Hannan Soil Sampling Defines Copper-Silver Mineralization over 18 Kilometres at Tabalosos East

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

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

NEWS RELEASE JUNE 17, 2021

HANNAN SOIL SAMPLING DEFINES COPPER-SILVER MINERALIZATION OVER 18

KILOMETRES AT TABALOSOS EAST

Vancouver, Canada – Hannan Metals Limited (“Hannan” or the “Company”) (TSXV: HAN) (OTCPK:

HANNF) reports on the results from the soil geochemical sampling program from the Tabalosos East prospect

within the San Martin JOGMEC JV sediment-hosted copper-silver project in Peru (Figures 1 and 2).

Hannan is rapidly advancing the Tabalosos East target and demonstrating scale and continuity of copper-silver

mineralization over 18 kilometres of combined strike, within a 6 kilometre by 2 kilometre area (Figure 2). Three

geological teams with more than 10 local assistants and guides are systematically sampling traverses across the

densely vegetated jungle. The survey is the first systematic a ttempt to map the continuity of the high-grade

mineralized outcrops reported in March 2021.

Highlights:

 The soil survey confirms continuity of previously reported high grade copper mineralization at Tabalosos

East which included outcrop mineralization of up to 2.0m @ 4.9% copper and 62 g/t silver. The area is

covered by dense jungle vegetation and in parts relatively stee p topography. It is estimated that <1%

of the bedrock outcrops;

 A total of 1,211 soil samples ha ve been taken with approximatel y 50% of the survey completed.

Sampling will be ongoing for another two months;

 Results demonstrate continuity of sub-cropping stratabound copp er-silver mineralization over 18

kilometres of combined strike, within a 6 kilometre by 2 kilometre area (Figure 2);

 Permitting to undertake advanced exploration work within Tabalosos East, including diamond drilling, are

ongoing with Environmental Impact Statement (Declaración de Imp acto Ambiental, or "DIA") baseline

studies underway.

Michael Hudson, CEO, states, "These results demonstrate the scale of the Company's multi-ki lometre long

copper-silver anomalies at the Tabalosos East prospect and coin cide with, and expand upon, areas of known

mineralization in outcrop. Encour agingly, these data confirm th e continuity of mineralization at the same

stratigraphic position and outline 18 kilometres of subcropping mineralization at Tabalosos East. Our sediment-

hosted San Martin copper-silver project continues to develop into a major copper-silver system of scale for Peru.”

The soil survey was designed to determine the continuity of cop per-silver mineralization under soil cover over

larger areas. Hannan has previously reported high grades of copper and silver in outcrop up to 2.0 metres @

4.9% copper and 62 g/t silver. The 2,500 point soil sampling program was designed to determine the continuity

of copper silver mineralization under soil cover over larger areas. The program consists of approximately 35-line

kilometers of survey lines cover ing an area measuring 6 kilomet res by 2.6 kilometres. The main survey lines

are spaced at 250-metre centers running east-west, with shorter infill survey lines spaced at 150-metre centers.

Soil samples were collected every 20 meters along each of the s urvey lines. Approximately 1,212 samples to

date have been collected and assayed.

Specific areas of interest discovered in the survey to date (Figure 2) include:

 Zona Sur: A 1.4 kilometre long anomaly composed of two parallel zones st riking E-W. The anomalies

show excellent correlation with channel sampled outcrops ( reported here) and including 2.0 metres @

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4.9% copper and 62 g/t silver (partially sampled) and 0.4 metres @ 6.3% copper, 152 g/t silver (partially

sampled), but importantly double the strike length of the outcrop zone.

 Zona Oeste: A new blind discovery over three regional lines with over 2.2 kilometres of strike that is

open to the N and S. The copper anomalies are situated in the s ame stratigraphic position in all three

lines, close to the mineralized contact seen elsewhere on the p roject. Additional sampling is needed to

determine the continuity of the mineralization.

 Zona Norte: To date one sampling line has been completed in the northern a rea. This line revealed a

broadly elevated zone of 800 metres length with three distinct anomalies with soil values >100 ppm

copper.

 Salt dome targets: The salt dome targets show elev ated background values of coppe r with internal

high copper values over five lines with up to 800 metres of str ike continuity. Some boulders of gypsum

with disseminated chalcopyrite have been observed near the anom alies. The anomalies show excellent

correlation with channel sampled outcrops ( reported here) and include 1.0 metre @ 6.3% copper and

101 g/t silver (partially sampled ), 1.8 metres @ 3.7% copper an d 42 g/t silver (partially sampled) and

2.2 metres @ 2.4% copper and 29 g/t silver (full sample).

Future work during the dry season at Tabalosos East will focus on continued systematic soil sampling, trenching,

and sampling of key soil anomalies and detailed geological mapp ing to aid the interpretation of the soil

anomalies.

About the San Martin JOGMEC JV Project (Copper-Silver, Peru, 88 mining concessions for 660 sq km)

On November 30, 2020 Hannan announced that it had signed a binding letter agreement for a significant Option and Joint

Venture Agreement (the “Agreement”) with JOGMEC. Under the Agreement, JOGMEC has the option to earn up to a 75%

beneficial interest in the San Martin Project by spending up to US$35,000,000 to deliver to the joint venture (“JV”) a

feasibility study.

The Agreement grants JOGMEC the option to earn an initial 51% o wnership interest by funding US$8,000,000 in project

expenditures at San Martin over a four-year period, subject to acceleration at JOGMEC’s discretion.

