Hannover House Inc (HHSE)

[Toro/Toro/Toro/]

NEW FILING July 17, 2012 EDGAR.FILINGS.AND.TAX.RETURNS.STATUS

a). AUDITS FOR YEARS ENDING 12/31/2010 AND 12/31/2011 / EDGAR FILINGS AND TAX RETURNS STATUS – Following the recently completed financial reviews for the years of 2010 and 2011, Company has been working with two outside CPA’s on the completion and/or amendment of corporate tax returns for these periods. Company had previously elected to file taxes on a “cash-basis”, although the financial statements and filings for the Company have been prepared on an “accrual-basis”, creating some issues requiring resolution and conformity. In respect of the permanent status of Edgar filings, and the obligation to file corporate tax returns as accurately as possible (even in circumstances of cash-vs-accrual accounting), the Company has deferred to the recommendation of its outside financial advisors to withhold year-end portions of the Edgar filings until the corporate tax returns can be properly amended and filed to reflect the year-end financial review. Meanwhile, the Company is proceeding with the release of Quarterly Edgar filings through MacReport Media, and will promptly file the year-end summary reports with the Edgar database contemporaneous with the completion and filing of the amended corporate tax returns.

b). MANAGEMENT RESPONSE TO REPORT OF “BEDROCK” LAWSUIT – Although Company has not been served nor has received any direct communications in the above matter, Company has been advised through shareholders that a legal action has been filed in California by Bedrock Ventures against Company, ostensibly seeking a return of the portion of funds provided to Company by Bedrock. As previously disclosed in multiple corporate filings, it has been Company’s position that Bedrock has not fulfilled its financial obligations to the Company, although all of the considerations required from Company have been paid to Bedrock. Accordingly, and without the benefit of reviewing the Bedrock action, it remains the position of Company that Bedrock failed to fund the full investment banking obligation of $1.5-million, and therefore owes money (or a return of shares) to Company. In order to preserve the Company’s legal position, defenses and counter-claims against Bedrock, no further details will be posted until such time, if ever, that Company is served this lawsuit and files a response and counter-claim.

c). ENGAGEMENT OF CORPORATE P.R. REPRESENTATION AND NEW STAFF Management has contracted for corporate publicity representation with Kellwood Media, effective August 1, 2012. Management has also hired Garrett Krier as Director of Marketing, effective immediately. Krier will oversee all publicity and advertising activities for the Company and will also be responsible for revising and updating product websites and the corporate website. Separate press announcements on both matters will be released next week.

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