Sarama Resources Discovers New Mineralised Trend at Sanutura Project

Drilling Identifies Oblique Mineralised Trend in North of Tankoro Deposit

PERTH, January 16, 2023 - Sarama Resources Ltd. ("Sarama" or the "Company") (ASX:SRR)(TSXV:SWA) is pleased to announce that exploration drilling at its 100%-owned ⁽⁴⁾ , multi-million-ounce Sanutura Project (the " Project ") has discovered a new mineralised trend extending for 700m in the north of the Tankoro Mineralised Corridor.

The reported drilling totals approximately 2,000m and was primarily focussed on testing for new mineralisation within the Phantom, Phantom East and Phantom West Prospects, which are located in the north of the Tankoro Deposit (refer Figure 1). The results represent the seventh discovery of additional and extensional mineralisation since the commencement of the Company's ongoing +50,000m drill program and continue to demonstrate the strong potential to grow the oxide component of the Project's 0.6Moz Au (Indicated) plus 2.3Moz Au (Inferred)⁽¹⁾ mining shape constrained Mineral Resource.

Highlights

• New, near-surface mineralisation intersected in the north of the Tankoro Mineralised Corridor
• Highlighted downhole intersections from new assays include:
  • 20m @ 1.68g/t Au from 16m in TAA405 (ended in mineralisation);
  • 13m @ 1.79g/t Au from 7m in TAA403 (incl. 2m @ 8.88g/t Au);
  • 9m @ 2.14g/t Au from 7m in TAA404;
  • 6m @ 2.91g/t Au from 31m in TAA422 (incl. 1m @ 12.10g/t Au);
  • 7m @ 2.18g/t Au from 22m in TAA389;
  • 5m @ 3.01g/t Au from 43m in TAA429 (incl. 2m @ 6.70g/t Au); and
  • 10m @ 1.13g/t Au from 7m in TAA420.
• New mineralised trend has strike length of 700m and remains open in all directions
• Mineralisation is oblique with potential to link Phantom and Phantom West Trends over a 1,200m strike length
• Intersections of new mineralisation are in shallow, oxide material with high potential to add to the oxide and transition component of the Mineral Resource, currently standing at 0.2Moz Au (Indicated) plus 0.8Moz Au (Inferred)⁽²⁾

Sarama's President, CEO & MD, Andrew Dinning commented:

"We are excited that new, near-surface discoveries continue to be made throughout the Tankoro Mineralised Corridor with the most recent results representing the seventh successive area where new mineralisation has been intersected outside the Mineral Resource. This bodes well for the many other targets that have been identified and are yet to be drilled and continues to support our view that significant exploration potential remains. The identification of new cross-linking mineralisation is expected to add to the current Mineral Resource which we plan to update after the completion and follow up of the current +50,000m program, a majority of which is cost effective aircore drilling."

A Growth-Oriented Drill Program in Oxide Material

Drilling Identifies New Oblique Mineralised Trend over 700m Strike Length and Remains Open

Results are being reported (refer Appendix A) for approximately 2,000m (43 holes) of aircore (" AC ") drilling undertaken in Q2/Q3 2022 at the Phantom, Phantom West and Phantom East Prospects in the northern extent of the Tankoro Mineralised Corridor (refer Figures 1 & 2). The drilling targeted the near-surface oxide horizon to a vertical depth of approximately 50m and highlighted downhole intersections from these holes include:

• 20m @ 1.68g/t Au from 16m in TAA405 (ended in mineralisation);
• 13m @ 1.79g/t Au from 7m in TAA403 (incl. 2m @ 8.88g/t Au);
• 9m @ 2.14g/t Au from 7m in TAA404;
• 6m @ 2.91g/t Au from 31m in TAA422 (incl. 1m @ 12.10g/t Au);
• 7m @ 2.18g/t Au from 22m in TAA389;
• 5m @ 3.01g/t Au from 43m in TAA429 (incl. 2m @ 6.70g/t Au); and
• 10m @ 1.13g/t Au from 7m in TAA420.

