Sarama Resources secures new Licences and commences exploration in Liberia

 "Not for dissemination in the United States or through any United States newswire service"

PERTH, WESTERN AUSTRALIA, Dec. 2, 2011 /CNW/ - Sarama Resources Limited ("Sarama" or the "Company") is pleased to provide an update on the Company's operations in Liberia, West Africa.

Highlights

• Two new Mineral Reconnaissance Licences granted in Grand Cape Mount and Lofa Counties, taking Sarama's total exploration landholding in Liberia to over 2,400km².
  
  
• Commencement of large scale soil geochemistry programs on high priority exploration properties following field reconnaissance and completion of target generation work.
  
  
• Completion of 1^st phase of a detailed airborne geophysical survey over the Gbarpolu exploration property.  Mobilisation for 2^nd phase airborne survey for the Cape Mount and Grand Bassa exploration properties underway.
  
  
• Reconnaissance fieldwork confirms the presence of gold mineralisation and prevalence of artisanal gold mining in the Archean terranes of the Company's exploration properties.
  
  
• Appointment of experienced exploration geologist, John Mpambije, to the position of Exploration Manager - Liberia.
  
  
• Host community and civil administration engagement process commenced across all exploration properties.
  
  
• Sarama's successful C$16.7M initial public offering ("IPO") on the TSX Venture Exchange has placed the Company in a strong position to aggressively explore its landholdings.

Acquisition of Two Additional Exploration Properties in Liberia

To date, Sarama's exploration interests in Liberia have been centred on the Cape Mount, Gbaprolu and Grand Bassa Mineral Exploration Licences which are the subject of an agreement between Sarama and Pedra Mining AS of Norway ("Pedra").  Under the terms of this agreement, Sarama has assumed operational and financial responsibility for exploration activities and, subject to certain expenditure milestones being achieved, can earn up to a 90% equity interest in the properties.  This can be increased to 100% if Pedra opts for a net smelter return instead of carrying their 10% residual interest.

The Company has recently been formally granted two Mineral Reconnaissance Licences by the Ministry of Lands, Mines and Energy of Liberia.  This addition increases Sarama's exploration landholding in Liberia by approximately 1,200km², bringing the total area under licence to over 2,400km².

The two new licences have an initial term of six months and are renewable for a further six months, subject to certain statutory obligations being met.  At the end of the second term, the Mineral Reconnaissance Licences will be eligible for conversion into mineral exploration licences.  Both licences give Sarama the right to explore for gold and base metals.

Figure 1: Location of Sarama's Liberian Property Interests - Recently Granted Mineral Reconnaissance Licences in Blue, Existing Mineral Exploration Licences in Red and Aureus Mining Inc's MDA Property in Green

Cape Mount West Reconnaissance Licence

The Cape Mount West Reconnaissance Licence covers an area of approximately 117km² and is located immediately adjacent to Sarama's existing Cape Mount Mineral Exploration Licence (approximately 199km²).

Both of these properties are located in close proximity, and in similar geological terrane, to Aureus Mining Inc's 'New Liberty' development project which has estimated indicated mineral resources of 5.60Mt @ 4.17g/t for 751,000 oz gold and inferred mineral resources of 7.04Mt @ 3.40g/t for 762,000 ounces of gold (Aureus Mining Inc news release, 28 November 2011).

Favourable regional and local structural and lithologic features have been identified within both the Cape Mount West and adjacent Cape Mount licences.  These features include regionally folded iron formation units, intersection of north-east trending regional scale faults with east trending local faults, talcose rocks (ultramafic precursors) identified along regional structures, and abundant artisanal mining activity in alluvial and bedrock environments.  The Company considers these licence areas to be highly prospective and plans to begin reconnaissance fieldwork shortly.

Voinjama Reconnaissance Licence

The Voinjama Mineral Reconnaissance Licence is located to the north of Liberia in Lofa County and covers an area of approximately 1,083km².  The licence is located in Archean terrane substantially similar to that which occurs in Sarama's other licences in western Liberia.  Of particular note, the Company has identified clusters of artisanal gold workings proximal to a large iron formation.  Data review has also led to the interpretation of several major structural breaks which are associated with significant changes in stratigraphic domain and the presence of alluvial artisanal gold workings.

Sarama will begin reconnaissance fieldwork in this area shortly.

