HMG Hana Mining Ltd.

Hana Mining Ltd. ("Hana" or the "Company") (TSX VENTURE:HMG)(FRANKFURT:4LH) is
pleased to announce its most recent drilling results from the completion of 12
infill diamond drill holes in the Banana Zone at its Ghanzi sediment hosted
Copper-Silver Project in Botswana.


Infill drilling was carried out on the Northeast Fold area (between sections
70125 to 70725 at the Northeast Fold; Figures 1 and 2) to convert a substantial
amount of the NI 43-101 compliant resources within this area into the Indicated
category from the Inferred category.


These results are from new holes and are in addition to those used in the most
recent NI 43-101 compliant Indicated and Inferred mineral resource calculation
(see Table 1 at the end of this press release for the results from all 12 drill
holes). The mineralization remains open at depth.


Highlights of recent drilling results:



--  The latest results demonstrate that Banana Zone contains areas which
    host high-grade copper-silver mineralization.
--  Core lengths intercepts of 
    --  14.23% CuEq(1) (11.22% Cu and 206.0 g/t Ag) over 2.9 metres within a
        wider mineralized interval of 1.07% CuEq(1) (0.85% Cu and 15.0 g/t
        Ag) over 47.2 metres in hole HA-482-D,
    --  6.62 CuEq(1) (5.45% Cu and 80.0 g/t Ag) over 3.2 metres within a
        wider mineralized interval of 1.11% CuEq(1) (0.95% Cu and 11.0 g/t
        Ag) over 55.9 metres in hole HA-443-D,
    --  4.02% CuEq(1) (3.32% Cu and 48.0 g/t Ag) over 7.2 metres within a
        wider mineralized interval of 1.46% CuEq(1) (1.21% Cu and 17.0 g/t
        Ag) over 24.2 metres in hole HA-487-D
    --  3.01% CuEq(1) (2.46% Cu and 38.0 g/t Ag) over 2.9 metres within a
        wider mineralized interval of 1.15% CuEq(1) (1.03% Cu and 8.0 g/t
        Ag) over 33.0 metres in hole HA-478c-D. 



(1) Copper equivalent calculated using US$3.00/lb Cu, US$30/oz Ag and is not
adjusted for metallurgical recoveries. The formula used is as follows: CuEq =
Cu% + (Ag g/t x 0.01458). 


Discussion of Results:

These are the second set of results from the 2011 infill drilling program for
the Northeast Fold area which is located at the most northeast part of the
Banana Zone. This area consists of a plunging anticline where up to four
intervals of high-grade copper mineralization within a broader low grade
mineralized envelope were encountered within the hanging siltstones and
mudstones and footwall sandstones. These high-grade veins of mineralization
represent new exploration targets. Exploration drilling will continue at the
Northeast Fold to identify and expand these high-grade mineralized zones.
High-grade mineralization at the Northeast Fold remains open along plunge and
along dip of this anticlinal structure. Further infill drilling results from the
Northeast Fold are expected soon. 


To view "Figure 1: Location of Most Recent Drilling Results at the Banana Zone"
please visit the following link: http://media3.marketwire.com/docs/HanaFig1.pdf


To view "Figure 2: Drill Hole Location of Northeast Fold, Sections 70125-70725"
please visit the following link: http://media3.marketwire.com/docs/HanaFig2.pdf


To view "Figure 3: Cross-section through section 70525 (Northeast Fold)" please
visit the following link: http://media3.marketwire.com/docs/HanaFig3.pdf


Development Update 

The following engineering and consultation activities are ongoing:



--  Work on the revised resource estimate for the Banana Zone is continuing
    as expected and the Company expects to release the results of this
    resource estimate in the second quarter of 2012.
--  Work continues on the Preliminary Economic Assessment ("PEA") which is
    also expected to be completed in the second quarter of 2012. 



Hana Mining's CEO and Chairman, Marek Kreczmer, commented as follows:

"Several months ago our geologists were tasked to formulate a new geological
model which would allow us to identify areas within the Banana Zone, and other
parts of the Ghanzi Project, that may host high-grade copper-silver
mineralization. After a concerted core re-logging campaign, involving over 300
drill holes, and interpretation, our geological team was able to identify
additional stratigraphic and structural parameters which may contribute to the
deposition of high-grade copper-silver mineralization. This hypothesis is
currently being currently tested, with tremendous success, in the Northeast Fold
area. Later, we will test this geological model elsewhere at the Banana Zone and
other areas of the Ghanzi Project. Unfortunately, because of time constraints,
not all of these drill holes will be included in the upcoming Preliminary
Economic Assessment but will be included in the forthcoming Feasibility Study."