Phantom and Phantom West Prospects

The new drilling in the Phantom and Phantom West Prospects primarily targeted areas with potential for discovery of additional mineralisation and/or extensions to existing mineralised lodes. These prospects are located to the north of the Tankoro Deposit and historical drilling has been relatively constrained, focussing on the delineation and extension of the dominant north-north-east (" NNE ") oriented trends of steeply dipping lode packages which extend over a strike length up to 2.5km (refer Figure 2). A lateral distance of approximately 360m separates the two trends and historical soil geochemical surveys have returned elevated gold-in-soil values in between, suggesting potential for obliquely oriented mineralisation to link the two main mineralised trends. This cross-linking type of mineralisation has been delineated extensively in the better drilled parts of the Tankoro Deposit and adds significantly to the economic potential for the Project.

Previous reconnaissance drilling along the targeted trend in the Phantom Prospect returned encouraging results and included downhole intersections of 6m @ 3.33g/t Au , 6m @ 3.85g/t Au and 6m @ 1.40g/t Au . The recent drilling reported in this news release followed up on these isolated intersections and stepped out along the projected trend of the elevated gold-in-soil values and returned results including 6m @ 2.91g/t Au (incl. 1m @ 12.10g/t Au), 6m @ 1.40g/t Au and 2m @ 6.70g/t Au (incl. 1m @ 11.75g/t Au) which support the interpretation of a new mineralised trend extending for approximately 700m along strike (refer Figure 3).

The mineralisation remains open in all directions and importantly, potential exists for it to be extended further to the south-west where it may intersect the main mineralised trend in the Phantom West Prospect. This hypothesis is supported by the elevated gold-in-soil values and would bring the total length of this oblique mineralisation to approximately 1.2km. The intersection areas of lodes of different orientations within the Tankoro Deposit is known to produce enrichment of mineralisation, in terms of volume and grade. In this respect, recent drilling in the projected intersection zone in the Phantom West Prospect has confirmed the presence of higher grades and localised thickening of the mineralisation with downhole intersections of 10m @ 5.25g/t Au (previously reported), 9m @ 2.14g/t Au and 13m @ 1.79g/t Au (incl. 2m @ 8.88g/t Au) being returned.

Further higher-grade zones are present along strike in the current Mineral Resource of the Phantom West Prospect which may be associated with additional instances of cross-linking mineralisation. A recently returned downhole intersection of 20m @ 1.68g/t Au (ending in mineralisation) returned thicker than expected mineralisation and also ended in mineralisation (Figures 3 and 4). This enhances the current interpretation but also offers a near-field target for follow-up in the zone, which also contains historical intersections of 10m @ 3.39g/t Au , 12m @ 2.25g/t Au and 6m @ 2.75g/t Au .

Phantom East Prospect

The drill program included two 50m-long holes at the Phantom East Prospect to follow-up previously reported, near-surface intersections of 4m @ 2.63g/t Au and 3m @ 2.60g/t Au (refer Figure 5). These downhole intersections are very close to the current Mineral Resource but were not incorporated due to lack of supporting data. The new drilling stepped-out to the south, targeting intersections to support the interpretation of mineralisation over a 50-60m strike length. Recently returned downhole intersections of 4m @ 1.61g/t Au , 2m @ 1.09g/t Au and 2m @ 0.93g/t Au within the same hole potentially suggest the presence of a package of three parallel mineralised lodes striking NNE, linking up with the unmodelled intersections approximately 50m to the north.

Mineralisation at the Phantom East Prospect is generally high-grade and consists of several relatively short-scale lodes of differing strike orientations and dips. Several targets with potential to extend the strike of the current Mineral Resource remain, which are planned to be pursued in upcoming drill programs.

Exploration in Tankoro Mineralised Corridor Set to Continue in 2023

The reported results within group of Phantom Prospects are highly encouraging and highlight the potential for growth with further exploration drilling within the Tankoro Mineralised Corridor. The program has also successfully identified potential strike extensions to currently modelled lodes in near-surface oxide material which have the potential to add to the Mineral Resource .

