Karora Announces Further Discoveries at Beta Hunt Mine: New High Grade Larkin Gold Zone and 30C Nickel Trough Driving Increase to 2020 Exploration Budget

The new discovery is interpreted as the faulted southern offset of the Western Flanks zone which has a Measured and Indicated Mineral Resource of 710,000 ounces (see Technical Report on the Western Australian Operations – Eastern Goldfields: Beta Hunt Mine (Kambalda) and Higginsville Gold Operations (Higginsville), dated February 6, 2020). This result also puts into focus the potential for additional offsets associated with the A Zone and Fletcher Zones south of the Alpha Island Fault. These positions, south of the Fault, are untested and represent significant future growth opportunities for Beta Hunt (see Karora Resources Technical Report, February 6, 2020 available for download under Karora Resources profile on Sedar.com). Significant drill results include:

40 Access1.

• BE30-002: 11.9 g/t over 3.0 m

• BE30-003: 8.2 g/t over 3.9 m

• BE30-004: 3.3 g/t over 15.8 m

• BE30-007: 3.9 g/t over 11.0 m

• BE30-009: 2.4 g/t over 9.3 m

• BE30-010: 15.3 g/t over 3.5 m

• BE30-011: 7.4 g/t over 8.9 m

1730 X-cut1.

• BE30-022: 3.1 g/t over 10.1 m and 22.9g/t over 1.3 m

• BE30-024: 14.7 g/t over 2.3 m

• BE30-026: 2.5 g/t over 5 m

Drilling targeting the ultramafic/basalt contact in the interpreted trough position intersected nickel sulphide mineralization, both massive and the matrix texture typical of adjacent mined nickel troughs (Figure 2). Drilling was conducted from the 40 access and 1730 X-cuts with results indicating potential for a mineralized trough over 400 metres of strike and 25 metres wide (Figures 1 and 4). There is further potential to extend the trough 300 metres south for a total strike length of 700 metres (Figure 1). Drill intersection highlights are listed below:

40 Access1.

• BE30-001: 2.1% Ni over 2.4 m

• BE30-002: 3.7% Ni over 0.8 m

• BE30-007: 3.8% Ni over 2.3 m

• BE30-009: 7.7% Ni over 1.3 m

• BE30-010: 8.6% Ni over 1.0 m

1730 X cut1.

• BE30-023: 2.9% Ni over 1.0 m

• BE30-026: 2.4% Ni over 2.2 m

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The disclosure of scientific and technical information contained in this news release has been reviewed and approved by Stephen Devlin, FAusIMM, Group Geologist, Karora Resources Inc., a Qualified Person for the purposes of NI 43-101.

All drill core sampling is conducted by Karora personnel. Samples for gold analysis are shipped to SGS Mineral Services of Kalgoorlie for preparation and assaying by 50 gram fire assay analytical method. All gold diamond drilling samples submitted for assay include at least one blank and one Certified Reference Material (“CRM”) per batch, plus one CRM or blank every 20 samples. In samples with observed visible gold mineralization, a coarse blank is inserted after the visible gold mineralization to serve as both a coarse flush to prevent contamination of subsequent samples and a test for gold smearing from one sample to the next which may have resulted from inadequate cleaning of the crusher and pulveriser. The lab is also required to undertake a minimum of 1 in 20 wet screens on pulverised samples to ensure a minimum 90% passing at -75µm. Wall samples are collected as rock chips using a G-pick along a horizontal sample traverse. All rock chip samples are submitted with at least one CRM (standard) every 20 samples. Samples for nickel analysis are shipped to SGS Australia Mineral Services of Kalgoorlie for preparation. Pulps are then shipped to Perth for assaying. The analytical technique is ICP41Q, a four acid digest ICP-AES package. Assays recorded above the upper detection limit (25,000ppm Ni) are re-analyzed using the same technique with a greater dilution (ICP43B). All samples submitted for nickel assay include at least one Certified Reference Material (CRM) per batch, with a minimum of one CRM per 20 samples. Where problems have been identified in QAQC checks, Karora personnel and the SGS laboratory staff have actively pursued and corrected the issues as standard procedure.

Karora is focused on growing gold production and reducing costs at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (“HGO”) in Western Australia. The Higginsville treatment facility is a low-cost 1.4 Mtpa processing plant which is fed at capacity from Karora’s underground Beta Hunt mine and open pit Higginsville mine. At Beta Hunt, a robust gold mineral resource and reserve is hosted in multiple gold shears, with gold intersections along a 4 km strike length remaining open in multiple directions. HGO has a substantial historical gold resource and highly prospective land package totaling approximately 1,800 square kilometers. Karora has a strong Board and management team focused on delivering shareholder value. Karora’s common shares trade on the TSX under the symbol KRR. Karora shares also trade on the OTCQX market under the symbol KRRGD.

www.sedar.com.” data-reactid=”140″>Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Karora to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Karora ‘s filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR at www.sedar.com.