Sarama Resources Extends Strike Length of New Discovery on the Djarkadougou Property

The drill results demonstrate the potential to add to the existing historical estimate of mineral resources at the Bondi Deposit(1) and strengthens Sarama's regional development options for the ThreeBee Project and the Company's adjoining South Hounde Project.

Highlights

• - 200m of RC and 1,500m of AC drilling was completed at the Zanawa Prospect ("Zanawa"), building on results from earlier reconnaissance drilling and extending the strike length of mineralisation to 1km.

  - Zanawa remains open-ended to the north, south and to depth.

  - Drilling at Zanawa intercepted intervals of shallow mineralisation, several of which contain significant gold grades. Highlighted downhole intersections include (refer to Appendices A and B for full results):

  • - 22m @ 3.85g/t Au from 5m in hole DJR0029;

    - 29m @ 1.44g/t Au from 1m and 10m @ 1.24g/t Au from 67m in hole DJR0030;

    - 5m @ 4.54g/t Au from 15m in hole DJA0141; and

    - 15m @ 0.74g/t Au from 7m and 11m @ 0.98g/t Au from 27m in hole DJA0159.

  - Drilling at Zanawa confirms that mineralisation is associated with a mafic volcanic - intermediate intrusion contact that extends for at least 3km across the north-eastern part of the Djarkadougou Property.

  - 1,300m of RC drilling on the southern limits of the Bondi Deposit extends the SE Splay Prospect ("SE Splay") to the south-east and identifies several high-grade zones which remain open at depth. Highlighted downhole intersections include (refer to Appendix A for full results):

  • - 3m @ 4.71g/t Au from 51m and 3m @ 19.86g/t Au (EOH) from 69m in hole DJR0013;

    - 7m @ 2.43g/t Au from 62m in hole DJR0015; and

    - 6m @ 3.46g/t Au from 44m in hole DJR0016.

  - 700m of RC drilling in the southern extension of the main Bondi Deposit has extended this zone to depth. Highlighted downhole intersections include (refer to Appendix A for full results):

  • - 13m @ 1.50g/t Au from 86m in hole DJR0004; and

    - 6m @ 1.93g/t Au from 134m in hole DJR0006.

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

"We are extremely pleased with the results of this drill program, which has demonstrated the potential to add additional free-milling and high-grade gold ounces to the historical resource base on the Djarkadougou Property. The intersection of broad zones of high-grade oxide mineralisation in areas separate to the Bondi Deposit provides substantial encouragement as does the drilling completed in the southern extents of the known resource area."

Reverse Circulation and Aircore Drilling

Sarama's recent focus has been on developing drill targets along strike and also away from the Bondi Deposit on Djarkadougou. Djarkadougou is one of four properties constituting the ThreeBee Project which is situated within the southern part of the prospective Hounde Belt in south-west Burkina Faso (refer to Figure 1).

The re-interpretation of the geology underlying the Property includes the recognition of multiple regional shear zones with secondary fault splays within a mixed volcanic and volcano-sedimentary package cut by late intermediate to felsic intrusions. These geologic features highlight a number of exploration targets with good potential to host gold mineralisation in addition to that previously outlined at the Bondi Deposit (refer to Figure 2).

The reported results are from a drilling program conducted in H1 2018 that targeted: 1) the Zanawa Prospect, a new discovery lying 4km to the north-east of the main Bondi Deposit; 2) the southern strike extent of the Bondi Deposit; and 3) a south-east zone representing a distinct splay from the main north-south trending Bondi Deposit. A total of 46 aircore holes, for a total of 1,500m, and 28 RC holes, for a total of 2,200m, were drilled. Full results are included in Appendices A and B.

Zanawa Prospect

Of principal interest was shallow, oxide mineralisation that was first intersected in an earlier, reconnaissance AC drill program approximately 4km to the north-east of the main, northerly-trending Bondi Deposit (refer to Figure 2 and Sarama news release dated September 12, 2017). The mineralisation is interpreted to be proximal to the contact zone of an intermediate intrusive unit that cuts a regionally extensive band of mafic volcanic rocks. Gold mineralisation is associated with quartz veins and veinlets within wider zones of silica-pyrite-sericite-albite alteration similar in many respects to mineralisation within the Bondi Deposit to the south-west.