Drilling is currently paused and with all assays from the Q2/Q3 2022 program now returned, the Company is currently compiling results and incorporating these in its planning for further drilling of its highest priority targets around the Mineral Resource at both the Tankoro and Bondi Deposits which comprise the Sanutura Project. A number of regional exploration targets will also be tested in the upcoming programs.

Appendices

To access the appendices referred to in this announcement please click on the links below

Appendix A: Summary of Recently Drilled Results
https://saramaresources.com/wp-content/uploads/2023/01/230117-appendix-a-summary-of-recently-returned-drill-results.pdf

Appendix B: References to Previous ASX Disclosure
https://saramaresources.com/wp-content/uploads/2023/01/230117-appendix-b-references-to-previous-asx-disclosure.pdf

Appendix C: JORC Code (2012 Edition) - Table 1 Information
https://saramaresources.com/wp-content/uploads/2023/01/230117-appendix-c-jorc-code-2012-edition-table-1-information.pdf

For further information, please contact:

Company Activities
Andrew Dinning or Paul Schmiede
Sarama Resources Ltd.
e: info@saramaresources.com
t: +61 8 9363 7600

Media Enquiries
Angela East
Media & Capital Partners
e: Angela.east@mcpartners.com.au
t: +61 428 432 025

ABOUT SARAMA RESOURCES LTD

Sarama Resources Ltd. (ASX: SRR, TSX-V: SWA) is a West African focused gold explorer/developer with substantial landholdings in south-west Burkina Faso. Sarama is focused on maximising the value of its strategic assets and advancing its key projects towards development.

Sarama's 100%-owned⁽⁴⁾ Sanutura Project is principally located within the prolific Houndé Greenstone Belt in south-west Burkina Faso and is the exploration and development focus of the Company. The Project hosts the Tankoro and Bondi Deposits which have a combined Mineral Resource of 0.6Moz gold (Indicated) plus 2.3Moz gold (Inferred)⁽¹⁾.

Together, the deposits present a potential mine development opportunity featuring an initial, long-life CIL project which may be established and paid for by the significant oxide Mineral Resource base.

Sarama has built further optionality into its portfolio including an approximate 470km² exploration position in the highly prospective Banfora Belt in south-western Burkina Faso. The Koumandara Project hosts several regional-scale structural features and trends of gold-in-soil anomalism extending for over 25km along strike.

Sarama also holds an approximate 18% participating interest in the Karankasso Project Joint Venture ("JV") which is situated adjacent to the Company's Sanutura Project in Burkina Faso and is a JV between Sarama and Endeavour Mining Corp ("Endeavour") in which Endeavour is the operator of the JV. In February 2020, an updated Mineral Resource estimate of 709koz gold⁽³⁾ was declared for the Karankasso Project JV.

The Company's Board and management team have a proven track record in Africa and a strong history in the discovery and development of large-scale gold deposits. Sarama is well positioned to build on its current success with a sound strategy to surface and maximise the value of its property portfolio.

Sanutura Project - An Already Large Mineral Resource with Potential to Grow

The Company's primary focus is its 100%-owned⁽⁴⁾ Sanutura Project, which hosts a large Mineral Resource of 0.6Moz Au (Indicated) plus 2.3Moz Au (Inferred)⁽¹⁾ and covers an area of 1,420km². The Project occupies a commanding position along 70km of strike in the prolific Houndé Belt (refer Figure 6), Burkina Faso's pre-eminent gold belt.

The Project lies 60km south of Endeavour Mining's Houndé Mine (5Moz Au); 120km south of Fortuna Silver's high-grade Yaramoko Mine (1Moz Au), and 140km south of Endeavour Mining's Mana Mine (5Moz Au), highlighting the significant gold endowment of the Houndé Belt (refer Appendix B). Endeavour Mining's Bantou Project (1.5Moz Au Inferred Mineral Resource⁽⁵⁾) is located only 6km from the bulk of the Sanutura Project's main deposit, which illustrates the gold camp scale of endowment of the immediate area.

