Management’s Discussion And Analysis Of Financial Results

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 Chess Depositary Interests (“CDIs”) on the Australian Securities Exchange (“ASX”) under the respective codes ‘SWA’ and ‘SRR’ respectively.

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 under- explored.

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 a 467km², 100%-owned(10) exploration position in the Banfora Belt in south-western Burkina Faso. The Koumandara Project hosts several regional-scale structural features and extensive trends of gold-in-soil anomalism.

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 June 30, 2023, the Company had cash and cash equivalents of $853,128.

Capital Raising

On April 13, 2023, The Company closed Tranche 1 of its A$2.0 million equity placement (the “Placement”) (refer to Sarama News release dated April 3, 2023).

Tranche 1 of the Placement raised gross proceeds of A$1,375,000 with the Company issuing 13,750,000 Chess Depository Instruments (“CDIs”) at an issue price of A$0.10 per CDI. Each new CDI issued under the Placement will rank equally with existing CDIs on issue and each CDI will represent a beneficial interest in 1 common share of the Company. The Company also issued 6,725,000 free attaching unlisted options (“Placement Option”) being 1 Placement Option for every 2 new CDIs issued. Each Placement Option are exercisable at A$0.15 and will expire on 13 April 2026.

Tranche 2 of the Placement was completed in June 2023 upon receipt of shareholder approval at the Annual General Meeting on June 7, 2023, as required by the ASX Listing Rules. On June 14, 2023, the Company completed Tranche 2 Delivery versus Payment (“DvP”) portion of the Placement raising gross proceeds of A$262,436 with the Company issuing 2,624,360 CDIs at an issue price of A$0.10 per CDI and 1,312,180 attaching Placement Options which are exercisable at A$0.15 and expire on 14 June 2026.

On June 21, 2023 the Company completed Tranche 2 Non-DvP portion of the Placement raising gross proceeds of A$362,564 issuing 3,625,640 CDIs and 1,812,180 attaching Placement Options which are exercisable at A$0.15 and expire on 21 June 2026.

The Placement was issued to institutional and other sophisticated and professional investors. The net proceeds from the Placement are intended to be used to complete a Preliminary Economic Assessment (“PEA”) to evaluate an accelerated multi-stage development at the Sanutura Project and to fund administration and general working capital costs.

Option Grant

On April 20, 2023, the Company granted 6,809,999 options to directors, officers, employees and consultants of the Company. The option grant is the result of the Company’s annual compensation review historically undertaken in January but delayed due to the restrictions imposed by the Company’s Trading Policy. This granting of options is made in accordance with the Company’s stock option plan which was approved by shareholders on December 21, 2022.

The options have an exercise price of A$0.16 each, vest immediately and are exercisable for a period of 3 years from the date of the grant thereof.

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