Mr. Paul reports

KARORA RESOURCES REPORTS STRONG PRODUCTION, REVENUE, EARNINGS AND CASH FLOW GROWTH IN THIRD QUARTER 2023

Karora Resources Inc. has released financial and operating results for the third quarter and first nine months of 2023. The company's full unaudited condensed interim financial statements and management discussion and analysis (MD&A) are available on SEDAR+ and on the company's website.

Strong quarterly and year-to-date gold production:

• Production of 39,547 gold ounces increased 3 per cent from 38,437 ounces in the third quarter of 2022, down slightly compared with record production of 40,823 ounces in the second quarter of 2023.
• Year-to-date 2023 production of 120,197 ounces increased 24 per cent from 96,578 ounces for the same period in 2022, with the company ending the third quarter well positioned to achieve full-year 2023 production guidance of 145,000 to 160,000 ounces.

AISC (all-in sustaining costs) on track to achieve 2023 guidance:

• Cash operating costs and AISC per ounce sold averaged $1,062 (U.S.) and $1,196 (U.S.), respectively, in Q3 2023, compared with $991 (U.S.) and $1,069 (U.S.), respectively, in Q3 2022 and $1,068 (U.S.) and $1,160 (U.S.) the previous quarter. Previous quarter 2023 cash operating cost per ounce included byproduct credits of $38 (U.S.) per ounce. No nickel byproduct credits were recorded in the third quarter of 2023 due to timing of sales; however, 5,193 tonnes at 1.6 per cent of nickel were mined during the quarter (approximately $22 (U.S.) per ounce).
• Cash operating costs and AISC per ounce sold for year-to-date 2023 averaged $1,083 (U.S.) and $1,188 (U.S.), respectively, versus $1,128 (U.S.) and $1,202 (U.S.), respectively, for year-to-date 2022; year-to-date 2023 AISC per ounce sold in line with full-year 2023 guidance of $1,100 (U.S.) to $1,250 (U.S.).

Robust quarterly and year-to-date revenue:

• Revenue in Q3 2023 of $107.1-million increased 32 per cent from Q3 2022 and was slightly lower than Q2 2023, which was driven by record quarterly gold ounces sold of 42,172 ounces. For Q3 2023, 41,278 gold ounces were sold at an average realized gold price of $1,931 (U.S.) per ounce.
• Yeat-to-date 2023 revenue totalled $314.5-million, 42 per cent higher than $220.2-million in year-to-date 2022, mainly reflecting a 30-per-cent increase in gold sales and a realized gold price that was $89 (U.S.) per ounce higher than comparable period in 2022.

Solid operating cash flow generation:

• Cash flow provided by operating activities in Q3 2023 was $45.3-million, up 60 per cent from $28.3-million in Q2 2022 and 32 per cent from $34.4-million in Q2 2023.
• Year-to-date 2023 cash flow provided by operating activities was $100.6-million was almost double from $51.7-million in year-to-date 2022.

Strong earnings performance:

• Net earnings of $6.9-million (four cents per share) compared with net earnings of $4.4-million (three cents per share) in Q3 2022 and net earnings of $6.6-million (four cents per share) in Q2 2023. Adjusted earnings of $14-million (eight cents per share) compared with $6.6-million (four cents per share) in Q3 2022 and $13.9-million (eight cents per share) the previous quarter.
• Net earnings for year-to-date 2023 of $10.6-million (six cents per share) compared with net earnings of $300,000 (nil per share) for the same period in 2022; adjusted earnings totalled $32.8-million (19 cents per share), a 164-per-cent increase from $12.4-million (eight cents per share) reported for year-to-date 2022.

Continued progress on growth plan:

• Following completion of a second (west) decline the final ventilation raise (No. 3 of three planned) has been completed. Primary ventilation fans have been procured and are expected to be installed and commissioned toward the end of the first half of 2024. In the interim, temporary ventilation vans are operational. During the quarter, Karora continued expansion of the mining fleet with delivery of two new underground trucks and one underground loader. Further expansion of the fleet is planned in 2024. With the expected significant improvements to the mine's primary ventilation circuit to accommodate the increase in mining fleet, the expansion project remains on track to support growth to an annualized production rate of 2.0 million tonnes per annum by the end of 2024.

