Sarama Resources Issued Djarkadougou II Permit Hosting Bondi Deposit

VANCOUVER, August 12, 2021 - Sarama Resources Ltd. (" Sarama " or the " Company ") is pleased to report that it has been issued ⁽⁵⁾ the Exploration Permit for the Djarkadougou II Property (" Djarkadougou II " or the " Property ") which covers 169km ² and hosts the high-grade Bondi Deposit and several high-quality exploration targets. The Property forms part of Sarama's 100%-owned Sanutura Project (the " Project ") which covers approximately 1,400km² and is located in the prolific Houndé Belt in south-western Burkina Faso (refer Figure 1).

The Exploration Permit is valid for an initial term of 3 years and is renewable for a further two 3-year terms, subject to satisfaction of routine conditions regarding execution of work programs and minimum expenditure thresholds.

The Bondi Deposit is located within trucking distance of Sarama's 100%-owned Tankoro Deposit (mineral resource of 0.6Moz Au (indicated) and 1.9Moz Au (inferred) ^(1,4) ) and adds a substantial amount of high-grade and free-milling material to the development proposition.

Bondi Deposit

The Bondi Deposit has a Historical Estimate of mineral resources of 282,000oz @ 2.1g/t Au (measured and indicated) and 150,000oz @ 1.8g/t Au (inferred) ⁽²⁾ at 0.5g/t Au cut off. This Historical Estimate includes a high-grade component (reported at a cut-off grade of 2.0g/t Au) of 186,000oz @ 4.2g/t Au (measured and indicated), which reflects several shoot-controlled, high-grade zones within the lodes.

Drill-defined mineralisation currently extends over a 4.1km strike length and mineralised lodes are up to 24m in width and have been intersected to a vertical depth of approximately 320m (refer Figures 2 and 3). A majority of the mineralisation reported is well defined by 25-40m x 25m spaced drilling with approximately 90,000m drilling (reverse circulation and diamond core) having been completed.

Metallurgical testwork concluded that the mineralisation is amenable to processing using a standard cyanidation flowsheet, with gold extractions of 97% and 91% being achieved for composite samples of oxide and fresh mineralisation respectively at a conventional grind size of P ₈₀ 75 micron.

The Company is currently in the process of remodelling the Bondi Deposit with a view to incorporating it into an update of the Project's mineral resource estimate and to assist extensional and regional exploration targeting.

Djarkadougou II Exploration Potential

The Property has seen significantly less exploration and drilling activity outside the main mineralisation at the Bondi Deposit and there remains ample opportunity for new discoveries. The re-interpretation by Sarama of the geology underlying Djarkadougou ll includes the recognition of a major regional shear zone with secondary fault splays within a mixed volcanic and volcano-sedimentary package cut by late intermediate to felsic intrusions. These geologic features accentuate a number of exploration targets with good potential to host gold mineralisation in addition to that previously outlined for the Bondi Deposit.

Reconnaissance drilling undertaken by Sarama targeted three areas including (i) the Zanawa Prospect, a new discovery lying 4km to the north-east of the main part of the Bondi Deposit, (ii) the southern strike extent of the main mineralisation at the Bondi Deposit, and (iii) the Malbus Prospect, a south-east zone representing a distinct splay from the main north-south trending mineralization (refer Sarama news release September 12, 2017).

Drill defined mineralisation at the Zanawa Prospect starts at surface and trends north-south over a distance of approximately 1km and remains open along strike and at depth, with several mineralised zones requiring further drilling to be better understood. Intersected mineralisation included significant gold grades with highlights including 22m @ 3.85g/t Au from 5m, 29m @ 1.44g/t Au from 1m, 10m @ 1.24g/t Au from 67m and 5m @ 4.54g/t Au from 15m (refer Figure 4). Drilling has confirmed that mineralisation is associated with a mafic volcanic-intermediate intrusion contact that extends for at least 3km across the north-eastern part of Djarkadougou II and is not dissimilar to mineralisation seen at Endeavour Mining's Golden Hill Project approximately 20km to the north (refer Sarama news release September 20, 2018).

