HAN.V · 2017-01-09 12:00:00

Mitchell Announces Closing of the Acquisition of the Clare Zinc- Silver-Lead Project IN Ireland, Private Placement and NAME Change

Financings Mergers & Acquisitions Property Options & Staking Corporate Actions

MITCHELL RESOURCES LTD.

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

Phone: +1.604.685.9316 / Fax: +1604.683.1585

N E W S R E L E A S E January 9, 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.

MITCHELL ANNOUNCES CLOSING OF THE ACQUISITION OF THE CLARE ZINC-

SILVER-LEAD PROJECT IN IRELAND, PRIVATE PLACEMENT AND NAME CHANGE

Vancouver, Canada – Mitchell Resources Ltd. (“Mitchell” or the “Company”) (TSXV: MI)

announces that further to its news release of November 8, 2016, the Company has closed the acquisition

(the “ Acquisition”) with the shareholders of Hanna n Metals BC Ltd. (formerly Han nan Metals Ltd.)

(“Hannan Canada ”), a private British Columbia company, of all of Hannan Canada ’s issued and

outstanding shares.

Pursuant to the closing, the Company has acquired a 100% interest in Hannan Canada’s rights, through its

wholly-owned subsidiary Hannan Metals Ireland Ltd. (“ Hannan Ireland”), to the Clare zinc-silver-lead-

copper prospecting licences (the “Clare Project”) in County Clare, Ireland. Consequently, the Company

has assumed all obligations of Hannan Ireland. For additional information regarding the Acquisition, refer

to the Company’s news release of November 8, 2016.

The Clare Project consists of 7 prospecting licences (“ PLs”) and two PL applications for a total of 32,223

hectares located in County Clare, Ireland, the western edge of which is 1.5 km east of the town of Ennis.

PLs 3509, 3640, 3643, 3679, 3787, 3788 and 3789, are granted an d issued by the Exploration and Mining

Division (“EMD”) of the Department of Communications, Climate Action and Envi ronment while PLs

3508 and 3642 remain under application. All prospecting licences of the Clare Property are 100% owned

by Hannan Ireland.

The Irish base metal ore field is one of the world’s best miner alized zinc provinces and is considered

highly prospective for new zinc discoveries. In 2015, Ireland w as the world’s 10 th largest zinc producing

nation with 230,000 tonnes produced.

The Clare Project is underlain by Upper Devonian (sandstones) t o Lower Carboniferous (sandstones and

limestones) rocks. The stratigraphy appears simple; beds are the right way up and most of the major units

are consistent in thickness across the property, however syn-ri ft and/or later structures appear to

complicate the geological framework. The stratigraphic success ion of the Irish Lower Carboniferous is

well constrained throughout, with the exception of the uppermost units. The axis of an open syncline runs

southwest-northeast through the centre of the Clare Project. B eds dip at between 10 and 15 degrees

towards the centre of the syncline. The Lower Carboniferous se quence includes the Waulsortian

Limestone, which hosts most of Ireland’s important zinc-lead sulphide deposits, such as the Lisheen (pre-

mining resource 18.9 Mt @ 15.0% Zn+Pb) and Galmoy (pre-mining r esource of 6.2 Mt @ 12.4% Zn+Pb)

deposits. This data has been sourced from the Irish Exploratio n, Mining Division website

http://www.mineralsireland.ie/. The Company has been unable to independently verify the information

and states that the information is not necessarily indicative o f the mineralization on the Clare Project that

is the subject of the technical report.

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The Clare Project has a rich history of small scale 19 th century mining. Modern exploration efforts from

the early-1960’s, by Irish Base Metals, Rio-Finex, Central Mini ng Finance, Billiton and Belmore

Resources Ltd followed up some of these earlier historic mines.

There are two known Waulsortia n-hosted zinc-lead deposits on th e property, the flagship Kilbricken

prospect (see below) and the sm aller Milltown prospect, where B elmore Resources Ltd (“ Belmore”)

intersected 13.3m @ 5.8% Pb and 10.5% Zn from 45.4 metres in dr ill hole 3788/19 in 1994. The lowest

part of the sequence is also prospective for copper-silver mine ralization and contains numerous copper

showings, most notable at Ballyvergin where Irish Base Metals d rilled hole BV11 which intersected

31.5m @ 1.0% Cu from 51.7 metres in the 1960s. Given the gener al flat lying and stratabound nature of

mineralization and steep angles of all drillholes mentioned, th e true thickness of the mineralized intervals

quoted is interpreted to be approximately 95% of the sampled thickness.