Fletcher zone exploration success at Beta Hunt:

• Fletcher shear zone (FSZ) drilling results reported during Q3 from Beta Hunt (see the company's news releases of Aug. 7 and Sept. 12) continued to extend mineralization with new high-grade gold intersections. Results from a nine-hole FSZ drill program designed to test over 500 metres of strike north of the Alpha Island fault were highlighted by broad, high-grade intersections from the most northern infill line, which indicate the strike of the FSZ within 250 metres of the Western Flanks mineral resource.

Kali Metals lithium spinoff and management changes:

• The Kali Metals lithium spinoff transaction, originally announced during the second quarter, remains on track for completion by year-end. On Nov. 3, 2023, Kali announced that it had lodged a prospectus for its initial public offering on the Australian Securities Exchange (see Kali Metals' website for more information). The new lithium vehicle involves Karora and a third party vending their lithium exploration projects into a new entity, Kali Metals Ltd., with a goal of creating a new, separately run, lithium-focused, ASX-listed exploration company to be led by an experienced board and management team.
• During the quarter, Tony Makuch joined the company as a director; Barry Dahl retired as the company's chief financial officer, replaced by Derek Humphry; and Peter Ganza joined Karora's Australian operations as chief operating officer, Australia.

Karora will host a call/webcast on Nov. 10, 2023, at 10 a.m. Eastern Time, to discuss the third quarter 2023 results. For North American callers, please dial 1-888-664-6383; for local and international callers, please dial 416-764-8650. To join the conference call without operator assistance, you may register and enter your phone number at the callback link to receive an instant automated callback and be placed into the call.

Paul Andre Huet, chairman and chief executive officer, commented: "I am very pleased with our team's performance during the third quarter, which included another strong performance by our Beta Hunt and Higginsville operations, which have now delivered a total of 120,198 ounces through the first three quarters of 2023. Our gold processing operations have also performed very well, with average recoveries of 95 per cent through Q3. The robust operating performance year to date puts us in a great position to achieve our full-year guidance ranges of between 145,000 to 160,000 ounces for gold production and AISC costs of between $1,100 (U.S.) to $1,250 (U.S.) for 2023.

"Comparing our performance year to date with last year, we've delivered strong improvements year over year with production growing 24 per cent, average milled grade up 11 per cent and cash operating costs improving by 4 per cent. At the Beta Hunt mine, we continued to advance our expansion on schedule and on budget. The third and final ventilation raise installation is now complete, which will facilitate the ongoing expansion of our mining equipment fleet, putting us on track to grow Beta Hunt's annualized production rate to 2.0 million tonnes per annum by the end of 2024. At HGO [Higginsville gold operations], performance was strong in the third quarter as higher grades associated with the final stopes at the Aquarius mine were processed. HGO production was up 17 per cent and cash operating costs per ounce sold improved by 28 per cent compared with the previous quarter.

"We ended the third quarter in a very strong financial position with a cash position of $84-million, up $13-million from the prior quarter, placing us in an excellent position to deliver on our growth objectives. We've also reported some very exciting exploration results from Beta Hunt, most recently in the Fletcher and Mason zones that point toward the potential for years of ongoing mineral resource additions outside the main zone of Western Flanks and A zone. On this front, I am looking forward to reporting our next mineral resource update, which we expect to issue before year-end."

Consolidated operations

Consolidated gold production in the third quarter of 2023 was 39,547 ounces, a 3-per-cent increase from the third quarter of 2022 and 3 per cent lower than the record 40,823 ounces in the previous quarter. The increase from the third quarter of 2022 resulted primarily from an 8-per-cent improvement in the average grade reflecting final stoping at the Aquarius underground gold mine at the Higginsville gold operations. Tonnage was 6 per cent down on the comparative period in 2022 due to crushing interruptions at the Higginsville gold operations. Contract crushers were utilized while crusher bridge repairs continue and expected to be concluded during the final quarter of the year.

