September 13, 2012

Sanatana Completes Required Exploration Expenditures on Watershed Property

Vancouver, British Columbia, Canada, September 12, 2012 - Sanatana Resources Inc. ("Sanatana" or the "Company", TSX-V: STA) is pleased to announce that it has exceeded, subject to an audit right, the amount of exploration expenditures required under the Option and JV Agreement (as such term is defined below). In order to exercise the 50% Interest (as such term is defined below), Sanatana is required to issue to Trelawney Augen Acquisition Corp. ("TAAC") a further 1,500,000 common shares on or before March 23, 2013. Sanatana further announces that, in accordance with the Option and JV Agreement, all mineral claims comprising the Watershed property are now registered in Sanatana's name.

Peter Miles, CEO of Sanatana, stated, "Completion of the required exploration expenditures is a significant step for Sanatana as it brings us one step closer to earning a 50% undivided interest in the Watershed property. We expect to issue the remaining 1,500,000 common shares to TAAC no later than December 31, 2012. Once we earn the 50% undivided interest we will determine whether to immediately move forward with the joint venture or to exercise our right to acquire an additional 1% undivided interest in the Watershed property and then enter into the joint venture."

The Option and JV Agreement is summarized below.

Summary of the Option and Joint Venture Agreement - Watershed Property

Sanatana entered into the option and joint venture agreement on the Watershed property with Augen Gold Corp. ("Augen"), as then was, on February 14, 2011 (the "Option and JV Agreement"). Augen was subsequently acquired by Trelawney Mining and Exploration Inc. ("Trelawney") and through a corporate reorganization Augen was renamed "Trelawney Augen Acquisition Corp." Trelawney was subsequently acquired by IAMGOLD Corporation ("IAMGOLD").

Pursuant to the terms of the Option and JV Agreement, Sanatana has the option to acquire up to 51% undivided interest in the rights to 46 mineral concessions in Ontario (the "Property") beneficially owned by TAAC along with a right of first refusal to acquire nine mineral concessions in Ontario (the "ROFR Claims") owned by TAAC. The Property and the ROFR Claims are located within the townships of Yeo, Chester, Neveille and Benneweis, Ontario and total approximately 19,006 acres.

Option Payments

As summarized in the Company's news release of February 16, 2011, Sanatana has the option to earn a 50% undivided interest in the Property (the "50% Interest") by paying to TAAC: (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 3,500,000 common shares and (iii) incurred not less than $5,150,000 in exploration expenditures. The only payment remaining to earn the 50% Interest is for Sanatana to issue to TAAC 1,500,000 common shares. In accordance with the terms of the Option and JV Agreement IAMGOLD, through TAAC, has the right to audit the exploration expenditures.

Additional 1% Interest

Pursuant to the terms of the Option and JV Agreement, if Sanatana 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 Property, for a total undivided interest of 51% (the "51% Interest"). In order to earn the 51% Interest Sanatana must prepare and deliver to TAAC a pre-feasibility study on or before March 23, 2016. Sanatana has the right to accelerate the exercise of the 51% Interest by delivering the pre-feasibility study prior to March 23, 2016.

Joint Venture

If Sanatana exercises the 50% Interest, the parties will form a joint venture (the "Joint Venture") on terms set out in the Option and JV Agreement. Specifically, the parties will automatically form the Joint Venture (proportionate to their respective interests in the Property) upon the earlier of the date that Sanatana (i) earns the 50% Interest but has elected by notice to TAAC not to proceed to earn the 51% Interest and (ii) earns the 51% Interest.

Sanatana has the right to be the manager of the Joint Venture and to manage and operate the exploration and mining phases of the project during the term of the Joint Venture, provided that its participating interest in the Joint Venture is at least 50%.

Additional Disclosure on the Option and JV Agreement

The Option and JV Agreement was originally announced on February 16, 2011 and was accepted for filing by the TSX Venture Exchange on March 23, 2011. Copies of the news releases issued by Sanatana and Augen (as it then was) are available on SEDAR at under Sanatana's SEDAR profile and TAAC's SEDAR profile respectively. A copy of the Option and JV Agreement was also posted to Sanatana's SEDAR profile on May 8, 2012.

About the Company

Sanatana Resources Inc. is a Canadian mineral exploration and development company focused on its Watershed property in Ontario. Sanatana entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire up to 51% of the Watershed property. On June 21, 2012, IAMGOLD Corporation completed its acquisition of Trelawney Mining and Exploration Inc. and became the sole indirect shareholders of TAAC. 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 Venture Exchange: STA).


(signed) "Peter Miles"

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

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.