The Project has significant growth potential and the primary objective of the current +50,000m drill program is to increase the existing 0.2Moz Au (Indicated) plus 0.8Moz Au (Inferred)⁽²⁾ pit shell constrained oxide and transition component of the Project's Mineral Resource to further underwrite and enhance the economics of mine development.

The recent drill program has generally focused on shallow additional and extensional targets throughout the well-mineralised corridor, where mineralisation has been drill-defined for a semi-continuous strike length of 16km and where potential exists to expand the Mineral Resource at shallow depths in oxide material.

FOOTNOTES

1. Mineral Resource estimate for Sanutura Project - 9.4Mt @ 1.9g/t Au for 0.6Moz Au (Indicated) plus 52.7Mt @ 1.4g/t Au for 2.3Moz (Inferred), reported at cut-off grades ranging 0.2-1.6g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the likelihood of the Mineral Resources to have reasonable prospects for eventual economic extraction. The effective date of the Company's Mineral Resource estimate is 16 November 2021. For further information regarding the Mineral Resource estimate refer to the technical report titled "NI 43-101 Independent Technical Report Sanutura Project, South-West Burkina Faso", dated 7 February 2022 and prepared by Paul Schmiede, Rindra Le Grange and Fred Kock, and the Company's ASX Prospectus dated 11 March 2022. Paul Schmiede is an employee of Sarama. Ms Le Grange and Mr Kock are employees of Cube Consulting Pty Ltd and Orway Mineral Consultants Pty Ltd respectivley and are considered to be independent of Sarama. The technical report is available under Sarama's profile on SEDAR at www.sedar.com and the ASX Prospectus is available under Sarama's profile on ASX at www.asx.com.au.
2. Oxide & transition component of the Mineral Resource for Sanutura Project - 3.2Mt @ 1.6g/t Au for 0.2Moz Au (Indicated) plus 23.4Mt @ 1.1g/t Au for 0.8Moz Au (Inferred), reported above cut-off grades of 0.2g/t Au and 0.3g/t Au for oxide and transition material respectively.
3. Mineral Resource estimate for Karankasso Project - 12.74Mt @ 1.73g/t Au for 709koz Au (effective date of December 31, 2019), disclosed on 24 February 2020 by Semafo Inc ("Semafo", since acquired by Endeavour Mining Corp. "Endeavour"). For further information regarding that Mineral Resource estimate, refer to the news release "Semafo: Bantou Project Inferred Resources Increase to 2.2Moz" dated 24 February 2020 and Semafo: Bantou Project NI43-101 Technical Report - Mineral Resource Estimate" dated 3 April 2020 and the Company's ASX Prospectus dated 11 March 2022. The news release and technical report are available under Semafo's and Endeavour's profile on SEDAR at www.sedar.com and the ASX Prospectus is available under Sarama's profile on ASX at www.asx.com.au. The Mineral Resource estimate was fully prepared by, or under the supervision of Semafo. Sarama has not independently verified Semafo's mineral Resource Estimate and takes no responsibility for its accuracy. Semafo, and now Endeavour, is the operator of the Karankasso Project JV and Sarama is relying on their Qualified Persons' assurance of the validity of the Mineral Resource estimate. Additional technical work has been undertaken on the Karankasso Project since the effective date but Sarama is not in a position to quantify the impact of this additional work on the Mineral Resource estimate referred to above.
4. The Government of Burkina Faso has processed the requisite documents to facilitate the grant of the new, full-term Tankoro 2 and Djarkadougou 2 Exploration Permits (the "Permits") and subsequently issued the invitation to pay the permit issuance fees (the "Fees") and the Fees were paid within the requisite 10-day timeline. Following the payment of the Fee, the issuance of the Permit's arrêté and related paperwork becomes an administrative process during which time the Company may undertake work on the Tankoro 2 and Djarkadougou 2 Properties. The Company has received the arrêté for the Djarkadougou 2 Exploration Permit and anticipates the issuance of the same for the Tankoro 2 Exploration Permit in due course. The properties, hosting the Tankoro and Bondi Deposits respectively, were formerly known as Tankoro and Djarkadougou, but have been renamed as part of the process of re-issuing the respective Permits.
5. Endeavour Mining's Bantou Project Mineral Resource - 38.4Mt @ 1.2g/t Au for 1.5Moz Au (Inferred). This is the aggregate of the Mineral Resource listing for the Bantou and Bantou Nord Deposits which are located within the Bantou Project. Data is sourced from Semafo: Bantou Project NI43-101 Technical Report - Mineral Resource Estimate" dated 3 April 2020. The technical report are available under Endeavour's profile on SEDAR at www.sedar.com.

