News

February 9, 2012

Sanatana Reports on Watershed Property Exploration Program - Highlights Include 18.5 m @ 1.16 g/t Au & 45 m @ 0.48 g/t Au

Vancouver, British Columbia, Canada, February 9, 2012 - Sanatana Resources Inc. ("Sanatana" or the "Company", TSX-V: STA) is pleased to provide the first assay results from its 2011/2012 Watershed Property drill program described in its October 19, 2011 news release. The Company has received assay results from the first three of the nine drill holes completed to date. The results of the remaining holes will be released after receipt from the assay lab and review by the Company.

The diamond drill program on Watershed Property mineral claim 3011820 was completed at the end of January 2012 comprised of nine drill holes totaling 4,195 metres. Initially, a 2,500-metre five drill hole program was planned to test subsurface IP anomalies and coincident gold values in surficial geochemical sampling of stripped bedrock outcrops. The Company was sufficiently encouraged from observations of the drill core early in the program to increase the amount of drilling to test more of the claim area. The details of collar locations can be seen Table 1 below.

Hole SR-11-01 was designed to test the primary IP target on line 16 at the eastern edge of the claim boundary. Hole SR-11-02 was drilled from the same location as the first hole but at a steeper inclination to intersect the IP target at greater depth down-dip. Hole SR-11-03 was collared 50 metres to the west on line 15 to test the IP target along strike; however, a significant interval of diabase dyke was encountered at the anticipated target depth.

To date, full geochemical sample results have been received for the first three drill holes only. Gold mineralized downhole intervals are provided in Table 2 below using a 0.3 g/t Au lower cut-off.

Based on observations recorded from the drill core and review of the multi-element geochemistry of the sampling, gold occurrence is thought to be associated with both higher grade but narrower quartz veins as well as in wider, lower grade disseminated zones of highly silicified altered host rock. Quartz lode vein gold has been mined in the region in the past at underground operations such as Young-Shannon 2 km northeast of the mineral claim.

The wider alteration system exhibits textures and mineralogy similar to that described by Trelawney Mining and Exploration Inc. (TSX-V: TRR)("Trelawney") at the Cote Lake deposit on Trelawney's adjacent property. Trelawney's nearest mineralized drill hole, E11-82, is located approximately 250 metres due east of the boundary of the Watershed Property mineral claim 3011820.

Table 1:
Hole
Line
East
North
Projection
Dip
Azimuth
Depth
SR-11-01
L16
428,665mE
5,266,760mN
UTM Zone 17
-60
160
575m
SR-11-02
L16
428,665mE
5,266,760mN
UTM Zone 17
-70
160
674m
SR-11-03
L15
428,565mE
5,266,750mN
UTM Zone 17
-60
160
491m
SR-11-04
L14
428,479mE
5,266,762mN
UTM Zone 17
-60
160
560m
SR-11-05
L15
428,626mE
5,266,615mN
UTM Zone 17
-60
160
401m
SR-12-01
L13
428,465mE
5,266,602mN
UTM Zone 17
-60
180
392m
SR-12-02
L14
428,522mE
5,266,608mN
UTM Zone 17
-60
160
401m
SR-12-03
L16
428,720mE
5,266,615mN
UTM Zone 17
-60
160
401m
SR-12-04
L15
428,585mE
5,266,705mN
UTM Zone 17
-60
160
300m

Table 2:
Hole
From (m)
To (m)
Length (m)
Gold (g/t)
SR-11-01
22.4
23.0
0.6
0.48
SR-11-01
50.0
51.0
1.0
0.36
SR-11-01
94.4
95.8
1.4
1.23
SR-11-01
116.1
117.0
0.9
0.37
SR-11-01
125.0
125.7
0.7
0.72
SR-11-01
133.0
134.0
1.0
0.40
SR-11-01
199.0
204.0
5.0
0.34
SR-11-01
238.5
257.0
18.5
1.16
Including
SR-11-01
241.0
242.0
1.0
17.9
SR-11-01
308.0
309.2
1.2
0.30
SR-11-01
313.6
314.1
0.5
0.45
SR-11-01
352.0
357.0
5.0
0.41
SR-11-01
415.0
426.0
11.0
0.47
SR-11-01
439.2
442.0
2.8
0.38
SR-11-01
446.0
447.0
1.0
0.56
SR-11-01
455.0
456.0
1.0
0.40
SR-11-01
476.0
477.0
1.0
0.87
SR-11-01
537.0
538.0
1.0
0.36
SR-11-01
549.1
549.8
0.7
0.89
 
SR-11-02
23.0
35.0
12.0
0.33
SR-11-02
43.0
44.0
1.0
0.46
SR-11-02
49.0
50.0
1.0
1.88
SR-11-02
83.2
84.0
0.8
0.49
SR-11-02
110.0
124.0
14.0
0.67
SR-11-02
146.0
151.0
5.0
0.60
SR-11-02
178.0
179.0
1.0
7.09
SR-11-02
200.0
201.0
1.0
3.03
SR-11-02
292.0
293.0
1.0
0.31
SR-11-02
401.0
446.0
45.0
0.48
Including
SR-11-02
424.0
425.0
1.0
18.7
SR-11-02
472.0
480.0
8.0
1.21
SR-11-02
537.0
538.0
1.0
0.34
SR-11-02
542.0
543.0
1.0
0.35
SR-11-02
548.0
548.7
0.7
0.31
SR-11-02
549.2
550.0
0.8
0.42
SR-11-02
595.0
596.0
1.0
0.39
 
