Mr. Michael Hudson reports

HANNAN SECURES OPTION OVER THREE HIGH-GRADE GOLD PROJECTS IN SWEDEN; DRILLING AT STAVATRASK TO COMMENCE THIS MONTH

Hannan Metals Ltd. has entered into an option agreement to acquire up to 100 per cent of three high-grade gold projects known as the Stavatrask, Skelleftea North and Adelfors projects, comprising 8,405 hectares in Sweden, with permitted drilling at Stavatrask to commence this month.

Key points:

• Hannan Metals has secured an option to acquire up to 100 per cent of three high-grade gold projects in Sweden: Stavatrask, Skelleftea North and Adelfors -- covering 8,405 hectares, through a low-cost, share-based structure that preserves cash while adding near-term exploration optionality.
• The flagship Stavatrask project is fully permitted and drill ready, with a rig mobilizing in mid-June, 2026, for a staged program of up to 2,000 metres to test a direct analogue of Boliden, Europe's richest modern gold mine, located just 20 kilometres to the south on the same regional-scale shear system.
• The portfolio extends Hannan's exploration momentum while its flagship Previsto gold-copper project in Peru advances through permitting toward maiden drilling in 2027, complementing, rather than replacing, that priority, and is backed by a team with decades of combined Nordic exploration experience operating in one of the world's top-ranked mining jurisdictions. Three projects are:
  • 1. Stavatrask -- drill in June, 2026, Boliden-style target:
  • Fully permitted and drill ready, with a rig mobilizing from mid-June, 2026, and a staged program of up to 2,000 m planned to test a direct analogue of Boliden, Europe's richest modern gold mine (4.24 Moz (million ounces) at 15.9 g/t (grams per tonne) Au (gold)).
  • Located 20 km north of the Boliden deposit and sitting on the very same regional-scale structure.
  • High grade outcrop grades up to 93 g/t Au and 24 g/t Ag (silver), with a boulder field 650 m to the southeast averaging 3.2 g/t Au (eight samples, range 0.1 to 11.2 g/t Au), 67 g/t Ag (range one to 154 g/t Ag) and 0.83 per cent Cu (range 0.003 to 2.43 per cent Cu), pointing to a large, zoned mineralizing system with the classic Boliden-style progression from Au-Ag to Au-Ag-Cu (copper).
  • 2. Adelfors -- historic high-grade gold field, never drill tested:
  • Sweden's first gold mine, officially worked since 1738, with 131 historic workings across 7.5 km of strike recorded.
  • Historic records report grades up to 1,100 g/t Au over an average 0.4 m vein width. Evidence for multiple veins and wall rock mineralization. Modern alluvial mining occurring.
  • Never a single drill hole completed to date on the project.
  • Next step is for Hannan to complete lidar (light detection and ranging) analysis to map historic workings.
  • 3. Skelleftea North -- high-grade drill intercepts, only 5 per cent tested:
  • Recent intercepts up to 1.8 m at 28.4 g/t Au (including 0.4 m at 132.2 g/t Au).
  • Gold mineralization extends across a 6.5 km outcrop trend and is open in all directions, a potential parallel trend 5.5 km north grading up to 15.1 g/t Au in outcrop.
• Option agreement to acquire up to 100 per cent of the three high-grade projects in Sweden:
• 1. Grant period: Hannan has the sole and exclusive right to conduct initial assessment work on the property for six months from June 4, 2026.
• 2. Initial drill program and shares: During the grant period, Hannan must complete the initial drill program and may issue up to one million shares to maintain its option:
  • 400,000 shares upon completing at least 1,000 metres of diamond drilling;
  • 600,000 shares upon completing at least an additional 1,000 metres of diamond drilling.
• 3. Option to acquire 100 per cent: Assuming positive drill results and issuance of the initial shares, Hannan can exercise the option for a 100-per-cent interest in the property, by spending at least $2-million on exploration (including the initial drill program) and issuing a further 3.5 million shares.
• 4. Royalty: On completing the option exercise, a 2.0-per-cent net smelter return royalty is payable by Hannan, which it may repurchase in full at any time for $3-million.
• 5. Walk-away right: Hannan may terminate the option agreement at any time at its sole discretion, with no further share issuance or expenditure obligations.

