Mr. Andrew Dinning reports

KEY MILESTONE IN COSMO GOLD PROJECT ACQUISITION

The shareholders of Cosmo Gold Ltd. have voted in favour of Sarama Resources Ltd.'s acquisition of a majority interest in the Cosmo gold project in Western Australia. This shareholder approval was a key outstanding condition to be satisfied for the transaction (defined below) to be completed.

The acquisition has approval from the shareholders of both Sarama and Cosmo, and Sarama has received requisite approval and conditional approval from securities exchanges in Australia and Canada, respectively. It is anticipated the transaction will be completed in mid-November, 2024.

The 580-square-kilometre Cosmo gold project covers the entirety of the Cosmo-Newbery greenstone belt and is located approximately 85 km northeast of Laverton in a region known for its prolific gold endowment. As one of the last effectively unexplored greenstone belts in Western Australia, the project presents a unique and compelling opportunity for the company.

Highlights:

• Sarama acquiring a majority interest in, and control of, Cosmo gold project in Western Australia;
• Sarama acquiring an initial 80-per-cent interest with ability to increase to 100 per cent in the majority of the project;
• 580-square-kilometre landholding capturing 50-plus-kilometre strike length in highly prospective gold-producing region; 95 km from both the world-class Gruyere mine and Laverton gold district;
• Project captures one of the last effectively unexplored greenstone belts in Western Australia; virtually no effective exploration undertaken for several decades;
• Project is very well located being only a four-hour drive from Kalgoorlie on predominantly paved roads;
• All shareholder approvals for the transaction secured;
• Key conditions precedent satisfied and completion of transaction anticipated in mid-November, 2024;
• Meetings with traditional owners confirm support for Sarama's involvement and its planned endeavours;
• Soil geochemistry program under way to generate regional targets in unexplored areas.

Sarama's executive chairman, Andrew Dinning, commented: "We are pleased to have passed this major milestone and look forward to finalizing the acquisition of a majority interest in the Cosmo gold project in the coming weeks. Together with Cosmo, we have commenced our first soil geochemistry program, which will continue over the next six to eight weeks and feed into larger targeting efforts and workup of drill targets for the 2025 exploration season."

Cosmo Newbery project

The project is composed of seven contiguous exploration tenements covering approximately 580 square kilometres in the Eastern goldfields of Western Australia, approximately 85 km northeast of Laverton and 95 km west of the world-class Gruyere gold mine. The project is readily accessible through the Great Central Road, which services the Cosmo Newbery community.

The project captures one of the last unexplored greenstone belts in Western Australia, and with a strike length of 50-plus km, the Cosmo Newbery belt represents a large and prospective system with gold first being discovered in the area in the 1890s. Multiple historical gold workings are documented within the project area, and work undertaken to date has identified multiple exploration targets for follow-up.

Despite this significant prospectivity, the project has seen virtually no modern exploration or drilling of merit due to a lack of land access persisting over a significant period. As a result, the project has not benefited from the evolution of geochemical and geophysical techniques, which facilitate effective exploration in deeply weathered and complex regolith settings, which are particularly pertinent, given approximately 75 per cent of the project area is under cover.

Following the relatively recent securing of land access, the project is available for systematic and modern-day exploration programs to be conducted on a broad scale. It is anticipated that future exploration programs will initially follow up preliminary targets generated from regional soil sampling and limited reconnaissance drilling programs, a majority of which extended to approximately five metres below surface with a small percentage extending up to 30 m below surface.

Transaction progress

Pursuant to the binding asset sale and purchase agreement executed (on Aug. 12, 2024) by Sarama and a 100-per-cent-owned subsidiary, with Cosmo and Adelong Gold Ltd., Sarama will acquire 80 per cent of Cosmo's interest in the project and will be granted the right to acquire the rest of Cosmo's interest in the project within a two-year period postcompletion. Further, an existing debt obligation of Cosmo to Adelong will be satisfied and discharged as part of the transaction. Refer to Sarama's news release of Aug. 13, 2024, for further details.

Since the execution of a memorandum of understanding and the binding agreement, Sarama and Cosmo have been working to satisfy the conditions precedent to enable completion of the transaction.

Sarama has gained regulatory approval for the transaction from the Australian Securities Exchange and conditional approval from the TSX Venture Exchange. Final TSX-V approval for completion of the transaction is anticipated once various compliance items are filed. The transaction has enjoyed support from the shareholders of both Sarama and Cosmo shareholders.

Sarama and Cosmo have been jointly working on the maintenance of the mineral tenure for the seven exploration licences comprising the project. These efforts have culminated in the extension of several licences for new terms, and receipt of recent advice from the Western Australian Department of Energy, Mines, Industry Regulation and Safety has confirmed that all tenements are current and in good standing.

Introductions to the traditional owners of lands within the project area have been made, and these groups are supportive of Sarama's involvement in the project, which will be confirmed with the procedural assignment of access agreements closer to the time of completion of the transaction.

Cosmo has generated valuable base level data that have identified a number of target areas, including kilometre-scale gold-in-soil anomalies and multiple structural and geophysical targets. Soil geochemistry exploration programs have commenced in regional areas and are expected to provide first-pass, broad-scale coverage in prospective but underexplored areas. It is anticipated that results from this initial program will inform design of expanded soil geochemistry programs to be undertaken postcompletion of the transaction that will ultimately feed into drilling targeting. Whilst Sarama's exploration focus is gold, the project is prospective for other commodities, including nickel and rare earth elements, for which soil anomalism at a kilometre scale has been already identified.

Qualified person's statement

Scientific or technical information in this disclosure that relates to exploration is based on information compiled or approved by Paul Schmiede. Mr. Schmiede is an employee of Sarama, and is a fellow in good standing of the Australasian Institute of Mining and Metallurgy. Mr. Schmiede 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. Schmiede consents to the inclusion in this news release of the information in the form and context in which it appears.

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