Karora Resources Inc. Extends Fletcher Gold Zone to 800 metres of Strike

• The Stage 2 drill program targeting the northern end of Fletcher South has extended high grade mineralized intersections a further 100 metres north of previously announced drill results (see Karora news release dated February 22, 2024).
• Drilling was highlighted by one of the highest grade intersections recorded to date at Fletcher in drill hole WF380ACC-17AE which intersected 17.3 g/t over 14.5 metres with some clusters of fine visible gold observed in the drill core
• Drilling over the past 12 months has now defined Fletcher mineralization over 800 metres north of the Alpha Island Fault with potential to extend a full 2.2 km of strike to the northern lease boundary.
• Fletcher Stage 3 drilling has commenced targeting the 300-metre strike length between the recently completed northernmost drill line to the 2016 Discovery Hole (WF14-98).

Intersection¹ highlights are summarized below:

• WF380ACC-17AE: 17.3 g/t over 14.5 metres including 35.3 g/t over 6.0 metres
• WF380ACC-15AE: 6.2 g/t over 6.9 metres and 3.5 g/t over 16.0 metres
• WF380ACC-13AE: 6.2 g/t over 8.0 metres and 3.7 g/t over 15.0 metres
• WF380ACC-17AE: 5.3 g/t over 10.0 metres
• WF380ACC-13AE: 19.9 g/t over 2.0 metres

Paul Andre Huet, Chairman & CEO, commented: "Stage 2 of the aggressive Fletcher drilling program at our flagship Beta Hunt mine, designed to add gold ounces and upgrade resources, continues to return very strong results. The results to date support our view that the new Fletcher Zone has strong potential to become Beta Hunt's largest gold zone. Our recent drilling also encountered clusters of fine visible gold mineralization in drill hole WF380ACC-17AE as part of one of our best drill intercepts to date.

We certainly look forward to continuing to grow Beta Hunt aggressively as a cornerstone operation of the combined company resulting from the anticipated merger of Karora and Westgold, with a bolstered treasury and additional underground drills available. Karora shareholders will continue to participate in the success of Beta Hunt with just under 50% ownership of the largest 100% unhedged gold producer in Australia.

Today's results include one our best grade x length results to date from Fletcher of 17.3 g/t over 14.5 metres, including 35.3 g/t over 6.0 metres in hole WF380ACC-17AE. Our exploration team has now extended the defined mineralized extent of the Fletcher Zone by 100 metres for a total strike of 800 metres north of the Alpha Island Fault, with excellent potential to extend along strike up to 2.2 km to the property boundary. Currently, four parallel mineralized zones have been interpreted across a 400 metre width with potential for additional parallel zones in the remaining 300 metre width to the western boundary. Stage 3 drilling at Fletcher is already underway to further extend both the strike length and width of the defined mineralization.

These results support both extending and increasing confidence in the Fletcher South Zone with the ultimate goal of completing sufficient drilling to produce a maiden Mineral Resource for Fletcher.

We are also excited with our progress on the Fletcher access drive being constructed from the Western Flanks South decline. We continue to target accessing Fletcher mineralization later this year. Overall, exploration and development work underway at Beta Hunt is progressing on track with our plans to reach an annualized 2.0 Mtpa by the end of 2024, with strong potential for continued growth ahead of us."

Fletcher Drilling Update

The Stage 2 drilling was completed in late April 2024, comprising 9 holes totalling 5,705 metres and focused on extending the northern margin of Fletcher South, adjacent to previously released drill intersections (WF405ACC-48AE - 4.8 g/t over 32 metres and WF405ACC-49AE - 3.6 g/t over 34.5 metres - see Karora news release dated September 12, 2023).

Significant intersections are summarized below:

• WF380ACC-17AE: 17.3 g/t over 14.5 metres including 35.3 g/t over 6.0 metres, 5.3 g/t over 10.0 metres and 3.5 g/t over 12.0 metres
• WF380ACC-15AE: 6.2 g/t over 6.9 metres and 3.5 g/t over 16.0 metres
• WF380ACC-13AE: 6.2 g/t over 8.0 metres, 3.7 g/t over 15.0 metres and 19.9 g/t over 2.0 metres
• WF380ACC-10AE: 5.0 g/t over 6.0 metres
• WF380ACC-14AE: 8.9 g/t over 3.0 metres

Results received from the northern-most line of drilling which includes drill holes WF380ACC-17AE and WF380ACC-15AE shows the Fletcher gold system continuing to grow to the north, highlighted by one of the highest grade intersections ever-recorded at Fletcher - 17.3 g/t over 14.5 metres, including 35.3 g/t over 6.0 metres (Figure 1). Mineralization is associated with biotite-pyrrhotite>>pyrite altered basalt with some clusters of fine visible gold observed.

Interpretation of the drill results indicates Fletcher comprises multiple parallel gold mineralized zones extending over 400 metres across strike with up to four mineralized zones identified on the most northern section from the recently completed drilling (Figure 2). Potential also exists for additional lodes to be discovered between the current western extent of drilling and the western sub-lease boundary (Figure 2). This new understanding of Fletcher underlines the opportunity for it to grow into Beta Hunt's largest gold system. Currently Fletcher mineralization has potential to extend over 2.2 km of strike and remains open at depth.

Moving Forward

Focus for the remainder of 2024 will be:

• The delivery of a maiden Mineral Resource for Fletcher.
• Stage 3 drilling to continue targeting the 300 metres strike length (Figure 1) between the recently completed most-northern drill line to the 2016 Discovery Hole (WF14-98). Selected holes will also test for new parallel lodes up to the sub-lease boundary.
• Complete development of Fletcher access drive from Western Flanks South decline.

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, Chief Geological Officer, Karora Resources Inc., a Qualified Person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

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 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.

About Karora Resources

Karora is focused on increasing gold production 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 of Directors 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.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains "forward-looking information" including without limitation statements relating to: Project future exploration activity, including drilling, at the Corporation's mineral projects; the ability to add gold ounces and upgrade resources; the potential of the Fletcher Zone and Beta Hunt generally; the Corporation's ability to produce a mineral resource estimate for the Fletcher Zone; anticipated future production; and the Corporation's future business plans and growth prospects.

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: the ability of exploration activities (including drilling) to accurately predict mineralization; errors in geological modelling; 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 (including drilling); accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, projected cash operating costs; and 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.sedarplus.ca.

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.

Table 1: Beta Hunt Significant Gold Results, Fletcher Shear Zone - January 1 2024 to April 30, 2024

Table 2 Beta Hunt - Drillhole Collars for Gold Results, Fletcher Shear Zone, received January 1 2024 to April 30, 2024

SOURCE Karora Resources Inc.



Contact

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