Sanatana Announces $1,500,000 Private Placement and Option Grant

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 25, 2012) - Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) announces that it intends to raise up to $1,500,000 by way of non-brokered private placement (the "Private Placement"). The Private Placement will consist of non flow-through units (the "NFT Units") and flow-through units (the "FT Units").

The Private Placement will consist of up to 2,000,000 NFT Units priced at $0.25 per NFT Unit and 3,333,333 FT Units priced at $0.30 per FT Unit. Each NFT Unit will consist of one non flow-through common share in the capital of the Company and one-half of one share purchase warrant (each whole warrant, a "NFT Warrant"). Each NFT Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company (a "NFT Warrant Share") at a price of $0.35 per NFT Warrant Share for a period of 12 months from the closing of the Private Placement. Each FT Unit will consist of one flow-through common share in the capital of the Company (a "FT Share") and one-half of one share purchase warrant (each whole warrant, a "FT Warrant"). Each FT Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company (a "FT Warrant Share") at a price of $0.40 per FT Warrant Share for a period of 12 months from the closing of the Private Placement.

Closing of the Private Placement is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange. The proceeds from the Private Placement will be used for mineral exploration and development for the Company's Watershed Property in Ontario and for general working capital and corporate purposes.

The Company also announces that it has granted incentive stock options to certain directors, officers, consultants, and employees of the Company to purchase up to 3,240,000 non flow-through common shares in the capital of the Company at a price of $0.35 per share. The stock options are exercisable on or before June 25, 2017 and vest in stages with 25% to vest immediately and the remainder to vest 25% every six months from the date of the grant. The stock options are being granted pursuant to the terms of the Company's stock option plan and are subject to regulatory approval. Following the grant of the stock options, the Company has 8,865,000 stock options outstanding.

About the Company

Sanatana Resources Inc. is a Canadian mineral exploration and development company focused on its Watershed property in Ontario. Sanatana has entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) that grants Sanatana an option to acquire up to 51% of the Watershed property. With an experienced management team and board of directors, the Company has the ability required to identify, develop and fund economic mineral properties. Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX VENTURE:STA).

SANATANA RESOURCES INC.

Peter Miles, President and Chief Executive Officer