Karora Resources Achieves Record $115.5 million Quarter Revenue, Operating Cash Flow of $43 million for Q1 2024

• Karora Resources reports record revenue and strong cash flow for Q1 2024, driven by robust gold sales and current strong gold price environment
• Gold production impacted by wet weather and regional power interruption, but costs remain on track to achieve 2024 guidance
• Exciting exploration results at Beta Hunt's Fletcher zone demonstrate potential for significant new gold mineralized system
• Merger with Westgold to create Australia's largest unhedged gold producer, unlocking substantial synergies and value for shareholders
• Karora well-positioned to participate in historic gold price rally with strong combined balance sheet and expanded equipment fleet post-merger

About Karora Resources

Karora Resources Inc. (TSX: KRR) is a growing gold producer focused on increasing production at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (HGO) in Western Australia. The company operates a low-cost 1.6 Mtpa processing plant at Higginsville, fed at capacity from the underground Beta Hunt mine and Higginsville mines. In July 2022, Karora acquired the 1.0 Mtpa Lakewood Mill in Western Australia. The company's robust gold Mineral Resource and Reserve at Beta Hunt are hosted in multiple gold shears, with gold intersections along a 5 km strike length remaining open in multiple directions. HGO has a substantial gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. Karora boasts a strong board and management team committed to delivering shareholder value and responsible mining practices.

Record Revenue & Strong Cash Flow in Q1 2024

Karora Resources reported impressive financial results for the first quarter of 2024, achieving record quarterly revenue of $115.5 million, a 19% increase compared to Q1 2023. This strong performance was driven by robust gold sales of over 40,000 ounces and the current strong gold price environment, resulting in operating cash flow of $43 million. Adjusted earnings for the quarter totaled $13.3 million ($0.07 per share), a significant improvement from $4.8 million in Q1 2023 and $3.3 million in the previous quarter.

Despite some operational challenges, including wet weather and regional power interruptions impacting gold production, the company's cost performance remained on track to achieve its full-year 2024 all-in sustaining cost (AISC) guidance range of US$1,250 to US$1,375 per ounce. The Beta Hunt mine continued to be a cornerstone asset, producing 31,249 ounces of gold at an excellent cash operating cost of US$869 per ounce in Q1 2024.

Exciting Exploration Results at Beta Hunt

Beta Hunt continued to generate encouraging exploration results, particularly from the Stage 2 infill program at the Fletcher zone. This area, located just west of Beta Hunt's most prolific zone to date, Western Flanks, has demonstrated the potential to be a significant new gold mineralized system. Recent intersections at Fletcher, including 3.8 g/t over 33.0 metres, 15.2 g/t over 3.3 metres, and 34.6 g/t over 2.0 metres, highlight the exciting potential of this area.

Karora has commenced development of an exploration drive towards the Fletcher Shear Zone, with expected access to the mineralization in the third quarter of 2024. The potential of the Fletcher zone provides additional flexibility with new working faces as the company continues its ramp-up towards a 2.0 Mtpa production rate at Beta Hunt.

Merger with Westgold: Creating Australia's Largest Unhedged Gold Producer

In a transformative move, Karora Resources agreed to combine with Westgold Resources Limited (ASX:WGX) in a merger that will create Australia's largest unhedged gold producer. The combination represents a significant growth step for both Karora and Westgold shareholders, forming a globally investable ASX-listed top 5 Australian gold producer based on pro forma market capitalization.

Under the proposed merger, Karora shareholders will receive a premium upfront and own 49.9% of the combined +400,000 ozpa mid-tier gold producer. The merger is expected to deliver substantial potential synergies of $440 million, unlocking significant value across both asset bases that could not be achieved as standalone companies.

The merged entity offers shareholders several compelling benefits, including:

• Rerating potential as a larger, more visible company
• Expected index inclusion on both the TSX and ASX, driving increased investor interest and liquidity
• Flexibility to further unlock the growth potential of both sets of assets with a strong combined balance sheet and significantly expanded equipment fleet

Conclusion

Karora Resources presents a unique investment opportunity in the gold sector, with its strong financial performance, exciting exploration potential, and transformative merger with Westgold Resources. The company's record revenue and cash flow generation in Q1 2024, coupled with its ability to manage costs effectively, demonstrate its operational strength and financial discipline.

As Karora continues to ramp up production at Beta Hunt and unlock the potential of new zones like Fletcher, investors can expect further growth and value creation. The merger with Westgold Resources is a game-changer, creating a larger, more diversified gold producer with substantial synergies and enhanced market presence.

With a strong combined balance sheet, expanded equipment fleet, and the flexibility to capitalize on the historic gold price rally, Karora Resources is well-positioned to deliver long-term value to its shareholders. Investors seeking exposure to a growing, responsible gold producer with a compelling growth trajectory should consider Karora Resources as an attractive investment opportunity in the current market environment.