March 30, 2011

Sanatana Announces TSX-V Approval for Option and JV Agreement with Augen

Vancouver, British Columbia, Canada, March 30, 2011. Further to Sanatana Diamonds Inc.'s ("Sanatana" or the "Company") (TSX-V: STA) news release of February 16, 2011, the Company announces that it has fulfilled the initial terms of the option and joint venture agreement with Augen Gold Corp. ("Augen Gold") (TSX-V: GLD) dated effective February 14, 2011 (the "Option and JV Agreement") by paying to Augen Gold $150,000 and issuing to Augen Gold 2,000,000 shares in the capital of the Company (the "First Tranche Shares"). The First Tranche Shares are subject to a statutory hold period expiring on July 26, 2011.

Pursuant to the terms of the Option and Joint Venture Agreement, Sanatana can earn up to a 51% interest in 19,006 acres of active mineral claims owned by Augen known as the Watershed Property over part of the Southern Swayze Greenstone Belt within the townships of Yeo, Chester, Neville and Benneweis, Ontario. These mineral claims are located both along strike and across section from the recent Trelawney Mining and Exploration Inc.'s Coté Lake gold discovery.

The geology of the Watershed Property is typical of the Swayze Greenstone Belt comprising a structurally complex mafic to felsic metavolcano-sedimentary supracrustal rocks intruded in places by granodiorite to diorite rocks of the Chester Granitoid Complex. There are ten historical high-grade gold mineralized showings highlighting the gold bearing tenor of the property.

Sanatana expects to undertake a ground I.P. geophysical survey over a 1,400 acre area adjacent to the Trelawney property boundary to attempt to delineate extensions to the Coté Lake gold mineralization. It is anticipated that this work will define targets for drill testing this spring.

Other fieldwork to come after spring break-up will include acquisition of detailed airborne geophysical data, geological mapping and systematic geochemical sampling over the entire property area. New areas of interest brought to light by this work will become the focus of future drill programs.

The Option and Joint Venture Agreement is subject to a finder's fee payable by Sanatana to certain arm's-length parties and such finder's fee remains subject to regulatory approval.

Sanatana is holding a special general meeting on April 5, 2011 to change its name to Sanatana Resources Inc. in order to better reflect the direction and strategy of the Company.

The technical portions of this news release were reviewed and approved by Troy Gill, a "qualified person" under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About the Company

Sanatana Diamonds Inc. is an exploration stage company that has recently optioned a gold exploration property in Ontario that complements its existing properties in the Northwest Territories and Yukon. With an experienced management team and board of directors, Sanatana has the skills required to identify, develop and fund economic mineral properties. Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX-V: STA).

For additional information on the Company, please contact:

Mr. Peter Miles, President and Chief Executive Officer at 604-408-6680 or email

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.