070607 ASX Release

Hannans Reward Ltd 8 June 2007 Opportunities in Papua New Guinea The opportunity to partner with Mal Michael and colleagues in PNG is considered significant and represents Hannans Reward’s first step towards obtaining exposure to projects outside Australia • Hannans Reward Ltd (ASX: HNR) has entered into an agreement with private PNG company JLM Resources Limited (‘JLM’); the Managing Director of JLM is PNG identity Mr Mal Michael • JLM has established relationships with traditional landowner groups in PNG whereby JLM has agreed to source foreign investment for the development of the landowners’ projects • JLM has granted Hannans a pre-emptive right to acquire all natural resource projects sourced by JLM in PNG; if Hannans exercises its pre-emptive rights it will form a 50/50 joint venture with JLM to develop each project Summary Hannans Reward Ltd (ASX: HNR) has signed an agreement to assess minerals, petroleum and agricultural projects in PNG that are sourced by private company JLM Resources Ltd (“JLM”). “The directors of JLM have established relationships with traditional landowners and government in PNG. Over time landowners have approached us to help them source foreign investment to develop their projects. With this in mind JLM has focused its activities on developing opportunities in the minerals, petroleum and agriculture sectors in PNG. One of our aims is to ensure positive outcomes for the traditional landowners, communities and governments. This can be achieved because we have a good understanding of the relationship between the people and their land. We also believe that by teaming with Hannans Reward we have increased our ability to achieve our aims,” Mal Michael, Managing Director, JLM Resources Ltd . Mal Michael is a well known PNG identity in Australia. He was a member of the Brisbane Lions AFL Premiership Teams in 2001, 2002 and 2003 and is continuing his career with the Essendon Football Club. In early 2006, he established the Mal Michael Foundation, aimed at raising money to help give young Papua New Guineans the opportunity to play Aussie rules. JLM is Mal Michael’s business focus outside of football. This exciting relationship will enable Hannans to support JLM as it continues to build on its long standing relationships with the traditional landowners and government. Level 2, 11 Ventnor Avenue, West Perth, Western Australia PO Box 1227, West Perth, WA, 6872 [email protected] • www.hannansreward.com +61 8 9324 3388 (T) • +61 8 9324 3366 (F) Hannans Reward Ltd 8 June 2007 PNG hosts significant mineral deposits but exhibits rugged natural conditions which make for challenging exploration and mining conditions; it is also characterised by a very high biodiversity and a unique mosaic of cultures. Hannans recognises the potential of PNG, its people and their natural resources and is excited to be teaming with JLM to progress opportunities that may be forthcoming. The agreement between JLM and Hannans provides Hannans with a period of 120 days to decide whether or not to match any third party offers over natural resource projects sourced by JLM, either in JLM’s capacity as Agent or Principal. If Hannans elects to proceed with the project it will form a 50/50 incorporated joint venture with JLM to develop the project. Both parties will be required to fund the acquisition and development of the project in proportion to their respective shareholdings. In consideration for this right of first refusal, Hannans will issue JLM with 250,000 fully paid ordinary shares in Hannans Reward Ltd. This agreement is subject to approval by Hannans shareholders. Any questions in relation to this announcement can be directed to Damian Hicks, Managing Director, Hannans Reward Ltd on +61 8 9324 388. Current Projects Papua New Guinea • JLM JV – opportunity to assess minerals, petroleum and agricultural projects with JLM Resources Ltd Australia • Forrestania - nickel & gold project located 12km north of Western Area’s Flying Fox nickel mine Jigalong - iron, uranium & base metals project located about 400km south east of Port Hedland • Queen Victoria Rocks - nickel & gold project which is located 30km south-west of Coolgardie • Sunday - gold & nickel project which is located about 20km east of Leonora • Maggie Hays South - nickel project which is located 25km south east of LionOre’s Maggie Hays nickel mine Company contacts: Board of Directors Telephone: (08) 9324 3388 Chairman Fax: (08) 9324 3366 Richard Scallan Email: [email protected] Managing Director Website: www.hannansreward.com Damian Hicks Address: Level 2, 11 Ventnor Ave Executive Director West Perth, WA Terry Grammer Non-Executive Directors : Ernie Dechow, William Hicks & Frank Cannavo Level 2, 11 Ventnor Avenue, West Perth, Western Australia PO Box 1227, West Perth, WA, 6872 [email protected] • www.hannansreward.com +61 8 9324 3388 (T) • +61 8 9324 3366 (F) .

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