Cash operating costs per ounce sold for the third quarter of 2023 averaged $1,062 (U.S.) compared with $991 (U.S.) for the same period in 2022 and $1,068 the previous quarter. The increase from the third quarter of 2022 largely reflected the impact of higher processing costs during the quarter due to two months of contract crushing following the crusher bridge failure at HGO and continued cost pressures in areas such as labour, contractors, power and fuel. In addition, nickel produced in the third quarter 2023 was not sold during the quarter. During the previous quarter, the cash operating cost per ounce included nickel byproduct credits of $38 (U.S.) per ounce. AISC per ounce sold in the third quarter of 2023 averaged $1,196 (U.S.), compared with $1,069 (U.S.) in the third quarter of 2022 and $1,160 (U.S.) the previous quarter due to the impact of the higher cash operating costs per ounce sold and higher sustaining capital for the quarter.

For the first nine months of 2023, gold production totalled 120,197 ounces, 24 per cent higher than 96,578 ounces in the first nine months of 2022 reflecting an 11-per-cent increase in tonnes milled and an 11-per-cent improvement in the average grade. Higher tonnes milled reflected an increase in milling capacity following the acquisition of Lakewood mill in August, 2022. The company ended the first nine months of 2023 well positioned to record achieve an annual production record and target annual production above the midpoint of the 145,000 to 160,000 ounces gold production guidance range for 2023.

Cash operating costs per ounce sold for the first nine months of 2023 averaged $1,083 (U.S.), compared with $1,128 (U.S.) for the same period in 2022 with volume and grade improvements largely accounting for the year-over-year improvement. AISC per ounce sold averaged $1,188 (U.S.) in the first nine months of 2023 versus $1,202 (U.S.) a year earlier.

Beta Hunt

During the third quarter of 2023, Beta Hunt mined 357,204 tonnes at an average grade of two grams per tonne containing 22,912 ounces of gold. This represented a 14-per-cent improvement on the third quarter of 2022 and a 20-per-cent improvement on the prior quarter ore tonnes reflecting progress in the continuing production ramp-up at the Beta Hunt mine. Contained gold was 5 per cent lower than the third quarter of 2022 (313,000 tonnes at 2.40 grams per tonne for 24,188 contained ounces) and 19 per cent lower than the prior quarter (297,100 tonnes at 2.97 grams per tonne for 28,416 contained ounces) reflecting the mining of a planned lower-grade section of Beta Hunt during the current quarter with improved grade planned in the final quarter. The majority of the scheduled mined tonnes during the third quarter came from the central section of Western Flanks with fewer scheduled higher-grade ore zones.

Gold production from Beta Hunt in the third quarter of 2023 totalled 21,926 recovered ounces based on milling 333,311 tonnes at an average grade of 2.17 grams per tonne and 94-per-cent plant recovery. The lower mined grade contributed to 0.2 per cent lower gold production for the quarter (21,977 ounces) compared with the third quarter of 2022 and 15 per cent lower than the prior quarter (25,709 ounces).

Cash operating costs per ounce sold at Beta Hunt averaged $1,233 (U.S.) in the third quarter of 2023, which compared with $953 (U.S.) in the third quarter of 2022 and $1,017 (U.S.) the previous quarter, with the increase from the previous quarter of 2023 reflecting the impact of lower grade and no byproduct credits as the nickel produced in the quarter was not sold in the period ($61 (U.S.) per ounce reduction of cash cost per ounce for the previous quarter).

For the first nine months of 2023, Beta Hunt mined 954,304 tonnes at an average grade of 2.56 grams per tonne containing 78,439 ounces of gold, which compared with 828,984 tonnes mined at an average grade of 2.33 grams per tonne containing 62,152 ounces of gold in the first nine months of 2022. Year-to-date gold production in 2023 totalled 74,212 ounces, a 27-per-cent increase from production of 58,254 ounces in the first nine months of 2022, which resulted from 14 per cent higher mill throughput and 12 per cent higher grade. Cash operating costs per ounce sold averaged $1,071 (U.S.) broadly in line with the $1,067 (U.S.) in the first nine months of 2022.

