Sarama Resources Reports Final Q2 2017 Drill Results for the Karankasso Project in Burkina Faso

VANCOUVER, BC—(Marketwired – August 21, 2017) – Sarama Resources Ltd. (the “Company” or “Sarama“) (TSX VENTURE: SWA) advises that Savary Gold Corp. (“Savary“), the operator of the Karankasso Project Joint Venture4 between Sarama and Savary, released exploration results from a drill program conducted during Q2 2017.

The drilling was undertaken across multiple target zones within the Karankasso Project area and further details of these drill results, including sampling and QA/QC procedures, are contained in Savary's news release dated August 21, 2017.

Sarama has not specifically verified Savary's data using a Qualified Person as Savary is the operator of the Karankasso Project Joint Venture and Sarama is relying on their Qualified Person's assurance that procedures have been followed and data being provided is valid.

Sarama's President and CEO, Andrew Dinning, commented:

“Sarama has interests in a suite of projects in the southern part of the Houndé Belt which between them have the potential to form the basis of a future mine development. This year, over C$8M of exploration is budgeted across these projects and Sarama is very optimistic that with this exploration plus the addition of more properties, the Company's share of regional resources will grow and further underwrite future development.

At the Karankasso Project we look forward to the improved confidence in certain areas of the mineral resource that the recent drilling results will bring. Sarama also looks forward to further testing of early–stage exploration targets on the Serakoro 1 Property.”

ABOUT SARAMA RESOURCES LTD

Sarama Resources Ltd (TSX VENTURE: 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 mineral resource estimate of 2.1 Moz gold2. 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 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 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 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)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.

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.

FOOTNOTES

1. Bondi Deposit — 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.
     
  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 — 43.0 Mt @ 1.5 g/t Au (reported above cut–off grades ranging 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). 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 Resources Ltd.'s profile on SEDAR at www.sedar.com.
   
3. Karankasso Project — 9.2 Mt @ 2.3 g/t Au (at a 0.5 g/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 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.
4. Sarama has 31% and Savary Gold has 69% ownership interests.

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 drill results and their validity, the exploration plans for the Karankasso Project and the Company's other properties, mine development in the region, increase in mineral resources in the region, 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.

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; 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 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

QUALIFIED PERSONS' STATEMENT

Scientific or technical information in this news release that relates to the preparation of the South Houndé Project's 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 news release 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 news release 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.

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.

Province of Ontario to Fund Ring of Fire Road Proposals Led by Marten Falls, Webequie and Nibiminik First Nations

TORONTO, ON—(Marketwired – August 21, 2017) – Noront Resources Ltd. (“Noront”) (TSX VENTURE: NOT) participated in a joint announcement today by Premier Kathleen Wynne and the Chiefs of Marten Falls, Webequie and Nibiminik First Nations, which formally committed provincial funding to two First Nations road proposals that will provide community and industrial access to the Ring of Fire Mining District.

Road Proposals

The provincial government agreed to support and fund the following road proposals which will connect First Nation communities to the Ring of Fire:

  • An east–west road connecting Webequie and Nibinamik First Nations to the provincial highway network north of Pickle Lake (the “East–West Road”). This road will continue from the Community of Webequie to the Ring of Fire.
  • A north–south community access road is being planned for construction by the Marten Falls First Nation with an option to expand the road to the Ring of Fire to support the development of chromite mining (the “North – South Road”).

An environmental assessment of both road projects is expected to begin by January 2018, followed by construction in 2019 pending all necessary approvals. This timeframe allows Noront to advance its pre–development work and ready itself for the three–year construction of its Eagle's Nest nickel, copper, platinum group metal mine.

A Major Step Forward

“Today's announcement by Premier Kathleen Wynne and the Chiefs of Webequie, Marten Falls and Nibinamik First Nations is a major step forward that will re–energize development of the Ring of Fire region,” said Noront President and CEO Alan Coutts. “Construction of all–season industrial and community access roads is one of the key things we've been working toward with the government and our First Nation partners. I am very pleased to see it moving forward.”

Noront plans to create a multi–mine, multi–metals company in the Ring of Fire, in partnership with local First Nations communities. Eagle's Nest which is the company's first project would use the planned East – West Road, while its future larger–scale chromite project would use the North – South Road, which will allow for a greater volume of material to be moved.

In April 2017, Noront signed an Exploration and Project Advancement Agreement with Marten Falls First Nation, and is currently negotiating a pre–development agreement with this community. As development continues in the Ring of Fire, the company looks forward to collaborating with other First Nation partners on similar agreements and road projects in order provide input into the technical industrial road specifications and development timelines.

RCF Interest Payment

Payment of interest in the amount of $390,120 for the second quarter of 2017 pursuant to a loan agreement entered into between Noront and Resource Capital Funds V L.P. (“RCF”) dated February 26, 2013 (the “Loan Agreement”) has been satisfied by delivery of 1,103,593 common shares of the Company (the “Interest Shares”) at an effective price of $0.3535 per Interest Share. The Interest Shares were delivered on July 13, 2017 subject to a four month hold period, expiring on November 14, 2017.

The calculation of the number of Interest Shares issued was based on the volume weighted average trading price of the common shares of the Company during the 20 trading days prior to June 30, 2017.

After giving effect to the issuance of the Interest Shares, there are 330,114,374 common shares of the company issued and outstanding.

About Noront Resources

Noront Resources Ltd. is focused on the development of its high–grade Eagle's Nest nickel, copper, platinum and palladium deposit and the world class chromite deposits including Blackbird, Black Thor, and Big Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire. www.norontresources.com

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.

CAUTIONARY NOTE REGARDING FORWARD–LOOKING INFORMATION

This press release includes certain “forward–looking information” within the meaning of applicable Canadian securities legislation.

Forward–looking information is based on reasonable assumptions that have been made by Noront as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Noront to be materially different from those expressed or implied by such forward–looking information, including but not limited to: the impact of general business and economic conditions; that all conditions precedent to the transactions will be met; risks related to government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations (including those contained in the Feasibility Study) and changes in project parameters as plans continue to be refined; problems inherent to the marketability of base and precious metals; industry conditions, including fluctuations in the price of base and precious metals, fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects Noront; stock market volatility; competition; risk factors disclosed in Noront's most recent Management's Discussion and Analysis and Annual Information Form, available electronically on SEDAR; and such other factors described or referred to elsewhere herein, including unanticipated and/or unusual events. Many such factors are beyond Noront's ability to control or predict.

Although Noront has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward–looking information will prove to be accurate as actual results and future events could differ materially from those reliant on forward–looking information.

All of the forward–looking information given in this press release is qualified by these cautionary statements and readers are cautioned not to put undue reliance on forward–looking information due to its inherent uncertainty. Noront disclaims any intent or obligation to update any forward–looking information, whether as a result of new information, future events or results or otherwise, except as required by law. This forward–looking information should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.