Follow the below steps to add the contact records on the report to your target list
Open your target list.
Click on the Contacts Subpanel.
Click on the drop-down icon.
Click Select From Reports
A list of reports against the contacts module will popup. Select the report you want.
Click Add
Once done the contacts will appear in the Contacts Subpanel in the Target Lists Module.
Note: You are unable to pull through email addresses from a different module into the contacts subpanel.
For example if you have a report that shows contacts' email addresses and the related accounts' email address, you cannot pull the account email address through. You would be required to write another report with Accounts as the primary module.