Gold mineralisation at Zanawa strikes north and can be traced across several east-west oriented drill fences. It is parallel to an intrusive contact highlighted by gold-in-soil anomalism. Gold mineralisation of significance has been found on almost all drill fences that were spaced out over 1km and the zone is open along strike and to depth.

Highlighted drill results for Zanawa include:

• • - 22m @ 3.85g/t Au from 5m in hole DJR0029;

    - 29m @ 1.44g/t Au from 1m and 10m @ 1.24g/t Au from 67m in hole DJR0030;

    - 5m @ 4.54g/t Au from 15m in hole DJA0141; and

    - 15m @ 0.74g/t Au from 7m and 11m @ 0.98g/t Au from 27m in hole DJA0159.

Whilst drill density is limited and does not yet allow detailed interpretation of mineralised lode geometry, the presence of wide drill intervals of mineralisation in successive holes on several drill fences (refer to Figure 3) highlights the exploration potential at Zanawa and warrants further drilling.

Of further interest is a target zone to the north-north-east of current drilling that is defined by a gold-in-soil anomaly and a strong coincident resistivity-chargeability induced polarisation anomaly proximal to an interpreted regionally-extensive structure (refer to Figure 2). A 'data gap' exists between the Zanawa Prospect and the target area to the north-north-east that will require further investigation to see if the two prospects might be part of a larger, continuous mineralised system.

South-East Splay Zone

The SE Splay is a previously-identified southeast-striking mineralised structure that trends away from the main north-striking Bondi Deposit in the southern part of the deposit area (refer to Figure 2). This structure was targeted for drilling due to historic drill information and evidence of significant grade along the splay structure.

Sarama has extended this mineralised structure to moderate depth and further to the south-east and intersected high-grade gold mineralisation in several holes drilled beneath historic drill holes, including the following results:

• • - 3m @ 4.71g/t Au from 51m and 3m @ 19.86g/t Au (EOH) from 69m in hole DJR0013;

    - 7m @ 2.43g/t Au from 62m in hole DJR0015; and

    - 6m @ 3.46g/t Au from 44m in hole DJR0016.

The high-grade intercepts in hole DJR0013 are within, and proximal to, a granitoid dyke that cuts mafic volcanic host rocks. Further drilling will be carried out in order to follow-up on these encouraging results received to date.

Southern Extension of the Bondi Deposit

The southern extension of the north-south-striking Bondi Deposit (refer to Figure 2) was tested by RC drilling that confirms the continuation of mineralisation along strike and to depth. Significant intercepts include:

• - 13m @ 1.50g/t Au from 86m in hole DJR0004; and

  - 6m @ 1.93g/t Au from 134m in hole DJR0006.

Mineralisation is spatially associated with a north-striking, mafic volcanic - volcano-sedimentary contact and proximal to a north-striking fault. This zone will be further investigated as it is open along strike and to depth.

Looking forward, Sarama will continue its two-pronged strategy of systematic regional exploration for discovery of new mineralisation and secondly, validation of the large amount of historical data concentrated in the Bondi Deposit area with a view to generating extensional targets.

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

Andrew Dinning or Paul Schmiede

e: info@saramaresources.com

t: +61 (0) 8 9363 7600

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Figure 1 - Regional Project Plan (ThreeBee Project in Red)

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Northeast Prospect

Figure 2 - Geology Plan of Djarkadougou Property (Recent Drill Hole Collars in Blue)

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Figure 3 - 1209900mN drill fence (view to north) showing location of AC (DJA prefix) and RC (DJR prefix) drill holes, geology and interpreted mineralised zones (red).

Orientation of gold mineralised zones with respect to the east-west oriented drill fence is not precisely known.

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 Hounde Project area in south-west Burkina Faso. Located within the prolific Hounde Greenstone Belt, Sarama's exploration programs have built on significant early success to deliver an inferred mineral resource estimate of 2.1 Moz gold(2). Acacia Mining plc is earning up to a 70% interest in the South Hounde 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 Hounde Project and is continuing to sole fund exploration activities.

