28 January 2014

Liberia: Firm Declares Gold Discovery in Grand Bassa

Sarama Resources Ltd. is pleased to announce that soil geochemistry surveys at its Grand Bassa exploration property in central Liberia have successfully identified several anomalous gold-in-soil trends, the largest of which extends for 14km along strike. The Company's exploration program has also intersected in-situ gold mineralisation in follow-up trenching programs, giving credence to soil geochemistry survey results.

Grand Bassa Property Exploration

Sarama's exploration activities in Liberia have primarily focused on the Cape Mount, Gbarpolu and Grand Bassa exploration properties (refer Figure 1). Sarama holds an 80% interest in these properties and can earn up to a 90% interest, subject to the achievement of certain milestones. The Company's exploration at the Cape Mount Project and the Gbarpolu property in the west of Liberia has yielded encouraging results and recent activities at the Grand Bassa property in central Liberia are continuing this theme.

The Grand Bassa property is located in previously unexplored Archean-aged terrane, approximately 35km south-west of the high-grade Kokoya deposit for which a positive pre-feasibility study was recently conducted (refer AmLib Holdings Plc news release, August 12, 2013).

Identification of 14km-long Anomalous Gold-in-Soil Trend at Grand Bassa

Sarama has received assay results for a soil geochemical survey undertaken on parts of the 299km² Grand Bassa exploration property in 2012 and 2013. A principal sample grid spacing of 800m (east-west) x 50m (north-south) was used for the surveys with several areas being sampled at a higher density (400m x 50m spacing) after being identified as high priority targets based on structural setting, airborne geophysical results and prevalence of artisanal mining activity.

The survey identified a 14km-long anomalous gold-in-soil trend in the western portion of the property, parallel to a regional structural feature (refer Figure 2). The anomalous zone is also co-incident with several geologically prospective features identified by an airborne geophysical survey conducted by the Company in 2012.

The anomalous zone is broadly defined by the 95th percentile of returned assays. Within this zone, several areas up to approximately 2km in length and 1km in width are defined by elevated gold-in-soil values. Several other anomalous zones, 1.5km in length, were partially identified in the east of the property, with soil geochemistry surveys set to continue to fully investigate the trends.

Trenching Identifies In-situ Gold Mineralisation

An initial trenching program consisting of 7 excavations in north-south orientations was completed in Q4 2013, focusing on the southern portion of the 14km-long western anomalous zone and in the eastern-most anomalous zones. The targets were principally generated from the soil geochemistry survey, but were also co-incident with active artisanal gold mining sites and several geologically prospective features identified by an airborne geophysical survey conducted by the Company in 2012.

The eastern trenching program returned several encouraging intersections including: 29m @ 0.82g/t Au, including 9m @ 2.05g/t Au in GBTR005 ; 37m @ 0.51g/t Au, including 8m @ 1.54g/t Au in GBTR007 ; and 22m @ 0.42g/t Au in GBTR006 .

Results indicate the presence of broad low-grade zones of gold mineralization which demonstrate good continuity along strike. It is also encouraging to note the presence of higher grade zones within the broad intersections. The walls of the trenches were sampled at uniform 1m intervals over their length at a depth of approximately 2-3m below surface.

The weathering environment is similar to that observed at the Company's exploration properties in the west of Liberia, with high rainfall influencing the upper part of the regolith profile, leading to disaggregation of the upper part of the regolith profile. In this environment, the Company believes it is probable that near-surface geochemical and physical dispersion of in-situ gold has occurred at the level of trench sampling (2-3m depth). Initial trenching in the southern portion of the western anomaly did not return any significant intersections, but subsequent phases of work planned will test the area more comprehensively.

Sarama's President and CEO, Andrew Dinning, commented: "We continue to be encouraged with the potential being shown on all of our Liberian properties, with all three now having kilometre-scale gold-in-soil anomalies and promising trench results. We have identified drill targets on both our Cape Mount and Gbarpolu properties and we look forward to completing preliminary exploration at Grand Bassa to allow the next steps to be determined. Liberia continues to be an important jurisdiction for Sarama and continues to provide exciting optionality for our shareholders." Sarama Resources Ltd is a West African focused gold explorer with substantial landholdings in Burkina Faso, Liberia and Mali.

