Sarama Resources Intersects High-Grade Gold Mineralisation at the South Hounde Project in Burkina Faso

VANCOUVER, BC --(Marketwired - June 19, 2017) - Sarama Resources Ltd. ("Sarama" or the "Company") (TSX VENTURE: SWA) is pleased to announce that high-grade gold mineralisation has been intersected in an ongoing extensional diamond drilling program at the South Houndé Project (the "Project") in south-western Burkina Faso.

The program was designed to test depth and strike extensions to high-grade shoots within known mineral resources and forms part of an ongoing, multi-faceted exploration program aimed at increasing the Project's 2.1Moz gold¹ inferred mineral resource to support open pit mine development and investigate the potential for underground mining.

Highlights

• Diamond drilling intersected exceptionally high-grade mineralisation, including an interval assaying 0.5m @ 112.3g/t Au, in the MC Deposit at the South Houndé Project.
• Drilling targeted several discrete and high-grade shoots within the mineral resource to test for strike and depth extensions with a view to assessing underground mining potential.
• Results continue to demonstrate the significant scale of the mineralised system at the South Houndé Project, with drill-defined mineralisation extending continuously from surface to a vertical depth of approximately 550m.
• Drilling at the MM Deposit is anticipated to result in the extension of the mineral resource of approximately 200m down-dip in the areas proximal to high-grade shoots.
• Drilling at the MC Deposit is anticipated to result in an approximate 150m strike extension of mineralisation around higher-grade shoots.
• Program comprised of 11 holes for 1,300m reverse-circulation ("RC") and 4,500m diamond drilling (or "DDH") with highlighted downhole intersections including (see Appendices A & B for full details):

• USD$4.0M (CAD$5.4M) exploration program, funded by Acacia Mining plc, is budgeted for 2017 including geochemical and geophysical surveys and drill programs.

A 3-hole program, consisting of 300m RC (pre-collars) and 1,000m diamond drilling was undertaken to test for strike and depth extensions of the mineral resource, proximal to high-grade mineralisation hosted in several different lode orientations. Of principal interest was a high-grade oblique lode represented by the intersection of mineralised, north-north-east ("NNE") trending porphyry dykes and associated bounding sedimentary rocks, with a mineralised, north-east trending zone of cross faulting.

The drilling encountered several discrete mineralised lodes, assembled in a package of parallel lodes which is consistent with existing interpretations. Mineralisation was observed to be hosted in both porphyry dykes and in zones of altered sediments which are likely associated with NNE-trending structural features and generally featured high sulphide content, auguring well for elevated gold grades.

Of note was the intersection of 0.5m @ 112.3g/t Au from 232.2m in FRC1076RE1. The intersection represents the highest grade encountered in the Project to date and is interpreted to be intimately associated with the intersection of secondary oblique structural features with the predominant NNE-trending mineralisation to create an enrichment zone.

The drilling supports the expansion of the interpreted lodes by approximately 150m along strike, with depth extensions of up to 200m in several lodes also inferred.

Full results of the program are included in Appendix A, with highlighted intersections of:

Drilling in the area is ongoing, with planned holes building on observations from this recent drilling to better predict the intersection zones of the two dominant orientations of structural features.

The 4.3km-long MM Deposit hosts the bulk of the Project's 2.1Moz gold¹ inferred mineral resource and features several near-surface, higher-grade shoots which extend to depth and have potential for exploitation by underground mining.

An 8-hole program, consisting of 1,000m RC (pre-collars) and 3,500m diamond drilling was undertaken to principally test for strike and depth extensions in two of the high-grade shoots within the mineral resource. Several infill holes were also drilled into the existing mineral resource to better understand the controls of the higher-grade mineralisation to assist in targeting of the step-out holes.

Observations from the recent drilling support the hypothesis that two generalised periods of gold mineralisation are present on the basis of alteration, structural orientation and sulphide content. The higher-grade shoots targeted by the drilling are understood to be produced by the intersection of late-stage cross-cutting gold mineralisation, characterised by a zonal distribution of albite-silica alteration and the presence of lenses and stringers of sulphides, with the earlier and more spatially extensive NNE-striking mineralised lodes that are generally hosted by porphyry dykes, but with instances of sediment-hosted mineralisation associated with structural features aligned with this trend.

The recent drilling encountered various styles of mineralisation presenting as a series of parallel lodes, consistent with expectations and yielded gold grades which have the potential for exploitation by underground mining. It is anticipated that the step-out drilling will support extension of the mineral resource by approximately 200m down-dip in the two high-grade shoot areas tested. A 250m extension to the strike of modelled mineralisation in one of the areas is also indicated by the recent drilling.

