Sarama Provides Corporate Update

• Asset Sale: Sarama has entered a binding agreement to sell its 100% interest in the Cosmo and Mt Venn Gold Projects (Western Australia) to Riedel Resources Ltd.
• Consideration: Sarama receives 150 million shares in Riedel (deemed price A$0.025/share, initial value ~A$3.75M AUD) plus 100 million performance rights vesting on specific milestones (drilling results, MRE size, share price).
• Ownership: Sarama will hold ~32% of Riedel initially, potentially rising to ~44%.
• Arbitration Update: The US$242 million claim against the Government of Burkina Faso has a Merits Hearing scheduled for February 2027. Legal funding (US$4.4M non-recourse) is secured.
• New Tenure: Three new copper-gold tenements acquired in New South Wales, Australia (Bald Hill, Bong Bong Creek, Gegedzerick).

• Strategic Shift: The company is transitioning from a direct gold explorer/developer in Western Australia to a litigation-focused entity with an equity stake in another junior miner. This reduces operational risk but introduces counterparty risk (Riedel Resources performance).
• Valuation Concerns: Sarama shares have traded between $0.03 and $0.06 recently. The Riedel shares are deemed at A$0.025, which is below Sarama's recent trading range ($0.04-$0.05). This suggests a potential value transfer or lack of better monetization options for the WA assets.
• Cash Flow Impact: The sale eliminates future capital requirements for Cosmo and Mt Venn exploration (previously funded by A$2.7M placement in Oct 2025), preserving cash for the arbitration claim. However, no immediate cash is raised; value is locked in Riedel equity.
• Arbitration Focus: The core value driver remains the US$242M Burkina Faso claim. The hearing date (Feb 2027) sets a long-term catalyst timeline with significant political and legal risk remaining.
• Conclusion: While the sale stops cash burn on WA projects, exchanging operational assets for equity in a peer at a lower implied price is neutral-to-negative sentiment regarding asset quality or funding capability. It does not materially improve immediate liquidity.

• Company: Sarama Resources Ltd. is a mineral exploration company focused on gold assets in Australia and litigation claims in West Africa.
• Flagship Project (Historical): Cosmo Gold Project and Mt Venn Gold Project (Western Australia). These were the primary operational focus until the April 2026 sale agreement.
• Current Flagship: The US$242 million arbitration claim against the Government of Burkina Faso regarding the expropriation of the Tankoro 2 Exploration Permit (Sanutura Project). This is now the primary value driver.
• New Projects: Bald Hill, Bong Bong Creek, and Gegedzerick Copper Lode tenements in New South Wales (early exploration stage).