Michael Hudson, chief executive officer, states: "We are using a well-funded interim window to do what this team does best, find high-grade gold. But let me be unambiguous: this is not a pivot. Previsto remains Hannan's flagship project, our primary focus and where the bulk of our value sits today, and we are committed to advancing it through permitting toward maiden drilling in 2027. We are not changing course or diverting capital away from Peru.

"With Previsto's maiden drilling pushing into 2027, the disciplined thing to do is keep the drill bit turning on drill-ready, high-grade gold -- and Stavatrask is the standout target of these three new projects to do exactly that. I have rarely seen a greenfield target tick so many of the boxes of an adjacent, globally leading deposit like Boliden all at once.

"Stavatrask is located 20 km north of Boliden, once Europe's richest gold mine, on the very same regional shear system and it mirrors Boliden point for point: the same gold-copper-silver-arsenopyrite signature, the same shear-controlled hangingwall structure, the same chlorite footwall alteration.

"Stavatrask is drill ready and fully permitted, and a drill rig is mobilizing this month to test a Boliden-style system in a district we know intimately, and the team behind Hannan has a proven record of turning high-grade gold discoveries into billions of dollars of shareholder value. Sweden complements Peru; it does not replace it."

Technical background

The team behind Hannan has decades of combined exploration experience across the Nordic region, bringing deep local knowledge, relationships and operating capability to the portfolio.

These historical data have not been verified by Hannan and are quoted for informational purposes only. It is believed that the primary analysis for gold was completed by fire assay with atomic absorption finish. compilation of available data and 3-D geologic modelling are in progress. The true thickness of the mineralized intervals is not known at this stage.

Stavatrask project

Stavatrask is located in the Skelleftea mining district of northern Sweden, 20 km north of the world-class Boliden deposit (4.24 Moz at 15.9 grams per tonne Au historic production). The project occupies a strategic position on the Vidsel-Rojnoret shear system (VRSS), the same regional-scale terrane boundary that hosts Boliden.

Gold, silver and copper mineralization is structurally hosted, with massive to semi-massive arsenopyrite, pyrite and chalcopyrite with silica alteration. Outcrop samples return exceptional grades of 93 g/t Au and 24 g/t Ag. A boulder field located 650 m southeast of the main outcrop yielded eight samples averaging 3.2 g/t Au (range 0.1 to 11.2 g/t Au), 67 g/t Ag (range one to 154 g/t Ag) and 0.83 per cent Cu (range 0.003 to 2.43 per cent Cu), and is surrounded by historic drill collars for which assay data is largely unavailable.

Collectively, the outcrop and boulder field define a 750 m mineralized trend. Historic Boliden drilling in the 2000s, for which data is unavailable, traces the system over 2.5 km of strike. The project is fully permitted, drill ready and a rig is mobilizing this month. The initial staged program of up to 2,000 m is designed to test the system at and below surface and to establish its scale, geometry and structural controls. Given the massive-sulphide nature of the mineralization, a follow-up electromagnetic (EM) survey is expected to be an effective tool to trace the system under cover along strike and down-dip, informing subsequent drilling.

A compelling Boliden analogue

The Boliden deposit, mined from 1924 to 1967, was once Europe's largest and richest gold mine, with 8.3 million tonnes grading 15.5 g/t Au that yielded roughly 4.2 million ounces of gold alongside copper, silver and arsenic, and remains the defining benchmark for gold exploration across the entire Skelleftea district. It is classified as a metamorphosed, structurally remobilized volcanogenic massive sulphide (VMS) system, with gold hosted in dense arsenopyrite and the highest-grade bonanza gold carried in later quartz-tourmaline veins. The Skelleftea belt that hosts it is one of the most metal-endowed Palaeoproterozoic terranes globally, having produced over seven million ounces of gold across nearly 30 mines. Stavatrask sits squarely at the heart of this proven mineral system, and the company's geological work has assembled a remarkably complete set of independent lines of evidence: geological, geochemical, structural and historical that point, point by point, to a direct analogy with Boliden. Few greenfield targets anywhere replicate so many of the hallmarks of a world-class deposit at once:

