Trelawney Reports Exploration Results on Clam Lake Property and Commences A Follow Up Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 26, 2014) - Sanatana Resources Inc. ("Sanatana" or the "Company"): (TSX VENTURE:STA) announces that Trelawney Mining and Exploration Inc. ("Trelwaney"), a wholly-owned subsidiary of IAMGold Corp., has commenced a seven to nine hole drill program (2,000 to 2,400 metres) to follow-up on the high grade intersection (5 metres @ 63.2 g/t Au from 143 metres, uncut and 2.5m true width) and associated IP anomaly reported earlier this year at Clam Lake Property drill hole CLM13-02, as well as to test selected target areas along the Baxter's and Hopkins trends.¹ Sanatana currently has a 10% carried interest in the Clam Lake Property and has the right to earn up to a 10.2% carried interest (see: "Description of the Clam Lake Property" below).

Peter Miles, Chief Executive Officer of Sanatana stated: "We are pleased that Trelawney is following up on such an encouraging exploration result that is in close proximity to Sanatana's Watershed Project. This is an important drill program as it has the potential to both enhance our knowledge of the gold mineralization trend as well as the prospectivity immediately surrounding the Côté Gold Project. We look forward to receiving the results of the drill program."

Summary of the Exploration Results

Detailed structural and lithological mapping was completed on two historically stripped outcrops located 225 metres to the south-east of DDH CLM13-02. The purpose was to determine the orientation of principal gold-bearing structures related to the Au-rich deformation zone intersected in this hole and provide vectors to assist in targeting of future drill holes (see map below). Sulfide bearing quartz-carbonate veins trending almost east-west and steeply dipping were sampled and gold assay results are pending. The mapping work also covered a series of six historical pits and trenches located 150 m northwest of the hole CLM13-02. Here samples were collected from an intensely carbonate altered near vertical quartz shear zone striking 136° hosted by variably altered tonalite.

DGI Geosciences Inc. was contracted to conduct structural and physical rock property borehole logging of drill hole CLM13-02 and the results were integrated with the surface IP data and mapping to facilitate targeting subsequent drill holes in the Au-bearing deformation zone. A seven to nine hole 2,000 to 2,400 metre drill program commenced early in August to follow up the high grade intersection reported from drill hole CLM13-02 and associated IP anomaly as well as test selected target areas along the Baxter's and Hopkins trends.

¹ See Sanatana's news release dated June 2, 2014, a copy of which is available under Sanatana's SEDAR profile at www.sedar.com.

To view 'Clam Lake Property Drill Target Map and Location', please visit the following link: http://media3.marketwire.com/docs/sana0825.pdf

Note: Sanatana has conducted extensive drilling on mining claims 3018412 and 3011820. See Sanatana's news releases dated June 19, 2012, June 20, 2012 and January 10, 2013, copies of which are available under Sanatana's SEDAR profile at www.sedar.com.

Description of the Clam Lake Property

The Clam Lake Property consists of unpatented mining claims 4240522, 4241016 and 4220425 situated in Yeo and Chester townships, Ontario (see map above). The Clam Lake Property is held under the terms of a Mining Claim Acquisition Agreement (the "Acquisition Agreement") pursuant to which Trelawney holds a direct 80% interest. The remaining 20% undivided legal and beneficial interest in the Clam Lake Property (the "20% Interest") forms part of the Watershed Property and is held for the benefit of Sanatana and Trelawney Augen Acquisition Corp. ("TAAC'") pursuant to the option and joint venture agreement between Sanatana and TAAC dated February 14, 2011 (the "Option and JV Agreement"). Sanatana currently holds a 10% interest in the Clam Lake Property and pursuant to the Option and JV Agreement has the right to earn up to a 10.2% interest.

The 20% Interest is identified as a "carried interest" under the Acquisition Agreement and is defined to mean that until completion of a positive prefeasibility study, all costs and expenses of the exploration programs, preparation and filing of assessment reports and other obligations relating to the Clam Lake Property are the sole and exclusive obligation and liability of Trelawney and Sanatana will not have any obligation or liability in respect thereof. For additional information on the Clam Lake Property see the Company's news release dated July 25, 2013 (a copy of which is available under the Company's SEDAR profile at www.sedar.com).

The technical portions of this news release were reviewed and approved by Troy Gill BSc. MAIG, Exploration Manager for the Company, a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About the Company

Sanatana Resources Inc. is a Canadian mineral exploration and development company focused on its Watershed Property in Ontario. Sanatana entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire up to 51% of the Watershed Property consisting of 46 mining claims totalling approximately 19,006 acres and located within the townships of Yeo, Chester, Neveille and Benneweis. As at November 28, 2012, Sanatana exercised its first option and is the legal and beneficial owner of 50% of the Watershed Property. Sanatana has until March 23, 2016, to decide whether to exercise its right to acquire a further 1% in the Watershed Property.

In June 2012, IAMGold Corp. completed its acquisition of Trelawney Mining and Exploration Inc. and became the sole indirect shareholders of TAAC. In 2013, Sanatana expanded the Watershed Property by acquiring, for the sole benefit of Sanatana and TAAC, a 20% interest in three additional mining claims located in Yeo and Chester Townships, Ontario. In addition to the Watershed Property, Sanatana also has exploration property in Saskatchewan. With an experienced management team and board of directors, the Company has the ability required to identify, develop and fund economic mineral properties. Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX VENTURE:STA).

SANATANA RESOURCES INC.

Peter Miles, President and Chief Executive Officer

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "plans", "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.