Mr. Paul Andre Huet reports

KARORA REPORTS INTERSECTIONS OF 14.7 G/T OVER 4.0 METRES AND 12.2 G/T OVER 6.0 METRES AT BETA HUNT'S MASON ZONE AND THE 140 METRE EXTENSION OF GOLD MINERALIZATION AT THE SPARGOS MINE TO A DEPTH OF 580 METRES

Karora Resources Inc. has released further significant results from gold exploration and infill drilling at the Beta Hunt mine and the Spargos mine:

• Infill and extensional drilling targeting the Mason zone delivered strong results, extending the mineralized strike by 100 metres to 800 metres and providing confidence for a potential new deposit for future mining.
• Larkin drilling infilled the northern end of the Larkin mineral resource. Results give increasing confidence for an upgrade of the current inferred mineral resource to indicated status.
• Drilling in the A zone and Western Flanks deposits focused on upgrading the mineral resource, with results generally supporting the current interpretation and increasing the confidence of the inferred portion of the mineral resource.
• Drilling at Spargos was successful in extending high-grade mineralization up to 140 metres below current drilling to 580 metres below surface. Mineralization remains open at depth.

Recent intersection highlights from the continuing Beta Hunt underground diamond drill program and Spargos drill program are listed herein.

Mason:

• BM1941SP3-02AE -- 12.2 grams per tonne gold over 6.0 metres;
• BM1941SP3-14AE -- 14.7 g/t Au over 4.0 metres and 8.0 g/t Au over 7.0 metres;
• BM1941SP3-09AE -- 5.9 g/t Au over 7.8 metres;
• BM1941SP3-08AE -- 3.8 g/t Au over 11.4 metres.

Larkin:

• BL1730-06AE -- 4.2 g/t Au over 9.0 metres and 11.2 g/t Au over 2.7 metres;
• BL1730-05AE -- 3.0 g/t Au over 12.0 metres;
• BL1730-08AE -- 4.0 g/t Au over 10.0 metres.

Western Flanks:

• AWSP22-08AR -- 12.0 g/t Au over 5.1 metres;
• AWSP22-02AR -- 3.2 g/t Au over 12.8 metres;
• AWSP22-42AR -- 2.8 g/t Au over 19.7 metres;
• AWSP22-45AR -- 5.9 g/t Au over 13.9 metres, including 9.2 g/t Au over 1.7 metres.

A zone:

• AASP22-16AR -- 17.4 g/t Au over 2.6 metres;
• AASP22-21AR -- 3.3 g/t Au over 9.8 metres;
• AASP22-17AR -- 3.0 g/t Au over 9.7 metres;
• AA38ACC-07AR -- 4.2 g/t Au over 4.2 metres.

Spargos:

• KXDD003 -- 12.8 g/t Au over 2.1 metres and 4.4 g/t Au over 9.1 metres;
• KXDD004 -- 6.0 g/t Au over 5.0 metres and 3.4 g/t Au over 6.1 metres.

Paul Andre Huet, chairman and chief executive officer, commented: "Today, we reported more strong results at our flagship operation as part of the 2023 Beta Hunt drilling program. The theme of discovering new mineralized shear zones via exploration from existing underground development, expanding strike and depth extents of known shears via the drill bit and growing our resource base continues.

"Our latest set of results from the Mason zone continued to return significant results, including 14.7 g/t Au over 4.0 metres and 12.2 g/t Au over 6.0 metres, supporting the potential for our next new mineral resource in the Beta block west and parallel to the existing mineral resource at the Larkin zone. The results at Mason continue to support the potential we previously identified (see Karora news release dated Jan. 23, 2023) for the continued growth of the zone, which has now increased by another 100 metres to 800 metres of strike length.