• Same globally leading belt, same controlling structure. Stavatrask lies just 20 km north of Boliden on the very same regional-scale Vidsel-Rojnoret shear system, the crustal-scale terrane boundary that localized the Boliden orebody itself. This is not merely the same district; it is the same first-order mineralizing plumbing system that built one of Europe's richest gold mines.
• Identical metal assemblage and arsenopyrite host. Surface sampling at Stavatrask returns the exact Au-Cu-Ag polymetallic signature that defines Boliden, hosted in the same massive to semi-massive arsenopyrite with pyrite and chalcopyrite. At Boliden, arsenopyrite was the dominant sulphide and the primary host of gold, and at Stavatrask that identical gold-arsenopyrite association is abundant in outcrop and float. This pairing is the single most reliable fingerprint of Boliden-style mineralization anywhere in the belt, and Stavatrask carries it emphatically.
• Shear-controlled, hangingwall gold with chlorite footwall alteration. At Boliden, gold was concentrated in the hangingwall contact zone as splays off a principal shear, underlain by an intense chlorite-dominant footwall alteration pipe, the textbook architecture of the deposit. Stavatrask reproduces that architecture point for point: gold mineralization in a hangingwall splay off the main shear, sitting directly above a footwall zone of intense chlorite-dominant hydrothermal and metasomatic alteration. This is the classic Boliden-style exploration vector, and at Stavatrask it is mapped at surface and pointing straight at depth.
• Untested potential for quartz-tourmaline bonanza gold. Boliden's highest-grade gold and its high grade core, was carried in later quartz-tourmaline veins. The surface expression at Stavatrask, arsenopyrite-hosted gold with copper and silver, corresponds to the earlier stages of that same proven paragenetic sequence. In Boliden terms, the system is showing its early stage face at surface while the highest-grade quartz-tourmaline stage remains completely untested -- precisely the part of the model that hosted Boliden's richest ore, and the prime objective of the upcoming drilling.

Taken together, these similarities make Stavatrask one of the most complete Boliden analogues identified in the Skelleftea belt. The comparison is presented as a deposit-type and exploration-targeting analogue rather than a prediction of scale or grade: Stavatrask remains an early stage target defined by surface and boulder sampling and historic drilling for which recoverable data is limited, no mineral resource has been estimated, and continuity at depth has not yet been established. That is exactly the prize the upcoming drill program is designed to chase to test whether a system that mirrors Boliden at surface also carries Boliden-style grade and continuity at depth.

Adelfors project

Adelfors is one of Sweden's most historically significant gold districts, officially discovered in 1738 and mined extensively through the 18th and 19th centuries. The project is located in Jonkoping county, southern Sweden. Remarkably, despite this extensive mining history down to 240 m vertical depth, not a single exploration drill hole has been completed at Adelfors.

Gold mineralization is structurally controlled and high-grade, hosted in quartz veins with a broader wall-rock alteration halo. Historical records document the average mined grade of the two main vein systems at 14 g/t Au with occurrences of up to 1,100 g/t Au over an average vein width of 0.4 m, while recent sampling of the wall-rock shear halo has returned assays of up to 1.1 g/t Au associated with pyrite. Historic sampling of float material proximal to the historic mines returned an average of 2.4 g/t Au (range 0.002 to 26.1 g/t Au) from 22 samples.

With 131 historic workings recorded across the project, the central historic mine on the property was worked to 240 m depth vertically, with grades reportedly increasing with depth. Dense historic workings -- adits, shafts, pits and stopes to surface -- are present across a 7.5 km strike length, with the most intensely mined central area defining a 1.5 km by 1.0 km polygon. This well documented but completely undrilled system represents a compelling greenfield drilling opportunity. As a first step, Hannan plans on undertaking lidar analysis to see through vegetation and map the full extent and orientation of the historic workings.

