Karora Resources Drills 6.5% Nickel over 11.9 metres in New 4C Offset Discovery Located Only 25 Metres from Existing Mining Infrastructure at the Beta Hunt Mine

Karora Resources Inc. (TSX:KRR; OTCQX:KRRGF) ("Karora" or the “Corporation" – https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/) is pleased to announce a new nickel discovery and positive results from its ongoing nickel drill program. In the Hunt Block above Western Flanks, infill drilling of the existing gold Mineral Resource intersected high grade nickel mineralization in two holes above the gold Mineral Resource. This mineralization, interpreted as an offset to the 4C nickel trough mined by Reliance Mining (“Reliance”) in 2004/05, is only 25 metres from existing development actively used for mining of the Western Flanks gold deposit. Positive results were also received from drilling which is focused on upgrading and extending the 30C and 25C (south of the 30C) Mineral Resources. In a target zone parallel to Western Flanks, Stage 1 of the 44C drill program intersected nickel sulphides on and proximal to the ultramafic/basalt contact indicating potential for a repeat of the 40C trough, north of the Alpha Island Fault in the Hunt Block. Highlights from the recent drill results are listed below¹.

Hunt Block

• 4C offset: 6.5% Ni over 11.9 metres (BW-1704-07AG)
• 4C offset: 0% Ni over 4.6 metres (BW-1704-05AG)

Beta Block

• 30C: 0% Ni over 4.0 metres (BL1890-001AR)
• 30C: 0 % Ni over 1.8 metres (BL1890-006AR)
• 25C: 1% Ni over 3.3 metres (B25-20-006NE)
• 25C: 6% Ni over 1.3 metres (B25-20-014NE)

1. Interval lengths are downhole widths. Estimated true widths cannot be determined with available information

Results support the extension of the current nickel Mineral Resource and provide for short term mining opportunities to replace some of the current remnant mining as the Company builds towards increased nickel production in 2024 based on the results of the recently released Nickel PEA (see Karora news release dated August 12, 2022).

Paul Andre Huet, Chairman & CEO, commented: “I am encouraged by the latest set of nickel drill results from both the 4C Offset nickel trough and the 44C target. The 4C Offset is located above the Western Flanks gold Mineral Resource and just 25 metres from the extensive existing Western Flanks mining infrastructure. This discovery is particularly exciting and significant because it represents a potential new high grade nickel zone that we can potentially mine in the near term. Additionally, the latest Beta Block drill results from the 30C and 25C nickel troughs reinforce the upside potential for Mineral Resource extensions and upgrades as outlined in the nickel PEA we announced last month for Beta Hunt. We expect ongoing drilling in the Hunt, Beta and Gamma Blocks to continue to demonstrate the significant potential Mineral Resource additions outside of the zones on which the PEA is based. Today’s results also highlight the potential to identify new channels of nickel mineralization amenable to mining in the short term to accelerate the shift away from our current practice of remnant mining in historic nickel stopes. Encountering nickel intercepts such as 5.1% over 3.3 metres and 4.6% over 1.3 metres certainly highlight the exciting potential that we are seeing as we execute our drill program.”

Beta Hunt Nickel Drilling Update

From February 1, 2022 to July 31, 2022, a total of 37 nickel resource definition and exploration holes were drilled at Beta Hunt for 4,121 metres. Drilling was conducted in the Beta and Hunt Blocks. Beta Block drilling was focused on upgrading and extending the 30C and 25C (south of the 30C) Mineral Resources with the aim of identifying intact nickel mineralization channels as short term mining opportunities to accelerate the planned shift to focus more on new production areas as outlined in our recently announced nickel PEA for Beta Hunt (see Karora news release dated August 12, 2022). Currently, nickel production is focused on remnant mineralization from historic nickel stopes which carries a higher cost of mining. Hunt Block drilling tested the existence of the 44C nickel trough parallel to and west of Western Flanks. The 4C offset was discovered as part of an infill drilling program of the existing Western Flanks gold Mineral Resource close to the ultramafic/basalt contact.

Further information ia attached.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains "forward-looking information" including without limitation statements relating to production guidance, full year consolidated 2022 production guidance, and the potential of the Beta Hunt Mine, Higginsville Gold Operation, the Aquarius Project and the Spargos Gold Project.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Karora to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Karora ’s filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR at www.sedar.com.

Although Karora has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Karora disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.