Karora Resources Inc. ("Karora") and Westgold Resources Limited ("Westgold") have agreed to combine in a merger pursuant to which Westgold will acquire 100% of the issued and outstanding common shares of Karora ("Karora Shares") by way of a statutory plan of arrangement under the Canada Business Corporations Act ("CBCA") ("Transaction").Upon completion of the Transaction, Westgold shareholders will own approximately 50.1% of the combined company (Westgold after completion of the Transaction referred to as "Enlarged Westgold") and former Karora shareholders will own approximately 49.9%. The Enlarged Westgold board will be comprised of the current directors of Westgold and two (2) directors from Karora. The Hon.

Cheryl Edwardes AM will be the Chair of Enlarged Westgold and Wayne Bramwell will be Managing Director and Chief Executive Officer. Leigh Junk, currently Managing Director, Australia and Shirley In't Veld, a director of Karora, will be included on the Enlarged Westgold board. Paul Huet, Chairman & CEO of Karora, will continue with Enlarged Westgold in a special advisory role for six (6) months post-completion of the Transaction.