2022 Q1 Management's Discussion and Analysis of Financial Results

The following Management’s Discussion and Analysis (“MD&A”) is intended to supplement the condensed interim consolidated financial statements of Sarama Resources Ltd. (the “Company” or “Sarama”) and its subsidiaries for the three months ended March 31, 2022.

The condensed interim consolidated financial statements for the three months ended March 31, 2022 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). All amounts are expressed in United States dollars, unless otherwise stated.

This MD&A is current as at May 30, 2022.

Additional information relating to the Company is available on SEDAR at www.sedar.com under the Company’s profile

OVERVIEW

Sarama is a Canadian-incorporated mineral exploration and development company whose principal business objective is to explore for and develop gold deposits in West Africa.

The Company was incorporated on April 8, 2010 under the Business Corporations Act (British Columbia). The Company’s primary office is located in Perth, Western Australia. The Company’s common shares are listed on the TSX Venture Exchange (“TSXV”) and the Australian Securities Exchange (“ASX”) under the respective codes ‘SWA’ and ‘SRR’.

The Company has built and advanced substantial exploration landholdings in prospective and underexplored areas in south-west Burkina Faso, West Africa. The Company has significant interests in three projects located principally in the Houndé and Banfora Belts, which are considered highly prospective for gold and remain underexplored.

Sarama’s 100%-owned(10) Sanutura Project is principally located within the prolific Houndé Greenstone Belt in south-west Burkina Faso and is the exploration and development focus of the Company. The project hosts the Tankoro and Bondi Deposits which have a combined mineral resource of 0.6Moz gold (Indicated) and 2.3Moz gold (Inferred)(1).

Together, the deposits present a potential mine development opportunity featuring an initial, long-life CIL project which may be established and paid for by the significant oxide mineral resource base.

Sarama has built further optionality into its portfolio including a 467km², 100%-owned(10) exploration position in the highly prospective Banfora Belt in south-western Burkina Faso. The Koumandara Project hosts several regional-scale structural features and trends of gold-in-soil anomalism extending for over 40km along strike.

Sarama also holds an approximate 18% participating interest in the Karankasso Project Joint Venture (“JV”) which is situated adjacent to the Company’s Sanutura Project in Burkina Faso and is a JV between Sarama and Endeavour Mining Corp (“Endeavour”) in which Endeavour is the operator of the JV. In February 2020, an updated mineral resource estimate of 709koz gold (Inferred)(9) was declared for the Karankasso Project JV.

CORPORATE

Treasury

As at March 31, 2022, the Company had cash and cash equivalents of $459,237.

Second Listing on the Australian Stock Exchange

On May 2, 2022, the Company commenced trading its securities on the Australian Securities Exchange (“ASX”) in addition to the continued listing of its common shares on the TSXV. In conjunction with the ASX listing the Company raised gross proceeds of A$8 million via the issue of 38,095,238 Chess Depositary Instruments (“CDIs”) at an issue price of A$0.21 per CDI on April 22, 2022. The Lead Manager, Euroz Hartleys Securities Limited, received 2,500,000 Broker options at an exercise price of A$0.273 and expire three years from the date of issue. It also received a capital raising fee of 6% of total gross funds raised, excluding any funds subscribed for under an agreed Chairman’s list, for which a 2% management fee was applied, and a separate management fee of A$75,000.

Proceeds raised pursuant to the ASX listing will be used, in part, to expedite an extensive drilling campaign planned to total approximately 50,000m. The planned drill programs aim to augment and upgrade the currently defined mineral resources with a focus on oxides and near surface material, to test a number of high priority targets that have the potential to significantly impact project growth, and to evaluate early-stage targets.

EXPLORATION AND EVALUATION EXPENDITURE

During the current quarter the Company incurred exploration expenditure of $239,679. The costs per active project area per each quarter for the current period ending March 31, 2022 and preceding four quarters is as follows;

For the quarter ended March 31, 2022, the Company incurred exploration expenditure of $240k. Expenditure incurred at the Sanutura Project was $203k which included drilling consumables in preparation for the exploration program ($20k), plus allocation of administration, camp and technical support ($183k). Costs at Koumandara Project of $37k which included allocation of administration, camp and technical support ($37k).

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