Mr. Andrew Dinning reports

SARAMA RESOURCES' OXIDE-FOCUSED DRILLING CONFIRMS 5.6KM-LONG PARALLEL MINERALISED HORIZON AT THE SOUTH HOUNDE PROJECT IN BURKINA FASO

Sarama Resources Ltd.'s follow-up drilling at the MC and Kenobi prospects has returned additional, predominantly oxide gold intersections and confirmed the presence of a semi-continuous eastern mineralized horizon measuring 5.6 kilometres in length. The drill program built upon previous exploration programs at the South Hounde project and further illustrates the exploration potential of the Tankoro structural corridor. A $3.5-million (U.S.), multifaceted exploration program is continuing (90 per cent complete) at the project, which is subject to an earn-in agreement between Sarama and Acacia Mining PLC.

Highlights:

• Drilling confirms the presence of a 5.6-kilometre-long semi-continuous mineralized horizon, located approximately 800 metres east of the well-defined 9.8 km long parallel trend hosting the bulk of the project's mineral resource.
• Mineralization occurs as stacked lode sequences at both the MC and Kenobi prospects, with individual sequences measuring between 900 m and 2.2 km in strike length.
• Drilling was focused on open-pittable, oxide mineralization that is anticipated to be amenable to heap leaching and comprised 5,300 m of air core (AC) and 2,100 m of reverse circulation (RC) drilling.
• Results demonstrate the potential to add to the oxide mineral resource of the project.
• Further exploration will be conducted along the trend, targeting drilling gaps and working toward understanding the geological controls on higher-grade and broad zones of mineralization.
• A $3.5-million (U.S.) ($4.7-million) exploration program is budgeted for 2015 including geochemical and geophysical surveys and drill programs.
• Highlighted downhole intersections are shown in the table.

       SOUTH HOUNDE DRILL RESULTS

AC2099                7 m @ 2.23 g/t Au
AC2103                8 m @ 2.82 g/t Au
AC2113                5 m @ 3.28 g/t Au
AC2132                6 m @ 2.69 g/t Au
AC2082               23 m @ 1.05 g/t Au
FRC899               26 m @ 1.08 g/t Au
FRC899A              23 m @ 1.23 g/t Au
FRC900               11 m @ 2.13 g/t Au
FRC904                9 m @ 2.03 g/t Au
FRC905               16 m @ 1.28 g/t Au
FRC907               31 m @ 1.97 g/t Au
FRC908               32 m @ 0.92 g/t Au

MC and Kenobi prospects drill programs

The project's mineral resource currently stands at 1.5 million ounces of contained gold, a majority of which is delineated at the MM and MC prospects, and hosted within a regional-scale structural-magmatic zone informally known as the Tankoro structural corridor. The area to the south of the defined mineral resources at the MC prospect has only been lightly explored, with activities limited to regional scout drilling, and ground-based geophysical and geochemical programs.

A drill program comprising 5,300 m AC and 2,100 m RC, and focused on shallow oxide targets, was conducted during second quarter 2015. The drill program was designed to build upon encouraging reconnaissance drill results in areas interpreted to be structural extensions to mineralized zones previously identified by drilling at the MC prospect, which hosts 20 per cent of the project's mineral resources. The main focus areas were two discrete zones within the Kenobi and MC prospects, measuring two kilometres and 900 m in strike length, respectively. Other confirmatory-type targets were also tested at the MC prospect.

Highlighted downhole intersections from the northern part of the drill program at the MC prospect include seven metres at 2.23 grams per tonne gold from 45 m in AC2099; eight m at 2.82 g/t Au from 18 m in AC2103 and five m at 3.28 g/t Au from 28 m in AC2113. The southern part of the program at the Kenobi prospect returned several broad downhole intersections including 23 m at 1.23 g/t Au from nine m in FRC899A; 11 m at 2.13 g/t Au from 38 m in FRC900; nine m at 2.03 g/t Au from 34 m in FRC904; 16 m at 1.28 g/t Au from 28 m in FRC905; 26 m at 1.08 g/t Au from 24.0 m in FRC899; 230 m at 1.05 g/t Au from 40 m in AC2082; and 32 m at 0.92 g/t Au from 17 m in FRC908. A deeper intersection of 31 m at 1.97 g/t Au from 125 m was returned in fresh material in FRC907.

The drilling program has been successful in confirming the continuity of mineralization and extending the strike length of a series of semi-continuous stacked lode sequences over a 5.6 km long trend. This is significant and illustrates the size of the mineralized system when considered in conjunction with the project's main 9.8 km long mineralized horizon approximately 800 m to the west.

The results have identified several oxide-hosted zones of economic interest along the horizon, with these typically being closely spaced stacked lode packages of moderate to higher-grade or broad, lower-grade zones. RC drilling on selected sections returned higher-grade intersections in fresh material, illustrating the potential for the system to continue at depth. Higher-grade shoots are present in the lodes defined by this drilling, similar to the mineralization in the better-defined western horizon.

The company now looks forward to conducting further exploration in drilling gaps along the newly defined horizon and working to identify zones of higher-grade and broader mineralization along the greater MC-Kenobi trend.

Sarama's president and chief executive officer, Andrew Dinning, commented:

"These results confirm the presence of a second extensive mineralized horizon within the Tankoro structural corridor at the South Hounde project. They also illustrate the size of the mineralized system and highlight the potential for further exploration success. The mineralization delineated by this program will add to the oxide component of the project's mineral resource and increase the likelihood of growing the oxide resource to a size that provides opportunities for development."

Notes -- drilling

Drilling results are quoted as downhole intersections. True mineralization width is expected to be approximately 70 per cent to 80 per cent of intersection length for holes drilled on east-west sections, dipping at minus-50 degrees to minus-55 degrees and intersecting the north-northeast-striking lenses; however, the nature of some mineralized units is not well understood.

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

Gold assays for the drilling were undertaken by the SGS SA and ALS Minerals laboratories in Ouagadougou, Burkina Faso. Assays are determined by fire assay methods using a 50-gram charge, lead collection and an AAS finish with a 0.01 g/t Au lower detection limit.

The drilling was generally designed using west-east-oriented holes, dipping at minus-50 to minus-55 degrees to the east, of variable length. Holes were spaced at 25 to 50 m intervals along drill lines. AC drill cuttings were sampled over regular one m or two m downhole intervals, depending on the purpose of the hole. All RC holes were sampled at regular one m downhole intervals.

Sarama undertakes geological sampling and assays in accordance with its quality assurance/quality control program which includes the use of certified reference materials and duplicates for RC and AC drilling.

For further information regarding the company's quality assurance/quality control protocols please refer to the technical report titled "NI 43-101 Independent Technical Report, South Hounde Project, Bougouriba and Ioba Provinces, Burkina Faso," dated Oct. 28, 2013. The technical report is available under the company's profile on SEDAR.

Qualified person's statement

Scientific or technical information in this news release that relates to the preparation of the company's mineral resource estimate is based on information compiled or approved by Adrian Shepherd. Mr. Shepherd is an employee of Cube Consulting Pty. Ltd. and is considered to be independent of Sarama Resources. Mr. 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 mineralization under consideration and activity which he is undertaking to qualify as a qualified person under National Instrument 43-101. Mr. 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 that relates to the company's exploration activities in Burkina Faso is based on information compiled or approved by Guy Scherrer. Mr. Scherrer is an employee of Sarama Resources 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 mineralization under consideration and activity which he is undertaking to qualify as a qualified person under National Instrument 43-101. Mr. Scherrer consents to the inclusion in this report of the information in the form and context in which it appears.

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