News

May 15, 2013

Sanatana Provides Exploration Update on the Watershed Property

Vancouver, British Columbia, Canada, May 15, 2013. Sanatana Resources Inc. ("Sanatana" or the "Company": TSX-V: STA) is pleased to provide this exploration update for the Watershed Property.

The Company has completed an infill drill program around the Clam Lake prospect on its 17.6-hectare mineral claim 3011820. The drill program was designed to gain a better understanding of the recently discovered gold mineralization at Clam Lake hosted by strongly silicified and brecciated intrusive rocks, associated with an east-west trending subsurface apparent resistivity anomaly. As described below, Sanatana has earned a 50% interest in Watershed Property, as defined below, and has an option to earn a further 1% interest on completion of a pre-feasibility study with its partner Trelawney Augen Acquisition Corp. ("TAAC"), a company 100% owned by IAMGOLD Corporation ("IAMGOLD").

Peter Miles, President and Chief Executive Officer stated: "With the completion of our recent drill program, Sanatana has gained a much better understanding of the mineralization on claim number 3011820 adjacent to the Côté Gold Deposit. Sanatana's recent drilling has provided some of the best results to date including intervals in drill hole SR-12-24 of 101.2 metres at 0.86 g/t Au and in drill hole SR-13-14 of 113.6 metres at 0.83 g/t Au.

"Going forward Sanatana expects to continue to explore the Watershed Property and collaborate with Caracle Creek International Consulting of Sudbury Ontario, to further develop our understanding of the mineralization we have encountered."

Sixteen drill holes were completed for a total of 4,805.8m (Table 1), on a grid layout among the previously completed nine drill holes to provide an overall spacing of approximately 50m between drill collars along lines 100m apart. Drill holes were oriented to the south and inclined 60 or 70 degrees to horizontal with variable final depths dependent upon proximity to the southern claim boundary (Table 1).

Table 1:
Hole Line East North Projection Dip Azimuth Depth
SR-12-23 L14 428480 5266710 UTM Zone 17 -60 170 500.8m
SR-12-24 L14 428500 5266660 UTM Zone 17 -60 170 465.0m
SR-13-01 L14 428545 5266560 UTM Zone 17 -60 170 273.0m
SR-13-02 L14 428582 5266515 UTM Zone 17 -60 170 189.0m
SR-13-03 L13 428475 5266550 UTM Zone 17 -60 170 270.0m
SR-13-04 L13 428496 5266515 UTM Zone 17 -60 170 186.0m
SR-13-05 L13 428480 5266465 UTM Zone 17 -60 170 93.0m
SR-13-06 L15 428603 5266660 UTM Zone 17 -60 170 414.0m
SR-13-07 L15 428646 5266573 UTM Zone 17 -60 170 282.0m
SR-13-08 L15 428662 5266521 UTM Zone 17 -70 170 249.0m
SR-13-09 L15 428681 5266474 UTM Zone 17 -80 170 222.0m
SR-13-10 L16 428680 5266710 UTM Zone 17 -60 170 507.0m
SR-13-11 L16 428768 5266472 UTM Zone 17 -80 170 201.0m
SR-13-12 L16 428750 5266519 UTM Zone 17 -70 170 231.0m
SR-13-13 L16 428735 5266567 UTM Zone 17 -60 170 261.0m
SR-13-14 L16 428699 5266662 UTM Zone 17 -60 170 462.0m
              4,805.8m

New intercepts of gold mineralization were encountered in most of the drill holes (Table 2). The Company will now commission an independent review, pursuant to National Instrument 43-101, of the drill hole data on the Clam Lake prospect from all 25 holes. The Company will use the data to plan further work and to determine whether there is sufficient information to support a resource calculation under CIM categories. Caracle Creek International Consulting Inc. ("Caracle Creek") of Sudbury Ontario has been selected to carry out this work.

Table 2:
Hole From
(m)
To
(m)
Length
(m)
Au
(g/t)
Au Cut
(25g/t)
SR-12-23 10.0 10.5 0.5 0.89  
           
SR-12-23 35.3 36.4 1.1 0.32  
           
SR-12-23 56.0 63.0 7.0 1.19  
SR-12-23 56.8 57.7 0.9 5.73  
           
SR-12-23 112.3 113.0 0.7 0.62  
           
SR-12-23 123.0 124.0 1.0 0.65  
           
SR-12-23 138.5 139.0 0.5 0.37  
           
SR-12-23 245.0 245.7 0.7 0.31  
           
SR-12-23 330.1 342.0 11.9 0.62  
SR-12-23 339.0 340.0 1.0 6.23  
           
SR-12-23 387.0 388.0 1.0 2.30  
           
SR-12-23 399.5 400.2 0.7 1.31  
           
SR-12-23 430.0 430.5 0.5 0.41  
           
SR-12-23 487.0 488.0 1.0 0.35  
           
SR-12-24 58.5 59.3 0.8 0.31  
SR-12-24 78.1 79.0 0.9 0.64  
           
SR-12-24 162.0 163.0 1.0 0.90  
           
SR-12-24 194.1 197.0 2.9 0.62  
           
SR-12-24 219.0 322.0 101.2 0.86  
SR-12-24 283.8 284.3 0.5 11.60  
SR-12-24 295.0 296.0 1.0 8.83  
SR-12-24 296.0 297.0 1.0 6.21  
SR-12-24 309.0 309.7 0.7 6.94  
SR-12-24 309.7 310.7 1.0 16.40  
SR-12-24 310.7 311.6 0.9 17.80  
           