Drilling on the southern limits of the main Bondi Deposit mineralisation extended the south-east splay (Malbus Prospect) and identified several high-grade zones which remain open at depth. Shallow intersected mineralisation included significant gold grades and widths including 11m @ 3.08g/t Au from 22m, 10m @ 3.07g/t Au from 7m, 8m @ 4.23 g/t Au from 28m, 4m @ 12.39 g/t Au from 40m and 14m @ 1.68 g/t Au from 29m. One drill fence of note included downhole intersections of 3m @ 4.71g/t Au from 51m plus 3m @ 19.86g/t Au (EOH) from 69m (same hole), 7m @ 2.43g/t Au from 62m and 6m @ 3.46g/t Au from 44m. The high-grade intercepts in this fence are within, and proximal to, a granitoid dyke that cuts mafic volcanic host rocks and further drilling will be carried out to follow-up on these results (refer Sarama news release September 20, 2018).

In addition to drilling in the southern limits of Bondi, the southern extension zone of the main Bondi Deposit has been extended at depth with notable downhole intersections including 13m @ 1.50g/t Au from 86m and 6m @ 1.93g/t Au from 134m. Mineralisation is spatially associated with a north-striking, mafic volcanic-volcano-sedimentary contact and proximal to a north-striking fault. This zone warrants further investigation as it is open along strike and at depth (refer Sarama news release September 20, 2018).

Looking forward, Sarama will continue its multi-pronged strategy of systematic regional exploration for discovery of new mineralisation and extension of known mineralisation at the Zanawa Prospect, and validation of the large amount of historical data concentrated in the main part of the Bondi Deposit and generated by Orezone Gold Corporation, with a view to generating extensional targets.

Corporate Activities

Sarama remains fully engaged with leading Australian resources broker, Euroz Hartleys, for its proposed dual listing on the Australian Securities Exchange (" ASX "). Given the progress on the re-issue of key permits in Burkina Faso, the Company has recommenced the ASX listing process which remains well advanced and prerequisite documentation is largely complete.

Proceeds raised pursuant to the dual listing on the ASX will primarily be used to expedite an extensive drilling campaign totalling approximately 50,000m at the Sanutura Project. The planned drill programs aim to augment and upgrade the currently defined oxide and free-milling mineral resources, to test high-priority targets identified through previous grassroots exploration that have the potential to significantly impact project growth, and to evaluate early-stage targets.

Sarama's CEO, Andrew Dinning, commented : "We are very pleased to have the Djarkadougou II Exploration Permit issued which will now enable us to re-commence work on a number of high-priority targets within the Property. We have commenced an update of the mineral resource for the high-grade and free-milling Bondi Deposit which we anticipate will provide a significant lift in oxide and free milling pit-shell constrained resources for the Project, which already sit at close to 900,000 ounces of gold.

With the re-issue of Djarkadougou ll and good progress being made on the permit re-issue process in Burkina Faso, we have taken the decision to recommence the ASX listing process and continue to work with Euroz Hartleys ahead of the planned listing."

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

Figure 1 - Location Map of Sarama's 100%-Owned Sanutura Project

Figure 2 - Geology Map of Djarkadougou II Property

Figure 3 - Cross Section of Bondi Deposit Mineralisation

Figure 4 - Cross Section of Zanawa Prospect Mineralisation (1209900mN)

ABOUT SARAMA RESOURCES LTD

Sarama Resources Ltd. ( TSX-V:SWA ) is a West African focused gold explorer and 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 Sanutura Project is located within the prolific Houndé and Boromo Greenstone Belts in south-west Burkina Faso and is the exploration and development focus of the Company. Its exploration programs have successfully discovered a mineral resource of 0.6Moz gold (indicated) and 1.9Moz gold (inferred) ^(1,4) which is complemented by the Bondi Deposit (historical estimate of mineral resources of 0.3Moz Au measured and indicated and 0.1Moz Au inferred ⁽²⁾ ).

Together, the deposits present a potential development opportunity whereby a significant, long-life CIL project can be established and paid for by the significant oxide resource base.

Sarama has built further optionality into its portfolio including a 600km² 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 40km along strike.

Sarama also holds approximately 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.

