An anonymous director reports

KARORA RESOURCES CLOSES OVERSUBSCRIBED $69 MILLION BOUGHT DEAL FINANCING

Karora Resources Inc. has closed its previously announced bought deal financing of 14,375,000 common shares of the corporation at a price of $4.80 per common share for gross proceeds to the corporation of $69-million, including the exercise in full of the underwriters' overallotment option. The offering was underwritten on a bought deal basis by a syndicate of underwriters, co-led by Haywood Securities Inc., as co-lead underwriter and sole bookrunner, and Cormark Securities Inc., as co-lead underwriter, and including Canaccord Genuity Corp., Desjardins Securities Inc., Red Cloud Securities Inc. and Stifel Nicolaus Canada Inc.

The corporation intends to use the net proceeds received from the offering to finance a portion of the cash consideration due at a closing of the Lakewood mill acquisition as further described in the corporation's news release dated May 24, 2022 (which transaction is subject to the satisfactory completion by the corporation of its due diligence and other applicable closing conditions), advancement of the corporation's nickel exploration and development program its Beta Hunt mine, and for working capital and general corporate purposes.

The corporation filed a final short form prospectus in all of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101, Short Form Prospectus Distributions, to qualify for distribution of the common shares offered pursuant to the offering. Copies of the prospectus and documents incorporated by reference therein are available electronically on SEDAR under Karora's issuer profile.

About Karora Resources Inc.

Karora is focused on increasing gold production to a targeted range of 185,000 to 205,000 ounces by 2024 at its integrated Beta Hunt gold mine and Higginsville gold operations (HGO) in Western Australia. The Higginsville treatment facility is a low-cost, 1.6-million-tonne-per-year processing plant, expanding to a planned 2.5 million tonnes per year by 2024, which is fed at capacity from Karora's underground Beta Hunt mine and Higginsville mines. At Beta Hunt, a robust gold mineral resource and reserve are 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 1,900 square kilometres. The corporation also owns the high-grade Spargos Reward project, which came into production in 2021. Karora has a strong board and management team focused on delivering shareholder value and responsible mining, as demonstrated by Karora's commitment to reducing emissions across its operations. Karora's common shares trade on the Toronto Stock Exchange under the symbol KRR and also trade on the OTCQX market under the symbol KRRGF.

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