Sarama Provides Corporate Update

Sarama Resources Ltd. (“Sarama” or the “Company”) (TSX-V: SWA, ASX: SRR) is pleased to provide a corporate update on matters pertaining to its arbitration claim (“Claim”), Western Australian gold assets, and the acquisition of copper-gold exploration tenements in New South Wales, Australia.

Highlights

• Sarama sells Western Australian Gold assets to Riedel for A$4.6M in cash and shares
• Sarama to hold ~32%^2,3 of Riedel, rising to ~44%^2,3 on performance milestones
• US$242M arbitration claim (+ interest) advancing; hearing set for February 2027
• Strategy preserves exposure to claim and exploration while minimising shareholder dilution
• NSW copper-gold tenure secured; low-cost entry into prospective Lachlan Fold Belt

“We are pleased to report strong progress in enhancing value across both the arbitration claim and exploration portfolio, providing a clear pathway forward. Finalising the date for the Merits Hearing marks a key milestone in the arbitration process and furthermore, the transaction with Riedel enables Sarama to retain meaningful exposure to its Western Australian gold assets while minimising dilution to any potential future damages award. The addition of new copper-gold tenure in New South Wales provides us with a low-cost opportunity to start building copper-gold optionality into the Company’s exploration portfolio while we work through the arbitration process.”

Western Australian Gold Assets

As part of the Company’s broader equity and capital management strategy, and to manage exposure to the Claim while retaining exploration upside, Sarama has entered into a binding Share Sale Agreement (“SSA”) with Riedel Resources Ltd (“Riedel”) (ASX:RIE) to sell its Cosmo and Mt Venn Projects (the “Projects”) in exchange for a combination of equity consideration and the payment of certain project-related expenses (the “Transaction”).

In connection with the proposed Transaction, Riedel has received commitments to raise A$2.5 million (before costs) via a two-tranche placement at A$0.025 per share to fund exploration across its exploration portfolio and for working capital. On completion, Riedel is expected to have approximately A$4 million in cash¹.

The Transaction will provide Sarama with a significant equity interest in Riedel, which will be transformed into a well- funded, multi-project gold explorer with several large projects across the Tier 1 jurisdictions of Western Australia and Arizona, USA.

Andrew Dinning has been appointed as a Non-Executive Director of Riedel², and it is proposed that Paul Schmiede be appointed Chief Executive Officer on completion of the Transaction. Jack Hamilton will fulfil the role of Special Advisor- Exploration with oversight over exploration activities on the three projects. The Company will retain the services of Mr Schmiede and Mr Hamilton as required to ensure continuity of the business, while Mr Dinning will continue in his full-time role as Executive Chairman.

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