"A core focus of our 2023 drilling program is upgrading portions of our large inferred mineral resource base. At the Larkin zone, new infill drill results designed to upgrade and extend the current mineral resource returned encouraging values, including intercepts of 4.2 g/t Au over 9.0 metres and 11.2 g/t Au over 2.7 metres (hole BL1730-06AE). I am also very encouraged by the results we are seeing from our infill drilling at Western Flanks and A zone. Recent highlights include intervals of 12.0 g/t Au over 5.1 metres and 2.8 g/t Au over 19.7 metres in Western Flanks and 17.4 g/t Au over 2.6 metres at A zone. At both Western Flanks and A zone, mineralization remains open at depth. These two shear zones have formed the backbone of our mining operation for many years and look poised for continued contributions for years to come.

"The most recent drill results from the Spargos mine provide further confidence that our ongoing technical work will result in a formal decision to proceed with a development of an underground mining operation. Our drilling has extended the known depth of gold mineralization by 140 metres to a depth of 580 metres below the surface, including intercepts of 6.0 g/t Au over 5.0 metres and 12.8 g/t Au over 2.1 metres. Important still, the deposit remains open at depth.

"Over all, the results reported today support the potential for further discoveries, new mineral resources, and ongoing upgrading of mineral resource categories and conversion of mineral resources to mineral reserves. We will be providing an updated mineral resource and reserve estimate in the fourth quarter of 2023."

Beta Hunt drilling update

During 2023, gold drilling has focused on upgrading the gold mineral resources at Western Flanks, the A zone and Larkin, extending the Mason zone mineralization and testing for the potential southern extension of the Fletcher zone north of the Alpha Island fault. Initial results of the Fletcher drill program were previously released (see Karora news releases dated April 13, Aug. 8 and Sept. 12, 2023).

Drilling results

Significant results greater than 10 gram-metres are detailed in an attached table. The drilling results include holes targeting nickel which are also assayed for gold mineralization.

Western Flanks and A zone

In 2023, drilling at Western Flanks and the A zone is focused on upgrading the existing inferred mineral resource for mineral reserve conversion. Drilling efforts have been concentrated on the north end of the A zone and the north and south sections of Western Flanks.

The A zone results generally support the current A zone interpretation. Western Flanks results show the mineralization to continue at depth; however, the northern section of the main shear is offset at depth in the hangingwall compared with the current resource model. The realignment of the mineralization occurs approximately 300 metres below the ultramafic/basalt contact and is interpreted as a dilational offset continuation of the main Western Flanks shear. This interpretation provides potential for dilational repeats with increased depth. Assay grades to date associated with the newly interpreted hangingwall offset indicate higher grades compared with the average Western Flanks resource grade of 2.7 g/t Au.

Significant intersections are highlighted herein.

Western Flanks (existing main shear interpretation):

• WW420-02AR -- 4.8 g/t Au over 12.6 metres;
• WW420-02AR -- 5.9 g/t Au over 8.3 metres;
• AWSP22-02AR -- 3.2 g/t Au over 12.8 metres;
• AWSP22-42AR -- 2.8 g/t Au over 19.7 metres;
• AWSP22-04AR -- 2.5 g/t Au over 18.0 metres.

Western Flanks (hangingwall offset):

• AWSP22-08AR -- 12.0 g/t Au over 5.1 metres;
• AWSP22-45AR -- 5.9 g/t Au over 13.9 metres, including 9.2 g/t Au over 1.7 metres.

A zone:

• AASP22-16AR -- 17.4 g/t Au over 2.6 metres;
• AA38ACC-07AR -- 4.2 g/t Au over 4.2 metres;
• AASP22-21AR -- 3.3 g/t Au over 9.8 metres;
• AASP22-17AR -- 3.0 g/t Au over 9.7 metres.

Mason and Larkin zones

Results were returned from nine holes drilled to test the interpreted Mason zone mineralization located approximately 100 metres to 200 metres west of and parallel to the Larkin zone. The recent drilling completed has extended the potential strike by 100 metres to 800 metres. All nine holes returned significant results, with highlights provided herein:

• BM1941SP3-14AE -- 14.7 g/t Au over 4.0 metres and 8.0 g/t over 7.0 metres and 4.5 g/t Au;
• BM1941SP3-02AE -- 12.2 g/t Au over 6.0 metres;
• BM1941SP3-09AE -- 5.9 g/t Au over 7.8 metres;
• BM1941SP3-08AE -- 3.8 g/t Au over 11.4 metres.

