Sanatana Resources Inc.
TSX VENTURE : STA

Sanatana Resources Inc.

March 11, 2015 09:15 ET

Trelawney Reports Exploration Results on Clam Lake Property

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 11, 2015) - Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) announces that Trelawney Mining and Exploration Inc. ("Trelawney"), a wholly-owned subsidiary of IAMGOLD Corporation, completed a ten hole diamond drill program on the Clam Lake Property. Sanatana currently has a 10% carried interest in the Clam Lake Property and has the right to earn up to a 10.2% carried interest (see: "Description of the Clam Lake Property" below).

Peter Miles, Chief Executive Officer of Sanatana stated: "We are pleased to see these results from Trelawney's drilling program designed to follow up on the original discovery hole CLM 13-02 (5 metres @ 63.2 g/t Au from 143 metres, uncut and 2.5m true width). The results further enhance the prospectivity of the area near and around Trelawney's Côté Gold Project. The importance of Sanatana's land position is also highlighted when one notes the location constraints imposed upon the drill program by virtue of the fact that the Watershed Property borders the Clam Lake Property to the North, South, East and West."

Summary of the Exploration Results

Trelawney completed a 10 hole 2,181 metre diamond drill program by the end of November 2014 following up on the gold mineralized intercept of 5 metres @ 63.2 g/t Au from 143 metres, uncut and 2.5m true width in drill hole CLM13-02 at the Hava Deformation Zone (HDZ) as well as further testing of the South IP Anomaly and Hopkins Trend. Final gold assay results were recently provided to Sanatana.

A significant outcome of the down hole physical property logging of drill hole CLM13-02 was that the trends of structures within the Hava deformation Zone were measured with a heading towards 080° and dipping to the south at 75°. The drill holes for the follow-up program were all oriented to the north to facilitate a better interception angle to test the target zone. See Table 1 and Table 2 below for a summary of the drill hole collar and significant assay results respectively.

Table 1: Clam Lake Property 2014 Drill Hole Collar Summary

Hole East North Dip Azimuth Depth Target
CLM14-04 427400mE 5266628mN -45.8° 356.5° 367m Hava Deformation Zone
CLM14-05 427508mE 5266681mN -71.5° 359.2° 279m Hava Deformation Zone
CLM14-06 427302mE 5266627mN -45.0° 355.8° 213m Hava Deformation Zone
CLM14-07 427152mE 5266715mN -46.8° 333.0° 198m South IP Anomaly
CLM14-08 427275mE 5266901mN -49.6° 175.0° 249m South IP Anomaly
CLM14-09 427873mE 5266249mN -49.5° 358.5° 237m Hopkins Trend
CLM14-10 427523mE 5266385mN -79.5° 331.3° 150m South IP Anomaly
CLM14-13 427598mE 5266676mN -56.8° 357.4° 186m Hava Deformation Zone
CLM14-14 427501mE 5266767mN -45.4° 356.8° 102m Hava Deformation Zone
CLM14-15 427397mE 5266740mN -45.1° 355.8° 300m Hava Deformation Zone
Drill hole locations are in UTM Zone 17 projection

Table 2: Clam Lake Property 2014 Drill Program Significant Assay Results Summary

Hole No. From To Interval Au
CLM14-04 33.25 35.25 2.0 3.91 g/t
CLM14-04 200.57 201.07 0.5 4.86 g/t
CLM14-05 180.75 181.25 0.5 1.1 g/t
CLM14-05 193.64 194.14 0.5 33.5 g/t
CLM14-06 107.9 108.36 0.5 0.78 g/t
CLM14-06 113.4 114.2 0.8 1.3 g/t
CLM14-06 120.6 121.6 1.0 1.47 g/t
CLM14-07 No significant Results
CLM14-08 73.60 74.40 0.8 9.33 g/t
CLM14-08 246.00 247.00 1.0 5.78 g/t
CLM14-09 27.60 28.30 0.7 2.15 g/t
CLM14-09 181.90 182.40 0.5 1.18 g/t
CLM14-10 51.00 52.00 1.0 1.70 g/t
CLM14-13 91.0 92.0 1.0 25.2 g/t
CLM14-13 161.0 161.6 0.6 104 g/t
CLM14-14 61.1 62.0 0.9 65.5 g/t
CLM14-15 95.75 96.75 1.0 0.66 g/t
The gold result at the intended target interval for each drill hole is shown along with any other significant gold encountered.

Further testing of the Hopkins Trend by hole CLM14-09 returned only sporadic gold values and disseminated sulphides throughout the hole in silicified and fractured host rock that is interpreted to be the depth extent of the Hopkins zone.

