Sanatana Resources Corporate Presentation

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Investor Presentation TSX.V: STA

Transcript of Sanatana Resources Corporate Presentation

Investor Presentation

TSX.V: STA

Forward Looking Statements

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This presentation is for information purposes only and does not constitute an offer to sell or a solicitation

to buy the securities referred to herein.

This document includes forward looking statements. Forward looking statements inherently involve

subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies,

many of which are outside of the control of, and may be unknown to, the company. Actual results and

developments may vary materially from those expressed in these materials. The types of uncertainties

which are relevant to the company may include, but are not limited to, commodity prices, political

uncertainty, changes to the regulatory framework which applies to the business of the company and

general economic conditions. Given these uncertainties, readers are cautioned not to place undue

reliance on such forward looking statements. Forward looking statements in these materials speak only at

the date of issue. Subject to any continuing obligations under applicable law or any relevant stock

exchange listing rules, the company does not in providing this information undertake any obligation to

publicly update or revise any of the forward looking statements or any change in events, conditions or

circumstances on which any such statement is based.

Troy Gill, a Qualified Person, as such term is defined in National Instrument 43-101 - Standards of

Disclosure for Mineral Projects (“NI 43-101”), and the Exploration Manager of Sanatana Resources Inc.,

has reviewed and approved the scientific and technical disclosure contained herein.

Share Structure

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Shares Outstanding 114,848,573

Warrants 13,374,250 Exercisable between $0.12 and $0.40 until August

2015

Stock Options 8,050,000 Exercisable between $0.30 and $0.75 per share

Fully Diluted 136,272,823

Share Price $0.10 as at March 17, 2014

Market Cap $12.1 million

Peter Miles President & CEO, Director

Former Vice President at Midland Doherty Inc, Dean Witter Reynolds, CIBC World Markets. Former advisor to a number of public and private companies,

primarily within the natural resources industry, including Roughrider Uranium Inc. Currently a Director at Gamehost Inc., Western Potash Corp.

Barry Fraser Chairman of the Board, Director

Mr. Fraser is a senior litigation lawyer with over 35 years of experience in business and corporate governance and other related matters. Mr. Fraser has

distinguished himself as one of Vancouver’s leading litigators specializing in commercial and IP disputes. Mr. Fraser is also Chairman of the Board of a TSX and

NYSE Listed gold producer, and serves on that company's audit, compensation and corporate governance committees.

Buddy Doyle Vice President Exploration, Director

More than twenty-five years experience in gold and mineral exploration, including work as Senior Project Geologist at the 30+ million ounce Lihir gold mine in

Papua New Guinea. Currently oversees a gold junior in Brazil that features global resources of 1.6 million ounces and a project in the pre-feasibility stage. Former

Vice President Exploration for North American Diamonds at Rio Tinto. Credited as co-discoverer of the Diavik Diamond Mine.

Dr. Nicholas Archibald Non-Executive Director

More than thirty five years experience in the minerals industry. Founded and served as CEO at Fractal Graphics, which won the Goldcorp Challenge in 2001.

Fellow of the Australian Institute of Mining and Metallurgy, the Society of Economic Geologists, the Australian Institute of Geoscientists, and the Australian

Academy of Technological Sciences and Engineering.

Simon Anderson Chief Financial Officer

Chartered Accountant with a broad range of public and private experience in both the US and Canada. Formerly Partner at an international accounting and

consulting firm.

Troy Gill Exploration Manager

Fifteen years of exploration experience with Rio Tinto. Member of the Australian Institute of Geoscientists.

Veteran Leadership

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Sanatana Value Proposition

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1. Sanatana’s 50% joint venture partner acquired for $65 million

in November 2011 by Trelawney Mining and Exploration Inc.

(Trelawney subsequently acquired by IAMGOLD in June

2012 for a transaction value of $608 million)

2. IAMGOLD will likely need to acquire Sanatana land that

surrounds the Côté Gold Project in order to proceed with an

optimized mine plan. IAMGOLD has applied for easements

over Sanatana claims, which Sanatana is defending

vigorously. Significant case precedent established in 2013

(see Cliffs Denied Easement over Canada Chrome Mining

Claims)

3. Sanatana has intercepted mineralization on claims adjacent

to IAMGold proposed pit suggesting Côté Gold Deposit

trending onto its property.

