Sarama Resources Extends MM Prospect Strike Length by 25% to 1.9km

      Sarama Resources Extends MM Prospect Strike Length by 25% to 1.9km

PR Newswire

VANCOUVER, Jan. 14, 2013

TSX-V Ticker:  SWA
SWA.WT

VANCOUVER, Jan. 14, 2013 /PRNewswire/ - Sarama Resources Limited ("Sarama" or
the "Company") is pleased to report that recent reverse-circulation ("RC") and
diamond drilling at the MM Prospect at its South Houndé Project in
south-western Burkina Faso has extended the strike length of mineralisation by
25% to a total of 1.9km and confirmed previous high-grade intersections in the
south of the mineralised zone.

Highlights

  *Strike length of the MM mineralisation system has been increased to 1.9km.

  *Infill RC and diamond drilling confirms continuity of major mineralised
    lenses within the MM system as well as the presence of a broad high-grade
    zone in the south.

  *Downhole intersection highlights include:

       DDH019    5.3m @ 5.18       from 291.3m  DDH   including 2.3m @
                     g/t Au                                10.68 g/t Au
      DDH045*    15.5m @ 6.61      from 176.5m  DDH   
                     g/t Au
     DDH005RE1   6.5m @ 2.93       from 225.5m  DDH   including 2.5m @
                     g/t Au                                5.57 g/t Au
       DDH050    19.1m @ 4.06      from 263.5m  DDH   including 2.5m @
                     g/t Au                                17.42 g/t Au
       FRC612    11.0m @ 2.70      from 128.0m  RC    including 6.0m @
                     g/t Au                                4.65 g/t Au
       FRC613    18.0m @ 2.09      from 196.5m  DDH   
                     g/t Au
       FRC614    15.5m @ 2.79      from 101.0m  DDH   
                     g/t Au
       FRC616    14.0m @ 5.71      from 180.0m  DDH   including 6.1m @
                     g/t Au                                12.02 g/t Au
    * Note: Hole was reported previously as ending in mineralisation -
        the listing is a composite of the new
        extended intersection and previously reported intersection.
 

  *Potential remains for further extensions along strike and across the
    stacked-lode system.

Sarama has received assay results from recent RC and diamond drilling programs
at the  MM Prospect  which is  situated on  the Tankoro  exploration  property 
within the Company's South Houndé Project. The infill and extensional programs
commenced in October  2012 and  results for an  initial 4,500m  RC (35  holes, 
including 11 pre-collars) and 2,800m (23 holes) diamond drilling are listed in
Appendices A and B respectively.

The  extensional  program  was  designed  to  test  for  strike  and  down-dip 
extensions around  the southern  extent  of the  mineralised system  and  also 
strike and down-dip extensions of other minor lodes within the central part of
the system  that contained  significant intersections  returned from  drilling 
earlier  in  2012.  This   program  successfully  intersected  the   targeted 
mineralised units, leading to a 25% increase in strike length of the MM system
to 1.9km (refer Figure 1).

Holes in  the southern  extension area  were drilled  to a  vertical depth  of 
100-120m along 100-200m spaced drill lines, with intersections including 7m  @ 
2.14 g/t Au, 15m @ 1.36 g/t Au  and 8m @ 1.38 g/t Au being returned.  Several 
broad,  low-grade  intersections  >20m   in  thickness  were  also   returned, 
potentially indicating the  presence of shoot  controls on mineralisation.  A 
down-dip extension of mineralisation to  200-230m vertical depth was  achieved 
by the program in the south of the system with intersections including 19.1m @
4.06 g/t Au, 18.0m @ 2.09 g/t Au and 13.5m @ 1.42 g/t Au being returned.

Extensional drilling of minor lodes in the central area returned intersections
including 5.3m @ 5.18 g/t Au, 6.5m @ 2.93 g/t Au and 11.0m @ 2.70 g/t Au.

The infill drill program targeted an area of high-grade mineralisation located
in the south of  the mineralised system. The  southern area has  consistently 
returned high-grade intersections over several drill campaigns conducted since
May 2011 and  the recent infill  drilling was designed  to provide  additional 
information on the spatial extent  and directional controls on the  high-grade 
mineralisation. Intersections returned include 14.0m  @ 5.71 g/t Au, 15.5m  @ 
2.79 g/t Au, 15.5m @ 6.61 g/t Au* and 16.0m @ 1.63 g/t Au. These results  are 
aligned with previous drilling in the  area and notably define the  high-grade 
(+5g/t Au) zone along a strike length of approximately 250m.

