SARAMA VALUE DRIVERS

Why Invest With Sarama?

Underlying Value Drivers

Overview

Sarama Resources has a top-tier Board and Management team with a solid African and industry pedigree that spans all facets of the business from exploration and discovery through to finance, development, and operations and includes companies such as Moto Goldmines and Redback Mining. The company’s assets offer compelling value across multiple areas and provide substantial gold price optionality through the multi-million-ounce gold resource, near-term development potential, exploration portfolio and highly strategic landholding.

The Company is in the formative stages of transitioning from successful explorer to successful gold producer and it intends to play a key role in the consolidation of Burkina Faso’s prolific southern Houndé Gold Belt, an area  which continues to yield major new multi-million ounce gold discoveries.

Sarama’s development plans are underpinned by the Sanutura Project’s multi-million-ounce mineral resource which includes a substantial amount of oxide and high-grade material. The Project’s resource base has the capacity to support a multi-stage development where the oxide and free-milling material underwrites development and provides a substantial return with the balance of the resource and regional exploration success providing significant upside leverage.

Gold Price Leverage

Our large resource base provides significant leverage to a rising gold price, not only providing scope for increased operating margins but also a step change in the Resource to Reserve conversion rates. The Company’s 100% owned Sanutura Project hosts the Tankoro Deposit which has a Mineral Resource(1) of 9.4Mt @ 1.9g/t Au for 0.6Moz Au (Ind) plus 43.6Mt @ 1.4g/t Au for 1.9Moz Au (Inf) plus the Bondi Deposit which is well drilled and has a historical estimate of resources of  0.28Moz (M&I) + 0.15Moz (Inf) Au(2)

Near-Term Development Potential

Sarama’s Sanutura Project provides a near-term pathway to mine development which will utilise the significant oxide and free milling gold resource to underwrite and establish the project. The balance of the resource plus brownfields and greenfields exploration provide additional size, scale and life potential for the project as does scope for possible regional M&A opportunities. Pending work programs will determine optimal flowsheet, development phases and project size and the company anticipates commencing feasibility prep-work by the end of 2021.

    Strategic Positioning and Regional Consolidation

    The size, quality, and geological positioning of Sarama’s land package is difficult to replicate in Burkina Faso and generally in West Africa. There is significant value to be derived from ongoing regional consolidation which now sees Endeavour Mining, Teranga Gold Corp and Sarama controlling large areas of the southern Houndé Gold Belt. Sarama’s project area has clear synergies with Endeavour Mining’s Bantou Nord deposit which is situated 5km to the west of Sarama’s 2.5Moz Sanutura Project and also Teranga Gold Corp’s Golden Hill Project which joins the northern portion of Sarama’s Sanutura Project area. Sarama’s regional footprint is further enhanced by the JV it shares with Endeavour Mining on the 750km² Karankasso Project adjacent to the Company’s 100% owned Sanutura Project. The project hosts a 700koz(3) gold resource and recent drilling includes [21m @ 15g/t gold], Karankasso is reported as part of Endeavour Mining’s wider Bantou Project

    Exploration Potential

    Sarama’s 100% owned Sanutura and Koumandara Projects cover approximately 2,000km² of highly prospective and geologically proven greenstone terrane. The southern Sanutura Project area covers +1,400km² of highly prospective greenstone terrane. This part of the belt continues to yield major new plus-million ounce gold discoveries including Teranga Gold Corp’s Golden Hill and Endeavour Mining’s Kari Pump and Bantou Nord deposits. Koumandara Project (100% Sarama) covers 600km², is situated in the neighbouring Banfora belt and is analogous to the southern Houndé Gold belt situated 40km to the east. Three gold corridors up to 40km in length have been identified and reconnaissance work has delivered high grade gold-in-soil results plus high-grade auger, air-core and RC drilling results over wide intervals

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    Footnotes

    (1) Sanutura Project Mineral Resource Estimate – 9.4Mt @ 1.9g/t Au for 0.6Moz Au (indicated) plus 52.7Mt @ 1.4g/t Au for 2.3Moz (inferred), aggregating the Tankoro and Bondi Deposits, reported at cut-off grades ranging 0.2-1.6g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the likelihood of the mineral resources to have reasonable prospects for eventual economic extraction. Includes:

       a.   higher grade component of the mineral resource for the Sanutura Project of 6.3Mt @ 2.5g/t Au for 0.5Moz Au (indicated) plus 29.8Mt @ 1.9g/t Au for 1.8Moz (inferred) reported at a cut off grade of 1.0g/t Au for all material types across the Project;

      b.   higher grade component of the mineral resource for the Tankoro Deposit of 6.3Mt @ 2.5g/t Au for 0.5Moz Au (indicated) plus 24.7Mt @ 1.8g/t Au for 1.5Moz (inferred) reported at a cut off grade of 1.0g/t Au for all material types across the Project;

      c.   mineral resource estimate for the Tankoro Deposit of 9.4Mt @ 1.9g/t Au for 0.6Moz Au (indicated) plus 43.6Mt @1.6g/t Au for 1.9Moz (inferred); and

      d.   mineral resource estimate for the Bondi Deposit of 9.2Mt @ 1.5g/t Au for 0.5Moz Au (inferred)

    The effective date of the Company’s mineral resource estimate for the Sanutura Project is November 16,2021. Further information regarding the mineral resource estimate is contained in the technical report titled “NI 43-101 Technical Report Sanutura Project South-West Burkina Faso” dated February 7, 2022, which is available under the Company’s profile on SEDAR at www.sedar.com and the Company’s ASX Prospectus dated 11 March 2022, which is available under the Company’s profile on ASX at www.asx.com.au.

    (2) The Karankasso Project Mineral Resource Estimate  – 12.74Mt @ 1.73g/t Au for 709koz Au (inferred) reported at a 0.5g/t Au cut-off. The effective date of the most recent Karankasso Project JV mineral resource estimate is December 31, 2019, for further information regarding that mineral resource estimate. Further information regarding the mineral resource estimate is contained the technical report titled “Semafo: Bantou Project NI43-101 Technical Report – Mineral Resource Estimate” dated April 3, 2020, which is available under Semafo Inc.’s (and Endeavour Mining’s) profile on SEDAR at www.sedar.com and the Company’s ASX prospectus dated 11 March 2022, which is available under the Company’s profile on ASX at www.asx.com.au. Sarama has not independently verified Semafo’s (Endeavour Mining’s) mineral resource estimate and takes no responsibility for its accuracy.

    (3) Whilst the Company has sufficient working capital at the time of admission to ASX to carry out its objectives stated in its Prospectus, its extensive +50,000m drilling program at the SanuturaProject and other drilling programs are forecast for a period exceeding the 12 month period outlined in the use of funds disclosed in the Company’s ASX Prospectus dated 11 March 2022. Accordingly, the Company anticipates that it will require additional funding to complete these additional exploration programs.

    (4) The Exploration Results and Mineral Resource estimates referred to in this Presentation were first disclosed in accordance with ASX Listing Rules 5.7 and 5.8 in the Company’s ASX Prospectus dated 11 March 2022 and ASX announcements dated 9 August 2022, 1 September 2022, 8 September 2022, and 6 October 2022 . The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Prospectus and referenced ASX announcements, in the case of Mineral Resources, that all material assumptions and technical parameters underpinning the Mineral Resource estimates in the ASX Prospectus continue to apply and have not materially changed.