The Watershed Project

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The Watershed property is located between Sudbury and Timmins, Ontario. The property

covers 7,904 hectares, and consists of 46 mining claims, a 20% interest in the three Crown

Gold mining claims, as well as a right of first refusal over a further nine claims.

*The Watershed Property is an Option and JV Agreement between Sanatana Resources Inc. and Trelawney Augen Acquisition Corp., a wholly owned subsidiary of IAMGOLD.

Watershed Property Claims

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Sanatana Resources Inc. (TSX.V:STA) holds an option and joint venture

agreement (the “Agreement”) with Trelawney Augen Acquisition Corp.

(“TAAC”) governing control of the Watershed Property (the “Property”).

The Property surrounds the Côté Gold Project, which is held by a

subsidiary of IAMGOLD Corporation (“IAMGOLD”) (TSX:IMG,

NYSE:IAG). IAMGOLD is also the sole indirect shareholder of TAAC.

As a result of the Agreement, Sanatana owns a 50% undivided interest

in 46 mining claims and a further 20% carried interest in three mining

claims covering an area of 7,904 Ha in northern Ontario, as well as a

right of first refusal on a further nine claims. The Company may earn an

additional 1% interest by completing a prefeasibility study at the

Property. The Property is protected by an area of interest (the “AOI”)

extending at least one kilometre from any portion of the Property.

In April of 2013, a subsidiary of IAMGOLD filed an application with the

Ontario Mining and Lands Commissioner with respect to proposed

easement rights on the Property. Sanatana objects to the proposed

easements on both substantive and procedural grounds.

Watershed/Côté Gold Timeline

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*Complete details of the option and joint venture agreement are available in Sanatana’s press release dated February 16, 2011.

February

2011

Sanatana and Augen Gold Corp. (“Augen”) enter into an option and joint venture agreement for the Watershed

Property*

March 2011 Trelawney Mining and Exploration Inc. (“Trelawney”) releases the maiden Resource Estimate for the “Côté Lake

Deposit”

November

2011

Augen is acquired by Trelawney for approximately $65 million and subsequently renamed Trelawney Augen Acquisition

Corp (“TAAC”)

June 2012 IAMGOLD Corp. (“IAMGOLD”) completes its acquisition of Trelawney for approximately $608 million, becoming the

sole indirect shareholder of TAAC

October

2012

IAMGOLD publishes an updated resource estimate for Côté Lake, increasing Indicated Resources by 274%, and

commences work on a Prefeasibility Study for the project

November

2012

Santana completes all exploration expenditures and share issuance conditions necessary to fulfill its option and joint

venture agreement with TAAC, earning a 50% undivided interest in the Watershed Property

January

2013

Sanatana reports drill results from exploration efforts over the second half of 2012, encountering gold mineralization in

25 of 27 holes drilled

IAMGOLD publishes an updated resource estimate for the Côté Gold Deposit, increasing Indicated Resources by

114%

April

2013

Trelawney files an application with the Ontario Mining and Lands Commissioner with respect to proposed easement

rights on the Watershed Property. Sanatana objects to the proposed easements on both substantive and procedural

grounds

January

2014

Ontario Mining and Lands Commissioner agrees to hear the Company's preliminary motion requesting that the

easement application be dismissed on the basis that Trelawney has not met the requirements under subsection 175(4)

of the Mining Act (Ontario). The preliminary motion is scheduled to be heard on March 11, 2014.

March 11

2014

Ontario Mining and Lands Commissioner hears motion to dismiss easement application filed by subsidiary of IAMGold.

Decision expected April 2014.

Côté Gold Project Resource

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Côté Gold is a high priority project for IAMGOLD

Source: February 23, 2013 IAMGOLD Presentation at BMO Capital Markets’ Global Metals and Mining Conference.

