SWA Sarama Resources Ltd

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


Sarama Resources Ltd (TSX VENTURE:SWA) ("Sarama" or "the Company") is pleased to
announce that it has entered into an agreement with a syndicate of underwriters
led by GMP Securities L.P. and including Cormark Securities Inc., BMO Capital
Markets and Raymond James Ltd. (collectively, the "Underwriters"), pursuant to
which the Underwriters have agreed to purchase, on a bought deal basis,
13,333,334 units of the Company (the "Units"), at a price of C$0.90 per Unit
(the "Offering Price") for aggregate gross proceeds to Sarama of C$12,000,000.60
(the "Offering"). Each Unit will consist of one Common Share in the capital of
the Company (each a "Common Share") and one-half of one Common Share purchase
warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant
will entitle the holder thereof to purchase one Common Share (a "Warrant Share")
at a price of C$1.20 per Warrant Share (the "Exercise Price") for a period of 2
years following the closing of the Offering. The Offering is expected to close
on or about October 16, 2012 and is subject to the receipt of all necessary
regulatory and stock exchange approvals, including the approval of the TSX
Venture Exchange and applicable securities regulatory authorities. 


The Company has agreed to grant the Underwriters an over-allotment option to
purchase up to an additional 2,000,000 Units at the Offering Price, exercisable
in whole or in part, from and including the closing date and for 30 days
thereafter to cover over-allotments, if any, and for market stabilization
purposes. If the over-allotment option is exercised in full, an additional
approximately C$1,800,000 will be raised pursuant to the Offering and the
aggregate gross proceeds of the Offering to the Company will be approximately
C$13,800,000. 


The Units will be offered by way of a short form prospectus to be filed in all
of the provinces of Canada, other than the Province of Quebec. 


The net proceeds are intended to be used by the Company to advance its ongoing
exploration programs at material exploration properties in Burkina Faso, and to
advance exploration at its other properties in Liberia and Mali and for general
working capital and corporate purposes.


The securities described herein have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the United
States absent registration or an applicable exemption from the registration
requirements. 


This press release shall not constitute an offer to sell or a solicitation of an
offer to buy nor shall there be any sale of the securities in any State where
such offer, solicitation, or sale would be unlawful. 


ABOUT SARAMA RESOURCES LTD 

Sarama Resources Ltd is a Canadian company with a focus on the exploration and
development of gold deposits in West Africa. The board of directors and
management team, a majority of whom are founders of the Company, are seasoned
resource industry professionals with extensive experience in the exploration and
development of world class gold projects in Africa. 


The South Hounde Project in south-west Burkina Faso is the Company's flagship
property and is currently the focus of an aggressive exploration program to test
gold in soil anomalies located in a 20km-long structural corridor. Recent
drilling programs at the South Hounde Project have intersected significant
mineralisation in several prospect areas which the Company is actively following
up. The Company has built substantial early stage exploration landholdings in
prospective and underexplored areas of Burkina Faso (3,100 km2), Liberia
(greater than 2,400 km2) and Mali (greater than 1,200 km2) and is aggressively
exploring across the property portfolio.


CAUTION REGARDING FORWARD LOOKING STATEMENTS 

Information in this news release that is not a statement of historical fact
constitutes forward-looking information. Such forward-looking information
includes statements regarding the Company's proposed bought deal financing and
the Company's planned exploration programs. Actual results, performance or
achievements of the Company may vary from the results suggested by such
forward-looking statements due to known and unknown risks, uncertainties and
other factors. Such factors include, among others, that the business of
exploration for gold and other precious minerals involves a high degree of risk
and is highly speculative in nature; few properties that are explored are
ultimately developed into producing mines; geological factors; the actual
results of current and future exploration; changes in project parameters as
plans continue to be evaluated, as well as those factors disclosed in the
Company's publicly filed documents. 


There can be no assurance that any mineralisation that is discovered will be
proven to be economic, or that future required regulatory licensing or approvals
will be obtained. However, the Company believes that the assumptions and
expectations reflected in the forward-looking information are reasonable.
Assumptions have been made regarding, among other things, that all approvals
necessary for the proposed bought deal financing will be obtained in a timely
fashion, the Company's ability to carry on its exploration activities, the
sufficiency of funding, the timely receipt of all required approvals, the price
of gold and other precious metals, that the Company will not be affected by
adverse political events, the ability of the Company to operate in a safe,
efficient and effective manner and the ability of the Company to obtain further
financing as and when required and on reasonable terms. Readers should not place
undue reliance on forward-looking information. 


Sarama does not undertake to update any forward-looking information, except as
required by applicable laws.

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