CAUTION REGARDING FORWARD LOOKING INFORMATION

Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes, but is not limited to, statements regarding the Company's future exploration and development plans, the potential for the Sanutura and Karankasso Projects to host economic mineralisation, the potential to expand the existing estimated Mineral Resources at the Sanutura Project (including the present oxide and transition component), the potential to extend and add to existing mineralisation at the Phantom, Phantom East and Phantom West Prospects, , the potential for development of a mine at the Sanutura Project, the potential for the receipt of regulatory approvals and the timing and prospects for the issuance of the arrêté for the Tankoro 2 Exploration Permit by the Government of Burkina Faso. Actual results, performance or achievements of the Company may vary from the results suggested by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for gold and other precious minerals involves a high degree of risk and is highly speculative in nature; Mineral Resources are not mineral reserves, they do not have demonstrated economic viability, and there is no certainty that they can be upgraded to mineral reserves through continued exploration; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.

There can be no assurance that any mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will be obtained. However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of gold and other precious metals, that the Company will not be affected by adverse political and security-related events, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.

Sarama does not undertake to update any forward-looking information, except as required by applicable laws.

QUALIFIED PERSONS' STATEMENT

Scientific or technical information in this disclosure that relates to the preparation of the Mineral Resource estimate for the Sanutura Project is based on information compiled or approved by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd. and is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy. Paul Schmiede has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Paul Schmiede consents to the inclusion in this news release of the information, in the form and context in which it appears.

Scientific or technical information in this disclosure that relates to exploration activities at the Sanutura Project is based on information compiled or approved by Guy Scherrer. Guy Scherrer is an employee of Sarama Resources Ltd. and is a member in good standing of the Ordre des Géologues du Québec and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Guy Scherrer consents to the inclusion in this disclosure of the information, in the form and context in which it appears.

Scientific or technical information in this disclosure that relates to the quotation of the Karankasso Project's Mineral Resource estimate and exploration activities is based on information compiled by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd. and is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy. Paul Schmiede has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Paul Schmiede consents to the inclusion in this disclosure of the information, in the form and context in which it appears. Paul Schmiede and Sarama have not independently verified Semafo's (now Endeavour's) Mineral Resource estimate and take no responsibility for its accuracy.

COMPETENT PERSONS' STATEMENT

The Mineral Resource estimates referred to in this disclosure were first disclosed in accordance with ASX Listing Rule 5.8 in the Company's ASX Prospectus dated 11 March 2022. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Prospectus and that all material assumptions and technical parameters underpinning the estimates in the ASX Prospectus continue to apply and have not materially changed.

The new Exploration Results reported in this disclosure are based on, and fairly represent, information and supporting documentation prepared by Guy Scherrer. Guy Scherrer is an employee of Sarama Resources and a member of the Ordre des Géologues du Québec. Guy Scherrer has provided his prior written consent as to the form and context in which the new Exploration Results and the supporting information are presented in this disclosure.

The previously reported Exploration Results referred to in this disclosure were first disclosed in accordance with ASX Listing Rule 5.7 in the Company's ASX disclosure listed in Appendix B. The Company confirms that it is not aware of any new information or data that materially affects the information included in those previous items of disclosure.

This announcement has been authorised by the Board of Sarama Resources.

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

SOURCE: Sarama Resources Ltd.