Karora Resources Inc. Reports Intersections of 14.7 g/t Over 4.0 m and 12.2 g/t Over 6.0 m at Beta Hunt's Mason Zone

• Infill and extensional drilling targeting the Mason Zone delivered strong results extending the mineralized strike by 100 metres to 800 metres and providing confidence for a potential new deposit for future mining.
• Larkin drilling infilled the northern end of the Larkin Mineral Resource. Results give increasing confidence for an upgrade of the current Inferred Mineral Resource to Indicated status.
• Drilling in the A Zone and Western Flanks deposits focused on upgrading the Mineral Resource with results generally supporting the current interpretation and increasing the confidence of the Inferred portion of the Mineral Resource.
• Drilling at Spargos was successful in extending high grade mineralization up to 140 metres below current drilling to 580 metres below surface. Mineralization remains open at depth.

Recent intersection highlights from the ongoing Beta Hunt underground diamond drill program and Spargos drill program are listed below:

Mason²

• BM1941SP3-02AE: 12.2 g/t over 6.0 metres
• BM1941SP3-14AE: 14.7 g/t over 4.0 metres and 8.0 g/t over 7.0 metres
• BM1941SP3-09AE: 5.9 g/t over 7.8 metres
• BM1941SP3-08AE: 3.8 g/t over 11.4 metres

Larkin²

• BL1730-06AE: 4.2 g/t over 9.0 metres and 11.2g/t over 2.7 metres
• BL1730-05AE: 3.0 g/t over 12.0 metres
• BL1730-08AE: 4.0 g/t over 10.0 metres

Western Flanks ¹

• AWSP22-08AR: 12.0 g/t over 5.1 metres
• AWSP22-02AR: 3.2 g/t over 12.8 metres
• AWSP22-42AR: 2.8 g/t over 19.7 metres
• AWSP22-45AR: 5.9 g/t over 13.9 metres, including 9.2 g/t over 1.7 metres

A Zone¹

• AASP22-16AR: 17.4 g/t over 2.6 metres
• AASP22-21AR: 3.3 g/t over 9.8 metres
• AASP22-17AR: 3.0 g/t over 9.7 metres
• AA38ACC-07AR: 4.2 g/t over 4.2 metres

Spargos^1.

• KXDD003: 12.8 g/t over 2.1 metres and 4.4 g/t over 9.1 metres
• KXDD004: 6.0 g/t over 5.0 metres and 3.4 g/t over 6.1 metres

Paul Andre Huet, Chairman & CEO, commented: "Today we reported more strong results at our flagship operation as part of the 2023 Beta Hunt drilling program. The theme of discovering new mineralized shear zones via exploration from existing underground development, expanding strike and depth extents of known shears via the drill bit and growing our resource base continues.

Our latest set of results from the Mason Zone continued to return significant results, including 14.7 g/t over 4.0 metres and 12.2 g/t over 6.0 metres, supporting the potential for our next new Mineral Resource in the Beta Block west and parallel to the existing Mineral Resource at the Larkin zone. The results at Mason continue to support the potential we previously identified (see Karora news release dated January 23, 2023) for the continued growth of the zone, which has now increased by another 100 metres to 800 metres of strike length.

A core focus of our 2023 drilling program is upgrading portions of our large Inferred Mineral Resource base. At the Larkin Zone, new infill drill results designed to upgrade and extend the current Mineral Resource returned encouraging values, including intercepts of 4.2 g/t over 9.0 metres and 11.2 g/t over 2.7 metres (hole BL1730-06AE). I am also very encouraged by the results we are seeing from our infill drilling at Western Flanks and A Zone. Recent highlights include intervals of 12.0 g/t over 5.1 metres and 2.8 g/t over 19.7 metres in Western Flanks and 17.4 g/t over 2.6 metres at A Zone. At both Western Flanks and A Zone, mineralization remains open at depth. These two shear zones have formed the backbone of our mining operation for many years and look poised for continued contributions for years to come.

The most recent drill results from the Spargos Mine provide further confidence that our ongoing technical work will result in a formal decision to proceed with a development of an underground mining operation. Our drilling has extended the known depth of gold mineralization by 140 metres to a depth of 580 metres below the surface, including intercepts of 6.0 g/t over 5.0 metres and 12.8 g/t over 2.1 metres. Important still, the deposit remains open at depth.

