Sarama Resources Confirms 1.8km Long Mineralised Trend North of the MM Prospect in Burkina Faso

    Sarama Resources Confirms 1.8km Long Mineralised Trend North of the MM
                           Prospect in Burkina Faso

PR Newswire

VANCOUVER, Jan. 23, 2013

TSX-V Ticker: SWA
SWA.WT

VANCOUVER, Jan. 23, 2013 /PRNewswire/ - Sarama Resources Limited ("Sarama"  or 
the "Company") is pleased to report that recent reverse-circulation ("RC") and
air-core ("AC") drilling at the Tankoro  Prospect at its South Houndé  Project 
in south-western Burkina  Faso has returned  encouraging intersections  across 
all target  areas and  has  notably confirmed  the  presence of  a  1.8km-long 
mineralised trend at the  Phantom Prospect, immediately  along trend from  the 
Company's 1.9km-long MM Prospect.

Highlights

  *1.8km-long mineralised trend confirmed at the Phantom Prospect,
    immediately north of the MM Prospect.
  *Further zones containing multiple significant intersections identified
    within the Phantom Prospect and in close proximity to the MM Prospect.
  *Strong mineralisation encountered in scout drilling approximately 1.2km
    along strike from the main MM mineralised system.
  *Downhole intersection highlights listed by prospect include:

                            8.0m @             RC  including
                                       3.39 g/t   from            2.0m @ 10.24
                    Phantom   FRC643      Au      48.0m           g/t Au
                           14.0m @             RC  including
                                       6.22 g/t   from            10.0m @ 8.52
                    Phantom   FRC564      Au      surface         g/t Au
                           10.0m @             RC  
                                       5.50 g/t   from
                    Phantom   FRC562      Au      82.0m
                           10.0m @             AC  including
                                       5.25 g/t   from            2.0m @ 18.35
                    Phantom   AC385       Au      10.0m           g/t Au
                            8.0m @             RC  
                                       5.68 g/t   from
                    Phantom   FRC563      Au      42.0m
                           12.0m @             AC  including
                                       2.25 g/t   from            2.0m @ 9.92
                    Phantom   AC379       Au      16.0m           g/t Au
                           21.0m @             RC  
                                       2.50 g/t   from
                      MM      FRC630      Au      93.0m
                           14.0m @             RC  
                                       4.99 g/t   from
                      MM      FRC631      Au      34.0m
                           13.0m @             RC  
                                       1.99 g/t   from
                    MM-East   FRC513      Au      43.0m
                            7.0m @             RC  
                                       4.12 g/t   from
                    MM-East   FRC579      Au      44.0m

  *Potential remains for further extensions in all target areas.

Sarama has  received  assay results  from  recent  RC and  scout  AC  drilling 
programs commenced in October 2012 on the Tankoro exploration property  within 
the Company's South  Houndé Project. The  programs are part  of the  regional 
exploration strategy for the 30km-long  Tankoro Structural Corridor that  have 
been undertaken in  parallel with its  work at the  more advanced MM  Prospect 
(refer news release 14^th January 2013).

The recent drill programs focused on  the Phantom, MM-East, Obi and  Dlarakoro 
prospects, all of which are situated along trend from Sarama's gold  discovery 
at the MM  Prospect (refer Figure  1). In addition  to these prospect  areas, 
drilling targeted zones  within the  MM Prospect  that are  interpreted to  be 
parallel to the main mineralisation system.

Results for approximately  11,500m RC (113  holes) and 9,700m  (262 holes)  AC 
drilling are  listed in  Appendices  A and  B  respectively. Figure  2  shows 
highlighted results.

The  programs  were  designed  to  follow-up  significant  intersections  from 
previous scout drilling, further test gold-in-soil anomalies and test  targets 
generated from ground-based geophysical surveys recently completed by Sarama.

Successful target  generation and  recent  drilling has  returned  significant 
intersections across six regional areas:

