Mr. Paul Huet reports

KARORA ANNOUNCES UPDATED CONSOLIDATED GOLD MINERAL RESOURCE HIGHLIGHTED BY MAIDEN GOLD RESOURCE FOR THE LARKIN ZONE AT BETA HUNT; CONSOLIDATED MINERAL RESOURCE NOW TOTALS 2.71 MILLION MEASURED AND INDICATED OUNCES AND 1.21 MILLION INFERRED OUNCES

Karora Resources Inc.'s consolidated gold measured and indicated (M&I) mineral resource, net of depletions, has increased by 8 per cent and the consolidated inferred mineral resources have increased by 43 per cent. The update is highlighted by the addition of the maiden Larkin zone mineral resource at Beta Hunt, which contributed 1.44 million tonnes at 2.6 grams per tonne for 119,000 ounces in the M&I category and 2.17 million tonnes at 2.3 g/t for 162,000 ounces in the inferred category.

Paul Andre Huet, chairman and chief executive officer, commented: "We are very pleased to announce robust increases, net of mining depletion, to our consolidated gold mineral resource in the M&I category to over 2.7 million ounces and over 1.2 million ounces in the inferred category.

"In particular, the addition of the maiden mineral resource for the Larkin zone at Beta is exciting as it demonstrates how quickly we were able to move from the initial discovery of the zone announced in September, 2020 (see Karora news release dated Sept. 10, 2020), to the development of our first mineral resource of 119,000 ounces in the M&I category and a further 162,000 ounces in the inferred category. The Larkin zone has been delineated to a strike length of over 1,000 metres and a depth of 150 metres and remains open along strike and at depth, providing significant potential for further expansion as our drill program at Beta Hunt continues. Our ability to rapidly convert new discoveries at Beta Hunt bodes well for future mineral resource updates as we continue to drill at our other recent discoveries at the mine -- the Fletcher shear zone and the Gamma block.

"Our success in expanding the Beta Hunt mineral resource is a critical component of our growth plan to increase production to our guided range of 185,000 to 205,000 ounces annually by 2024. Approximately 80 per cent of our mill feed will come from our flagship Beta Hunt mine once operations are fully expanded to the schedule outlined in our growth plan."

Updated consolidated measured and indicated gold mineral resource totals 2.71 million ounces, an increase of 8 per cent over the Sept. 30, 2020, estimate. Updated consolidated inferred gold mineral resource now totals 1.21 million ounces, representing a 43-per-cent increase. The result continues the trend of increasing mineral resources in support of the company's growth plan (see Karora news release, June 28, 2021). Major contributors to the increase in mineral resources are the Larkin zone at Beta Hunt, and the Spargos deposit at Higginsville, both detailed below:

• Maiden Larkin mineral resource comprises measured and indicated 1.44 million tonnes at 2.6 g/t for 119,000 ounces and inferred 2.17 million tonnes at 2.3 g/t for 162,000 ounces;
• Spargos Reward mineral resource comprises measured and indicated 1.01 million tonnes at three g/t for 105,000 ounces and inferred 400,000 tonnes at 3.5 g/t for 45,000 ounces added to the consolidated mineral resource (previously reported in Karora news release dated June 28, 2021).

Exploration and resource definition activities at Beta Hunt in 2021 were concentrated on the newly discovered Larkin zone and infill and extensional drilling of the A zone and Western flanks.

The Larkin zone was discovered in late 2020 as part of a drill program targeting the 30C nickel trough which lies directly above the gold mineralization. The Larkin zone is Karora's first gold mineral resource south of the Alpha Island fault (AIF) and is interpreted as the southern fault offset extension of the Western flanks. The Larkin zone remains open along strike to the south and down dip.

The A zone drilling tested both the northern up-plunge and down-dip extensions of the September, 2020, mineral resource. The Western flanks drilling, both along strike and down dip, upgraded and extended both the northern and southern margins of the September, 2020, inferred mineral resource. Both the A zone and Western flanks remain open down dip with the A zone still open to the north.

