Burkina Faso Permit Dispute Puts Sarama’s Future Exploration and Finances at Crossroads

Corporate Strengthening and Capital Raising

Sarama Resources Ltd. has fortified its financial position through the successful completion of the second and third tranches of a previously announced A$2.7 million equity placement. This capital injection supports the company’s ongoing exploration activities and corporate initiatives, including the launch of a new investor engagement platform designed to enhance communication and transparency.

Progress at Australian Gold Projects

In Western Australia, Sarama continues to advance its Cosmo Gold Project, located in the Eastern Goldfields region. The company has focused on detailed target definition and optimisation of a planned aircore and reverse circulation drilling program exceeding 10,000 metres. Heritage clearance work, a prerequisite for drilling, was completed in March 2026 after delays caused by high demand on survey teams and seasonal factors. This clearance paves the way for systematic exploration in one of the last relatively underexplored greenstone belts in the region.

Meanwhile, at the Mt Venn Project, acquired in mid-2025, Sarama has been consolidating historical data and refining drill targets along a 35-kilometre gold corridor. The reinterpretation of legacy datasets has confirmed broad mineralisation open along strike and at depth, with the company prioritising targets and progressing permitting and access arrangements ahead of drilling.

Arbitration Proceedings Against Burkina Faso

On the legal front, Sarama has taken significant steps in its arbitration claim against the Government of Burkina Faso following the unlawful withdrawal of its Tankoro 2 Exploration Permit. The company filed a detailed Memorial with the International Centre for Settlement of Investment Disputes (ICSID) in late 2025, quantifying damages at US$242 million plus interest. This submission included comprehensive witness statements and expert valuations by Accuracy London.

The Burkina Faso government was granted an extension to file its Counter-Memorial, now due by late March 2026, after appointing international counsel. The arbitration process remains on track with procedural timetables being agreed, and a hearing expected in Washington, D.C., where Sarama will present its case. The company has also secured non-recourse litigation funding to cover arbitration costs, mitigating financial risk to shareholders.

Financial Performance and Outlook

For the quarter ended December 31, 2025, Sarama reported exploration expenditure of approximately US$497,000, primarily allocated to its Australian projects and legal costs related to the Burkina Faso claim. The company recorded a net loss of US$864,000, a marked improvement from the prior year’s comparable quarter, reflecting tighter cost control and reduced legal expenses.

Looking ahead, Sarama plans to initiate its first phase of reconnaissance drilling at Cosmo following receipt of all necessary heritage and environmental approvals. At Mt Venn, systematic exploration including soil geochemistry and prospecting will continue to refine drill targets. Concurrently, the company is advancing applications for copper-gold prospects in New South Wales, targeting underexplored areas with promising mineralisation.

Despite the challenges posed by the permit dispute in Burkina Faso, Sarama remains focused on unlocking value from its Australian assets and pursuing full compensation through arbitration. The company’s strategic pivot to Australia, combined with its legal efforts, positions it to navigate current uncertainties while maintaining exploration momentum.