In addition to gold production, Beta Hunt mined 5,193 tonnes of nickel ore at an estimated grade of 1.66 per cent nickel during the third quarter of 2023 compared with 5,915 tonnes of nickel ore mined at an estimated grade of 1.76 per cent nickel for the same period in 2022 and 6,071 tonnes of nickel ore at an estimated grade of 2.47 per cent nickel the previous quarter. For the first nine months of 2023, 18,035 tonnes of nickel ore were mined at an estimated grade of 2.14 per cent nickel, which compared with 18,851 tonnes mined at an estimated average grade of 1.66 per cent nickel a year earlier.

Higginsville mining operations (HGO)

During the third quarter of 2023, HGO mined 96,367 tonnes at an average grade of 5.16 grams per tonne containing 15,994 ounces, which compared with 171,000 tonnes mined at an average grade of 3.05 grams per tonne containing 16,742 ounces in the third quarter of 2022 and 178,100 tonnes at an average grade of 2.76 grams per tonne containing 15,806 ounces the previous quarter. The quantity of tonnes mined during the third quarter of 2023 largely reflected the completion of stoping activities at the Aquarius underground mine in the quarter as the Pioneer open-pit mine was brought into production.

Production at HGO in the third quarter of 2023 totalled 17,621 recovered ounces based on milling 182,489 tonnes at an average grade of 3.13 grams per tonne. Production in the third quarter of 2023 increased 7 per cent from 16,460 ounces in the third quarter of 2022 (241,000 tonnes at 2.29 grams per tonne for 16,460 ounces), reflecting the 37 per cent higher grade processed, and was 17 per cent higher than the previous quarter (216,894 tonnes at 2.31 grams per tonne for 15,114 ounces), again reflecting the 36 per cent higher grade in the current quarter driven by final stoping from the Aquarius underground mine.

Cash operating costs per ounce sold at HGO averaged $832 (U.S.) in the third quarter of 2023 versus $1,043 (U.S.) for the same period in 2022, with the 20-per-cent improvement reflecting the higher processing grade and resultant 20 per cent higher ounces sold for the period. Cash operating costs per ounce sold in the third quarter of 2023 improved 28 per cent from $1,151 (U.S.) the previous quarter with the improvement, again reflecting the higher processed grade from the Aquarius stoping ore and associated higher produced ounces.

For the first nine months of 2023, HGO mined 346,667 tonnes at an average grade of 3.65 grams per tonne containing 40,727 contained ounces of gold, which compared favourably with the 363,853 tonnes mined at an average grade of 3.03 grams per tonne containing 35,397 ounces of gold in the first nine months of 2022, reflecting ore source timing in accordance with the mine plan. Year-to-date gold production in 2023 totalled 45,985 ounces resulting from processing 602,932 tonnes at an average grade of 2.52 grams per tonne versus gold production of 38,324 ounces based on processing 568,581 tonnes at an average grade of 2.26 grams per tonne for the same period a year earlier. Cash operating costs per ounce sold averaged $1,101 (U.S.), compared with $1,223 in the first nine months of 2022, with the lower cash costs largely due to a higher grade.

Processing operations

A total of 515,800 tonnes were milled at an average grade of 2.51 grams per tonne with average recoveries of 95 per cent for production of 39,547 ounces during the third quarter.

Beta Hunt contributed 100 per cent of the throughput at the Lakewood mill during the third quarter of 2023, totalling 217,347 tonnes at an average grade of 1.92 grams per tonne. Recovered gold during the quarter totalled 12,297 ounces. The balance of Beta Hunt was dedicated to the Higginsville mill, with Beta Hunt contributing 39 per cent of the mill throughput and HGO providing the remaining 61 per cent with the higher-grade Aquarius ore prioritized. At Higginsville mill, 298,453 tonnes of material were processed at an average grade of 2.95 grams per tonne for a recovered gold of 27,250 ounces.

For the first nine months of 2023, throughput at the Lakewood mill totalled 548,590 tonnes (97 per cent from Beta Hunt and 3 per cent from HGO) at an average grade of 1.98 grams per tonne. Recovered gold during the nine-month period totalled 32,712 ounces. A total of 1,005,466 tonnes were milled at the Higginsville mill (with 42 per cent of mill feed coming from Beta Hunt and 58 per cent from HGO) at an average grade of 2.84 grams per tonne. Recovered gold totalled 87,485 ounces.