These anticipated extensions to the mineral resource reinforce the scale of the mineralised system at the South Houndé Project, which now is interpreted to extend to a vertical depth of 550m. When considered in the context of the 10.3km-long drill-defined 'footprint' of the mineral resource, significant depth potential is clearly evident.

Full results of the program are included in Appendix B, with highlighted intersections of:

Sarama's President and CEO, Andrew Dinning, commented:

"The shift in focus, for the near-resource portion of the exploration program, from extending near surface mineralisation to improving our understanding of the fabric and vertical extent of the system has immediately delivered results.

The deeper, high-grade intersections we are seeing broadens our development options to include underground mining. Although drill testing is limited, it has shown that we have continuity and economically significant grades at depth.

These drill results reinforce our belief that the South Houndé Project has the potential to be an open pit and underground mining complex, particularly when Sarama's highly accretive Bondi Deposit and recently acquired Botoro Property are included in the equation. Sarama remains positioned to play a key role in the development of the southern part of the Houndé Belt."

ABOUT SARAMA RESOURCES LTD

Sarama Resources Ltd. (TSX VENTURE: SWA) is a West African focused gold explorer with substantial landholdings in Burkina Faso. Sarama is focused on consolidating under-explored landholdings in Burkina Faso and other established mining jurisdictions.

Sarama's flagship properties are situated within the Company's South Houndé Project area in south-west Burkina Faso. Located within the prolific Houndé Greenstone Belt, Sarama's exploration programs have built on significant early success to deliver an inferred mineral resource estimate of 2.1 Moz gold¹. Acacia Mining plc is earning up to a 70% interest in the South Houndé Project by satisfying certain conditions, including funding earn-in expenditures of up to US$14 million, over a 4-year earn-in period and may acquire an additional 5% interest, for an aggregate 75% interest in the Project, upon declaration of a minimum mineral reserve of 1.6 million ounces of gold. Acacia has satisfied certain milestones and currently holds a 50% interest in the South Houndé Project and is continuing to sole fund exploration activities.

Sarama holds a 31% participating interest in the Karankasso Project Joint Venture ("JV") which is situated adjacent to the Company's South Houndé Project in Burkina Faso and is a JV between Sarama and Savary Gold Corp. ("Savary"). Savary is the operator of the JV and in October 2015, declared a maiden inferred mineral resource estimate of 671,000 ounces of contained gold² at the Karankasso Project JV.

Sarama has also agreed to acquire⁴ a 100% interest in the Bondi Deposit from Orezone Gold Corp. (refer news release May 24, 2016). Bondi has a historical estimate of mineral resources of 0.3Moz Au (measured and indicated) and 0.1Moz Au (inferred)³.

Together, the South Houndé Project, Bondi Deposit and the Karankasso Project form a cluster of advanced gold deposits, within trucking distance of one another, which potentially offers a development option for a multi-source fed central processing facility in the southern Houndé Belt region of Burkina Faso.

Incorporated in 2010, 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 exploration strategy across its property portfolio.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the Company's plans for drilling and geochemical and geophysical surveys at the South Houndé Project, the Earn-In Agreement with Acacia, including the amounts that may be spent on exploration and interests in the South Houndé Project that may be earned by Acacia upon making certain expenditures and estimating a minimum reserve, the potential to expand the present oxide component of the Company's existing estimated mineral resources, and future exploration plans.

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, Acacia's continued funding of exploration activities, 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 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.

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.

FOOTNOTES

1. South Houndé Project -- 43.0 Mt @ 1.5 g/t Au (reported above cut-off grades ranging 0.3-2.2 g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the likelihood of the inferred mineral resources having reasonable prospects for eventual economic extraction). The effective date of the Company's inferred mineral resource estimate is February 4, 2016. For further information regarding the mineral resource estimate please refer to the technical report titled "NI 43-101 Independent Technical Report South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso", dated March 31, 2016. The technical report is available under Sarama Resources Ltd.'s profile on SEDAR at www.sedar.com.

2. Karankasso Project -- 9.2 Mt @ 2.3 g/t Au (at a 0.5 g/t Au cut-off). The effective date of the Karankasso Project JV mineral resource estimate is October 7, 2015. For further information regarding the mineral resource estimate please refer to the technical report titled "Technical Report and Resource Estimate on the Karankasso Project, Burkina Faso", dated October 7, 2015. The technical report is available under Savary Gold Corp.'s profile on SEDAR at www.sedar.com. Sarama has not independently verified Savary's mineral resource estimate and takes no responsibility for its accuracy. Savary 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.

