Hana Mining Discovers New Mineralization Further Increasing the Size of Zone 5 at Depth

Hana Mining Ltd. ("Hana" or the "Company") (TSX
VENTURE:HMG)(FRANKFURT:4LH)(BOTSWANA:HANA) is pleased to announce further
positive drill results from three deep exploration drill holes and four infill
resource drill holes at Zone 5 of the Ghanzi sediment hosted Copper-Silver
Project in Botswana (Figure 1). 


Significant intercepts are highlighted below.

Highlights of deep drilling exploration results: 



--  Estimated true width intercepts: 
    --  1.61% CuEq(1) (1.42% Cu and 12.8 g/t Ag) over 13.07 metres in hole
        HA-628-D, 
    --  1.32% CuEq(1) (1.20% Cu and 8.5 g/t Ag) over 4.89 metres within a
        wider mineralized interval of 
        0.73% CuEq(1) (0.65% Cu and 5.3 g/t Ag) over 19.00 metres in hole
        HA-627-D, 
    --  1.32% CuEq(1) (1.19% Cu and 8.7 g/t Ag) over 5.27 metres in hole HA-
        584-D. 



Also, highlights from infill and down dip extensional drilling include:



--  Estimated true width intercepts: 
    --  2.96% CuEq(1) (2.54% Cu and 28.9 g/t Ag) over 12.14 metres within a
        wider mineralized interval of 
        1.05% CuEq(1) (0.90% Cu and 9.8 g/t Ag) over 42.41 metres HA-599-D, 
    --  3.58% CuEq(1) (3.14% Cu and 30.0 g/t Ag) over 7.58 metres within a
        wider mineralized interval of 
        3.17% CuEq(1) (2.79% Cu and 26.3 g/t Ag) over 8.70 metres in hole
        HA-598-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).                              



Infill drilling at Zone 5 resumed in early April of 2012 with deep hole
exploration drilling beginning in late July 2012. Zone 5 drilling has now
completed 59 holes totaling 13,000 metres to date. 


The deep exploration drill program is focused on wide 'step out' drilling from
known high-grade mineralization. These 'step outs' are located 500 metres away
from previous collar intercepts and intersect mineralization approximately 400
metres down dip from the current Inferred Mineral Resource at Zone 5. All three
holes intersected similar mineralization to that intersected near surface at
approximately 600-650 metres vertically from surface over a defined strike
length of 1800 metres. 


Infill drilling results confirm continuity of high-grade copper mineralization.
The results from these holes were not included in the most recent resource
estimate used to produce the Preliminary Economic Assessment ("PEA") released 14
May 2012. Zone 5 Inferred Mineral Resource holes were drilled to a maximum depth
of 200 metres and produced an Inferred Mineral Resource of 520 MIbs Cu and 6.8
Moz Ag at a 0.40% Cu cutoff. These recent results continue to confirm economic
mineralization and will be used to reclassify the inferred resource into
indicated (Figure 3).


Hana Mining President and CEO, Marek Kreczmer comments, "These deep drill
results confirm that Zone 5 forms the down dip continuation of Discovery Metals
Limited, NE Mango Prospect and are located 400 metres down dip of Hana's
Inferred Resource announced in the 14 May 2012 PEA . Zone 5 deep mineralization
continues to be open along strike and at depth (Figure 4). The extent of the
underground footprint suggests that the size of the resource could possibly
double our earlier estimate. 


"The recently released high grade copper results from Zones 5 and 6 may change
the potential mine plan of the Ghanzi Project. With this new data, Banana Zone
could serve as an important satellite deposit to support potentially, the main
processing centre at these emerging sites. 


"Today's drilling has illustrated the connection between Discovery Metals NE
Mango deposit with Zone 5. This continuity is interesting given the proximity to
the operating Boseto concentrator which is approximately 30 kilometers away."


A total of 177 holes have been drilled for an aggregate of 32,010 metres to date
during 2012. There are eight diamond drill rigs currently at work on Zones 2, 4,
5 and 6. The drill program planned for 2012 is to both discover the extent of
mineralization potential at the Ghanzi Project and to increase the confidence of
known mineralization through infill drilling.


To view Figures 1-4, please click on the following link:
http://media3.marketwire.com/docs/hmg1101_F1-4.pdf.


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 labeled bags, closed and packed into sealed bags
that are shipped to Scientific Services Laboratory 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. 


On May 14, 2012 Hana Mining released results of its most recent NI 43-101
compliant Preliminary Economic Assessment ("PEA") for the Ghanzi Project. The
PEA details a 10,000 tonne per day open-pit mining and milling operation at the
Banana Zone and Zone 5 at an initial capital expenditure of US$285.5 million.
This operation is expected to produce approximately 66.4 million pounds of
copper and 878,000 ounces of silver annually over a minimum 13-year mine life.
The PEA is preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have the economic characteristics
applied to them that would enable them to be categorized as mineral reserves.
There is no certainty that the PEA will be realized. 


