Sarama Announces Equity Placement of Up To A$1M

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

PERTH, AUSTRALIA and VANCOUVER, BC / ACCESSWIRE / June 18, 2024 / Sarama Resources Ltd. ("Sarama" or the "Company") (ASX:SRR)(TSX-V:SWA) is pleased to announce it has received binding commitments to undertake a A$1 million equity placement (the "Placement").

Funds raised will be used to assess and pursue a potential acquisition, undertake exploration on the Company's properties and for general working capital purposes. The Placement was well supported by existing shareholders and professional and sophisticated investors.

The Placement will comprise the issue of 50,000,000 Chess Depository Instruments ("CDIs") at an issue price of A$0.02 per CDI to raise gross proceeds of A$1 million. The issue price represents a ~13% discount to Sarama's 10-day VWAP and a 9.1% discount to the last traded price on the ASX on Friday, 14 June 2024 of A$0.022. Each new CDI issued under the Placement will rank equally with existing CDIs on issue and each CDI will represent a beneficial interest in 1 common share of the Company.

Members of Sarama's Board and Management do not intend to subscribe for any CDIs in the Placement.

The Placement is comprised of two tranches:

• Tranche 1 consists of 45 million new CDIs under the Company's ASX Listing Rule 7.1 capacity. Funds received from the Tranche 1 placement will total A$0.9 million. The Company expects to complete allotment of the new CDIs under Tranche 1 by 21 June 2024.
• Tranche 2 consists of a further 5 million new CDIs which will be subject to shareholder approval at the Annual General Meeting on or around 5 September 2024. Total funds received from Tranche 2 will total A$0.1 million.

The Placement remains subject to the approval of the TSX Venture Exchange.

This announcement was authorised for release to the ASX by the Board of Sarama Resources Ltd.

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.

For further information, please contact:

Company Activities

Andrew Dinning or Paul Schmiede
Sarama Resources Ltd
e: info@saramaresources.com
t: +61 8 9363 7600

CAUTION REGARDING FORWARD LOOKING INFORMATION

Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes, but is not limited to, statements regarding the intended use of proceeds from the Placement, timing and completion of the Placement, timing and receipt of approval from the TSX Venture Exchange for the Placement, and the holding of a General Meeting. 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, 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 and security-related 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.

SOURCE: Sarama Resources Ltd.