3. Bondi Deposit -- 4.1Mt @ 2.1g/t Au for 282,000 oz Au (measured and indicated) and 2.5Mt @ 1.8g/t Au for 149,700 oz Au (inferred), reported at a 0.5 g/t Au cut-off.

i. The historical estimate of the Bondi Deposit reflects a mineral resource estimate compiled by Orezone Gold Corp. ("Orezone") which has an effective date of February 20, 2009. The historical estimate is contained in a technical report titled "Technical Report on the Mineral Resource of the Bondigui Gold Project", dated date of February 20, 2009 (the "Bondi Technical Report") and is available under the profile of Orezone on SEDAR at www.sedar.com.
ii. Sarama believes that the historical estimate is relevant to investors' understanding of the property, as it reflects the most recent technical work undertaken in respect of the Bondi Deposit.
iii. The historical estimate was informed by 886 drillholes, assayed for gold by cyanidation methods, were used to interpret mineralised envelopes and geological zones over the area of the historical estimate. Gold grade interpolation was undertaken using ID ² methodology based on input parameters derived from geostatistical and geological analyses assessments. Field measurements and geological logging of drillholes were used to determine weathering boundaries and bulk densities for modelled blocks.
iv. The historical estimate uses the mineral resource reporting categories required under National Instrument 43-101.
v. No more recent estimates of the mineral resource or other data are available.
vi. Sarama is currently undertaking the necessary verification work in the field and on the desktop that may support the future reclassification of the historical estimate to a mineral resource.
vii. A qualified person engaged by Sarama has not undertaken sufficient work to verify the historical estimate as a current mineral resource and Sarama is therefore not treating the historical estimate as a current mineral resource.

4. Upon closing of the purchase agreement for the Bondi Deposit, Sarama will have 100% interest in Djarkadougou Property which hosts the Bondi Deposit.

NOTES -- DRILLING

Drilling results are quoted as downhole intersections. True widths of mineralisation are estimated to be approximately 70% to 80% of reported downhole intersection lengths, except as otherwise noted. The orientation of some of the mineralised units is not yet well understood.

The reported composites for the drilling were determined using a cut-off grade of 0.30g/t Au to select significant and anomalous intersections, with a maximum of 2m internal dilution being incorporated into the composite where appropriate. No top-cuts were applied to assay grades. Isolated mineralised intersections less than 2m in length have not been reported.

Gold assays for the drilling were undertaken by the Bigs Global laboratories in Ouagadougou, Burkina Faso. Assays are determined by fire assay methods using a 50 gram charge, lead collection and an AAS finish with lower detection limits of 0.005g/t Au (Bigs Global).

The drilling was generally designed using a range of azimuths, according to program aims and mineralization orientation, dipping at approximately -55-60 ° and were of variable length. Holes were spaced at various intervals according to targeting intent. RC holes where sampled, were sampled at regular 1m downhole intervals. All diamond holes were sampled according to geological intervals but were generally < 1m.

Intersection oxidation state classification is based on visual logging of the drillholes.

Sarama undertakes geological sampling and assays in accordance with its quality assurance/quality control program which includes the use of certified reference materials for AC, RC and diamond drilling as well as field duplicates in the case of AC and RC drilling.

For further information regarding the Company's QAQC protocols please refer to the technical report titled "NI 43-101 Independent Technical Report, South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso", dated March 31, 2016. The technical report is available under the Company's profile on SEDAR at www.sedar.com.

QUALIFIED PERSONS' STATEMENT

Scientific or technical information in this news release that relates to the Company's exploration activities in Burkina Faso 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 report of the information, in the form and context in which it appears.

Scientific or technical information in this news release that relates to the preparation of the Company's mineral resource estimate is based on information compiled or approved by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is considered to be independent of Sarama Resources Ltd. Adrian Shepherd is a Chartered Professional Member in good standing of the Australasian Institute of Mining and Metallurgy 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. Adrian Shepherd 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 news release, in respect of the Bondi Deposit relating to mineral resource and exploration information drawn from the Technical Report prepared for Orezone on that deposit has been 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 report of the information, in the form and context in which it appears.

Scientific or technical information in this news release that relates to the preparation of the Karankasso Project's mineral resource estimate is based on information compiled or approved by Eugene Puritch and Antoine Yassa. Eugene Puritch and Antoine Yassa are employees of P&E Mining Consultants Inc. and are considered to be independent of Savary Gold Corp. and Sarama Resources Ltd. Antoine Yassa is a member in good standing of the Ordre des Géologues du Québec and Eugene Puritch is a member in good standing of Professional Engineers Ontario. Eugene Puritch and Antoine Yassa have sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which they are undertaking to qualify as a Qualified Person under National Instrument 43-101. Eugene Puritch and Antoine Yassa consent to the inclusion in this news release of the information, in the form and context in which it appears. Sarama has not independently verified Savary's mineral resource estimate and takes no responsibility for its accuracy.

APPENDIX B €“ MM DEPOSIT DRILLING

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Contact

For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede
e: info@saramaresources.com
t: +61 (0) 8 9363 7600