Skelleftea North project

Skelleftea North is located in the Skelleftea mining district, 40 km north-northwest of the city of Skelleftea. The project was previously drilled by Mawson Gold Ltd. in 2022, which intersected visible gold in vein-hosted mineralization and returned intercepts of up to 1.8 m at 28.4 g/t Au (including 0.4 m at 132 g/t Au). That drill program defined gold over 300 m strike and 80 m depth. Early interpretation suggests a series of plunging shoots control the mineralization, which remains open in all directions.

Gold outcrops extend along a 6.5 km trend, of which less than 5 per cent has been drill tested to date. Grab samples across the main trend average 1.8 g/t Au (range 0.005 to 15.8 g/t Au from 49 samples). A parallel structural trend 5.5 km to the north hosts outcrop grades of up to 15.1 g/t Au, providing further exploration upside.

Option agreement terms

The option agreement with an arm's-length private company grants Hannan the sole and exclusive right to conduct initial assessment work on the property for a period of six months from June 4, 2026. During the grant period, Hannan shall complete the following initial drill program on the property and issue, at its sole discretion, an aggregate of one million shares to maintain its right to exercise the option to acquire 100 per cent of the property, as follows: (i) 400,000 shares upon the completion of at least 1,000 metres of diamond drilling on the property; and(ii) 600,000 shares upon the completion of at least an additional 1,000 metres of diamond drilling on the property.

Assuming positive results from the initial drill program and issuance of the initial shares, Hannan can then exercise its right to acquire an undivided 100-per-cent right, title and interest in and to the property. The option is exercisable for a period of two years from June 4, 2026, by spending at least $2-million on exploration on the property, including expenditures from the initial drill program, and issuing an additional 3.5 million shares. The option agreement is subject to TSX Venture Exchange acceptance. Hannan may terminate the option agreement at any time at its sole discretion, with no further share issuance or expenditure obligations.

Once Hannan completes the exercise of the option, a 2.0-per-cent net smelter return (NSR) royalty on the property will be payable by Hannan but Hannan has the right to repurchase the NSR for $3-million at any time.

Sweden: a Tier 1 European mining jurisdiction

Sweden is positioning itself as the cornerstone of Europe's domestic mineral supply under the EU Critical Raw Materials Act. The efficiency of its permitting regime is demonstrated firsthand at Stavatrask, where a drill permit was secured in four weeks. The country ranks among the world's top 10 most attractive mining jurisdictions in the Fraser Institute's most recent survey, offering stable policy, world-class infrastructure, low-cost hydropower and a skilled work force. The district also supports near year-round drilling: an established forestry road network enables access through the summer, while winter snow cover allows rigs to move broadly across the terrain, with only a short shoulder season around April to June.

Maintaining momentum in Peru

The large Previsto gold-copper project in Peru remains the company's flagship asset and primary focus, and the Swedish projects complement -- rather than replace -- that priority.

With the Previsto permitting timeline extending maiden drilling into 2027, and with the company well financed, Hannan has secured a low-cost, share-based entry into three drill-ready, high-grade gold projects -- structured to add exploration optionality with minimal upfront cash -- allowing the company to keep the drill bit turning and deliver near-term results for shareholders during the interim window.

The team behind Hannan has a demonstrated record of creating substantial shareholder value from high-grade gold discoveries. Projects associated with the team, originally advanced within Mawson Gold when it carried a market capitaliszation of approximately $40-million, have gone on to underpin Southern Cross Gold and Goldsky, since valued at approximately $2.5-billion and $740-million, respectively.

Hannan applies the same disciplined focus on per-share value, capital allocation and momentum to its current portfolio, and looks forward to updating shareholders on these initiatives in the near term.

About Hannan Metals Ltd.

Hannan Metals is an exploration company with a primary focus on advancing its Previsto gold-copper project in Peru, and an option to earn 100 per cent in three high-grade gold projects in Sweden. Over the last decade, the team behind Hannan has forged a long and successful record of discovering, financing, and advancing mineral projects in Australia, Europe and South America.

Michael Hudson, FAusIMM, Hannan's chairman and chief executive officer, a qualified person as defined in National Instrument 43-101, has prepared, reviewed, verified and approved the technical contents of this news release.

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