On October 24, 2012, Hana announced that it has entered into a definitive
agreement with Cupric Canyon Capital LP ("Cupric") pursuant to which Cupric has
agreed to acquire all of the issued and outstanding common shares of Hana ("Hana
Shares") (other than the Hana Shares it currently owns) by way of a statutory
Plan of Arrangement (the "Arrangement") under the Business Corporations Act
(British Columbia). Under the Arrangement, shareholders of Hana will receive
C$0.82 in cash for each common share of Hana, representing a premium of
approximately 88% to the 20-day volume weighted average price of the Hana Shares
on the TSX Venture Exchange as of October 23, 2012. 


The Arrangement will be subject, among other things, to (i) the approval of at
least 66 2/3% of the votes cast by Hana shareholders on the basis of one vote
per Hana Share, (ii) the approval of at least 66 2/3% of the votes cast by Hana
shareholders and Hana optionholders voting together as one class on the basis of
one vote per Hana Share or Hana option, and (iii) the approval of a simple
majority of the votes cast by Hana shareholders, excluding certain votes
outlined in Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions, at a special meeting to be called to consider
the Arrangement. The Arrangement will also be subject to the approval of the TSX
Venture Exchange and the Supreme Court of British Columbia. In addition, the
Arrangement will be subject to certain customary conditions and relevant
regulatory approvals, including the extension of validity of certain of Hana's
prospecting licenses by the government of Botswana. The transaction is expected
to close in mid-January 2013. 


Table 1: Drill Results from Zone 5, Sections N123250 - N126750. Interval
indicates down hole interval lengths




----------------------------------------------------------------------------
                                                     Est.                   
                  Mineral-                           True   CuEq            
                      ized   From      To Interval  Width    (1)    Cu    Ag
Hole #     Section    Zone    (m)     (m)      (m)    (m)    (%)   (%) (g/t)
----------------------------------------------------------------------------
Zone 5 Diamond Drilling                                                     
----------------------------------------------------------------------------
HA-584-D   N125650  Zone 5 700.00  705.49     5.49   5.27   1.32  1.19   8.7
                           713.00  718.30     5.30   5.09   0.27  0.23   2.5
                           728.90  732.57     3.67   3.52   0.17  0.15   1.4
----------------------------------------------------------------------------
HA-596-D   N124950  Zone 5 105.00  166.00    61.00  58.56   0.52  0.49   2.1
  includes                 126.00  129.47     3.47   3.33   1.15  1.11   2.8
  includes                 144.00  160.09    16.09  15.45   1.02  0.99   2.0
----------------------------------------------------------------------------
HA-598-D   N125950  Zone 5 120.43  129.49     9.06   8.70   3.17  2.79  26.3
  includes                 121.10  129.00     7.90   7.58   3.58  3.14  30.0
----------------------------------------------------------------------------
HA-599-D   N125150  Zone 5 162.05  206.23    44.18  42.41   1.05  0.90   9.8
  includes                 163.04  175.69    12.65  12.14   2.96  2.54  28.9
  includes                 197.00  199.52     2.52   2.42   0.96  0.84   7.7
----------------------------------------------------------------------------
HA-600-D   N124950  Zone 5  64.00  113.93    49.93  47.93   0.86  0.83   1.7
  includes                  82.58  108.42    25.84  24.81   1.41  1.38   2.1
----------------------------------------------------------------------------
HA-627-D   N124450  Zone 5 707.09  726.48    19.39  19.00   0.73  0.65   5.3
  includes                 707.58  712.57     4.99   4.89   1.32  1.20   8.5
  includes                 716.49  720.00     3.51   3.44   0.93  0.82   7.9
  includes                 724.66  726.48     1.82   1.78   0.93  0.83   7.2
----------------------------------------------------------------------------
HA-628-D   N123850  Zone 5 715.42  728.76    13.34  13.07   1.61  1.42  12.8
----------------------------------------------------------------------------
                                                                            
(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).                                                



Forward-Looking Statements 

Certain information contained in this news release, including any information
relating to the proposed transaction (the "Transaction") and Hana's future
financial or operating performance may be deemed "forward-looking". These
statements relate to future events or future performance and reflect Hana's
expectations regarding future growth, results of operations, business prospects
and opportunities of Hana and the completion of the Arrangement. These
forward-looking statements also reflect Hana's current internal projections,
expectations or beliefs and are based on information currently available to
Hana, respectively. In some cases forward-looking information can be identified
by terminology such as "may", "will", "should", "expect", "intend", "plan",
"anticipate", "believe", "estimate", "projects", "potential", "scheduled",
"forecast", "budget" or the negative of those terms or other comparable
terminology. Assumptions upon which such forward looking information is based
include perceived merit of properties; exploration results and budgets; mineral
reserves and resource estimates; work programs; capital expenditures; timelines;
strategic plans; completion of transactions; market prices for precious and base
metals; or other statements that are not statements of fact.  Although Hana
believes that the forward-looking information contained in this news release is
based on reasonable assumptions, readers cannot be assured that actual results
will be consistent with such statements. Accordingly, readers are cautioned
against placing undue reliance on forward-looking information. Hana expressly
disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, events or otherwise, except
in accordance with applicable securities laws.



FOR FURTHER INFORMATION PLEASE CONTACT: 
Hana Mining Ltd.
Marek Kreczmer
CEO
[phone]
[e-mail]
www.hanamining.com