JOGMEC, at its election, can then earn:

 an additional 16% interest for a total 67% ownership interest by achieving either a prefeasibility study or funding

a further US$12,000,000 in project expenditures in amounts of a t least US$1,000,000 per annum (for a

US$20,000,000 total expenditure); and,

 subject to owning a 67% interest, a further 8% interest for a t otal 75% ownership interest by achieving either a

feasibility study or funding a further US$15,000,000 in project expenditures in amounts of at least US$1,000,000

per annum (for a US$35,000,000 total expenditure).

Should JOGMEC not proceed to a prefeasibility study or spend US $20,000,000 in total, Hannan shall have the right to

purchase from JOGMEC for the sum of US$1, a two percent (2%) Pa rticipating Interest, whereby Hannan’s Participating

Interest will be increased to fifty-one percent (51%) and JOGME C’s Participating Interest will be reduced to forty-nine

percent (49%).

At the completion of a feasibility study, JOGMEC has the right to either:

 p u r c h a s e u p t o a n a d d i t i o n a l t e n p e r c e n t ( 1 0 % ) P a r t i c i p a t i n g I nterest from Hannan Metals (for a total 85%

maximum capped Participating Interest) at fair value as determined in accordance with internationally recognized

professional standards by an agreed upon independent third-party valuator; or

 receive up to an additional ten percent (10%) Participating Interest from Hannan (for a total 85% maximum capped

Participating Interest) in consideration of JOGMEC’s agreement to fund development of the project, by loan carrying

Hannan until the San Martin Project generates positive cash flow.

After US$35,000,000 has been spent by JOGMEC and before a feasibility study has been achieved, both parties will fund

expenditures pro rata or dilute via a standard industry dilution formula. If the Participating Interest in the Joint Venture

of any party is diluted to less than 5% then that party’s Parti cipating Interest will be automatically converted to a 2.0%

net smelter royalty (“NSR”), and the other party may at any time purchase 1.0% of the 2.0% NSR for a cash payment of

US$1,000,000. Hannan will manage exploration at least until JOG MEC earns a 51% interest, after which the majority

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participant interest holder will be entitled to act as the operator of the joint venture. Initial exploration activities will focus

on the collection of the geological, geophysical, and geochemical datasets in the JV project areas.

Sediment-hosted stratiform copper-silver deposits are among the two most important copper sources in the world, the

other being copper porphyries. They are also a major producer of silver. According to the World Silver Survey 2020

KGHM Polska Miedz’s (“KGHM”) three copper-silver sediment-hosted mines in Poland are the leading silver producer in the

world with 40.2Moz produced in 2019. This is almost twice the p roduction of the second largest producing mine. The

Polish mines are also the sixth l argest global copper miner and in 2018, KGHM produced 30.3 Mt of ore at a grade of

1.49% copper and 48.6 g/t silver from a mineralized zone that averages 0.4 to 5.5 metres thickness.

Technical Background

All soil samples were collected b y Hannan geologists using an i n-house protocol for soil sampling in jungle areas. The

samples were subsequently analyzed with a portable XRF deployin g a protocol developed by Hannan for the San Martin

project. The method is designed to minimize risk of contaminat ion and ground disturbance. In most cases the sample

media is the “B-horizon” of the soil profile. Only 100g of samp le material is collected from each site. From the soil sample

a pellet is being produced which is dried and analyzed by a por table XRF (pXRF). Certified reference material, blanks and

field duplicates are routinely added to monitor the quality of the pXRF data. In addition, 10% of all samples are submitted

to ALS in Lima for 4-acid ICP-MS analysis to check the quality of the pXRF data.

Channel samples are considered representative of the in-situ mineralization samples and sample widths quoted approximate

the true width of mineralization, while grab samples are select ive by nature and are unlikely to represent average grades

on the property.

About Hannan Metals Limited (TSXV:HAN) (OTCPK: HANNF)

Hannan Metals Limited is a natural resources and exploration co mpany developing sustainable resources of metal needed

to meet the transition to a low carbon economy. Over the last d ecade, the team behind Hannan has forged a long and

successful record of discovering, financing, and advancing mine ral projects in Europe and Peru. Hannan is a top ten in-

country explorer by area in Peru.

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

has reviewed and approved the technical disclosure contained in this news release.

On behalf of the Board,

"Michael Hudson"

Michael Hudson, Chairman & CEO

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 disclosure contained in this news release, including the Company’s expectations regarding the Agreement and the payments and earn-in upon the

successful completion of certain milestones, may constitute for ward-looking information or forward-looking statements, within the meaning of Canadian

securities laws. These statements may relate to this news relea se and other matters identified in the Company's public filings . In making the forward-

looking statements the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions

made by and information currently available to the Company. The se statements address future eve nts and conditions and, as such , involve known and

unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future

results, performance or achievements expressed or implied by th e statements. These risks and uncertainties include but are no t limited to the potential

impact of epidemics, pandemics or other public health crises, including the current coronavirus pandemic known as COVID-19 on the Company’s business.

Readers are cautioned not to pla ce undue reliance on forward-lo oking statements. The Company do es not intend, and expressly di sclaims any intention

or obligation to, update or revise any forward-looking statemen ts whether as a result of new information, future events or oth erwise, except as required

by law.

Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (as that term is defined in the policies of the TSX Vent ure Exchange) accepts

responsibility for the adequacy or accuracy of this news

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