Karora Resources announces C$50 million bought deal

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

TORONTO, May 24, 2022 (GLOBE NEWSWIRE) — Karora Resources Inc. (TSX: KRR; OTCQX: KRRGF) (“Korara” or the “Company”) is pleased to announce that it has entered into an agreement with Haywood Securities Inc. (“Haywood”), to act as joint lead manager and sole bookrunner, and Cormark Securities Inc. (together with Haywood, the “co-lead managers”), to act as joint lead lead manager, in their own name and in the name of a syndicate of underwriters (together with the co-lead managers, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, by way of firm, 10,417,000 common shares in the capital of the Company (the “Common”) at a price of C$4.80 per common share (the “Issue Price”) for gross proceeds to the Company of C$50,001,600 CAD (the “Offering”).

In addition, the Company has agreed to grant the underwriters an option to purchase up to 15% of the number of Common Shares sold under the Offering at a price per Common Share equal to the issue price, the same terms and conditions as the Offer, exercisable at any time, in whole or in part, until the date falling 30 days after the closing of the Offer.

The Company intends to use the net proceeds received from the Offering to fund a portion of the cash consideration due upon closing of the Lakewood mill acquisition, as further described in the company’s press release. the Company dated today (which transaction is subject to the satisfactory completion by the Corporation of its due diligence and other applicable closing conditions), the progress of the nickel exploration and development program of the Company at Beta Hunt, as well as for working capital and general corporate purposes.

The Common Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada (except Quebec). The common shares will also be sold to U.S. purchasers in a private placement pursuant to an exemption from the registration requirements of Rule 144A of the U.S. Securities Act of 1933, as amended. and in other jurisdictions outside of Canada provided that no prospectus or comparable obligation arises.

The Offering is expected to close on or about June 15, 2022 and is subject to certain conditions, including, but not limited to, receipt of all necessary regulatory and other approvals, including Exchange approval of Toronto and securities regulators.

The securities offered under the Offer have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) or any securities laws of United States, and may not be offered or sold in the United States or to, or on behalf of, or for the benefit of United States persons absent registration or any applicable exemption from the registration requirements of US securities law and applicable US securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, and there will be no sale of such securities in any jurisdiction in which such offer, solicitation or sale would be illegal.

About Karora Resources

Karora is focused on increasing gold production to a target range of 185,000 to 205,000 ounces by 2024 at its integrated Beta Hunt gold mine and Higginsville (“HGO”) gold operations in Australia -Western. The Higginsville processing facility is a low-cost 1.6 Mtpa processing plant, expanding to a planned 2.5 Mtpa by 2024, which is supplied at full capacity from Karora’s Beta Hunt underground mine and the Higginsville mines. At Beta Hunt, a robust gold mineral resource and reserve is hosted in several gold shears, with gold intersections along a 4 km strike length remaining open in multiple directions. HGO has significant mineral gold resources and reserves and a potential land package totaling approximately 1,900 square kilometers. The Company also owns the high-quality Spargos Reward project, which entered production in 2021. Karora has a strong Board of Directors and management team focused on creating shareholder value and the responsible mining, as evidenced by Karora’s commitment to reducing emissions across all of its operations. Karora’s common stock trades on the TSX under the symbol KRR and also trades on the OTCQX market under the symbol KRRGF.

Caution Regarding Forward-Looking Statements

This press release contains “forward-looking information”, including, without limitation, statements relating to Karora’s liquidity and capital resources, production expectations and potential for the Beta Hunt mine, mining Higginsville Gold Project, the Aquarius Project and the Spargos Gold Project, the commencement of mining on the Spargos Gold Project and the completion of the resource estimate.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Karora’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. prospective. Factors that could affect earnings include, among others: future metal prices and supply; drilling results; the inability to raise the necessary funds to incur the necessary expenses for the preservation and advancement of the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labor disputes and other hazards of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected operating costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of these risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, see Karora’s filings with Canadian securities regulators. Securities, 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 the forward-looking statements, there may be other factors that cause actual actions, events or results differ from those anticipated, estimated or expected. . The forward-looking statements contained herein are made as of the date of this press 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.

For more information please contact:

Rob Buchanan
Director, Investor Relations
Such. : (416) 363-0649
www.karoraresources.com

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