Sarama Resources Provides Progress Update FOR South Houndé Project IN Burkina Faso
FEBRUARY 3, 2017
SARAMA RESOURCES PROVIDES PROGRESS UPDATE FOR SOUTH
HOUNDÉ PROJECT IN BURKINA FASO
VANCOUVER, CANADA. Sarama Resources Ltd. (the “Company” or “Sarama”) advises that pursuant to the Earn -In
Agreement (the “Agreement”) between Sarama and Acacia Mining plc (“Acacia”) in respect of the South Houndé Project
(the “Project”) in Burkina Faso (refer News Release November 27, 2014), Acacia has achieved the minimum required
expenditure of USD 7 million and met all conditions required to attain a 50% equity interest in the Project.
Under the terms of the Agreement, Acacia was required to sole-fund Project exploration and related expenditures of USD
7 million for the initial 2 years of the earn-in period in order to attain a 50% equity interest in the Project. Acacia has the
option to sole-fund a further USD 7 million exploration and related expenditures through years 3 and 4 of the earn- in
period to attain an additional 20% equity interest in the Project. If earn-in milestones are achieved within the required
time-frames, Acacia then has the right to acquire an additional 5% interest by declaring a minimum mineral reserve of
1.6 million ounces of gold for the Project.
Acacia continues to see potential and has advised that it intends to continue funding exploration as per the terms of the
Agreement and has approved an exploration budget of USD 4 million for the Project in 2017. Acacia’s aim is to increase
the current inferred mineral resource of 2.1Moz Au1,2 by targeting depth extensions to high-grade shoots and discovery
of other structurally-controlled mineralisation within the mineral resource area as well as satellite deposits in regional
areas of the Project. Acacia’s proposed exploration program includes 12,000 metres of diamond core, 10,000 metres of
reverse circulation and 28,000 metres of aircore drilling.
Pursuant to the Agreement, Acacia has elected to take over management of the Project which will allow Sarama’s team
to focus exploration efforts on its 100% owned Bondi deposit (historical estimate of 282koz Au measured and indicated,
and 150koz Au inferred)5,6 and Koumandara Project, both of which overlie prospective greenstone terrane within the
Houndé and Banforo Belts respectively.
Sarama’s President and CEO, Andrew Dinning commented:
“We are pleased that following two years and USD 7 million in expenditure, Acacia still sees the potential to commit to
significantly more work and is focus ed on further developing the high- grade and regional picture. Acacia taking over
day-to-day management of the Project also frees up Sarama’s team to focus on the newly acquired Bondi Deposit and
our other regional projects.”
For further information on the Company’s activities, please contact:
Andrew Dinning or Paul Schmiede
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 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 B elt, Sarama’s exploration programs have built on significa nt early
success to deliver an inferred mineral resource estimate of 2.1 Moz gold 1,2. 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.
Sarama holds a 31% participating interest in the Karank asso Project Joint Venture (“ JV”)7 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 gold3,4 at the Karankasso Project JV.
Sarama has also agreed to acquire a 100% interest in the Bondi Deposit from Orezone Gold Corporation (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)5,6.
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.
1. 43.0 Mt @ 1.5 g/t Au (reported above cut- off grades r anging 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)
2. 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, Bur kina Faso”, dated March 31, 2016. The technical report is available under Sarama Resources Ltd.’s
profile on SEDAR at www.sedar.com.
3. 9.2 Mt @ 2.3 g/t Au (at a 0.5 g/t Au cut-off)
4. 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 Proje ct, 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.
5. 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
6. The effective date of the historical estimate of the Bondi Deposit mineral resource estimate is February 20, 2009. For further information
regarding the mineral resource estimate please refer to the technical report titled “Technical Report on the Mineral Resource of the Bondigui
Gold Project”, dated February 20, 2009. The technical report is available under Orezone Gold Corporation’s profile on SEDAR at
www.sedar.com. A qualified person has not done sufficient work to cl assify the historical estimate as a current mineral resources and
Sarama is not treating the historical estimate as a current mineral resource.
7. Sarama has 31% and Savary Gold has 69% ownership interests
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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 use of proceeds from the private placement, 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 esti mating a minimum reserve, the potential to expand the present oxide
component of the Company’s existing estimated mineral resources, future exploration plans and the potential development of the Bondi, Karankasso
and South Houndé Projects on a combined bas is. 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 up graded 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 appr ovals, 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 news release that relates to the preparation of the Company’s mineral resource es timate 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 wh ich 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 that relates to the preparation of the Karankasso Project’s mineral resource estimate is based
on inform ation 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 membe r 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.
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.