SR-12-24 343.0 345.0 2.0 1.06  
           
SR-12-24 384.8 385.3 0.5 3.12  
           
SR-12-24 446.0 447.0 1.0 0.53  
           
SR-13-01 56.7 57.8 1.1 0.48  
           
SR-13-01 109.8 111.0 1.2 0.67  
           
SR-13-01 141.6 235.0 93.4 0.32  
SR-13-01 226.0 226.8 0.8 15.6  
           
SR-13-01 266.0 267.0 1.0 0.37  
           
SR-13-02 15.0 26.9 11.9 0.40  
           
SR-13-02 44.0 44.8 0.8 0.51  
           
SR-13-02 115.8 178.3 62.5 0.30  
           
SR-13-03 40.0 41.0 1.0 0.35  
           
SR-13-03 56.0 76.0 20.0 0.46  
SR-13-03 74.0 75.0 1.0 7.80  
           
SR-13-03 134.0 135.1 1.1 2.45  
           
SR-13-03 160.0 172.0 12.0 1.28  
SR-13-03 160.0 161.1 1.1 9.63  
           
SR-13-03 230.3 263.0 32.7 1.76 1.45
SR-13-03 257.9 259.0 1.1 8.96  
SR-13-03 259.0 260.2 1.2 9.31  
SR-13-03 261.9 262.4 0.5 45.10 25.00
           
