Sarama Resources Announces Government Approval to Transfer Bondi Gold Deposit

VANCOUVER, BC--(Marketwired - July 19, 2017) - Sarama Resources Ltd. ("Sarama" or the "Company") (TSX VENTURE: SWA) is pleased to advise that the Ministry of Mines and Quarries in Burkina Faso has issued, and Sarama has paid, the invoice for the transfer of the Djarkadougou Exploration Permit ("Djarkadougou"), which hosts the Bondi Gold Deposit ("Bondi Deposit"). This was acquired from Orezone Gold Corporation ("Orezone"), pursuant to the sale agreement between Sarama and Orezone (the "Agreement") (refer Sarama news release May 24, 2016).

This is the final step of the approval process before the official transfer becomes effective upon the Ministry of Mines delivering the new Djarkadougou Order (the "Arrêté") in Sarama's name, at which point common shares and warrants issued by Sarama to Orezone as part of the Agreement will be released from escrow. The issuance of the Arrêté is a matter of process and it is anticipated that this will occur during Q3 2017.

With Orezone's consent, Sarama commenced exploration activity on the property in Q2 2017 and has made progress in identifying and drill testing new exploration targets, the results of which will be provided in future news releases.

The Djarkadougou Property forms part of Sarama's 100%-owned(1) ThreeBee Project(2) (refer Sarama news release May 16, 2017) and will play an important role in any future development plans.

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

"Sarama is pleased to have received this government approval and we look forward to progressing and extracting further value from the Bondi Project.

We view this acquisition as an important step in the consolidation of the highly prospective southern Houndé Belt which is an area where Sarama has had significant exploration success and controls a large land position with significant interests in three advanced gold exploration projects."

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 gold(4). 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 Project and is continuing to sole fund exploration activities.

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 gold(5) at the Karankasso Project JV.

Sarama has also agreed to acquire(1) 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)(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.

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) Upon closing of the respective purchase agreements, Sarama will hold a  
    100% interest in the Botoro Property and the Djarkadougou Property,     
    which hosts the Bondi Deposit.                                          
                                                                            
(2) The ThreeBee Project comprises the Djarkadougou, Botoro, Bamako and     
    Bouni Properties.                                                       
                                                                            
(3) 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.                            
                                                                            
(4) 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.                                      
                                                                            
(5) 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 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 news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the transfer of the Djarkadougou Arrêté, Company's plans for exploration at the Djarkadougou Property and the potential for the Djarkadougou Property and ThreeBee Project 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 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 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, 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 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 Savary's mineral resource estimate and takes no responsibility for its accuracy.

For further information on the Company's activities, please contact:

Andrew Dinning or Paul Schmiede
e: [e-mail]
t: [phone]