Karora Resources Inc. announced new exploration drilling results from the Beta Hunt Mine have materially extended the strike length of gold mineralization at the Fletcher Zone to over 500 metres. The recently discovered Gamma Block mineralization strike length has also been extended to over 200 metres. Both mineralized systems remain open along strike and at depth.

First discovered by Karora in 2016, the Fletcher Zone is a parallel shear zone located approximately 350 metres west from the Western Flanks Zone and represents a third major shear zone at Beta Hunt. New exploration drilling, designed to further test the strike length of Fletcher, was highlighted by intersections of 3.3 g/t over 9.5 metres, including 5.5 g/t over 4.4 metres (hole AF18LV-07AE) and 18.5 g/t over 0.8 metres (hole AF18LV-16AE). New exploration drilling completed south of the recently discovered Gamma Block gold mineralization, located at the southern extent of the existing mine development, encountered further encouraging results.

The holes drilled served a dual purpose: to test both the 50C Nickel trough and the underlying Gamma Block gold mineralization. Although Gamma and 50C can be mined separately, they are close enough to be accessed from the same level development potentially reducing cost and access time to mine both areas. Significant gold intercepts returned from Gamma drilling were highlighted by a wide intercept of 3.4 g/t over 33.6 metres (including 6.0 g/t over 10.5 metres and 6.1 g/t over 3.8 metres) in hole G50-22-009NR, 7.6 g/t over 8.4 metres, including 12.1 g/t over 4.6 metres (hole G55-22-006NR) and 12.9 g/t over 2.0 metres (hole G50-22-012NE).

The Gamma (gold) and 50C (nickel) highlight the exciting potential south of the Alpha Island and Gamma faults at Beta Hunt. Fletcher is a third major shear zone at Beta Hunt that have now materially extended for the first time since 2016. New drilling has extended the known strike extent to over 500 metres and over a 150 metre vertical extent.

With strike potential up to 2 kilometres, while remaining open at depth, Fletcher has the potential to form a long-term backbone of operation in future years. The new Gamma Block mineralization, underlying exciting high grade 50C Nickel trough, represents a second new potential gold mining area. New drilling has now extended Gamma over 200 metres of strike extent and remains open both along strike and at depth.

What is encouraging about both of these zones is that they are easily accessed on the edges of existing development, lowering the cost associated with setting up mining activities. Drilling: At Beta Hunt, over the period from August 1, 2021 to December 31, 2021 a total of 76 resource definition and exploration drill holes were drilled totalling 15,323 metres. The summary below covers new gold assay results received over this period.

Drilling focused on testing the potential strike extension of the Fletcher Zone and A Zone North, testing the Western Flanks northern extension, upgrading the 30C nickel Mineral Resource and defining the 50C nickel trough in the Gamma Block, the latter intersecting gold mineralization below the trough position. Fletcher Shear Zone: The gold mineralized Fletcher Shear Zone (FSZ) was discovered in 2016 and is considered a structural analogue to the Western Flanks and A Zone deposits, representing Beta Hunt's third major mineralized shear zone system. The FSZ comprises foliated biotite-pyrite altered and irregularly quartz veined basalt – similar alteration to that found at Western Flanks.

Gamma Block: Drilling in the Gamma Block continued with holes designed to test the 50C nickel trough on the ultramafic/basalt contact consistently intersecting gold mineralization in the underlying footwall basalt. Early-stage geological interpretation indicates the gold mineralization occurs as parallel, northwest trending zones of variable widths and grades over 200 metres of strike south of the Gamma Fault. Mineralization is characteristically associated with quartz-albite-carbonate stockwork veining in a moderately biotite altered basalt with well developed euhedral pyrite mineralization.

To underline the potential significance of this new area, drill hole G50-22-009NR intersected 3.4 g/t over 33.6 metres which represents the widest gold intersection recorded to date in the Gamma Block. Significant gold results from the drilling are reported below. Nickel assays are still pending.

The recent focus of drilling within the Gamma Block is to extend the 50C and 10C nickel mineralization within these troughs. These recent results, on the back of previously reported gold results from the Gamma Block highlight the potential for the Gamma Block to be considered as a potential gold mining area, along with the strong nickel mineralization drilled to date. Pending receipt of outstanding assays, a detailed geological interpretation of the mineralization is expected be undertaken during the first quarter.