The South IP Anomaly may have been explained by enrichment in sulphide in the upper 100m of hole CLM14-10.

Drilling at the HDZ was designed to test the along strike as well as the up and down dip extensions of the original gold mineralized structure. Drill holes were collared up to 200 m west of CLM13-02 and 100m to the east. Two holes were designed to intersect the HDZ 100 m down dip of CLM13-02 and 50 m up dip. All the drill holes intersected the HDZ at the target depth and at least part of the interval returned significant gold assay results. Visible gold was observed in the drill core in four out of the five drill holes testing the HDZ. Other significant gold mineralized intervals were also encountered by the drilling away from the HDZ including a result of 1.0 m @ 25.2 g/t Au from 91.0 m depth in hole CLM14-13.

The HDZ has now been defined as a high grade narrow gold bearing structure striking roughly east-west for 300 metres and dipping steeply south to a depth of 150 metres. The gold mineralization remains open in both directions along strike and also to depth, although narrower intercepts and lower grade gold results up dip to the west may be indicating the system is pinching in that direction. Since the HDZ was intersected at a vertical depth of only 45 metres it is likely that it does outcrop at surface.

The other significant gold intercepts up and down the holes as well as new zones of gold mineralization identified in other holes in proximity to the HDZ could be indicative of a much broader and more complex mineralized system around the HDZ measuring 150 metres in width by the drilling so far. See Figure 1 and Figure 2 below for summaries of the drill hole locations and HDZ longitudinal section respectively.

Figure 1: Clam Lake Property drill holes and Figure 2: Hava Deformation Zone Longitudinal Section are available at the following address: http://media3.marketwire.com/docs/150311_STA_Fig-1_Fig-2.pdf

Description of the Clam Lake Property

The Clam Lake Property consists of unpatented mining claims 4240522, 4241016 and 4220425 situated in Yeo and Chester townships, Ontario (see map above). The Clam Lake Property is held under the terms of a Mining Claim Acquisition Agreement (the "Acquisition Agreement") pursuant to which Trelawney holds a direct 80% interest. The remaining 20% undivided legal and beneficial interest in the Clam Lake Property (the "20% Interest") forms part of the Watershed Property and is held for the benefit of Sanatana and Trelawney Augen Acquisition Corp. ("TAAC") pursuant to the option and joint venture agreement between Sanatana and TAAC dated February 14, 2011 (the "Option and JV Agreement"). Sanatana currently holds a 10% interest in the Clam Lake Property and pursuant to the Option and JV Agreement has the right to earn up to a 10.2% interest.

The 20% Interest is identified as a "carried interest" under the Acquisition Agreement and is defined to mean that until completion of a positive prefeasibility study, all costs and expenses of the exploration programs, preparation and filing of assessment reports and other obligations relating to the Clam Lake Property are the sole and exclusive obligation and liability of Trelawney and Sanatana will not have any obligation or liability in respect thereof. For additional information on the Clam Lake Property see the Company's news release dated July 25, 2013 (a copy of which is available under the Company's SEDAR profile at www.sedar.com).

Arbitration

Following the orders of the Ontario Mining and Lands Commissioner discontinuing Trelawney's easement application (the "Easement Application") and removing notes of pending proceedings, Sanatana and TAAC agreed that the arbitration (the "Arbitration") be discontinued by Sanatana without costs. Sanatana announced the discontinuance of the Easement Application on November 10, 2014 and details of the Arbitration were first announced by Sanatana on November 5, 2013 (copies of the news releases are available under Sanatana's SEDAR profile at www.sedar.com).

About the Company

Sanatana Resources Inc. is a Canadian mineral exploration and development company focused on its Watershed Property in Ontario. Sanatana entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire up to 51% of the Watershed Property consisting of 46 mining claims totalling approximately 19,006 acres and located within the townships of Yeo, Chester, Neveille and Benneweis. As at November 28, 2012, Sanatana exercised its first option and is the legal and beneficial owner of 50% of the Watershed Property. Sanatana has until March 23, 2016, to decide whether to exercise its right to acquire a further 1% in the Watershed Property.

In June 2012, IAMGOLD Corporation completed its acquisition of Trelawney Mining and Exploration Inc. and became the sole indirect shareholders of TAAC. In 2013, Sanatana expanded the Watershed Property by acquiring, for the sole benefit of Sanatana and TAAC, a 20% interest in three additional mining claims located in Yeo and Chester Townships, Ontario. In addition to the Watershed Property, Sanatana also has exploration property in Saskatchewan. 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 BSc. MAIG, 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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