Sarama's flagship properties are situated within the Company's South Houndé Project area in south-west Burkina Faso. Located within the prolific Houndé greenstone belt, Sarama's exploration programs have built on significant early success to deliver a maiden Inferred Mineral Resource estimate of 1.5 Moz gold1. Outside of Burkina Faso, Sarama is focused on consolidating a number of under-explored landholdings in other emerging and established mining jurisdictions.

Incorporated in 2010, the Company's Board and management team have a proven track record in Africa and a strong history in the discovery and development of large-scale gold deposits. Sarama is well positioned to build on its current success with a strong financial position and a sound exploration strategy across its property portfolio.

Caution Regarding Forward Looking Statements

Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the Company's future exploration at its Grand Bassa property and the maiden Mineral Resource estimate for its flagship South Houndé Project.

Actual results, performance or achievements of the Company may vary from the results suggested by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for gold and other precious minerals involves a high degree of risk and is highly speculative in nature; Mineral Resources are not Mineral Reserves, they do not have demonstrated economic viability, and there is no certainty that they can be upgraded to Mineral Reserves through continued exploration; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.

There can be no assurance that any mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will be obtained. However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable.

Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of gold and other precious metals, that the Company will not be affected by adverse political events, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Sarama does not undertake to update any forward-looking information, except as required by applicable laws.

Notes - Soil Geochemistry

Soil geochemistry results are reported as processed data for a population of raw assay results. The effects of mechanical and chemical concentration, weathering, and the topographical and vegetative settings have not been presented and therefore results reflect a first-pass exploration phase. No top-cuts were applied to assay grades. Sarama undertakes geological sampling and assaying in accordance with its QA/QC program which includes the use of certified standard reference materials, uncertified blank reference materials and field duplicates.

Gold assay work was undertaken by the SGS S.A. laboratories in Monrovia, Liberia and Tarkwa, Ghana. Assays are determined by aqua regia digest of a 50g charge, followed by solvent extraction and an AAS finish with a 2ppb Au lower detection limit. Soil samples were collected from holes with a nominal diameter of 200mm which were manually excavated to a depth of approximately 400-500mm.

Holes were spaced on a combination of regular grids measuring 800m (east-west) x 50m north-south) and 400m (east-west) x 50m (north-south). Field samples of 2-3kg were collected from each hole, after which a sub-sample was produced by sieving for assaying. The gold-in-soil anomalies represented for the Grand Bassa property were delineated using the 95th percentile of the samples' Au grade population (Au >20ppb).

Notes -Trenching

Trenching results are quoted as lineal intervals. Given the early stage of the exploration programs, the nature of the mineralisation is not well understood and as a consequence, true mineralisation width is not able to be determined. The reported composites for trenching were determined using a cut-off grade of 0.20g/t Au to select significant and anomalous intersections, with a maximum of 4m internal dilution being incorporated into the composite where appropriate. No top-cuts were applied to assay grades. Isolated mineralised intervals less than 2m in length have not been reported.

Sarama undertakes geological sampling and assays in accordance with its quality assurance/quality control program which includes the use of certified and uncertified reference materials and field duplicates for trenching. Gold assays for the trenching were undertaken by the SGS S.A. laboratory in Monrovia, Liberia. Assays are determined by fire assay methods using a 50 gram charge, lead collection and an AAS finish with a 0.01g/t Au lower detection limit. The trenches were generally designed on a north-south orientation and were excavated to follow the topography of the area.

The trenches were approximately 2-3m deep and were wall sampled on uniform 1m intervals, approximately 750mm from the floor of the trench. Individual samples weighted approximately 3kg and were collected by hand. Scientific or technical information in this news release that relates to the preparation of the Company's Mineral Resource estimate is based on information compiled or approved by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is considered to be independent of Sarama Resources Ltd.

Adrian Shepherd is a chartered professional member in good standing of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.

Adrian Shepherd consents to the inclusion in this news release of the information, in the form and context in which it appears. Scientific or technical information in this news release that relates to the Company's exploration activities in Liberia is based on information compiled or approved by John Mpambije.

John Mpambije is an employee of Sarama Resources Ltd and is a Chartered Professional member in good standing of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. John Mpambije consents to the inclusion in this news release of the information, in the form and context in which it appears.

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