  *Area A - multiple RC and AC intersections in the central zone of the
    Phantom Prospect, contained in 12 drill lines covering an interpreted
    strike length of 1.8km, including 7.0m @ 3.27 g/t Au, 4.0m @ 3.28 g/t Au,
    6.0m @ 2.40 g/t Au and 7.0m @ 2.26 g/t Au (refer Figure 3), with
    mineralisation being of a similar grade and geometry to that encountered
    at the MM Prospect, but predominantly presenting as a single lode;
  *Area B - three adjacent RC intersections of 10.0m @ 5.50 g/t Au, 8.0m @
    5.68 g/t Au and 14.0m @ 6.22 g/t Au drilled on a single scout line located
    in the east of the Phantom Prospect, approximately 750m from the MM
    mineralisation (refer Figures 3 and 4);
  *Area C - multiple AC intersections in the west of the Phantom Prospect,
    from a group of four drill lines spanning an interpreted strike length of
    approximately 500m, including 10.0m @ 5.25 g/t Au, 12.0m @ 2.25 g/t Au,
    2.0m @ 7.75 g/t Au (hole ended in mineralisation), 2.0m @ 3.89 g/t Au
    (hole ended in mineralisation) and 2.0m @ 3.39 g/t Au (hole ended in
    mineralisation) (refer Figure 3);
  *Area D - two adjacent RC intersections of 14.0m @ 4.99 g/t Au and 21.0m @
    2.50 g/t Au drilled on a single scout line located in the far south of the
    MM Prospect, approximately 1.2km south-west and along trend from the
    defined MM mineralisation (refer Figure 3 and 5);
  *Area E - multiple RC intersections over four drill lines striking 1.6km at
    the MM-East Prospect, including 7.0m @ 4.12 g/t Au, 13.0m @ 1.99 g/t Au,
    8.0m @ 1.92 g/t Au and 10.0m @ 1.81 g/t Au (refer Figure 3); and
  *Area F - multiple RC and AC intersections in scout lines in two distinct
    areas within the Dlarakoro Prospect including 7.0m @ 3.89 g/t Au, 10.0m @
    2.11 g/t Au and 4.0m @ 2.72 g/t Au (refer Figure 3).

The results clearly demonstrate the presence of multiple parallel  mineralised 
'limbs' of significant  strike length within  the Tankoro Structural  Corridor 
with similar grade  characteristics and  potentially similar  geometry to  the 
mineralisation already  defined at  the  MM Prospect.  Drilling to  date  has 
returned  significant  intersections  along  11.5km  of  the  trend  and   has 
identified a mineralised trend approximately 800m in width.

Sarama is  continuing the  drill programs  at key  regional targets,  focusing 
initially on areas proximal to the MM Prospect and which are likely to deliver
extensions to the mineralised zones.

Sarama's President and CEO, Andrew Dinning commented:

"We are very  pleased with  these results  which continue  to demonstrate  the 
potential for  the  Tankoro Structural  Corridor  to host  multiple  zones  of 
economic mineralisation. The confirmation of the 1.8km-long mineralised trend
at the Phantom  Prospect, along with  the intersection of  other zones to  the 
south and proximal to  the MM mineralisation, is  of significant value from  a 
project development  perspective  and these  areas  will  be a  key  focus  in 
Sarama's future exploration activities."

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: Tankoro Prospect Locations

Figure 2: Recent Regional Drilling Across Tankoro Permit

Figure 3: MM and Phantom Prospects with Highlighted Results and Mineralised
Extents

Figure 4: Cross Section @ 1171800mN - Eastern Side of Phantom Prospect
Looking North

Figure 5: Cross Section @ 1175150mN - Single Scout Drill Line - Southern MM
Prospect Looking North

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. Due to the preliminary
stage of  the  drilling,  the  nature  of  the  mineralisation  is  not  fully 
understood and it  is therefore  not appropriate  to provide  guidance on  the 
relationship of  the  downhole  intersection  length  to  the  true  width  of 
mineralisation.

RC drilling was generally designed using west-east oriented holes, dipping  at 
-55° to  the  east, approximately  100m  in  length. Drilling  on  the  'Obi' 
Prospect was oriented on  north-west to south-east  lines. Holes were  spaced 
approximately 40-60m  apart along  the drill  lines. RC  drill cuttings  were 
sampled over regular 1m composited intervals.

AC drilling was generally designed using west-east oriented holes, dipping  at 
-55° to  the east,  approximately 50m  in length.  AC drilling  proceeded  to 
design or cutting head refusal. Holes were spaced approximately 40-60m  apart 
along the  drill  lines. AC  drill  cuttings  were sampled  over  regular  2m 
composited intervals.

The reported composites for RC 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.

The reported composites for AC 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 drilling Sarama undertakes geological sampling and assay in  accordance 
with its QA/QC program which includes the use of certified reference materials
and field duplicates.  No certified  reference materials  or field  duplicate 
based QA/QC regimes were  adopted for the AC  drilling due to the  preliminary 
nature of the program.

RC drill samples were assayed for gold  by the SGS S.A. ("SGS") laboratory  in 
Morila, Mali and the  ALS Group laboratory in  Ouagadougou, Burkina Faso.  AC 
drill  samples  were  assayed  for  gold  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.

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 RC DRILL RESULTS

APPENDIX B - SIGNIFICANT AIRCORE DRILL RESULTS







SOURCE Sarama Resources Limited
 
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