Sarama holds a 27% participating interest in the Karankasso Project Joint Venture ("JV") which is situated adjacent to the Company's South Hounde 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(3) at the Karankasso Project JV.

Sarama also has a 100% interest(4) in the Bondi Deposit which has a historical estimate of mineral resources of 0.3Moz Au (measured and indicated) and 0.1Moz Au (inferred)(1).

Together, the South Hounde 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 Hounde 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. 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.

1. 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.

2. 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.

3. 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.

4. iv.The historical estimate uses the mineral resource reporting categories required under National Instrument 43-101.

5. v.No more recent estimates of the mineral resource or other data are available.

6. vi.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. 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.

1. 2.South Hounde 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 Hounde 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.

2. 3.Karankasso Project - 9.2Mt @ 2.3g/t Au (at a 0.5g/t Au cut-off). The effective date ("Effective Date") of the most recent Karankasso Project JV mineral resource estimate that is supported by a technical report is October 7, 2015. For further information regarding that 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 and prepared 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 and Sarama. The technical report is available under Savary'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. Additional technical work has been undertaken on the Karankasso Project since the Effective Date, including but not limited to, metallurgical testwork, exploration drilling and mineral resource estimation, but Sarama is not in a position to quantify the impact of this additional work on the mineral resource estimate referred to above.

3. 4.The Djarkadougou Exploration Permit is going through a process with the government of Burkina Faso where it is required to be reissued as a new full-term exploration permit. The Company anticipates this to be completed in due course, though there can be no assurance that the process will be successfully completed on a timely basis, or at all.

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 Company's plans for further exploration at the Djarkadougou Property and its other prospects, the potential for mineralization of significance to be discovered at Djarkadougou, the significance and contribution of the Djarkadougou and ThreeBee Project in regional development plans, drilling and geochemical and geophysical surveys at the South Hounde Project, the timing and prospects for the re-issuance of the Djarkadougou Exploration Permit, the Earn-In Agreement with Acacia, including the amounts that may be spent on exploration and interests in the South Hounde Project that may be earned by Acacia upon making certain expenditures and estimating a minimum reserve 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.

NOTES -DRILLING

Drilling results are quoted as downhole intersections. True widths and orientation of mineralisation intersected by the drilling are not yet well understood.

The reported composites for the drilling were determined using a cut-off grade of 0.30g/t Au to select significant and anomalous intersections, with a maximum of 2m internal dilution being incorporated into the composite where appropriate. No top-cuts were applied to assay grades. Isolated mineralised intersections less than 2m in length have not been reported.

Gold assays for the drilling were undertaken by the Bigs Global laboratories in Ouagadougou, Burkina Faso. Assays are determined by fire assay methods using a 50 gram charge, lead collection and an AAS finish with lower detection limits of 0.005g/t Au (Bigs Global).

The drilling was generally designed using west-east azimuths, according to program aims and expected mineralization orientation, dipping at approximately -55-60 degrees and were of variable length. Holes were spaced at various intervals according to targeting intent. All aircore holes were sampled at regular 2m downhole intervals.

Intersection oxidation state classification is based on visual logging of the drillholes.

Sarama undertakes geological sampling and assays in accordance with its quality assurance/quality control program which includes the use of certified reference materials as well as field duplicates.

For further information regarding the Company's QAQC protocols please refer to the technical report titled "NI 43-101 Independent Technical Report, South Hounde Project Update, Bougouriba and Ioba Provinces, Burkina Faso", dated March 31, 2016. The technical report is available under the Company's profile on SEDAR at www.sedar.com.

QUALIFIED PERSONS' STATEMENT

Scientific or technical information in this news release that relates to the Company's exploration activities in Burkina Faso is 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 Geologues du Quebec 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 South Hounde 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, 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 Geologues du Quebec 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 quotation of the Karankasso Project's mineral resource estimate is based on information compiled by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd. and is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy. Paul Schmiede 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. Paul Schmiede consents to the inclusion in this disclosure of the information, in the form and context in which it appears. Paul Schmiede and Sarama have not independently verified Savary's mineral resource estimate and take no responsibility for its accuracy.

APPENDIX A - REVERSE CIRCULATION DRILLING

APPENDIX B - AIRCORE DRILLING

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