Hana Provides Update on Banana Zone Preliminary Economic Assessment (PEA)

Hana Mining Ltd. (TSX VENTURE:HMG)(FRANKFURT:4LH) (the "Company") is pleased to
provide a progress update on the Banana Zone Preliminary Economic Assessment
study being prepared by AGP Mining Consultants Inc. ("AGP").The PEA is assessing
the viability of a mining operation at the Banana Zone, Ghanzi Project with
copper-silver ore being processed in a 20,000 tonne-per-day plant using
conventional flotation to produce copper-silver concentrate. 


Work to date on the PEA is positive and the work effort continues in earnest and
the multiple studies required to evaluate the project are meeting expectations.
However, the delivery of the reports has been slow mainly due to the level of
activity in the mining industry. Therefore, the completion and the release of
the PEA is expected to be delayed and is now expected to be made public during
May 2011.


Other activities at the Ghanzi Project include:



--  Definition drilling at the Banana Zone commenced in January and the
    present expectation is to complete 50,000 metres of core drilling during
    2011 which is expected to convert a substantial amount of the Inferred
    resources into the Indicated category. A new 43-101-Compliant resource
    estimate, incorporating this drilling, will be released after completion
    of the drilling program. 

--  The final report from the ground water exploration program has been
    completed and submitted to the Company by Wellfield Consulting Services
    of Gaborone, Botswana. The report concluded that the proposed
    groundwater program has been successfully completed and substantial
    groundwater resources, more than adequate to supply the proposed
    processing plant, have been identified. The next stage is to
    substantiate the results through numeric modeling. 

--  Multiple metallurgical studies have been completed. Leaching versus
    flotation PEA level studies appear to confirm conventional milling to be
    the preferred alternative method at this time considering current cost
    estimates and metal prices. 

--  The Terms of Reference ("ToR"), a very important step towards
    determining the scope of the Environmental Impact Assessment ("EIA"),
    was recently submitted and is under review by the various Botswana
    regulatory entities. Meetings are scheduled for April 2011. The outcome
    of the meetings will provide guidance on content, issues and timing
    required for the full EIA. 

--  Exploration drilling has resumed at Zone 5. This drilling is expected to
    increase the mineral resources at Zone 5 which at a cut-off grade of
    0.30% copper host approximately 20.7 million tonnes grading 1.23% Cu and
    8.70g/t Ag containing 562 million pounds of copper and almost six
    million ounces of silver. All of the resources at Zone 5 are in the
    Indicated category. 



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 2,169 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 762 million
pounds of copper and 16 million ounces of silver from 37.4 million tonnes at a
grade of 0.93% copper and 13.4 g/t silver. All of the Indicated resources are
from the Banana Zone. There are also Inferred resources of 5.6 billion pounds of
copper and 85.4 million ounces of silver from 423.9 million tonnes. This
Inferred mineral resource estimate consists of 225.4 million tonnes grading
0.64% Cu and 8.1 g/t Ag in the Banana Zone, 20.7 million tonnes grading 1.23% Cu
and 8.7 g/t Ag in Zone 5, 16.7 million tonnes grading 0.86% Cu and 4.0 g/t Ag in
Zone 6, and 161.1 million tonnes grading 0.45% Cu and 3.6 g/t Ag in the
Chalcocite Zone; all at a cut-off grade of 0.30% 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.

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.