Overall, the results reported today support the potential for further discoveries, new Mineral Resources and ongoing upgrading of Mineral Resource categories and conversion of Mineral Resources to Mineral Reserves. We will be providing an updated Mineral Resource and Reserve estimate in the fourth quarter of 2023."

Beta Hunt Gold Drilling Update

During 2023, gold drilling has focused on upgrading the gold Mineral Resources at Western Flanks, A Zone and Larkin, extending the Mason Zone mineralization and testing for the potential southern extension of the Fletcher Zone north of the Alpha Island Fault. Initial results of the Fletcher drill program were previously released (see Karora news releases dated April 13, August 8 and September 12, 2023).

Drilling Results

Gold drilling results greater than 1 g/t and their location are shown in Figure 1. Significant results greater than 10 gram-metres and detailed in Table 1. The drilling results include holes targeting nickel which are also assayed for gold mineralization.

Figure 1: Beta Hunt plan view showing all drill traces with gold results. Significant results labelled.

Western Flanks and A Zone

In 2023, drilling at Western Flanks and A Zone is focused on upgrading the existing Inferred Mineral Resource for Mineral Reserve conversion. Drilling efforts have been concentrated on the north end of A Zone and the north and south sections of Western Flanks.

A Zone results generally support the current A Zone interpretation. Western Flanks results show the mineralization to continue at depth, however, the northern section of the main shear is offset at depth in the hangingwall compared to the current resource model (Figure 2). The re-alignment of the mineralization occurs approximately 300 metres below the ultramafic/basalt contact and is interpreted as a dilational offset continuation of the main Western Flanks Shear. This interpretation provides potential for dilational repeats with increased depth. Assay grades to date associated with the newly interpreted hangingwall offset indicate higher grades compared to the average Western Flanks Resource grade of 2.7 g/t Au.

Significant intersections¹ are highlighted below:

Western Flanks (existing Main Shear interpretation)

• WW420-02AR: 4.8g/t over 12.6 metres
• WW420-02AR: 5.9g/t over 8.3 metres
• AWSP22-02AR: 3.2 g/t over 12.8 metres
• AWSP22-42AR: 2.8 g/t over 19.7 metres
• AWSP22-04AR: 2.5 g/t over 18.0 metres

Western Flanks (Hangingwall Offset)

• AWSP22-08AR: 12.0 g/t over 5.1 metres
• AWSP22-45AR: 5.9 g/t over 13.9 metres, including 9.2g/t over 1.7 metres

A Zone

• AASP22-16AR: 17.4 g/t over 2.6 metres
• AA38ACC-07AR: 4.2 g/t over 4.2 metres
• AASP22-21AR: 3.3 g/t over 9.8 metres
• AASP22-17AR: 3.0 g/t over 9.7 metres

Figure 2: Cross section of Western Flanks (WF) North looking north and centred about drill hole AWSP22-08AR. Shows interpreted hangingwall offset of Main WFs mineralized shear. +/- 65m window.

Mason and Larkin Zones

Results were returned from nine holes drilled to test the interpreted Mason Zone mineralization located approximately 100 to 200 metres west of and parallel to the Larkin Zone. The recent drilling completed has extended potential strike by 100 metres to 800 metres. All nine holes returned significant results¹ with highlights provided below:

• BM1941SP3-14AE: 14.7g/t over 4.0 metres and 8.0 g/t over 7.0 metres and 4.5 g/t
• BM1941SP3-02AE: 12.2 g/t over 6.0 metres
• BM1941SP3-09AE: 5.9 g/t over 7.8 metres
• BM1941SP3-08AE: 3.8 g/t over 11.4 metres

Mason has the potential to deliver a new mining opportunity south of the Alpha Island Fault. All results received to date will be reviewed with the aim of producing a new Mason Mineral Resource in the latter part of 2023.

At Larkin, results were returned from twelve holes drilled to infill and extend the northern end of the current Mineral Resource. Highlights from this drilling are listed below and provide encouragement that the drilling will upgrade the current Mineral Resource:

• BL1730-06AE: 4.2 g/t over 9.0 metres and 11.2g/t over 2.7 metres
• BL1730-08AE: 4.0 g/t over 10.0 metres
• BL1730-05AE: 3.0 g/t over 12.0 metres

Spargos Mine Gold Drilling Update

The Spargos Deeps diamond drilling comprised four surface diamond totalling 2,712 metres aimed to test the vertical down-plunge extension of the main Spargos lode. Drilling targeted mineralization up to 140 metres below existing drilling.