"If our hypothesis proves to be successful elsewhere at the Banana Zone it will
have a tremendous impact on Ghanzi Project and the rest of the Kalahari Copper
Belt."


Qualified Person and Quality Assurance/Quality Control

The drilling program and results are reviewed and approved by Marek Kreczmer,
Chief Executive Officer for Hana. He is the qualified person as defined in NI
43-101 and has reviewed the technical information in this press release.


Drill core is logged and photographed. Mineralized intervals are split in half
by sawing and sampled at site. The remainder of the core is kept as a permanent
record. Samples are placed into labelled bags, closed and packed into sealed
bags that are shipped to ALS Chemex Laboratory in Johannesburg, South Africa or
Scientific Services Laboratories in Cape Town, South Africa. Hana has
implemented an industry-standard QA/QC program that includes the blind insertion
of certified standards, duplicates and blanks into the sample stream.


About Hana Mining's Ghanzi Copper-Silver Project in Botswana:

The Ghanzi Project is located in the center of the Kalahari Copper Belt in
northwestern Botswana. The Ghanzi property covers 2,149 square kilometres, and
contains sediment-hosted copper-silver deposits with a demonstrated cumulative
tested strike length of 70 kilometres. This favorable geology extends over an
estimated strike length of 600 kilometres. Hana Mining released results of its
most recent NI 43-101 compliant resource estimate for the Ghanzi Project on
December 20, 2010, announcing an Indicated mineral resource of 585 million
pounds of copper and 12 million ounces of silver from 19.7 million tonnes at a
grade of 1.35% copper and 19.7 g/t silver. All of the Indicated resources are
from the Banana Zone. There are also Inferred resources of 2.4 billion pounds of
copper and 40.6 million ounces of silver from 91.2 million tonnes. This Inferred
mineral resource estimate consists of 69.9 million tonnes grading 1.10% Cu and
14.98 g/t Ag in the Banana Zone, 13.4 million tonnes grading 1.66% Cu and 12.11
g/t Ag in Zone 5, 6.3 million tonnes grading 1.5% Cu and 6.7 g/t Ag in Zone 6,
and 1.6 million tonnes grading 0.85% Cu and 6.4 g/t Ag in the Chalcocite Zone;
all at a cut-off grade of 0.75% Cu.


The Banana Zone exhibits certain areas of higher grade Cu and Ag mineralization,
particularly between sections 49700 to 52000 on the North limb and sections
63000 to 71000 on both the North and South limbs, which represent an opportunity
to locate starter pits and mine initial tonnages at higher than average grades.
These higher grade pockets tend to be well within open pit depth parameters and
represent opportunities to improve early cash flow and overall returns in
development.


The project will benefit from proposed rail and power infrastructure expansions,
along with proximity to local population centers and workforce. A feasibility
study is currently underway (funded by the World Bank and the governments of
Botswana and Namibia) to support completion of a rail line link that would
connect Botswana with the Namibian port of Walvis Bay, on the Atlantic coast.
The closest existing railhead to port is at Gobabis, in Namibia, approximately
550 km from our property. Construction has begun on the 600MW expansion of the
government-owned Moropule Power Plant, having secured US$825 million project
funding in May 2009. The Ghanzi Copper- Silver Project is currently accessed by
the paved Trans-Kalahari highway, which passes within 15 km of the property.


The Ghanzi property is one of Africa's premier future copper-silver resources.

To view "Table 1: Drill Results from Northeast Fold, Banana Zone, Sections
70125-70725 Interval indicates down hole interval" please visit the following
link: http://media3.marketwire.com/docs/HanaTable1.pdf


Statements in this press release, other than purely historical information,
including statements relating to the Company's future plans and objectives or
expected results, may include forward-looking statements. Forward-looking
statements are based on numerous assumptions and are subject to all of the risks
and uncertainties inherent in resource exploration and development. As a result,
actual results may vary materially from those described in the forward-looking
statements.

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