Sarama Resources Varies Royalty Terms ON Its Kandiolé Sud Property IN WEST Mali
April 4, 2018
Not for Distribution to a United States Newswire or for Dissemination in the United States
SARAMA RESOURCES VARIES ROYALTY TERMS ON ITS
KANDIOLÉ SUD PROPERTY IN WEST MALI
VANCOUVER, CANADA. Sarama Resources Limited (“Sarama” or the “ Company”) announce s that it, along with its
subsidiary, Sarama Mining Mali SARL (“ Sarama Mali ”), and Xinga Gold SARL (“ Xinga”) has entered into a second
amendment (the “Second Amendment Agreement”) to the memorandum of agreement (the “Agreement”) concerning
the Kandiolé Sud Exploration Property (the “Property”) previously entered into by Sarama, Sarama Mali and Xinga on
November 10, 2011 (as amended on November 10, 2013). The Property is situated in west Mali and is proximal to
B2Gold’s recently commissioned Fekola mine, Oklo Resources’ Dandoko Project and IAMGOLD’s Siribaya Project.
Pursuant to the Second Amendment Agreement, the net smelter royalty in respect of the Property held by Xi nga has
been reduced from 4% to 1%. In consideration for the variation, Sarama has agreed to, among other things, issue
200,000 common shares in the capital of Sarama (the “ Consideration Shares ”) to Xinga and the Company making
quarterly payments of US$5 ,000 to Xinga, commencing on the quarter beginning October 1, 2017 and continuing for
each successive quarter thereafter.
The issuance of the Consideration Shares to Xinga will be made pursuant to prospectus exemptions available under
applicable securities laws and is subject to the approval of the TSX Venture Exchange. A hold period expiring July 27,
2018 will apply to all of the Consideration Shares.
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 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 Belt, Sarama’s exploration programs have built on significant early
success to deliver an inferred miner al resource estimate of 2.1 Moz gold .(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. Acacia has satisfied certain
milestones and currently holds a 50% interest in the South Houndé Projec t and is continuing to sole fund exploration
activities.
Sarama holds a 3 0% participating interest in the Karankasso Project Joint Venture (“ JV”) which is situated adjacent to
the Company’s South Houndé Project in Burkina Faso and is a JV between Sarama a nd 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(3) 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).(1)
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 Belt 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 track record in Africa and a strong
history in the discovery and development of large -scale gold deposits. Sarama is well p ositioned to build on its current
success with a sound exploration strategy across its property portfolio.
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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 Technical 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.
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 re port 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 pl ease 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 availab le 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 disclosu re that is not a statement of historical fact constitutes forward- looking information. Such forward- looking information
includes statements regarding 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 continued exploration; fe w 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 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.
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QUALIFIED PERSONS’ STATEMENT
Scientific or technical information in this disclosure that relates to the Company’s exploration activities in Burkina Faso i s based on information
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 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 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 wh ich he is undertaking to
qualify as a Qualified Person under National Instrument 43-101. Adrian Shepherd 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 m ineral 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 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 disclosure of the information,
in the form and context in which it appears. Sarama has not independently verified the mineral resource estimate for the Karankasso Project using a
Qualified Person because 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 compiled by Savary.