TORONTO - Karora Resources Inc. (TSX: KRR) ('Karora' or the 'Corporation') is pleased to announce completion of its 12,000 metre drill program at Spargos Reward Gold Project ('Spargos').

The drilling has delineated high grade gold mineralization within approximately 100 metres of surface along an approximate 400 metre strike length which will support the commencement of mining operations at Spargos around mid-year.

Paul Andre Huet, Chairman & CEO, commented: 'I am extremely pleased with the outcome of our maiden drilling program at Spargos. In mid-November, we announced some of the best drill results in Karora's history and today we have confirmed a major extension of the high grade plunging shoot thesis we originally outlined with our first pass results. This is a new shoot, not previously recognized by previous owners and highlights both near surface high grade mineralization as well as the underground opportunity that exists at Spargos.

Now that our extended Resource Definition drilling program is complete, I am looking forward to our upcoming Mineral Resource estimate and the initiation of mining activities for Spargos in the second quarter. Spargos is expected to provide high grade gold feed for the Higginsville plant in the second half of 2021, contributing to our expectation that gold grades will increase as we progress through the year.'

Infill RC/Geotechnical Diamond Drilling

The Infill RC drill program designed to upgrade the Historical Mineral Resource and support resource modelling for open pit evaluation has been completed. Drilling totalled 107 holes for 9,590 metres. In addition, two geotechnical diamond holes were completed to support open pit mine design assumptions. Drilling targeted mineralization over 400 metres of strike to a depth of approximating 100 metres below surface - in line with expectations for open-pit mine depths. All assay results from this drilling have now been received, noting that turnaround on assay results was delayed due to backlogs at laboratories in the region reflecting a rapid increase in exploration and new mining projects in the region and COVID-19 related issues. Assay highlights from this program are listed below, including some previously released drill intersections.

About Karora Resources

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 gold Mineral Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. The Company also owns the high grade Spargos Reward project which is anticipated to begin mining in 2021. 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 KRRGF.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains 'forward-looking information' including without limitation statements relating to the potential of the Beta Hunt Mine, Higginsville Gold Operation, the Aquarius Project and the Spargos Gold Project, the commencement of mining at the Spargos Gold Project and the completion of the resource estimate.

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.

Although Karora has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Karora disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

Cautionary Statement Regarding the Higginsville Mining Operations

A production decision at the Higginsville gold operations was made by previous operators of the mine, prior to the completion of the acquisition of the Higginsville gold operations by Karora and Karora made a decision to continue production subsequent to the acquisition. This decision by Karora to continue production and, to the knowledge of Karora, the prior production decision were not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, which include increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on the Corporation's cash flow and future profitability. Readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.

Contact:

Rob Buchanan

Tel: (416) 363-0649

Web: www.karoraresources.com

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