Targeted drilling at Beta Hunt continues to grow the gold mineral resource inventory in support of the Karora growth plan which is underpinned by an expansion to two-million-tonne-per-annum mine production from Beta Hunt by 2024. At Jan. 31, 2022, measured and indicated mineral resources totalled 13.21 million tonnes grading 2.6 g/t for 1,124,000 ounces, an increase of 69,000 ounces, or 7 per cent, compared with the 2020 measured and indicated mineral resource estimate. At Jan. 31, 2022, inferred mineral resources totalled 9.43 million tonnes grading 2.6 g/t for 786,000 ounces, an increase of 249,000 ounces, or 46 per cent, compared with the 2020 inferred mineral resource estimate. The new mineral resource incorporates updates to both A zone and Western flanks with the bulk of the increased resources due to the addition of the Larkin zone which makes up 11 per cent (119,000 ounces) of the Beta Hunt measured and indicated mineral resource and 21 per cent (162,000 ounces) of the inferred mineral resource. The Beta Hunt mineral resource estimate is net of mine production depletion of 1.16 million tonnes grading 2.9 g/t for 108,000 ounces over the period Oct. 1, 2020, to Jan. 31, 2022.

For 2022, drilling at Beta Hunt will continue to extend and upgrade the Western flanks, A zone and new Larkin zone resources. In addition, exploration drilling will test the along strike continuity of the Fletcher zone, target parallel mineralized zones to the Larkin zone in the Beta block as well as new mineralization identified in the Gamma block.

Larkin zone

The first-ever gold mineral resource was completed for the Larkin zone and comprises measured and indicated, 1.44 million tonnes grading 2.6 g/t (119,000 ounces) and inferred 2.17 million tonnes grading 2.3 g/t (162,000 ounces). The mineral resource is located south of the Alpha Island fault (AIF) in the Beta block and represents Karora's first resource south of this fault. The Larkin zone is interpreted as the southern offset extension to the Western flanks deposit.

The Larkin mineral resource incorporates both historical nickel holes and more recent drilling targeted at the Larkin zone and the overlying 30C nickel mineral resource (see Karora's technical report, Feb. 1, 2021, on SEDAR). Through calendar 2020 and 2021, Karora completed 126 exploration and resource definition holes totalling 16,504 metres to define both gold and nickel mineralization in the Beta block. The maiden Larkin mineral resource includes the results of 286 holes.

Gold mineralization in the Larkin zone is hosted in the Lunnon basalt below the 30C nickel trough and comprises a series of mineralized sheared, veined and altered zones steeply dipping to the west, and striking north-northwest. The exception to this is a western footwall mineralized pod which strikes west-northwest in contrast to the general Beta Hunt mineralized trend. Mineralized lenses vary in thickness from one metre to 15 metres wide. The Larkin zone is mineralized over approximately 1.1 kilometres of strike length with the northern part containing the higher grade and greater thickness in multiple lenses.

Mineralized zones are associated with shearing, biotite-pyrite alteration, albite alteration and quartz veining and broadly follow the nickel mineralized troughs at the top of the basalt. At the Larkin zone's northern end there are up to eight subparallel gold-mineralized zones interpreted beneath the nickel mineralization. Mineralization generally dips steeply west with thrusting close to the basalt-ultramafic contact, producing shallower dips nearer the contact.

A block model was created using Studio RM software using a parent block size of five metres by five metres by five metres vertical with subblocking to one metre by one metre by 2.5 metres. Ordinary kriging (OK) with dynamic anisotropy was used for the grade estimation. The final gold grade was made using the top-cut drill composites only. The model was depleted for mine voids.

The deposit was classified as indicated or inferred mineral resource based on a combination of quantitative and qualitative criteria, which included geological continuity and confidence in volume models, data quality, sample spacing, lode continuity, and estimation parameters.

Higginsville

Summary

Resource definition drilling in 2021 was focused on infilling and extending near-mill resources. Additional drilling was also undertaken to upgrade the Spargos deposit. Results from the drilling were used to update existing mineral resources and produce two new resources at Aquarius and Spargos. The Spargos mineral resource was previously reported in Karora news release, June 28, 2021.

