Management’s Discussion and Analysis of Financial Results

Sarama Resources Ltd. (“Sarama” or the “Company”) (ASX:SRR, TSX- V:SWA) is pleased to present the following Management’s Discussion and Analysis (“MD&A”) is intended to supplement the interim consolidated financial statements of Sarama Resources Ltd. (the “Company” or “Sarama”) and its subsidiaries for the three and nine months ended September 30, 2024.

The interim consolidated financial statements for the three and nine months ended September 30, 2024 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

This MD&A is current as at November 14, 2024.

Additional information relating to the Company is available on SEDAR+ at www.sedarplus.ca 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 mineral deposits in prospective jurisdictions as opportunities may present.

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 codes ‘SWA’ and ‘SRR’ respectively.

The Company built and advanced substantial exploration landholdings in prospective and underexplored areas in south-west Burkina Faso, West Africa and has interests in two projects located principally in the Houndé Belt. Separate to its interests in Burkina Faso, the Company is in the process of acquiring a new gold exploration project in Australia and continues to assess opportunities that align with it’s objective of exploring for and developing mineral deposits in prospective jurisdictions.

The Sanutura Project (the “Project”) is principally located within the prolific Houndé Greenstone Belt in south- west Burkina Faso and was the exploration and development focus of the Company. The Project hosts the Bondi Deposit which has a mineral resource of 0.5Moz gold (Inferred)(3). The Project also formerly hosted the Tankoro Deposit (Mineral Resource of 0.6Moz Au (Indicated) plus 1.9Moz Au (Inferred)(2) until August 2023, when the Company was notified (“Notification”) by the Ministry of Energy, Mines and Quarries of Burkina Faso (the “Government”) that its rights to the Tankoro 2 Exploration Permit (the “Permit”), which hosts the Tankoro Deposit, had been withdrawn in a manner the Company considers to be unlawful (refer news release dated September 6, 2023). The Notification stated that the Company’s application for the Permit was unsuccessful. This is inconsistent with, and contradictory to, formal correspondence from the Government. The Company vigorously disagrees with the illegal withdrawal of its rights. The Tankoro Deposit formed the central component of the Project for which the Company was in the final stages of completing a Preliminary Economic Assessment (“PEA”) to advance the Project toward development.

The Company formally notified the Government of its Intent to Submit Claims to Arbitration (refer news release dated November 30, 2023) under the Agreement between the Government of Canada and the Government of Burkina Faso for the Promotion and Protection of Investments (the “BIT”).

Prior to the illegal withdrawal of the Permit, the Tankoro and Bondi Deposits presented a mine development opportunity featuring a long-life project which the Company believed would have generated very robust and attractive financial returns and could have been established and paid for using the significant oxide mineral resource base. In 2023, Sarama commenced and substantially completed development study work on the Project which was subsequently suspended following receipt of the Notification. See further details on the status of the Permit below under the heading “Status of Mineral Tenure – Tankoro 2 Exploration Permit”.

Click here to view the Q3 2024 Interim Financial Statements

Click here for the full ASX Release

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