Sarama is continuing the drill programs at the MM Prospect focussing on  areas 
where the mineralised zones are most likely to extend along strike and/or  dip 
and expects to announce  a maiden resource estimate  later in 2013.  Regional 
exploration on the Tankoro  property is ongoing,  with particular emphasis  on 
following-up targets proximal to the MM Prospect.

*  Note:  This  hole   (DDH045)  was  reported   previously  as  ending   in 
mineralisation -  the  listing above  is  a  composite of  the  new  extended 
intersection and previously reported intersection.

Sarama's President and CEO, Andrew Dinning commented:

"We are  very pleased  with  these results  which  continue to  demonstrate  a 
significant mineralised system  at the  MM Prospect. The  confirmation of  the 
high-grade zone in the south is  particularly encouraging and, when viewed  in 
combination with the  Company's regional exploration  results, highlights  the 
potential for  the  Tankoro  Structural Corridor  to  host  multiple  economic 
zones."

For further information on the Company's activities, please contact:

Andrew Dinning or Paul Schmiede
email:info@saramaresources.com
telephone:+61 8 9363 7600

Neither TSX Venture  Exchange nor  its Regulation Services  Provider (as  that 
term  is  defined   in  policies   of  the  TSX   Venture  Exchange)   accepts 
responsibility for the adequacy or accuracy of this release.

About Sarama Resources Ltd
Sarama Resources Ltd is a Canadian company with a focus on the exploration and
development of gold deposits in West Africa. The board of directors and
management team, a majority of whom are founders of the Company, are seasoned
resource industry professionals with extensive experience in the exploration
and development of world-class gold projects in Africa.

The South Houndé Project in south-west Burkina Faso is the Company's  flagship 
property and is currently  the focus of an  aggressive exploration program  to 
increase the size of its maiden  discovery and to test gold-in-soil  anomalies 
located in a 30km-long structural  corridor. Recent drilling programs at  the 
South Houndé Project  have intersected significant  mineralisation in  several 
prospect areas which the  Company is actively following  up. The Company  has 
built substantial  early stage  exploration  landholdings in  prospective  and 
underexplored areas of Burkina Faso (3,100 km²), Liberia (>2,400 km²) and Mali
(>560 km²) and is aggressively exploring across the property portfolio.

 Figure 1: Recent Drilling on MM Prospect Showing Strike Length Extension

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 planned  exploration  programs. 
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; 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 - Drilling
Drilling results are  quoted as downhole  intersections. True  mineralisation 
width is approximately 70% to 80% of intersection length for holes drilled  on 
east-west sections, dipping at -50° to -55° and intersecting the NNE  striking 
lenses.

The reported composites for  RC and diamond drilling  were determined using  a 
cut-off grade of 0.30g/t Au to select significant and anomalous intersections,
with a maximum of 2m internal  dilution being incorporated into the  composite 
where appropriate.  No  top-cuts  were applied  to  assay  grades.  Isolated 
mineralised intersections less than 2m in length have not been reported.

For RC and diamond drilling,  Sarama undertakes geological sampling and  assay 
in accordance  with its  QA/QC program  which includes  the use  of  certified 
reference materials and duplicates. No duplicates were taken for the  diamond 
drilling program.

Gold assays for the RC  and diamond drilling were  undertaken by the SGS  S.A. 
("SGS") laboratory  in  Morila,  Mali  and by  the  ALS  Group  laboratory  in 
Ouagadougou, Burkina Faso. 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.

RC drilling was generally designed using west-east oriented holes, dipping  at 
-50° to -55°  to the east,  approximately 130m in  length. Holes were  spaced 
approximately 40-60m  apart along  the drill  lines. RC  drill cuttings  were 
sampled over regular 1m intervals.

Diamond drilling  was  generally  designed  using  west-east  oriented  holes, 
dipping at -50° to -55°  to the east, of  variable length. Holes were  spaced 
approximately 40-60m apart along the drill lines. Diamond core was logged and
sampled according to geological intervals.  Samples submitted for assay  were 
half core.

Qualified Person's Statement
Scientific or technical information in this  news release that relates to  the 
Company's exploration  activities  in Burkina  Faso  is based  on  information 
compiled or approved  by Michel  Mercier. Michel  Mercier is  an employee  of 
Sarama Resources  Ltd and  is  a member  in good  standing  of the  Ordre  des 
Géologues du Québec  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. Michel  Mercier consents  to  the inclusion  in  this report  of  the 
information, in the form and context in which it appears.

Appendix A - Significant Diamond Drill Results

Appendix B - Significant RC Drill Results

SOURCE Sarama Resources Limited