, spectrometers, supervised by independent metallurgical

handheld XRF instruments, etc., the consultants from Independent Metallurgical parameters used in determining the Operations Pty Ltd (IMO) in Perth, Australia. analysis including instrument make and

model, reading times, calibrations factors applied and their derivation, etc.

 Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Verification  The verification of significant intersections  The dispatch of all samples used in the of by either independent or alternative current testwork was completed and Sampling company personnel. verified by the Company's Exploration and  The use of twinned holes. Manager.

Assaying  Documentation of primary data, data entry  All results have been verified by the

procedures, data verification, data storage Company's independent metallurgical

(physical and electronic) protocols. consultant, IMO Pty Ltd who are acting as

 Discuss any adjustment to assay data. the Competent Person for metallurgical results.

Location of  Accuracy and quality of surveys used to  Original hole collar locations were

Data Points locate drill holes (collar and down-hole determined by handheld GPS with an

Criteria JORC Code Explanation Commentary

surveys), trenches, mine workings and accuracy of ±1m.

other locations used in Mineral Resource  The grid system used is Swedish

estimation. Coordinate system RT90 2.5V.

 Specification of the grid system used.  Topographic control at Pahtohavare has

 Quality and adequacy of topographic been established by previous surveying of

control. historic drill collars by RTKGPS.

Data  Data spacing for reporting of Exploration  All samples (both RC and diamond) are Spacing Results. taken from drillholes located within the and  Whether the data spacing and distribution Central Deposit at Pahtohavare.

Distribution is sufficient to establish the degree of  The typical profile spacing at Central is

geological and grade continuity currently 100m.

appropriate for the Mineral Resource and

Ore Reserve estimation procedure(s) and classifications applied.

 Whether sample compositing has been applied.

Orientation  Whether the orientation of sampling  All holes have been drilled to intercept of Data in achieves unbiased sampling of possible mineralisation perpendicular to strike Relation to structures and the extent to which this is giving a drillhole azimuth of 247º. Geological known, considering the deposit type.  The mineralisation at the Central deposit is Structure  If the relationship between the drilling interpreted to strike at approximately 340º

orientation and the orientation of key and dip between -45º to 70º towards 070º. mineralised structures is considered to  Due to the drilling perpendicular to have introduced a sampling bias, this mineralisation no sample bias is believed should be assessed and reported if to be introduced.

material.

Sample  The measures taken to ensure sample  The dispatch of all samples used in the Security security. current testwork was completed and verified by the Company's Exploration

Manager.

 DHL was used to transport the samples from Sweden to Canada.

 No breaches of security were reported.

Audits or  The results of any audits or reviews of  Metallurgical testwork techniques are

Reviews sampling techniques and data. considered industry standard.

 No specific audit or review of the current testwork has been undertaken although the Company's independent metallurgical consultant, IMO, has provided guidance and review.

Criteria JORC Code explanation Commentary

check assaying of historical drillcore and

is satisfied by the methods used and results produced by previous explorers.

Geology  Deposit type, geological setting and style  The main deposits at Pahtohavare, of mineralisation. including the Central deposit, are classified as epigenetic copper-gold

deposits.

 The ore host rocks are highly altered (silica) and generally consist of a fine- grained albite felsite of granoblastic texture. Black graphitic shales appear to sit stratigraphically above the albite felsite with a gabbroic sill dominating the footwall.

 The Pahtohavare ores are located within a first-order open antiformal structure which dips to the south-east. Copper-gold mineralisation is controlled by both structure and lithology.

Drill Hole  A summary of all information material to  The drillhole information for the diamond Information the understanding of the exploration and RC holes used for the metallurgical results including a tabulation of the testwork have previously been released

following information for all Material drill to the market. The drillhole information

holes: has not been repeated in this

 easting and northing of the drill hole announcement as it is not deemed

collar material in the context of this

 elevation or RL (Reduced Level - report/results.

elevation above sea level in metres)  Figure 2 in the main body of this

of the drill hole collar announcement shows the location of the

 dip and azimuth of the hole drillholes used in the current metallurgical

 down hole length and interception testwork in relation to the orebody

depth wireframes.

 hole length.

 If the exclusion of this information is justified on the basis that the information is not material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data  In reporting Exploration Results,  Head assays have been obtained from a Aggregation weighting averaging techniques, homogenised sample comprised of Methods maximum and/or minimum grade mineralisation across multiple holes truncations (e.g. cutting of high grades) which is considered to be representative

and cut-off grades are usually Material of the orebody.

and should be stated.

 Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

 The assumptions used for any reporting of metal equivalent values should be clearly stated.

Relationship  These relationships are particularly  All drillholes have been drilled Between important in the reporting of Exploration perpendicular to the known strike of Mineralisation Results. mineralisation, at an azimuth of 247º. Widths and  If the geometry of the mineralisation  The dip of the mineralisation at the Intercept with respect to the drill hole angle is Central deposit appears to range between

known, its nature should be reported. -45º to -70º with the 'lodes' generally

Criteria JORC Code explanation Commentary

Lengths  If it is not known and only the down hole steepening up-dip.

lengths are reported, there should be a  The downhole intervals are considered to

clear statement to this effect (e.g. 'down be consistent with the true width of

hole length, true width not known'). mineralisation.

Diagrams  Appropriate maps and sections (with  Figure 2 in the main body of this

scales) and tabulations of intercepts announcement shows the location of the

should be included for any significant drillholes used in the current metallurgical

discovery being reported. These should testwork in relation to the orebody

include, but not be limited to a plan view wireframes.

of drill hole collar locations and appropriate sectional views.

Balanced  Where comprehensive reporting of all  All results received to date have been

Reporting Exploration Results is not practicable, reported.

representative reporting of both low and high grades and/or widths should be

practiced to avoid misleading reporting of Exploration Results.

Other  Other exploration data, if meaningful and  In 2013 the Company completed a Substantive material, should be reported including substantive historical data validation prior Exploration (but not limited to): geological to releasing a maiden JORC inferred Data observations; geophysical survey results; mineral resource for the deposits at geochemical survey results; bulk samples Pahtohavare. The Company also

- size and method of treatment; completed a FLTEM geophysical survey metallurgical test results; bulk density, and drilled 8 RC drillholes at the Central groundwater, geotechnical and rock deposit. Information on these activities characteristics; potential deleterious or can be found on the Company's website: contaminating substances. www.hannansreward.com

Further Work  The nature and scale of planned further  An internal scoping study investigating a

work (e.g. tests for lateral extensions or possible oxide mining scenario is to

depth extensions or large-scale step-out commence in late 2014 once all

drilling). metallurgical results have been received.

 Diagrams clearly highlighting the areas of  Additional drilling has been planned for possible extensions, including the main both the Central and Southern orebodies geological interpretations and future at Pahtohavare and is scheduled to drilling areas, provided this information is commence in 2015 subject to company not commercially sensitive. financing.