Sanatana Resources Inc.
TSX VENTURE : STA

Sanatana Resources Inc.

June 20, 2012 17:04 ET

Sanatana Provides Exploration Update on the Watershed Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2012) - Sanatana Resources Inc. (TSX VENTURE:STA) ("Sanatana" or the "Company") announces that drilling has commenced on Clam Lake West mineral claim 3018412.

Drillhole SR-12-11 was collared just inside the northwestern corner of the mineral claim and inclined at 60 degrees towards an azimuth of 175 degrees. This location is 600 m northwest of the closest gold mineralization encountered in drilling on mineral claim 3011820 on the eastern shore of Clam Lake. Up to three drillholes have been planned to test for gold mineralization potential on mineral claim 3018412.

An auriferous and sulphide bearing quartz vein was encountered 29.1 m down hole SR-12-11. The vein was 60 cm wide and from observations made by the geologist logging the core, it contained four specks of gold all less than 1 mm in size. The vein is hosted by a quartz diorite that exhibits intense silicification and chlorite alteration with lesser sericite, quartz-calcite veining and disseminated trace amounts of sulphide to a depth of 95 m, including two mafic litho-unit intervals. The drillhole is currently at a depth of 150 m.

The drillcore from SR-12-11 has been cut and sampled and will arrive at the assay lab soon, but results are not expected for at least one week and will be reported along with the remainder of the drillhole sampling in due course.

About the Watershed Property

Sanatana entered into the option and joint venture agreement for the Watershed Property with Augen Gold Corp. (as then was) on February 14, 2011 (the "Option and JV Agreement"). Augen Gold Corp. was subsequently acquired by Trelawney and renamed Trelawney Augen Acquisition Corp. ("TAAC"). The mineral claims comprising the Watershed Property are located within the Townships of Yeo, Chester, Neville and Benneweis in Ontario and total approximately 19,006 acres (the "Mineral Claims"). As summarized in the Company's news release of February 16, 2011, Sanatana has the option to earn a 50% undivided interest in the Claims (the "50% Interest") by paying to TAAC (formerly Augen Gold Corp.): (i) $150,000 in cash, (ii) issuing 5,000,000 common shares over a two year period and (iii) incurring $5,000,000 in exploration expenditures over a three-year period. Sanatana has the right to accelerate the above payments and expects to do so by the December 31, 2012. Sanatana has (i) paid TAAC $150,000 in cash, (ii) issued TAAC 3,500,000 common shares and (iii) as at May 24, 2012 had incurred $3,372,000 in work costs (as defined in the Option and JV Agreement).

Pursuant to the terms of the Option and JV Agreement, if Sanatana earns the 50% Interest in accordance with the provisions set forth above, it will have the right to earn a further 1% interest in the Mineral Claims for a total undivided interest of 51% by completing and delivering to TAAC a pre-feasibility study on or before March 23, 2016. The parties will enter into a joint venture agreement for the Mineral Claims in accordance with the terms of the Option and JV Agreement upon the earlier of the date that (i) Sanatana vested the 50% Interest but has elected by notice to TAAC not to proceed to earn the 51% Interest and (ii) Sanatana earned the 51% Interest.

About the Sampling

Samples were collected from split NQ2 drill core at a nominal 1 metre interval breaking at major geological boundaries such that no sample interval was less than 0.5 metres or greater than 1.5 metres. The samples were submitted to AGAT Laboratories (AGAT), Sudbury, Ontario for drying, crushing and pulverization in preparation for analysis of gold by Fire Assay and a suite of trace elements by ICP methods at the Mississauga, Ontario facility. Gold assay results measuring over 10 g/t are re-analyzed by Fire Assay using a gravimetric finish.

AGAT is accredited by the Standards Council of Canada, the Canadian Association for Laboratory Accreditation and QMI-SAI Global and is an ISO 9001 and 17025 certified analytical laboratory.

A rigorous QA/QC program was implemented as part of the sampling procedures throughout the drill program. Duplicate, standard and blank samples were inserted into the sample stream prior to being sent to the laboratory and the adherence of results to strict parameters was monitored.

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).

The technical portions of this news release were reviewed and approved by Troy Gill, Exploration Manager for the Company, a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

SANATANA RESOURCES INC.

Peter Miles, President and Chief Executive Officer

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "plans", "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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