Mr. Paul Huet reports

KARORA DELIVERS STRONG START TO YEAR WITH FIRST QUARTER GOLD SALES OF 25,547 OUNCES AND PRODUCTION OF 24,694 OUNCES

Karora Resources Inc. had consolidated gold production of 24,694 ounces for the first quarter of 2021 from its Beta Hunt and Higginsville mines in Western Australia. Gold sales for the quarter were a very strong 25,547 ounces.

First quarter gold production is in line with consolidated 2021 production guidance of 105,000 to 115,000 ounces. As previously reported (see Karora news release dated Jan. 19, 2021), Karora expects gold grades to increase over the course of 2021 as higher-grade production from new mining areas in the Higginsville Central area come on line and with the anticipated start-up of mining at the high-grade Spargos open-pit project by midyear. As a result, 2021 gold production and grades will be higher in the second half of the year compared with the first half. For the full-year 2021, all-in-sustaining-cost (AISC) guidance of between $985 (U.S.) to $1,085 (U.S.) per ounce is maintained.

Karora's consolidated cash balance as at March 31, 2021, was $76.7-million, a slight decrease from $79.7-million on Dec. 31, 2020, due to planned investment into Karora's assets as part of 2021's capital program, as well as the second and final $2.5-million (U.S.) ($3.2-million (Australian)) cash payment to Maverix Metals as part of the Beta Hunt royalty buyback agreement announced on June 30, 2020.

Planned capital investments in the first quarter included capital development related to preparing new mining areas at Higginsville Central, as well as continuing phased mining fleet replacements and additions, which had a significant positive impact on productivity and mining rates during 2020. The company also continued with its aggressive $20-million (Australian) drilling and exploration program across all three operations.

Paul Andre Huet, chairman and chief executive officer, commented: "Karora has delivered another strong quarter of production across its operations as we prepare for the next level of growth to be announced in the coming months. First quarter production is directly on track with our budget and in line with our previous six quarters of consistent production of approximately 25,000 ounces per quarter, despite planned open-pit sequencing mining slightly lower grades during the quarter. As previously stated, we expect gold grades to increase over the course of 2021 as we bring on higher-grade mining areas at Higginsville Central and Spargos, resulting in our 2021 production growth, when compared to 2020 production, to be weighted to the second half of the year.

"During the first quarter, we invested heavily in preparing new, higher-grade mining areas at Higginsville Central and Spargos, along with increased resource definition, grade control and exploration drilling, to set us up for a very successful year. We also made investments during the first quarter to improve productivity with substantial mining fleet replacements and additions at Beta Hunt and Higginsville.

"We are also very pleased to have completed and closed the royalty transaction with Maverix Metals, having made our second and final cash payment of $2.5-million (U.S.) during the first quarter. The reduction of royalties at Beta Hunt has not only improved our mining cost profile, but has truly opened the mine up to the tremendous series of exploration discoveries we have delivered since September. These include the very exciting and higher-grade Larkin zone, the significant extension to Western Flanks North, the 30C high-grade nickel trough, as well as the recently announced very high-grade Gamma/50C nickel zone. With these new discoveries, we are executing on our plan to continue to grow Beta Hunt into a very large operation.

"I continue to believe we are only just scratching the surface of our growth potential and I am looking forward to strong results for the balance in 2021, as well as announcing Karora's multiyear growth plan later in the second quarter."

About Karora Resources Inc.

Karora is focused on growing gold production and reducing costs at its integrated Beta Hunt gold mine and Higginsville Gold operations (HGO) in Western Australia. The Higginsville treatment facility is a low-cost 1.4-million-tonne-per-annum processing plant which is fed at capacity from Karora's underground Beta Hunt mine and open-pit Higginsville mine. At Beta Hunt, a robust gold mineral resource and reserve is hosted in multiple gold shears, with gold intersections along a four-kilometre strike length remaining open in multiple directions. HGO has a substantial mineral gold resource and reserve and prospective land package totalling approximately 1,800 square kilometres. The company also owns the high-grade Spargos Reward project, which is anticipated to begin mining in 2021. Karora has a strong board and management team focused on delivering shareholder value.

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