Reporting for the Higginsville mineral resource inventory is split into two main areas: Higginsville Central and Higginsville Greater. The former covers mineral resources within a radius approximately 10 kilometres of the Higginsville mill while Higginsville Greater covers all mineral resources that fall outside the Higginsville Central area.

At Jan. 31, 2022, measured and indicated gold mineral resources at Higginsville totalled 31.71 million tonnes grading 1.6 g/t for 1,587,000 ounces, an increase of 121,000 ounces, or 8 per cent, compared with the Sept. 30, 2020, measured and indicated resource of 1,466,000 ounces. This increase mainly reflects a successful drilling campaign which supported the upgrade of the historical Spargos mineral resource into Karora's consolidated mineral resource. At Jan. 31, 2022, inferred mineral resources totalled 6.37 million tonnes grading 2.1 g/t for 428,000 gold ounces, an increase of 118,000 ounces, from the September, 2020, inferred mineral resource estimate of 310,000 ounces. The consolidated Higginsville mineral resource is net of mine production depletion of 600,000 tonnes grading 2.1 g/t for 41,000 ounces over the period Oct. 1, 2020, to Jan. 31, 2022.

For 2022, exploration and resource definition drilling at Higginsville is planned to upgrade and extend short-term mining production targets (zero to two years) complemented by a strong commitment to greenfields exploration targeting significant new discoveries. The initial drilling focus for 2022 resource definition includes extensional and infill drilling to potentially support an underground mine at Spargos and continuing extensional drilling around the existing underground mines at Two Boys and Aquarius within the Higginsville Central area.

Looking ahead

An updated nickel mineral resource estimate is expected to be released in the second quarter of 2022 and Karora's annual mineral reserves and resource statement is planned to be announced in Q4 2022 in conjunction with the corporation's annual budgeting cycle.

Compliance statement (JORC 2012 and National Instrument 43-101)

Stephen Devlin is group geologist for Karora, a full-time employee of Karora and a fellow of the AusIMM. Mr. Devlin has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a competent person as defined in the JORC Code, 2012 edition, and fulfills the requirements to be a qualified person for the purposes of NI 43-101. Mr. Devlin has reviewed and approved the disclosure of the technical information for the Beta Hunt and Higginsville gold mineral resource included in this news release.

The JORC Code means the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia. There are no material differences between the definitions of mineral resources under the applicable definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum and the corresponding equivalent definitions in the JORC Code for mineral resources.

Detailed footnotes relating to mineral resource estimates as at Jan. 31, 2022:

1. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.
2. The measured and indicated mineral resources are inclusive of those mineral resources modified to produce mineral reserves.
3. The mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves once economic considerations are applied.
4. The gold mineral resource are estimated using a long-term gold price of $1,600 (U.S.) per oz with a U.S. dollar:Australian dollar exchange rate of 0.70.
5. Gold mineral resources were estimated using variable cut-off grades taking into account variable operational costs: Beta Hunt and Higginsville underground (Chalice, Trident and Aquarius) -- 1.3 g/t, Higginsville open pits (excluding Mt Henry project) -- 0.5 g/t, Mt Henry project -- 0.4 g/t, Spargos uses a 0.5 g/t Au cut-off grade above 300 mRL (metres relative level) and 1.6 g/t below 300 mRL.
6. To best represent reasonable prospects of eventual economic extraction the mineral resource for open pits has been reported within optimized pit shells at $2,285 (Australian) ($1,600 (U.S.)) and, for underground resources, areas considered sterilized by historical mining are depleted from the mineral resource.
7. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.

About Karora Resources Inc.

Karora is focused on doubling gold production to 200,000 ounces by 2024 compared with 2020 and reducing costs 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-annum processing plant, expanding to a planned 2.5 million tonnes per annum 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 is hosted in multiple gold shears, with gold intersections along a four km strike length remaining open in multiple directions. HGO has a substantial mineral gold resource and reserve and prospective land package totalling approximately 1,800 square kilometres. The company 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 on the OTCQX market under the symbol KRRGF.

We seek Safe Harbor.