Financial review

For the three months ended Sept. 30, 2023, the company generated revenue of $107.1-million, a $25.8-million or 32 per cent increase from the third quarter of 2022. Gold revenue totalled $106.9-million, $27.3-million or 34 per cent higher than the third quarter a year earlier, with $12.9-million of the increase resulting from higher gold ounces sold and $14.4-million relating to rate factors, including the impact of a stronger US dollar as well as a 12 per cent increase in the average US$ realized gold price. Beta Hunt contributed $60.8-million of total

gold revenue in the third quarter of 2023, with HGO contributing $46.1-million. During the comparable period in 2022, Beta Hunt contributed $46.6-million of gold revenue, with the remaining $33.1-million coming from HGO.

For the nine months ended Sept. 30, 2023, revenue totalled $314.5-million, $94.3-million or 43 per cent higher than $220.2-million for the same period in 2022. Gold revenue for the nine months of 2023 totalled $306.9-million, a $91.2-million or 42 per cent increase from a year earlier. Of the increase, $64.1-million related to a 30 per cent increase in gold ounces sold, with rate factors contributing the remaining $27.1-million of revenue growth reflecting the 5 per cent improvement in the average realized US$ gold price and the impact of a significantly stronger US dollar. Beta Hunt contributed $186.9-million of year-to-date gold revenue, with HGO contributing $120-million. During the first nine months of 2022, Beta Hunt contributed $131.2-million of gold revenue, with $84.4-million coming from HGO.

Net earnings for the three months ended Sept. 30, 2023, totalled $6.9-million ($0.04 per basic share) compared with $4.4-million ($0.03 per basic share) for the three months ended Sept. 30, 2022. The improvement in net earnings performance compared with the third quarter of 2022 mainly reflected a 33 per cent increase in operating margin (revenue less production and processing costs), to $51.6-million, offsetting the impact of higher general and administrative, depreciation and amortisation, royalty, other and income tax expenses.

Net earnings for the nine months ended Sept. 30, 2023, was $10.6-million ($0.06 per basic share) compared with net earnings of $0.3-million ($0.00 per basic share) in the nine months of 2022, with a $52.8-million or 55 per cent increase in operating margin more than offsetting the impact of higher general and administrative, depreciation and amortisation, royalty, other and income tax expenses.

Adjusted earnings1 for the three months ended Sept. 30, 2023, totalled $14-million ($0.08 per share) versus $6.6-million ($0.04 per share) in the third quarter of 2022. The difference between net earnings and adjusted earnings1 in the third quarter of 2023 resulted from the exclusion from adjusted earnings1 of the after-tax impact of $3.9-million related to non-cash share-based payments, $2.4-million foreign exchange losses, $1.2-million related to sustainability initiatives, $0.9-million in unrealized loss on marketable securities, and $0.9-million credit for rehabilitation cost adjustment for closed sites. The difference between net earnings and adjusted earnings1 in the third quarter of 2022 largely resulted from the exclusion from adjusted earnings1 of the after-tax impact of $1.2-million related to non-cash share-based payments, $1-million related to loss on derivatives, and $0.5-million in unrealized loss on marketable securities. The increase in adjusted earnings1 compared with the third quarter of 2022 mainly reflected the 33 per cent increase in operating margin, driven by $27.4-million or 34 per cent higher gold revenue.

For the nine months ended Sept. 30, 2023, adjusted earnings1 totalled $32.7-million ($0.19 per share) versus $12.4-million ($0.08 per share) in the same period in 2022. The difference between net earnings and adjusted earnings1 for year-to-date 2023 reflected the exclusion from adjusted earnings1 of the after-tax impact of $13.4-million foreign exchange losses, $7-million related to non-cash share-based payments, $5.3-million related to loss on derivatives, $1.2-million related to sustainability initiatives, and $0.9-million credit for rehabilitation cost adjustment for closed sites. The difference between net earnings and adjusted earnings1 in the first nine months of 2022 mainly related to the exclusion from adjusted earnings1 of the after-tax impact of $6.4-million foreign exchange losses, $3.2-million related to non-cash share-based payments, $2-million in unrealized loss on marketable securities, $1.3-million related to loss on derivatives, and $1.2-million in related to sustainability initiatives. The $52.8-million or 55 per cent improvement in operating margin driven by 43 per cent higher gold revenue and the add back of foreign exchange losses mainly accounted for the increase in year-to-date adjusted earnings1.

