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Lake Johnston Gold Project

• The Lake Johnston Project has the potential to host significant narrow, high grade gold mineralisation along a 25km corridor of prospective ground.
• At the Ernest Prospect, recently returned assays from Hannans’ drilling included:

              *  2m @ 6.3g/t gold and 60.3g/t silver from within 8m @ 1.9g/t gold and 20.4g/t silver (LJRC021) and;

              *  84m @ 1.8g/t silver from 4m (LJRC020)

• Gold and silver mineralisation at Ernest remains open to the north.
• At the Mt Gordon Prospect, historical intercepts include
• 5m @ 7.1g/t gold from 24m and 2m @ 6.9g/t gold from 70m.
• Hannans’ is planning additional gold exploration activities at both the Ernest and Mt Gordon Prospects.

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2nd Quarter Activities Report

Forrestania Project

• Helicopter geophysical (VTEM) survey at Stormbreaker
• Prospect successfully completed with anomalies generated
• Ground geophysical surveys commenced to follow up VTEM anomalies
• Settlement completed of additional ground at Stormbreaker Prospect
• Applications made for large landholding (called Skeleton Rocks) adjoining northern boundary of Stormbreaker
• Flora and fauna survey completed
• Next phase of RC drilling planned for current Quarter
• Subsequent to end of Quarter, experienced nickel consultant joins Forrestania Project exploration team

Lake Johnston Project

• High grade gold returned from 1 metre intervals confirms prospectivity for narrow high grade gold mineralisation

Queen Victoria Rocks Project

• Joint venture partner Vale completed six holes (mix of RC and diamond) testing nickel targets

Sunday Project

• Joint venture partner Triton Gold completed three diamond drill holes testing gold targets

Jigalong Projects

• Acquisition of aeromagnetic data to assist with gold and base metals exploration
• Manganese sale process deferred through to current Quarter (i.e. 3rd Quarter)

Corporate

• Warwick Resources Ltd shares converted into Atlas Iron Ltd shares following completion of Scheme of Arrangement
• Annual General Meeting completed and all resolutions passed
• Subsequent to end of Quarter, Mr Jonathan Murray appointed as non-executive director

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2nd Quarter Cash Flow Report

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Appointment of Jonathan Murray as Director

The Board is pleased to announce the appointment of Mr Jonathan Murray as a non-executive director. Jonathan is a Partner of Steinepreis Paganin, an independent corporate and commercial law firm based in Perth, Western Australia. He has significant experience in advising on initial public offers and secondary market capital raisings, all forms of commercial acquisitions and divestments and providing general corporate and strategic advice.

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Response to ASX Price Query

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Change of Directors Interest

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Hannans becomes Top 10 shareholder of Atlas Iron Ltd

• Hannans Reward Ltd becomes Top 10 shareholder of Atlas Iron Ltd (“Atlas”)
• 8,133,334 Atlas shares held by Hannans’ wholly owned subsidiary, HR Equities Pty Ltd
• Atlas shareholding valued at $14.6 million
• Hannans believes Atlas well positioned to become a major player in the Pilbara iron ore market  

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Detailed EM surveys commence at Forrestania Project

• Ground fixed-loop electromagnetic (FLTEM) surveys have commenced
• Ground surveys to refine the 13 priority helicopter-borne anomalies (VTEM) recently indentified
• EM anomalies commence 7km north of Flying Fox nickel sulphide mine and continue over 14km strike length

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Multiple EM anomalies identified at Forrestania Project

• Heli-borne geophysics (VTEM) has identified multiple, well defined and well located EM anomalies within the Forrestania Project
• Majority of the EM anomalies are located within the newly acquired Stormbreaker ground position (refer ASX release of 25 November 2009)
• Anomalies occur over an aggregate strike length of 14km
• Southern-most anomaly is located 7km along strike of the Flying Fox nickel mine
• Newly developed heli-borne geophysics (ZTEM) looking for deeper EM targets currently in progress
• Ground-based geophysics scheduled to commence at the completion of the ZTEM survey to generate drill ready targets

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Hannans Secures prospective ground at Forrestania Project

• Forrestania Agreement with St Barbara Ltd and Kagara Ltd varied to provide Hannans with 100% interest in nickel rights - up from 85% - in return for Hannans assuming Kagara royalty and nickel treatment obligations.
• 100% ownership of nickel rights provides Hannans with various options to accelerate exploration activities over consolidated Forrestania project.

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