ASX Announcement 25 February 2010 Forrestania Project Update - Technical team responsible for designing and implementing Forrestania exploration strategy continues to be strengthened - Next phase of reverse circulation (RC) drill testing of priority geological/geochemical/geophysical targets scheduled to commence in March, pending Government approvals - approximately 20 holes for 5,000 metres - Drilling to occur within the interpreted northern extension of the western ultramafic unit that hosts the high grade Flying Fox nickel sulphide mine approximately 7km to the south - Geological and geochemical review identifies several previously unidentified ultramafic units increasing prospectivity of the wider Forrestania Project - Ground electromagnetic (EM) surveys designed to refine VTEM anomalies completed this week - Geophysical interpretation and modelling of VTEM, moving loop EM and fixed loop EM continues to generate additional areas of interest within Stormbreaker corridor - Multiple co-ordinated field programs to continue throughout 2010 Western Australian minerals explorer Hannans Reward Ltd (ASX:HNR) believes its Forrestania nickel sulphide project continues to be strengthened with the involvement of additional key experienced technical professionals, access to increasingly prospective exploration acreage and a balance sheet that enables a methodical exploration process to be employed without short term capital raising requirements. Assisting Hannans' Exploration Manager Amanda Arrowsmith with the development of the Forrestania Project are key technical professionals Mr. Don Huntly (geologist), Mr.

Ben Jones (geophysicist) and Dr.

Nigel Brand (geochemist).

Mr.

Huntly and Mr Jones were previously employed by Xstrata Nickel Australasia as Exploration Manager and Chief Exploration Geophysicist respectively.

Prior to this, both Messrs Huntly and Jones were with Jubilee Mines Ltd where they worked with Dr.

Brand in his role as a consultant to Xstrata and Jubilee. Since commencing with Hannans in early 2010 the expanded technical team has worked towards improving the geological understanding of the Forrestania Project, reviewing the exploration data sets compiled by Hannans and previous explorers and planning the future exploration strategy.

This has resulted in a significantly improved geological understanding of the Project, which is well located within the world-class Forrestania nickel sulphide belt. There is no doubt that the Forrestania belt is highly mineralised.

Hannans' Forrestania Project is located primarily on the interpreted northern extension of the western ultramafic that hosts the high grade nickel sulphide mines to the south and has a number of ultramafic units confirmed within it.

Historically, minimal targeted nickel sulphide exploration has taken place within Hannans Project. Hannans has completed an extensive VTEM survey as well as a number of follow up ground TEM surveys, and expects to commence the next phase of reverse circulation drilling in March; approvals to commence drilling were lodged with the Department of Mines & Petroleum in early February 2010.

The RC drill programme will comprise approximately 20 RC drill holes for 5,000 metres of drilling at an estimated cost of $550,000.

The RC drilling has been prioritised on a combination of geological, geochemical and geophysical anomalies (Refer Figure below). Additional surface / regolith sampling is also being planned to identify areas of interest where highly conductive banded iron formations may be masking subtle geophysical responses representing possible bedrock conductor targets. Hannans remains well funded to complete multiple phases of exploration at Forrestania during the course of the year with cash reserves of $5 million and an investment in Atlas Iron Ltd valued at approximately $16 1/2 million. Hannans shareholders have excellent upside exposure to exploration success at Forrestania and limited downside risk at current levels. Click here to access the full ASX announcement: http://esp.gewru.com/download/files/12414/1094350/Forestainia%20Project%20Feb%202010.pdf
For further information please contact: Shareholder Contact: Damian Hicks Managing Director Telephone: (08) 9324 3388 Fax: (08) 9324 3366 Email: Media Contact: Karen Oswald Professional Public Relations Telephone: 08 9388 0944 Email: Hannans Reward Limited Summary Hannans Reward Ltd has developed a suite of prospective exploration projects within Australia covering nickel, gold and manganese.

Hannans has joint ventures with Vale (www.vale.com), Kagara Ltd (www.kagara.com.au), St Barbara Ltd (www.stbarbara.com.au) and Triton Gold Ltd (www.tritongold.com.au).

Hannans is the second largest shareholder in Warwick Resources Ltd (www.warwickresources.com.au) and holds equity in Atlas Iron Ltd (www.atlasiron.com.au).

Hannans' shareholders are exposed to share price appreciation through exploration success at the following projects: Forrestania -- nickel & gold project 7km north of Western Area's Flying Fox nickel mine Lake Johnston -- nickel & gold project located 25km south east of Norilsk's Maggie Hays nickel mine Jigalong -- manganese & base metals project located 150km east of Newman, WA Queen Victoria Rocks - joint venture with Companhia Vale do Rio Doce (Vale),30km south-west of Coolgardie, WA Sunday -- gold joint venture with Triton Gold Ltd, 10kms east of Leonora, WA
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