SR-11-03
1.0
3.0
2.0
0.42
SR-11-03
28.3
28.9
0.6
1.82
SR-11-03
63.0
65.0
2.0
0.67
SR-11-03
101.1
102.0
0.9
0.34
Diabase
SR-11-03
209.0
210.0
1.0
0.31
SR-11-03
233.0
234.0
1.0
1.69
SR-11-03
247.0
255.0
8.0
0.33
SR-11-03
320.0
321.0
1.0
0.66
SR-11-03
360.0
361.0
1.0
0.43
SR-11-03
404.0
421.0
17.0
0.39
SR-11-03
433.0
434.0
1.0
0.31
SR-11-03
438.6
439.1
0.5
0.65
Notes:
  • True widths of intersections are unknown at this time.
  • Mineralized intervals are calculated using the weighted Au average based on length of sample and a lower cut-off of 0.3 g/t including low grade zones no greater than 20 metres in length.

Peter Miles, Chief Executive Officer stated, "We are very encouraged by the assay results from our first three drill holes. As a result, we intend to accelerate our work program significantly and our plan is to earn a 50% undivided interest in the Watershed claims by December 31, 2012, approximately 15 months earlier than the deadline defined in the Option and Joint Venture Agreement.

"Our 2012 work program will comprise drill testing of additional IP targets and surficial geochemical anomalies delineated and defined in the summer 2011 field program. In order to generate additional drill targets, IP and geochemical sampling over other prospective areas of the 19,006 acre Watershed property will also be undertaken. With approximately $3.7 million on hand, Sanatana is well financed to complete this program.

"We value our relationship with Trelawney Mining and Exploration Inc. (the parent company of Trelawney Augen Acquisition Corp.) and look forward to becoming both joint venture partners and the manager of the Watershed joint venture."

About the Watershed Property

Sanatana entered into the option and joint venture agreement for the Watershed Property with Augen Gold Corp. (as then was) on February 14, 2011 (the "Option and JV Agreement"). Augen Gold Corp. was subsequently acquired by Trelawney and renamed Trelawney Augen Acquisition Corp. ("TAAC"). The mineral claims comprising the Watershed Property are located within the Townships of Yeo, Chester, Neville and Benneweis in Ontario and total approximately 19,006 acres (the "Mineral Claims"). As summarized in the Company's news release of February 16, 2011, Sanatana has the option to earn a 50% undivided interest in the Claims (the "50% Interest") by paying to TAAC (formerly, Augen Gold Corp.): (i) $150,000 in cash, (ii) issuing 5,000,000 common shares over a two year period and (iii) incurring $5,000,000 in exploration expenditures over a three year period. Sanatana has the right to accelerate the above payments and expects to do so by the December 31, 2012. To date, Sanatana has (i) paid TAAC $150,000 in cash, (ii) issued TAAC 2,000,000 common shares and (iii) has incurred $2,100,000 in work costs as defined in the Option and Joint Venture Agreement.

Pursuant to the terms of the Option and JV Agreement if Santana earns the 50% Interest in accordance with the provisions set forth above, it will have the right to earn a further 1% interest in the Mineral Claims for a total undivided interest of 51% by completing and delivering to TAAC a pre-feasibility study on or before March 23, 2016. The parties will enter into a joint venture agreement for the Mineral Claims in accordance with the terms of the Option and JV Agreement upon the earlier of the date that (i) Sanatana vested the 50% Interest but has elected by notice to TAAC not to proceed to earn the 51% Interest and (ii) Sanatana earned the 51% Interest.

About the Sampling

Samples were collected from split NQ2 drill core at a nominal 1 metre interval breaking at major geological boundaries such that no sample interval was less than 0.5 metres or greater than 1.5 metres. The samples were submitted to AGAT Laboratories ("AGAT"), Sudbury ON for drying, crushing and pulverization in preparation for analysis of gold by Fire Assay and a suite of trace elements by ICP methods at the Mississauga ON facility. AGAT is accredited by the Standards Council of Canada, the Canadian Association for Laboratory Accreditation and QMI-SAI Global and is an ISO 9001 and ISO/IEC 17025 certified analytical laboratory. A rigorous QA/QC program was implemented as part of the sampling procedures throughout the drill program. Duplicate, standard and blank samples were inserted into the sample stream prior to being sent to the laboratory and the adherence of results to strict parameters was monitored.

About the Company

Sanatana Resources Inc. is a Canadian mineral exploration and development company with interests in Ontario, Yukon and the NWT. Sanatana has entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) that grants Sanatana an option to acquire up to 51% of the Watershed property. With an experienced management team and board of directors, the Company has the ability 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).

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

SANATANA RESOURCES INC.

Peter Miles
President and Chief Executive Officer

For additional information on the Company, please contact:

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

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 "plans", "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.