Significant historic exploration on the Clare Project has conce ntrated on three project areas and on

identifying other areas of the Clare Project which have the pot ential to warrant similar investigation. The

project areas are:

 Kilbricken

 Ballyvergin

 Kilmurry

In 2008, Belmore, a private Irish company, drill tested the bas e of the Waulsortian Limestone beneath

near-surface sulphidic and calcite veined shelf carbonates at t he historic Kilbricken lead mine. The

discovery drillhole at Kilbricken, DH04, intersected 10m @ 13.8 % Zn, 5.5% Pb, 0.08% Cu, and 62.8g/t

Ag from 448.1 metres at the targeted base of Waulsortian Limest one. Given the general flat lying and

stratabound nature of mineralization and steep angles of all dr illholes mentioned, the true thickness of the

mineralized intervals quoted is interpreted to be approximately 95% of the sampled thickness.

After this initial discovery, L undin Mining Exploration Limited ( “Lundin” ) , a n I r i s h s u b s i d i a r y o f

Lundin Mining Corporation (TSX:LUN), joint ventured Kilbricken and the wider tenure package from

Belmore. In 2011, Lundin purchased 100% of Belmore. Drilling by Lundin from 2009 to 2012

continued to intersect sulphide m ineralization in the hanging w all of the Main Kilbricken fault.

Significant intersections from Lundin’s drilling programs are shown in Table 1.

Table 1: Kilbricken better mineralized drill intersections.

Hole_ID Mineralized Intersection

DH46 20.5m @ 7.5% Zn, 9.9% Pb, 0.07% Cu, 74.6g/t Ag from 415.3m

DH06 21.3m @ 11% Zn, 4.8% Pb, 0.06% Cu, 94.4g/t Ag from 441.9m

DH50 11.8m @ 9.8% Zn, 5.7% Pb, 0.07% Cu, 178.2g/t Ag from 484.6m

DH43 9.4m @ 4.1% Zn, 12% Pb, 0.52% Cu, 242.8g/t Ag from 442.1m

DH04 10.0m @ 13.8% Zn, 5.5% Pb, 0.08% Cu, 62.8g/t Ag from 448.1m

DH52 19.3m @ 7.2% Zn, 1.2% Pb, 0.18% Cu, 64.6g/t Ag from 425.7m

DH44 17.2m @ 2.9% Zn, 4.4% Pb, 0.11% Cu, 83.5g/t Ag from 447.9m

DH167 4.5m @ 0.8% Zn, 2.6% Pb, 18.91% Cu, 867.6g/t Ag from 616.5m

DH161 10.4m @ 8.4% Zn, 3.9% Pb, 0.09% Cu, 26.5g/t Ag from 607m

DH206 10.0m @ 0.9% Zn, 8.7% Pb, 0.16% Cu, 90.7g/t Ag from 619m

DH111 4.1m @ 21.5% Zn, 5.7% Pb, 0.1% Cu, 95.4g/t Ag from 447.6m

The main Kilbricken mineralization has been drilled within an a rea of 1,500 metres by 800 metres in plan

view and remains open in most directions. Mineralization, defi ned as ≥ 4.0m @ ≥4.00% Zn Eq or 16m%

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Zneq where Zn Eq = Zn% +(Pb% x 1.15) + (Ag ppm x 0.037917), ran ges in thickness from 2 metres to

31 metres thick and averages 7.5 metres thickness.

Given the general flat lying a nd stratabound nature of minerali zation and steep angles of all drillholes

mentioned, the true thickness of the mineralized intervals quot ed in Table 1 are interpreted to be

approximately 95% of the sampled thickness.

Two main mineralized zones have been discovered to date:

 The Zinc Zone, being the initial discovery area, which has been drilled within an area of 950

metres by 400 metres, between 360-440 metres vertically below s urface. Significant drill results

in this zone include DH46: 20.5m @ 7.5% Zn, 9.9% Pb, 0.07% Cu, 74.6g/t Ag from 415.3m and

DH06: 21.3m @ 11% Zn, 4.8% Pb, 0.06% Cu, 94.4g/t Ag from 441.9m.