Mason has the potential to deliver a new mining opportunity south of the Alpha Island fault. All results received to date will be reviewed with the aim of producing a new Mason mineral resource in the latter part of 2023.

At Larkin, results were returned from 12 holes drilled to infill and extend the northern end of the current mineral resource. Highlights from this drilling are listed herein and provide encouragement that the drilling will upgrade the current mineral resource:

• BL1730-06AE -- 4.2 g/t Au over 9.0 metres and 11.2 g/t Au over 2.7 metres;
• BL1730-08AE -- 4.0 g/t Au over 10.0 metres;
• BL1730-05AE -- 3.0 g/t Au over 12.0 metres.

Spargos mine drilling update

The Spargos Deeps diamond drilling comprised four surface diamond holes, totalling 2,712 metres, aimed to test the vertical down-plunge extension of the main Spargos lode. Drilling targeted mineralization up to 140 metres below existing drilling.

Three holes (KXDD002, KXDD003, KXDD004) confirmed the extension of the deposit below the existing mineral resource, while drill hole KXDD001 was successful in upgrading the northern margin of the inferred mineral resource. Mineralization was extended by this drill program to 580 metres below surface and remains open at depth. All holes returned significant results in the targeted main lode position, with highlights provided herein:

• KXDD001 -- 4.4 g/t Au over 2.0 metres;
• KXDD002 -- 4.8 g/t Au over 4.2 metres;
• KXDD003 -- 12.8 g/t Au over 2.1 metres and 4.4 g/t Au over 9.1 metres;
• KXDD004 -- 6.0 g/t Au over 5.0 metres and 3.4 g/t Au over 6.1 metres.

These results will be incorporated into an updated Spargos mineral resource to assess the deposit as an underground mine opportunity and will be included as part of the updated Karora mineral resource due for release in the fourth quarter of 2023.

Compliance statement (Joint Ore Reserves Committee 2012 and National Instrument 43-101)

The disclosure of scientific and technical information contained in this news release has been reviewed and approved by Stephen Devlin, FAusIMM, group geologist of Karora Resources, a qualified person for the purposes of NI 43-101.

At Beta Hunt, all drill core sampling is conducted by Karora personnel. Samples for gold analysis are shipped to SGS Mineral Services of Kalgoorlie for preparation and assaying by a 50-gram fire assay analytical method. All gold diamond drilling samples submitted for assay include at least one blank and one certified reference material (CRM) per batch, plus one CRM or blank every 20 samples. In samples with observed visible gold mineralization, a coarse blank is inserted after the visible gold mineralization to serve as both a coarse flush to prevent contamination of subsequent samples and a test for gold smearing from one sample to the next which may have resulted from inadequate cleaning of the crusher and pulverizer. The laboratory is also required to undertake a minimum of one in 20 wet screens on pulverized samples to ensure a minimum 85 per cent passing at minus-75 micrometres. Samples for nickel analysis are shipped to SGS Australia Mineral Services of Kalgoorlie for preparation. Pulps are then shipped to Perth for assaying. The analytical technique is ICP41Q, a four-acid digestion ICP-AES package. Assays recorded above the upper detection limit (25,000 parts per million nickel) are reanalyzed using the same technique with a greater dilution (ICP43B). All samples submitted for nickel assay include at least one CRM per batch, with a minimum of one CRM per 20 samples.

Karora operates an industry best practice quality assurance/quality control process to ensure the integrity of all assay results.

About Karora Resources Inc.

Karora is focused on increasing gold production to a targeted range of 170,000 to 195,000 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, which is fed at capacity from Karora's underground Beta Hunt and Higginsville mines. In July, 2022, Karora acquired the one-million-tonne-per-year Lakewood mill in Western Australia. At Beta Hunt, robust gold mineral resources and reserves are hosted in multiple gold shears, with gold intersections along a five-kilometre strike length remaining open in multiple directions. HGO has substantial mineral gold resources and reserves, and a prospective land package totalling approximately 1,900 square kilometres. 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.

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