Hannan Announces $2.0 Million Private Placement Financing

1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7

Phone: +1 604 685 9316 / Fax: +1 604 683 1585

NEWS RELEASE AUGUST 02, 2017

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION

OR DISSEMINATION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

HANNAN ANNOUNCES $2.0 MILLION PRIVATE PLACEMENT FINANCING

Vancouver, Canada – Hannan Metals Limited (“Hannan” or the “Company”) (TSX.V: HAN) (OTCPK: HANNF)

announces a non-brokered private placement financing (the “ Offering”) of up to 7,700,000 units of the Company (the

"Units") at a price of Cdn$0.26 per Unit (the “Unit Price”) for gross proceeds of up to Cdn$2,002,000. Each Unit comprises

one common share (a “Share”) and one-half of one common share purchase warrant (a “Warrant”). Each whole Warrant

entitles the holder to purchase one additional Share of the Company at an exercise price of Cdn$0.40 for a period of two

years from closing of the Offering.

Finder’s fees may be payable on a portion of the Offering. Certain insiders of the Company may participate in the Offering.

All securities to be issued pursuant to the Offering will be subject to a four-month hold period under applicable securities

laws in Canada.

The Company plans to use the net proceeds to fund exploration expenditures at the Company’s Kilbricken Project in Ireland,

as well as for general working capital and corporate purposes.

The Offering is subject to receipt of approval from the Exchange.

This press release does not constitute an offer to sell or a so licitation of an offer to buy nor shall there be any sale of any

of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been

and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the

securities laws of any state of the United States and may not be offered or sold within the United States (as defined in

Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities

laws or pursuant to an exemption from such registration requirements.

About Hannan Metals Limited (TSX.V:HAN)

Hannan Metals Limited has 100% ownership of the County Clare Zn-Pb-Ag-Cu project in Ireland, which consists of 9 prospecting licences

for 32,223 hectares. Zinc remains in tight supply amidst rising demand and stagnant supply. Ireland is a leading global jurisdiction for

zinc mining and exploration. In 2015, Ireland was the world’s 10th largest zinc producing nation with 230,000 tonnes produced.

This maiden mineral resource for Kilbricken was published in July 2017, and immediatel y ranks Kilbricken as one of the top ten base

metal deposits discovered in Ireland by to nnes and grade. Total indicated mineral reso urces were calculated as 2.7 million tonn es at

8.8% zinc equivalent (“ZnEq”), including 1.4 million tonnes at 10.8% Zneq and total in ferred mineral resources of 1.7 million t onnes at

8.2% ZnEq, including 0.6 million tonnes at 10.4% ZnEq. Importantly, the initial resource is expandable at all scales, from near resource

to prospect scale.

Over the last decade, the team behind Hannan has forged a long and successful record of financing and discovering mineral projects in

Europe. Additionally, the team holds extens ive zinc experience, gained from the world’s largest integrated zinc producer of th e time,

Pasminco Ltd.

Mr. Michael Hudson FAusIMM, Hannan’s CEO and Chairman, a Qualified Person as defined in National Instrument 43-101, has reviewed

and approved the technical disclosure contained in this news release.

2

On behalf of the Board,

"Michael Hudson"

Michael Hudson, CEO & Chairman

Further Information

www.hannanmetals.com

1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7

Mariana Bermudez, Corporate Secretary,

+1 (604) 685 9316, [email protected]

Forward Looking Statements

Certain information set forth in this news release contains “for ward-looking statements”, and “forward- looking information” under applicable securities

laws. Except for statements of historical fact, certain inform ation contained herein constitutes forward-looking statements, wh ich include the Company’s

expectations regarding future performance based on current results, expected cash costs based on the Company’s current internal expectations, estimates,

projections, assumptions and beliefs, which may prove to be inco rrect. These statements are not guarantees of future performance and undue reliance

should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, wh ich may cause the

Company’s actual performance and financial results in future periods to differ materially from any projects of future performan ce or results expressed or

implied by such forward-looking statement. These risks and uncertainties include, but are not limited to: closing of the Offering, the proposed use of the

net proceeds from the Offering, liabilities inherent in mine de velopment and production, geological risks, the financial market s generally, and the ability

of the Company to raise additional capital to fund future operations. There can be no assurance that forward-looking statements will prove to be accurate,

and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update

forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The

reader is cautioned not to place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provid er (as that term is defined in the policies of the TSX Ventu re Exchange) accepts

responsibility for the adequacy or accuracy of this news release.