Dr. Marc-Antoine Audet reports

SAMA RESOURCES REPORTS ON SRG'S INCREASED MINERAL RESOURCE ESTIMATE AT THE LOLA GRAPHITE PROJECT IN GUINEA BY 54%

Sama Resources Inc. investment SRG Graphite Inc. has released an updated resource estimate for its Lola graphite deposit located in the Republic of Guinea. The 2018 mineral resource estimate represents an increase of 54 per cent of in situ graphitic carbon at a 3-per-cent cut-off grade since the publication of the maiden resource. In preparation for the next phase of development of the project, several boreholes were completed to increase measured and indicated resources from inferred resources. As such, measured and indicated resources increased from 224,118 tonnes to 676,900 t of Cg content at a 3-per-cent cut-off grade, an increase of 201 per cent.

The 2018 mineral resource estimate, prepared by Montreal-based Met-Chem, a division of DRA Americas Inc., includes a pit-constrained measured and indicated resource of 12.2 million tonnes grading 5.6 per cent Cg and an inferred resource of 2.1 million tonnes grading 6.1 per cent Cg, using a cut-off grade of 3.0 per cent Cg. Effective date of the estimate is June 14, 2018.

The 2018 mineral resource estimate replaces the maiden mineral resource estimate which was reported by SRG on Dec. 22, 2017, and subsequently included in a technical report completed by Met-Chem/DRA with an effective date of Sept. 30, 2017. A National Instrument 43-101 technical report will be filed on SEDAR within 45 days of this news release providing the details of this resource update.

Resource summary

The mineral resources are based on 395 boreholes for 12,086 metres drilled up to April 4, 2018. Since that time, an additional 162 diamond drill holes have been completed, for approximately 5,686 additional metres for a total of 17,954 metres. Assay results for these additional holes are pending. Drilling on site is continuing and an additional 3,000 metres of drilling are scheduled to take place in the second half of 2018.

The updated resource is established for the oxide profile of the deposit, from surface to a depth ranging between 20 metres and 50 metres, with an average thickness of 32 metres. The mineralization continues at depth within the fresh rock material, but drilling is stopped once fresh rock is reached. The area for the resources covers approximately 33 per cent of the deposit's 3.2-square-kilometre surface area.

The estimate was prepared using a block model constrained with 3-D wireframes of the principal mineralized domains. Values for graphitic carbon were interpolated using ordinary kriging (OK) interpolation methodologies on 10 m by 10 m by two m blocks. As in the previous resource estimate, a preliminary open-pit optimization algorithm was run on the estimated grade block model. Only mineralization contained within the preliminary pit shell has been included in the resource estimate. The base case mineral resource estimate is summarized in the following table at a cut-off grade of 3.0 per cent Cg together with estimate sensitivities at 1.64 per cent Cg and 5.0 per cent Cg.

SRG'S LOLA GRAPHITE PROJECT MINERAL RESOURCES AT A CUT-
  OFF GRADE OF 3.0 PER CENT CG AND SENSITIVITIES AT 
 1.64 PER CENT CG AND 5.0 PER CENT CG CUT-OFF GRADES

Base case mineral resources                    
Cut-off grade Classification    Tonnes    Cg  In situ Cg
Cg %                                Mt     %           t
         
3 %                 Measured      1.40  5.32      74,700    
                   Indicated     10.79  5.58     602,200   
                   Total M&I     12.20  5.55     676,900   
                    Inferred      2.06  6.07     125,200   
Sensitivities                                  
Cut-off grade Classification    Tonnes    Cg  In situ Cg
Cg %                                Mt     %           t      
   
1.64 %              Measured      2.13  4.31      91,900    
                   Indicated     17.00  4.39     746,400   
                   Total M&I     19.14  4.38     838,400   
                    Inferred      2.82  5.07     143,000   
Cut-off grade Classification    Tonnes    Cg  In situ Cg
Cg %                                Mt     %           t    
     
5 %                 Measured      0.60  7.14      42,700    
                   Indicated      5.02  7.46     374,800   
                   Total M&I      5.62  7.43     417,500   
                    Inferred      1.18  7.54      88,700    
                                               
Notes:
1) Canadian Institute of Mining definitions (May 10, 2014) 
observed for classification of mineral resources.
2) Block bulk density interpolated from specific gravity 
measurements taken from core samples.
3) Resources are constrained by a Lersch Grossman (LG) 
optimized pit shell using MineSight software.
4) Pit shell defined using 30-degree pit slope, $1,300/t 
of concentrate (94.6 per cent Cg grade, 79.25 per cent Cg 
plant recovery), $2/t mining costs, $10/t processing 
costs, and $3.50/t general and administrative, and $175/t 
of concentrate for transportation costs.
5) Mineral resources are not mineral reserves and have no 
demonstrated economic viability. The estimate of mineral 
resources may be materially affected by mining, 
processing, metallurgical, infrastructure, economic, 
marketing, legal, environmental, social and governmental 
factors.
6) Numbers may not add due to rounding.
7) Effective date of resource estimate is June 14, 2018.

About Sama Resources Inc.

Sama is a Canadian-based mineral exploration and development company with projects in West Africa.

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