Mr. Andrew Dinning reports

SARAMA COMPLETES SALE OF ITS WEST AUSTRALIAN GOLD ASSETS

Sarama Resources Ltd. has completed the transaction for the sale of its majority and controlling interest in its Laverton gold projects in Western Australia to Riedel Resources Ltd. (refer news release dated April 21, 2026).

Highlights

• Sarama completes sale of Western Australian Gold assets to Riedel for $3.2-million (Australian) in cash and shares;
• Strategy preserves exposure to Arbitration claim and exploration while minimizing shareholder dilution;
• Sarama to hold approximately 32 per cent of Riedel, rising to approximately 44 per cent on achievement of performance milestones;
• Riedel has become a multiproject gold explorer with exposure to two Tier 1 mining jurisdictions;
• Riedel is well financed to drive exploration programs across its portfolio;
• Sarama executive chairman Andrew Dinning has been appointed as a non-executive director of Riedel;
• Sarama executives Paul Schmiede and Jack Hamilton have joined Riedel as chief executive office and special adviser -- exploration, respectively.

Sarama's executive chairman, Andrew Dinning, commented:

"We are very pleased to complete the sale of our Western Australian assets to Riedel while retaining significant exposure to their future success through our shareholding in the company. We believe the combined portfolio has considerable exploration potential and look forward to seeing these assets advanced under a dedicated and well-funded team.

"The completion of this transaction is an important part of Sarama's strategy to minimise further dilution of the company's claim against the government of Burkina Faso, while ensuring the Laverton projects receive the dedicated focus and funding they require to unlock their full potential."

As part of the company's broader equity and capital management strategy, and to manage exposure to its arbitration claim while retaining exploration upside, Sarama has completed a share sale agreement (SSA) with Riedel Resources Ltd., selling its Cosmo and Mt. Venn projects in exchange for a combination of equity consideration and the payment of certain project-related expenses.

The transaction has resulted in Sarama holding a significant equity interest in Riedel, which has been transformed into a well-financed, multiproject gold explorer with three projects across the Tier 1 jurisdictions of Western Australia and Arizona, United States.

Mr. Dinning was appointed as a non-executive director of Riedel upon execution of the SSA, and Paul Schmiede has been appointed chief executive officer of Riedel. Jack Hamilton has been appointed to the role of special adviser-exploration with oversight over exploration activities on the three projects. The company will retain the services of Mr. Schmiede and Mr. Hamilton as required to ensure continuity of the business, while Mr. Dinning will continue in his full-time role as executive chairman.

Transaction summary

Pursuant to the SSA, Riedel has acquired Sarama's interest in the projects through the acquisition of a 100-per-cent interest in Sarama's wholly owned subsidiary, Yikarri Resources Pty. Ltd., for consideration comprising equity in Riedel and payment of certain project-related expenses on Sarama's behalf as follows:

• Issuance of 150 million shares in Riedel to Sarama (or its nominee) at a deemed price of 2.5 Australian cents per share;
• Issuance of 100 million performance rights in Riedel to Sarama (or its nominee) across four tranches vesting upon the achievement of certain exploration, mineral resource and share price milestones;
• Payment of project-related costs that are incurred by Sarama, capped at $300,000 (Australian) (excluding GST).

Shares received by Sarama will be held in escrow for a period of 12 months.

Sarama will hold an initial approximately 32-per-cent relevant interest in Riedel, increasing to up to approximately 44 per cent if all performance rights vest and are subsequently exercised3. Sarama's interest in Riedel will be held via a wholly owned subsidiary.

We seek Safe Harbor.