For the three months ended Sept. 30, 2023, cash provided by operating activities, prior to changes in working capital, totalled $36.1-million compared with $27.9-million for the same period in 2022. The increase compared with the third quarter of 2022 largely reflected significantly higher operating margin, driven by strong revenue growth, partially offset by increased general and administrative and royalty expenses. Changes in working capital represented a net source of cash totalling $9.2-million during the three months ended Sept. 30, 2023, reflecting a $7.6-million increase in accounts payable due to increased operating and growth capital activity particularly in September 2023.

For the nine months ended Sept. 30, 2023, cash provided by operating activities, prior to changes in working capital, was $103.8-million compared with $61.8-million for the same period in 2022, with the increase mainly reflecting higher gold revenue and operating margin in the first nine months more than offsetting increases in royalty and general and administration expenses. Changes in working capital used $3.1-million of cash during the nine months ended Sept. 30, 2023, of which $6.4-million related to a reduction in accounts payable and accrued liabilities following completion of the Beta Hunt decline development and $4-million relates to reduced trade and other receivables reflecting no nickel sales for the quarter. Changes in working capital in the first nine months of 2022 used $9.1-million, mainly represented by a $8.4-million increase in inventories and $2.9-million reduction in accounts payable and accrued liabilities.

The company had cash of $84.2-million at Sept. 30, 2023, compared with $70.8-million at June 30, 2023 and $68.8-million at December 31, 2022.

OUTLOOK

TWO-YEAR GUIDANCE (2023 - 2024)

The company is maintaining its 2023 and 2024 production and cost guidance. The targets included in the company's outlook relate only to the 2023 to 2024 period. This outlook includes forward-looking information about the company's operations and financial expectations and is based on management's expectations and outlook as of the date of this news release. This outlook, including expected results and targets, is subject to various risks, uncertainties and assumptions, which may impact future performance and the company's ability to achieve the results and targets discussed in this section. The company may update its outlook depending on changes in metal prices and other factors. The company expects to announce updated Mineral Resources and Mineral Reserves during December 2023.

CONFERENCE CALL / WEBCAST

Karora will be hosting a conference call and webcast today, November 10, 2023, beginning at 10:00 a.m. (Eastern time). The accompanying presentation can be found on Karora's website, www.karoraresources.com.

Live Conference Call and Webcast Access Information:

North American callers please dial: 1-888-664-6383:

Local and international callers please dial: 416-764-8650

A live webcast of the call will be available through Cision's website at: https://app.webinar.net/qxL4W2Gb1mY

A recording of the conference call will be available for replay through the webcast link, or for a one-week period beginning at approximately 1:00 p.m. (Eastern Time) on November 10, 2023, through the following dial in numbers:

North American callers please dial: 1-888-390-0541; Pass Code: 571836 #

Local and international callers please dial: 416-764-8677; Pass Code: 571836 #

Compliance Statement (JORC 2012 and NI 43-101)

The technical and scientific information contained in this MD&A has been reviewed and approved by Steve Devlin, Group Geologist, Karora Resources Inc., and a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About Karora Resources

Karora is focused on increasing gold production 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 Mtpa processing plant, which is fed at capacity from Karora's underground Beta Hunt mine and Higginsville mines. In July 2022, Karora acquired the 1.0 Mtpa Lakewood Mill in Western Australia. At Beta Hunt, a robust gold Mineral Resource and Reserve are hosted in multiple gold shears, with gold intersections along a 5 km strike length remaining open in multiple directions. HGO has a substantial Mineral gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. 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 TSX under the symbol KRR and on the OTCQX market under the symbol KRRGF.

We seek Safe Harbor.