Sarama Resources Increases Previously Announced Private Placement to C$4 Million
March 9, 2018
Not for Distribution to a United States Newswire or for Dissemination in the United States
SARAMA RESOURCES INCREASES PREVIOUSLY
ANNOUNCED PRIVATE PLACEMENT TO C$4 MILLION
VANCOUVER, CANADA. Sarama Resources Limited (“Sarama” or the “ Company”) is pleased to announce that further
to its press release issued February 28, 2018 in relation to the Company’s proposed private placement , due to strong
support from existing shareholders and new investors, the Company has increased its offering to up to 40,000,000
common shares at a price of C$0.10 per common share to raise gross proceeds of up to C$4,000,000 (the “ Private
Placement”). All other terms of the Private Placement remain the same.
The proceeds of the Private Placement will be used to fund Sarama’s exploration activities in Burkina Faso and to meet
working capital requirements of the Company. Sarama intends to accelerate exploration at its 100% -owned projects
including the ThreeBee Project and Koumandara Project which the Company believes has significant exploration
potential.
The ThreeBee Project, hosts the Bondi Deposit which has a historical mineral resource(1) of 282,000oz Au measured and
indicated; and 150,000oz Au inferred and remodelling of the regional geology has generated a number of new targets
that require drill testing. The ThreeBee Project also hosts the Bamako Property where a +3km- long gold-quartz vein
system has been identified that has returned rock -chip assays up to 18.9g/t Au and gold -in-soil values of up to 13.6g/t
Au.
The Koumandara Project, which has recently been established, hosts three parallel litho-structural corridors coincident
with elevated gold -in-soil anomalism with the highest exploration priority being placed on the major corridor which
extends over an area of 43km-long x 10km-wide.
Insiders of the Company plan to participate in the Private Placement. A material change report will be filed outlining the
exemptions the Company will rely upon as described in National Instrument 61-101. The Private Placement remains
subject to TSX Venture Exchange approval. The securities issued in connection with the Private Placement will be subject
to a four-month hold period.
Sarama’s President and CEO, Andrew Dinning, commented:
“We are pleased with the strong demand shown by investors in the placement at a time when equity markets remain
challenging and appreciate the support shown by existing shareholders and new investors. We are active on the ground
at our 100%-owned projects, generating exploration targets in preparation for drill testing this season and look forward
to the results from this exploration work.”
For further information on the Company’s activities, please contact:
Andrew Dinning or Lui Evangelista
t: +61 (0) 8 9363 7600
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ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX -V: SWA) is a West African focused gold explorer with substantial landholdings in Burki na
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 gold .(1) Acacia Mining plc is earning up to a 70%
interest in the South Houndé P roject 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 mine ral 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 3 0% participating interest in the Karan kasso 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 gold(2) at the Karankasso Project JV.
Sarama has also acquire d a 100% interest in the Bondi Deposit from Orezone Gold Corporation (refer to news release
dated 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.
Sarama had recently established a new 600km² exploration position in the highly prospective Banfora Be lt in
southwestern Burkina Faso. The Koumandara Project hosts several regional-scale structural features and trends of gold-
insoil anomalism extending for over 40km along strike.
Incorporated in 2010, the Company’s Board and management team have a proven t rack 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.
FOOTNOTES
1. Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000oz Au (measured and indicated) and 2.5Mt @ 1.8g/t Au for 149,700oz 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 Corporation (“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 Tec hnical 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 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.
(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.
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2. South Houndé Project - 43.0Mt @ 1.5 g/t Au (reported above cut-off grades ranging 0.3 -2.2g/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 Re sources
Ltd.’s profile on SEDAR at www.sedar.com.
3. Karankasso Project - 9.2Mt @ 2.3g/t Au (at a 0.5g/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.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this disclosure that is not a statement of historical fact constitutes forward- looking information. Such forward- looking information
includes statements regarding the Company’s intended use of proceeds from the proposed Private Placement, plans for exploration at the Company’s
properties and the potential for those properties to host gold mineralization of significance, 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 conti nued exploration; few properties that are
explored are ultimately developed into producing mines; geological factors; the actual results of current and future explorat ion; 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 Exc hange) accepts
responsibility for the adequacy or accuracy of this release.
QUALIFIED PERSONS’ STATEMENT
Scientific or technical information in this disclosure that relates to the Company’s exploration activities in Burkina Faso is based on informati on
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 un dertaking 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 disclosure that relates to the preparation of the South Houndé Project 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 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 report of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure 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 ne ws 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.