Commencement of Soil Geochemistry Programs

After a review of desktop targeting and field reconnaissance work conducted by Sarama, the Company has commenced a large soil geochemistry program to cover the Cape Mount and Gbarpolu Mineral Exploration Licence areas it holds under its agreement with Pedra.

These licence areas will be tested using a gridded soil sampling approach, orientated on north-south principal lines.  Samples will be collected on a 400m x 100m spacing to broadly assess the gold-in-soil response of the entire licence area.

The Company's target generation work has identified several areas which it considers are highly prospective in terms of structural setting and lithology.  Soil sampling grids in these areas will be reduced to a 200m x 50m spacing in order to better define the nature of any potential gold-in-soil anomalism and to accelerate subsequent exploration activities.  Many of these high priority areas are coincident with artisanal gold workings.

Sarama has engaged SEMS Exploration Services, an experienced West African based geo-services consultant/contractor, to undertake the programs.  Soil samples will be assayed by the SGS Group laboratory in Tarkwa, Ghana after being prepared in their recently commissioned facility in Monrovia, Liberia.

In total, approximately 18,000 soil samples will be collected and it is expected that full results of the programs will be available in the third quarter of 2012.

Figure 2: Regional Geology Map of Sarama's Cape Mount Property Interests (Red & Blue Outlines) & Key Soil Geochemistry Targets

Figure 3: Regional Geology Map of Sarama's Gbarpolu Property & Key Soil Geochemistry Targets

Completion of 1^st Phase Airborne Geophysical Survey - Gbarpolu Exploration Property

During the third quarter of 2011, the Company engaged Geotech Airborne Limited to conduct a detailed fixed-wing airborne geophysical survey covering the entire 400km² Gbarpolu exploration property.

The survey obtained magnetic, radiometric and topographic information from principal flight lines oriented in a north-south direction, spaced 100m laterally, and flown at a height of approximately 100m above ground surface.

Sarama is currently interpreting the survey data and will develop structural and mineralisation models to assist target generation for higher order exploration activities.  Coupled with the soil geochemistry surveys, this is expected to provide a solid foundation for systematic exploration across Sarama's properties.

The Company is preparing to conduct similar surveys over the Cape Mount and Grand Bassa exploration properties in the first quarter of 2012.

Reconnaissance Fieldwork Confirms Presence of Gold Mineralisation

With the commencement of Liberia's dry season, the Company's exploration personnel recently inspected the properties in preparation for the Company's upcoming exploration activities.

The group noted the prevalence of artisanal gold mining in the regions hosting the Company's exploration properties and the integral part that artisanal activity plays in the economies of the host communities.  Several alluvial mining operations were inspected and instances of in-situ, quartz bearing saprolitic mineralisation in proximity to iron formation were also noted.

Having traversed extensive parts of the exploration properties, Sarama is confident that existing access roads and village networks will be capable of supporting the Company's on-ground exploration activities during this dry season.

River and stream flows were noted to be minimal and therefore not expected to inhibit field operations during the dry season and in general, bridge and river/stream crossing infrastructure was observed to be in good repair and should be capable of supporting field activities.

Figure 4: Field Reconnaissance Visit to Artisanal Workings - Gbarpolu Exploration Property

Figure 5: Field Reconnaissance Visit to Artisanal Workings - Gbarpolu Exploration Property

Figure 6: Coarse Free Gold Mined in Artisanal Workings - Grand Bassa Exploration Property

Commencement of Exploration Manager - Liberia

To facilitate the execution of the Company's exploration programs, Sarama has appointed John Mpambije to the position of Exploration Manager - Liberia.  Having responsibility for the management of Sarama's exploration activities, John has taken up residence in Monrovia, Liberia and has commenced a review of the targeting and early stage reconnaissance work conducted to date by the Company.

John is an experienced geologist, having worked for over 15 years in greenfields and brownfields exploration settings in Africa.  After commencing his career with Anglo American Plc, John has specialised in exploration target generation and the assessment and evaluation of exploration projects for a number of commodities including gold, copper, cobalt, nickel and uranium.  His recent experience includes senior exploration positions in Archean geological terranes in Tanzania with Anglogold Ashanti Limited and in the Democratic Republic of Congo with Kilo Goldmines Limited.

Commenting on John's appointment, Sarama's President & CEO, Andrew Dinning, noted:

"We are very pleased to welcome John to the Sarama exploration team.  Our mineral properties in Liberia are located in highly prospective but underexplored Archean terrane and we see John's experience in similar geological settings in developing countries as complementary to our existing skills base.  We look forward to John's input into our exploration strategy and his systematic approach to testing the potential of the properties."