 The Copper Zone was found later in the Lundin program and is dr illed within an area of 400

metres by 200 metres, between 520-670 metres vertically below s urface. Significant drill results

in the Copper Zone include DH167: 4.5m @ 0.8% Zn, 2.6% Pb, 18.9 1% Cu, 867.6g/t Ag from

616 metres.

Given the general flat lying a nd stratabound nature of minerali zation and steep angles of all drillholes

mentioned, the true thickness of the mineralized interval quoted is interpreted to be approximately 95% of

the sampled thickness.

Lundin completed significant work on the property. A total of 278 drillholes for 134,000 m of diamond

drilling was completed over the entire project. A total of 222 drill holes for 118,000 metres were drilled

at the Kilbricken area. Lundin also undertook regional explora tion in the remainder of the Clare Project,

largely focussed on other Waulsortian-hosted zinc-lead prospect s. Lundin carried out 616 metres of

drilling at the Ballyvergin prospect with the objective of disc overing additional zones of copper-silver

mineralization. Lundin drilled a total of 2,370 metres on the Kilmurry Project, located within the Clare

Project area, 9 kilometres south-east of Kilbricken. In addit ion, significant surface geochemical and

multiple geophysical surveys have been undertaken by Lundin and previous operators on the Clare

Project area. Of note are a 3D seismic survey over the main Ki lbricken mineralization in 2011, and 2D

seismic survey conducted in 20 12 that consisted of 8 traverses (3-3.5 km long) over a total 10 kilometre

strike length, spaced between 1-2 kilometre across the regional Kilbricken extensions.

Massive sulphide mineralization at Kilbricken most commonly con sists of early massive-textured, fine-

grained pyrite, galena and sphalerite cross-cut by coarse-grain ed sphalerite and galena, resembling

sulphides found in the overlying veins. It differs from most ot her Irish zinc/lead prospects in that it is rich

in silver, where the silver is generally associated with galena-rich zones.

The Kilbricken Project is consid ered to be highly prospective f or discovering and developing important

zinc-lead-silver sulphide deposits. The Kilbricken deposit, as currently delineated, is open along strike

and both in an up-drip and down-dip direction. All projects on the Clare Project are at an exploration

stage; there are no mine development or mining operations.

Concurrently with the closing of the Acquisition, Mr. Michael H udson was appointed as the Company’s

Chairman, Chief Executive Officer and became a director of Mitchell.

The Company also announces that a NI 43-101 Technical Report fo r the Clare Project, dated December

23, 2016, will be available on the Company’s profile on SEDAR a t www.sedar.com shortly. The

Technical Report was authored by Dr. John Colthurst, PGeo, EurG eol, who is an independent “qualified

person” as defined by National Instrument 43-101.

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In addition, Mitchell announces the closing of its previously a nnounced private placement financing of

common shares (the “ Financing”). Pursuant to the closing of the Financing, the Company issue d

10,486,000 common shares (the “ Common Shares”) at $0.075 per Common Share for gross proceeds of

$786,450. The Common Shares issued under the Financing have a hold period expiring on May 7, 2017.

Proceeds from the Financing will be used to fund initial explor ation on the Clare Project, and for

corporate and general working capital.

The Company also announces that at the opening of trading on Ja nuary 10, 2017, Mitchell common

shares will commence trading on the TSX Venture Exchange under its new name "Hannan Metals Ltd.”

and new trading symbol "HAN".

T h i s p r e s s r e l e a s e i s n o t a n o f f e r o r a s o l i c i t a t i o n o f a n o f f er of securities for sale in the United

States. The securities have not been and will not be registere d under the U.S. Securities Act of

1933, as amended (the “U.S. Securities Act”), or any state secu rities laws and may not be offered or

sold in the United States or to U.S. Persons absent registratio n under the U.S. Securities Act and

applicable state securities laws or an applicable exemption from such registration requirements.

Qualified Person

Mr. Michael Hudson, the Company’s Chairman, Chief Executive Officer and a Fellow of the Australasian

Institute of Mining Metallurgy, has reviewed and approved the technical contents of this press release.

On behalf of the Board,

“Nick DeMare”

Nick DeMare, President & CEO