Three holes (KXDD002,003, 004) confirmed the extension of the deposit below the existing Mineral Resource while drill hole KXDD001 was successful in upgrading the northern margin of the Inferred Mineral Resource. Mineralization was extended by this drill program to 580 metres below surface and remains open at depth. All holes returned significant results¹ in the targeted Main Lode position with highlights provided below:

• KXDD001: 4.4 g/t over 2.0 metres
• KXDD002: 4.8 g/t over 4.2 metres
• KXDD003: 12.8 g/t over 2.1 metres and 4.4 g/t over 9.1 metres
• KXDD004: 6.0 g/t over 5.0 metres and 3.4 g/t over 6.1 metres

These results will be incorporated into an updated Spargos Mineral Resource to assess the deposit as an underground mine opportunity and will be included as part of the updated Karora Mineral Resource due for release in Q4, 2023.

Figure 3: Spargos long section looking north highlighting Mineral Resource and recent drill results

Compliance Statement (JORC 2012 and NI 43-101)

The disclosure of scientific and technical information contained in this news release has been reviewed and approved by Stephen Devlin, FAusIMM, Group Geologist, Karora Resources Inc., a Qualified Person for the purposes of NI 43-101.

At Beta Hunt all drill core sampling is conducted by Karora personnel. Samples for gold analysis are shipped to SGS Mineral Services of Kalgoorlie for preparation and assaying by 50 gram fire assay analytical method. All gold diamond drilling samples submitted for assay include at least one blank and one Certified Reference Material ("CRM") per batch, plus one CRM or blank every 20 samples. In samples with observed visible gold mineralization, a coarse blank is inserted after the visible gold mineralization to serve as both a coarse flush to prevent contamination of subsequent samples and a test for gold smearing from one sample to the next which may have resulted from inadequate cleaning of the crusher and pulveriser. The lab is also required to undertake a minimum of 1 in 20 wet screens on pulverised samples to ensure a minimum 85% passing at -75µm. Samples for nickel analysis are shipped to SGS Australia Mineral Services of Kalgoorlie for preparation. Pulps are then shipped to Perth for assaying. The analytical technique is ICP41Q, a four acid digest ICP-AES package. Assays recorded above the upper detection limit (25,000ppm Ni) are re-analyzed using the same technique with a greater dilution (ICP43B). All samples submitted for nickel assay include at least one CRM per batch, with a minimum of one CRM per 20 samples.

Karora operates an industry best practice QA/QC process to ensure the integrity of all assay results.

Karora is focused on increasing gold production to a targeted range of 170,000-195,000 ounces by 2024 at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment facility is a low-cost 1.6 Mtpa processing plant, which is fed at capacity from Karora's underground Beta Hunt mine and Higginsville mines. In July 2022, Karora acquired the 1.0 Mtpa Lakewood Mill in Western Australia. At Beta Hunt, a robust gold Mineral Resource and Reserve are hosted in multiple gold shears, with gold intersections along a 5 km strike length remaining open in multiple directions. HGO has a substantial Mineral gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. Karora has a strong Board and management team focused on delivering shareholder value and responsible mining, as demonstrated by Karora's commitment to reducing emissions across its operations. Karora's common shares trade on the TSX under the symbol KRR and on the OTCQX market under the symbol KRRGF.

This news release contains "forward-looking information" including without limitation statements relating to, among other items, production guidance, the potential for further discoveries, new Mineral Resources and ongoing upgrading of Mineral Resource categories and conversion of Mineral Resources to Mineral Reserves at Beta Hunt and for the continued expansion of known mineralization at depth at our Spargos mine, timing for completion of capital projects and resource estimates, whether the ongoing technical work could result in a formal decision to proceed with a development of an underground mining operation at the Spargos mine, timing for the commencement of mining, liquidity and capital resources of Karora, organic growth profile and the potential of the Corporation's exploration projects, mines, processing facilities and operations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Karora to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Karora 's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR at www.sedar.com.

Although Karora has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Karora disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

www.karoraresources.com

Table 1: Beta Hunt Significant Gold Results - Dec 10, 2022 to June 30, 2023

Table 2 Beta Hunt - Drillhole Collars for Gold Results received Dec10, 2022 to June 30, 2023