FOOTNOTES

1. Sanutura Project, Tankoro Deposit - mineral resource estimate - 9.4Mt @ 1.9g/t Au for 0.6Moz Au (indicated) plus 43.6Mt @ 1.4g/t Au for 1.9Moz (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 inferred mineral resource estimate is September 8, 2020. For further information regarding the mineral resource estimate please refer to the technical report titled "NI 43-101 Technical Report, Sanutura Project, South-West Burkina Faso", dated October 20, 2020 (effective date: September 8, 2020) and prepared by Paul Schmiede, Adrian Shepherd & Fred Kock. The technical report is available under Sarama's profile on SEDAR at www.sedar.com.
2. Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000oz Au (measured and indicated) plus 2.5Mt @ 1.8g/t Au for 149,700oz Au (inferred), reported at a 0.5 g/t Au cut-off.
   1. The historical estimate of the Bondi Deposit reflects a mineral resource estimate compiled by Orezone Gold Corp. ("Orezone") and 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 and prepared by Yves Buro (the "Bondi Technical Report"). Yves Buro is an employee of Met-Chem Canada Inc and is independent of Orezone and Sarama. The technical report is available under Orezone's profile on SEDAR at www.sedar.com
   2. Sarama believes that the historical estimate is relevant to investors' understanding of the property, as it reflects the most recent and substantive technical work undertaken in respect of the Bondi Deposit.
   3. The historical estimate was informed by 886 drillholes, assayed for gold by cyanidation methods, which were used to interpret mineralised envelopes and geological zones over the area of the historical estimate. Gold grade interpolation was undertaken using ID² 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.
   4. The historical estimate uses the mineral resource reporting categories required under National Instrument 43-101.
   5. No more recent estimates of the mineral resource or other data are available.
   6. 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.
   7. 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.
3. Karankasso Project current mineral resource estimate - the current mineral resource estimate for the Karankasso Project of 12.74Mt @ 1.73g/t Au for 709koz Au (effective date of December 31, 2019) was disclosed on February 24, 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 February 24, 2020 and Semafo: Bantou Project NI43-101 Technical Report - Mineral Resource Estimate" dated April 3, 2020. The news release and technical report are available under Semafo's and Endeavour's profile on SEDAR at www.sedar.com . 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 Tankoro Exploration Permit which hosts the Tankoro Deposit is going through a re-issue process with the Government of Burkina Faso after which the Company anticipates it to be re-issued as new, full-term exploration permit. The Company is in discussion with senior government officials to expedite this process and anticipates the permit will be issued in due course, though there can be no assurance that the process will be successfully completed on a timely basis, or at all.
5. The Government of Burkina Faso has processed the requisite documents to facilitate the grant of the new, full-term Djarkadougou ll Exploration Permit (the " Permit ") and subsequently issued the invitation to pay the permit issuance fee (the " Fee ") and the Fee was paid within the requisite 10-day timeline. Following the payment of the Fee, the issuance of the Permit's arreté and related paperwork becomes an administrative process during which time the Company may undertake work on the Djarkadougou II Property. The Company expects the arreté and related paperwork to be issued in due course. The Property was formerly known as "Djarkadougou", but has been renamed as part of the process of re-issuing the Permit.

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, but is not limited to, timing, prospects and any conditions that may be imposed on the re-issuance of the Tankoro Exploration Permit and timing on the issuance of the arreté for the Djarkadougou ll Exploration Permit by the Government of Burkina Faso, the Company's intention to recommence work on a planned dual listing on the ASX and the use of proceeds from an offering of securities on the ASX, the Company's future exploration and development plans (including its planned drilling campaign), the completion of its ASX listing, the potential for the Sanutura, Koumandara and Karankasso Projects to host economic mineralisation, the potential to expand the present oxide component of the existing estimated mineral resources at the Sanutura Project, the reliability of the historical estimate of mineral resources at the Bondi Deposit, and the potential for the receipt of regulatory approvals. 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 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.

QUALIFIED PERSONS' STATEMENT

Scientific or technical information in this disclosure that relates to the preparation of the Company's mineral resource estimate for the Tankoro Deposit within 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 disclosure of the information, in the form and context in which it appears.

Scientific or technical information in this disclosure, 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 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.

SOURCE: Sarama Resources Ltd.