Engagement Process with Host Communities and Civil Administrative Functions

Sarama has commenced an engagement process with community and administrative officials across Grand Cape Mount, Gbarpolu and Grand Bassa Counties that host the main exploration properties.

The Company views good community relations and a supportive government as critical to the success of its exploration efforts.  During recent field visits, the Company's representatives had constructive introductory meetings with civil administrative officials and village/town chiefs.  Discussions focussed on explaining the nature of Sarama's business, exploration activity planning and the strategic drivers for community development in the regions.

Sarama is pleased to advise that, based on these discussions, the Company enjoys broad support for its planned business activities from community and local administrative bodies.  Sarama looks forward to working with the host communities for the mutual long-term benefit of all parties.

Figure 7: Sarama's Exploration Manager (far right) with Village Leaders and Assistant Superintendant for Development Grand Cape Mount County (2nd from left)

Sarama's Successful IPO on the TSX Venture Exchange Raises C$16.7M

Following the recent completion of a successful IPO on the TSX Venture Exchange (raising gross proceeds of approximately C$16.7M) Sarama Resources is in a strong financial position to carry out an aggressive exploration program as planned on its principal property in Burkina Faso, the South Houndé Project, as well as exploration programs on its other projects in Burkina Faso and in its other operating jurisdictions of Liberia and Mali.

Commenting on the IPO, Sarama's Chairman, Sean Harvey, noted:

"We are very pleased to have completed our public listing according to the timeline we set in 2010 when Sarama was founded.  The support shown by existing institutional shareholders and Kinross Gold Corporation in following their pre-IPO positions was tremendous - especially given the difficult conditions for capital markets at present.  We are also very pleased to welcome new institutional and retail investors to our register by way of their participation in the IPO.  This really underlines the quality of our exploration property portfolio and the confidence our shareholders have in our team to build shareholder value over time through systematic and disciplined exploration and corporate development activities."

ABOUT SARAMA RESOURCES LTD

Sarama Resources Ltd is a Canadian company with a focus on the exploration and development of gold deposits in West Africa.  The board of directors and management team, a majority of whom are founders of the company, are all seasoned resource industry professionals with extensive experience in the exploration and development of world class gold projects in Africa.

The Company has built substantial early stage exploration landholdings in prospective and underexplored areas of Burkina Faso (>2,700 km²), Liberia (>2,400 km²) and Mali (>1,300 km²) and is aggressively exploring across the property portfolio.

The South Houndé Project in south-west Burkina Faso is the Company's flagship property and is currently the focus of a drilling program to further test gold in soil anomalies extending over 20km in length along trend.  Previous confirmatory reverse circulation drilling conducted by Sarama yielded downhole intersections of 13m @ 3.9g/t Au, 14m @ 2.6g/t Au, 11m @ 2.3g/t Au and 8m @ 3.0g/t Au.  For full details, refer to the Company's "NI 43-101 Independent Technical Report on the South Houndé Project, Bougouriba and Ioba Provinces, Burkina Faso" which is filed on www.sedar.com.

Sarama recently completed an IPO on the TSX Venture Exchange which raised gross proceeds of approximately C$16.7M.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Information in this news release that is not a statement of historical fact constitutes forward-looking information.  Such forward-looking information includes statements regarding the Company's planned exploration programs, including when results may be available, and ability to earn an interest in the Cape Mount, Gbarpolu and Grand Bassa Mineral Exploration Licenses. Actual results, performance or achievements of the Company may vary from the results suggested by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for gold and other precious minerals involves a high degree of risk and is highly speculative in nature; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.

There can be no assurance that any mineralisation will be discovered, that mineralisation will be proven to be economic, or that future required regulatory licensing or approvals will be obtained. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of gold and other precious metals, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the company to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.

Sarama does not undertake to update any forward-looking information, except as required by applicable laws.

QUALIFIED PERSONS STATEMENT

Scientific or technical information in this news release that relates to exploration activities in the Company's Burkina Faso operations is based on information compiled or approved by Michel Mercier.  Michel Mercier is an employee of Sarama Resources Ltd and is a member in good standing of the Ordre des Géologues du Québec and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a qualified person under National Instrument 43-101.  Michel Mercier consents to the inclusion in this report of the information, in the form and context in which it appears.