Sanatana Provides Shareholder Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 23, 2015) - Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) is pleased to provide the following update.

Easement Dispute

On November 10, 2014, Trelawney Mining and Exploration Inc. ("Trelawney"), a wholly owned subsidiary of IAMGold Corp. ("IAMGOLD"), discontinued its application for easements over the Watershed Property. On January 6, 2015, the tribunal of the Ontario Mining and Land Commissioner (the "MLC") heard Sanatana's application for payment of costs incurred to defend Trelawney's easement application. The decision on costs associated with Trelawney's easement application was reserved and is expected in a few weeks.

Peter Miles, Chief Executive Officer of Sanatana stated: "Our position has always been that Trelawney's easement application over the Watershed Property was without merit. As background, Trelawney was seeking easements over mineral tenure which was optioned by Trelawney's subsidiary to Sanatana under an enforceable agreement and pursuant to which Sanatana still has the right to acquire an additional unencumbered 1% interest. In our view Trelawney was trying to carve back rights that its subsidiary granted to Sanatana. The proposed carve back of rights, among other things, was not acceptable to us and frankly we do not believe that Trelawney was acting reasonably in seeking the easements.

"Over a year and a half has passed since Trelawney commenced its failed application for easements which Trelawney alleged were 'required' in order to move forward with the Côté Gold Project. We would prefer to work with Trelawney and its subsidiary with respect to sensible options for the mutual beneficial exploration of the Watershed Property but if Trelawney insists on seeking its allegedly 'required' rights through easements, then we expect that we will continue to defend our contractual rights and the rights afforded to us under the Mining Act (Ontario). Ultimately Trelawney, and its parent company IAMGOLD, will need to decide the course of action going forward."

Defending Trelawney's application occupied much of Sanatana's time during 2014. Sanatana incurred significant legal costs, as Trelawney rejected all attempts by Sanatana to settle the matter amicably and on reasonable commercial terms. Ultimately Trelawney discontinued its easement application on the first day of the hearing before the MLC citing low gold prices as the reason for the discontinuance. It is notable that Trelawney discontinued its easement application on or around the lowest spot price for gold in 2014 and that both gold and gold equities have subsequently rallied substantially.

Sanatana remains committed to the responsible and mutually beneficial development of the Watershed Property and Sanatana would prefer to work amicably with Trelawney and Trelawney's subsidiary, Trelawney Augen Acquisition Corp. ("TAAC"). That said, Sanatana's management remains confident in the Company's legal position and if Trelawney seeks to commence another easement application over the Watershed Property then management expects to continue to defend Sanatana's rights.

Sanatana will issue a further news release once the MLC issues its decision on costs.

Watershed Property Exploration

Sanatana would like to remind its shareholders that it has spent approximately $9,000,000 on exploration of the Watershed Property to date. Under the terms of the option and joint venture agreement between Sanatana and TAAC (the "Option and JV Agreement"), Sanatana was only required to spend $5,000,000 to earn its 50% interest. Once the joint venture between Sanatana and TAAC (the "JV") is formed under the Option and JV Agreement, any excess work costs (as defined by the Option and JV Agreement) will be credited to Sanatana's contribution to the first work program after the formation of the JV. Sanatana has until March 23, 2016, to decide whether to exercise its right to acquire an 1% interest in the Watershed Property or to form the JV with TAAC based on current ownership (50% Sanatana / 50% TAAC). The benefit of earning an additional 1% interest in the Watershed Property is that Sanatana would control the JV's management committee and thereby control directions with respect to, among other things, work programs.

Sanatana has now engaged Caracle Creek International Consulting to complete a maiden resource estimate on the Watershed Property. The resource estimate is expected to include all drilling to date, approximately 9,000 metres, on Watershed Property mining claim #3011820. It is also expected that the maiden resource estimate will be completed towards the end of the first quarter of this year. Additionally, and subject to available financing, as a result of Trelawney discontinuing its easement application along with resurgent gold prices and equities, Sanatana expects to undertake additional infill and exploratory drilling on the Watershed Property during 2015 with the objective of compiling the required data so that Sanatana can assess whether it will exercise its right to acquire an additional 1% interest in the Watershed Property.

Clam Lake Property

By the end of the third quarter of 2014, Trelawney had completed an intensive exploration program focused on following up on the gold mineralized intercept of 63.2 g/t Au / 5.0 metres (uncut) in drill hole CLM13-02 at what has now been named the Hava Deformation Zone. For further details on drill hole CLM 13-02 and Sanatana's interest in the Clam Lake Property see Sanatana's news release dated June 2, 2014 (a copy of which is available under Sanatana's SEDAR profile).

Field work included a down hole rock properties survey of the drill hole CLM13-02, systematic geochemical sampling and analysis of previously stripped outcrops as well as newly exposed areas that were mapped to extend the known area of the Hava zone and the completion of a nine hole 1,881 metre drill program. Five of the drill holes intersected the shear zone at around the projected target depths as planned and four of these holes had intercepts containing visible gold logged. Sanatana is still awaiting the complete results of the work program from Trelawney and more detailed information about the progress of the Hava Deformation Zone will be provided once those results are available, which is expected shortly.

Green Lake, Saskatchewan

Sanatana is also pleased to announce that it has acquired additional significant mineral tenure near Green Lake, Saskatchewan. Sanatana's land position in this area now comprises some 85,000 hectares or approximately 210,000 acres.

Sanatana considers this region as prospective for diamond mineralization based on historical publicly available data. Sanatana acquired the additional mineral tenure after a small geochemical sampling program undertaken by Sanatana in summer 2014 confirmed the presence of kimberlitic indicator minerals in the surface sediments.

Sanatana intends to pursue this exploration prospect in 2015.

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).

Technical Review

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

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.