Karora Resources Inc. Publishes Inaugural ESG Report for 2021

Paul Andre Huet, Chairman & CEO, commented: "The release of Karora's inaugural 2021 ESG report is an important milestone in the evolution of the Company. In 2021, we developed a comprehensive ESG Strategy that will serve as a key foundation of our multi-year growth plan by integrating key ESG factors into our governance and risk management systems and introducing key metrics and targets for internal monitoring and external reporting. Karora's ESG program is overseen by its Board of Directors with a clear objective of introducing and maintaining policies and systems that reflect the Company's goal of being a leader among our peers in the ESG and climate space.

In 2021, Karora completed an ESG materiality assessment, which forms the foundation of our ESG strategy. The ESG materiality assessment identified and prioritized the ESG factors with the greatest potential to materially impact company value and our ability to achieve our strategic objectives over the short, medium, and long term. We will review our ESG materiality assessment annually to ensure that our priorities reflect the ESG factors with the greatest potential to impact our Company and our stakeholders. I believe the steps we have taken to formally integrate ESG factors into everything we do at Karora make us a much stronger Company for all our stakeholders."

• Continued to maintain zero fatalities and achieved zero near miss rates for employees and contractors
• Announced ambition towards becoming one of the world's first net-zero junior gold mining companies.
• Achieved carbon neutrality in 2021 for Scope 1 and Scope 2 greenhouse gas emissions ("GHG") through the purchase and retirement of an 87,000 tonne portfolio of verified carbon offset credits, including reforestation and increased biodiversity in Australia.
• Ongoing development of an emissions reduction strategy - launched the development of a long-term reduction plan to implement a pathway to net-zero GHG emissions.
• Completed a full ESG strategy that identified measures for Karora to enhance ESG integration into governance processes and risk management systems.
• Established a set of metrics and targets for internal monitoring and external reporting on ESG.

Karora is focused on increasing gold production to a targeted range of 185,000-205,000 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, expanding to a planned 2.5 Mtpa by 2024, which is fed at capacity from Karora's underground Beta Hunt mine and Higginsville mines. At Beta Hunt, a robust gold Mineral Resource and Reserve is hosted in multiple gold shears, with gold intersections along a 4 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. The Company also owns the high grade Spargos Reward project, which came into production in 2021. 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 also trade on the OTCQX market under the symbol KRRGF.

This news release contains "forward-looking information" including without limitation statements relating to the timing for the completion of technical studies, the new nickel exploration results at Beta Hunt, the timing of the updated resource estimate and additional production of nickel, at Beta Hunt, production guidance and the potential of the Beta Hunt Mine, Higginsville Gold Operation, the Aquarius Project and the Spargos Gold Project.

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.

A production decision at the Higginsville gold operations was made by previous operators of the mine, prior to the completion of the acquisition of the Higginsville gold operations by Karora and Karora made a decision to continue production subsequent to the acquisition. This decision by Karora to continue production and, to the knowledge of Karora, the prior production decision were not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, which include increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on the Corporation's cash flow and future profitability. Readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.

SOURCE Karora Resources Inc.



Contact
Rob Buchanan, Director, Investor Relations, T: (416) 363-0649, www.karoraresources.com