SR-13-04 2.5 17.0 14.5 0.36  
           
SR-13-04 29.0 30.0 1.0 0.35  
           
SR-13-04 50.0 50.6 0.6 0.34  
           
SR-13-04 67.0 67.6 0.6 0.57  
           
SR-13-04 108.0 110.0 2.0 0.61  
           
SR-13-04 129.0 174.2 45.2 0.31  
           
SR-13-05 40.0 41.0 1.0 2.77  
           
SR-13-06 189.2 190.5 1.3 0.36  
           
SR-13-06 262.9 281.0 18.1 0.53  
SR-13-06 274.0 275.0 1.0 4.23  
           
SR-13-06 297.0 305.3 8.3 0.48  
SR-13-06 301.1 302.0 0.9 2.46  
           
SR-13-06 316.0 317.0 1.0 0.72  
           
SR-13-06 324.0 386.4 62.4 0.31  
SR-13-06 375.0 376.0 1.0 7.72  
           
SR-13-07 26.9 77.0 50.1 0.40  
SR-13-07 48.0 49.3 1.3 8.25  
           
SR-13-07 154.8 155.8 1.0 0.53  
           
SR-13-07 203.0 204.0 1.0 0.39  
           
SR-13-08 11.0 12.0 1.0 0.83  
           
SR-13-08 196.0 199.0 3.0 0.35  
           
SR-13-09 151.1 172.5 21.4 1.14  
SR-13-09 159.0 160.2 1.2 8.54  
SR-13-09 172.0 172.5 0.5 9.17  
           
SR-13-09 203.0 212.0 9.0 0.35  
SR-13-09 203.0 203.6 0.6 3.67  
           
SR-13-10 4.0 5.0 1.0 0.73  
           
SR-13-10 16.0 17.3 1.3 0.33  
           
SR-13-10 33.6 72.0 38.4 0.36  
SR-13-10 59.5 60.0 0.5 5.58  
           
SR-13-10 85.0 86.0 1.0 0.55  
           
SR-13-10 88.0 89.0 1.0 0.31  
           
SR-13-10 100.0 101.0 1.0 1.20  
           
SR-13-10 125.0 126.0 1.0 0.48  
           
SR-13-10 157.0 182.0 25.0 0.47  
SR-13-10 158.0 159.0 1.0 7.06  
           
SR-13-10 208.3 208.8 0.5 0.53  
           
SR-13-10 233.0 240.0 7.0 0.34  
           
SR-13-10 355.2 356.4 1.2 0.60  
           
SR-13-10 430.0 432.0 2.0 0.73  
           
SR-13-11 42.0 42.5 0.5 0.33  
           
SR-13-11 69.0 70.0 1.0 0.48  
           
SR-13-11 90.9 92.0 1.1 0.33  
           
SR-13-11 98.0 99.0 1.0 0.97  
           
SR-13-11 105.4 108.0 2.6 0.42  
           
SR-13-11 144.0 145.0 1.0 0.34  
           
SR-13-11 194.0 194.6 0.6 0.31  
           
           
SR-13-12 12.0 18.0 6.0 3.87 2.28
SR-13-12 12.0 12.5 0.5 44.07 25.00
           
SR-13-12 40.8 42.0 1.2 0.32  
SR-13-12 55.2 56.2 1.0 0.38  
           
SR-13-12 58.0 58.9 0.9 0.39  
           
SR-13-12 65.4 84.0 18.6 0.34  
           
SR-13-12 108.0 109.0 1.0 0.66  
           
SR-13-12 117.2 117.7 0.5 0.85  
           
SR-13-12 125.0 126.0 1.0 0.78  
           
SR-13-12 133.4 140.2 6.8 0.39  
           
SR-13-12 181.0 182.0 1.0 0.42  
           
SR-13-12 211.8 212.6 0.8 1.35  
           
SR-13-13 66.0 67.0 1.0 0.82  
           
SR-13-13 75.0 77.0 2.0 0.46  
           
SR-13-13 81.0 82.0 1.0 0.40  
           
SR-13-13 99.1 127.0 27.9 0.35  
           
SR-13-13 170.0 187.2 17.2 0.36  
           
SR-13-13 234.0 259.0 25.0 0.38  
SR-13-13 255.0 256.1 1.1 5.62  
           
SR-13-14 25.0 26.0 1.0 0.42  
           
SR-13-14 28.0 30.0 2.0 0.37  
           
SR-13-14 33.0 34.0 1.0 0.36  
           
SR-13-14 36.0 37.0 1.0 0.67  
           
SR-13-14 46.0 47.0 1.0 1.16  
           
SR-13-14 131.0 132.0 1.0 0.31  
           
SR-13-14 251.5 252.0 0.5 12.70  
           
SR-13-14 280.0 281.0 1.0 0.58  
           
SR-13-14 305.0 306.0 1.0 0.34  
           
SR-13-14 307.0 308.0 1.0 0.41  
           
SR-13-14 319.4 433.0 113.6 0.83 0.52
SR-13-14 415.8 416.3 0.5 17.20  
SR-13-14 431.5 432.3 0.8 69.70 25.00

Notes:
  1. True widths of intersections are unknown at this time.
  2. Mineralized intervals are calculated using the weighted Au average based on length of sample, a lower cut-off of 0.3 g/t Au and an upper cut-off of 25.0 g/t Au, including low grade zones no greater than 20 metres in length.
All but three drill holes (SR-13-01, -04 and -05), intersected barren diabase dykes that were intruded after the gold mineralization event. Some drill holes intersected quite long intervals of diabase (SR-13-08 = 130m and SR-13-09 = 140m combined). These occurrences of diabase rocks detract from the potential of intersecting gold mineralization in the prospective host country rocks or cause gaps in otherwise gold mineralized intervals. It is probable that in most cases the drill holes intersected many of these dykes sub-parallel to their strike. Sanatana will work with Caracle Creek to incorporate these dykes into the geological model. In some cases it might be necessary to complete further drilling more perpendicular to the dykes to fully determine their width and determine the extent of the gold mineralization around them.

Mineral claim 3011820, the Clam Lake prospect, lies adjacent and to the west of the Côté Gold Deposit and the gold mineralization contained within shares many similarities to the Côté gold system as has been publicly described. Like the Côté gold system, the Clam Lake prospect has gold mineralization hosted in intrusive breccias associated with silicification, potassium and sodic alteration with accessory copper, molybdenum and telluride mineralization. Some of the higher-grade intervals are associated with calcite quartz sulphide veins within the breccias however there are also many examples of barren veins of similar nature.

Sanatana's work on the Clam Lake prospect has shown that it is open to the west beneath Clam Lake itself and there is potential to expand the mineralization by winter drilling of the ice. The Company plans to obtain permits to conduct this work. The gold mineralization also seems to extend off the property into other parties' ground to the east, north and south.

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 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 November 28, 2012, Sanatana has earned 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. Sanatana has continued exploration of the Watershed Property and at March 31, 2013, had incurred a further $3,253,000 in exploration expenditures, including a permitted administrative mark-up, that will be credited to the Company's contribution to the first work program after formation of a joint venture.

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 Mineral Claims for a total undivided interest of 51% by completing and delivering to TAAC a pre-feasibility study, at Sanatana's sole cost, 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

Drill 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, Ontario 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, Ontario facility. Gold assay results measuring over 10 g/t are re-analyzed by Fire Assay using a gravimetric finish.

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 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 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 shareholder 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-V: STA).

The technical portions of this news release were reviewed and approved by Troy Gill BSc. MAIG, 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.