MINERAL RESOURCE ESTIMATE – DECEMBER 31, 2012

Tonnes (millions) Grade (g/t) Contained Ounces

(millions)

Indicated

0.25 g/t Au cut-off 278 0.86 7.68

0.30 g/t Au cut-off 269 0.88 7.61

0.40 g/t Au cut-off 244 0.93 7.32

0.50 g/t Au cut-off 210 1.01 6.83

Inferred

0.25 g/t Au cut-off 47 0.71 1.07

0.30 g/t Au cut-off 44 0.74 1.04

0.40 g/t Au cut-off 36 0.83 0.95

0.50 g/t Au cut-off 30 0.90 0.88

Prefeasibility Study commenced in Q4 2012

Preliminary Mine Plan for Côté

Gold Project

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• On March 26, 2013, Trelawney Mining

and Exploration Inc., a wholly owned

subsidiary of IAMGOLD, filed a Project

Description and Terms of Reference for

Environmental Assessment with the

Canadian Environmental Assessment

Agency

• On April 26, 2013, Trelawney Mining

and Exploration Inc., a wholly owned

subsidiary of IAMGOLD, filed an

application with the Ontario Mining and

Lands Commissioner with respect to

proposed easement rights on the

Watershed Property that are key to

fulfilling the current mine plan for Côté Gold Project.

• Sanatana objects to the proposed

easements on a number of grounds and

the Company looks forward to the

opportunity to make its position known

to the Commissioner.

Watershed Property Exploration

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Côté Gold Trend

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Source: June 25, 2012 – 2012 Investor Day Presentation by IAMGOLD. Watershed Property added for reference.

Watershed Exploration Summary

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• 3-D geological database compilation

• 1,045-line km ZTEM airborne survey

• Regional airborne magnetics and EM structural interpretation

• Property-wide soil geochemical sampling

• 25-line km "Earth Probe" IP survey over areas immediately along

strike from the adjacent IAMGOLD Côté Gold Deposit.

• Outcrop stripping, mapping and channel sampling

• Ground magnetic surveys over the drill target areas of east Clam

Lake, Chain of Lakes and Chester as well as the Northern Shear

target in the east of the proprty.

• 17,131m diamond drilling over three programs - 25 drill holes

targeting east Clam Lake area, 11 drill holes around Chain of Lakes,

six drill holes at west Clam Lake and one drill hole at Chester targeting

IP anomalies and coincident gold in channel sampling. Highlights on

following page.

Correlating IP Anomalies

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Based on results from all the drilling targeting IP anomalies at Clam Lake, gold mineralization is present as a lower

grade disseminated zone hosted in an intensely silicified breccia. Within and immediately peripheral to these lower

grade zones, high grade gold occurs variously associated with quartz veins, structures, and areas of the most intense

alteration. The nature of the gold mineralization at Clam Lake is similar to that of the adjacent Côté Gold Deposit.

Clam Lake and Côté Gold

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Down hole gold mineralization intercepts from drilling at Clam Lake

correlate along strike with previously published significant drill hole results

from Côté Gold Project and included in the NI 43-101 resource calculation

and the current mine plan pit outline.

236.5 m @ 1.49 g/t Au (cut)

383.0 m @ 1.07 g/t Au (cut)

454.0 m @ 0.91 g/t Au (cut)

63.0 m @ 0.63 g/t Au (cut)

113.6 m @ 0.52 g/t Au (cut)

32.7 m @ 1.45 g/t Au (cut)

50.0 m @ 1.23 g/t Au (cut)

101.2 m @ 0.86 g/t Au (cut)

93.4 m @ 0.32 g/t Au (cut)

62.4 m @ 0.31 g/t Au (cut)

18.5 m @ 1.16 g/t Au (cut)

Watershed Drill Results

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DRILL HOLE GOLD MINERALIZED INTERVAL HIGHLIGHTS

Hole From To Length Au Au Cut

(m) (m) (m) (g/t) (25g/t)

SR-11-02 401 446 45 0.48

SR-11-04 153 203 50 1.33 1.23

SR-11-04 451 454.9 3.9 16.23 10.35

SR-11-05 166 225 59 0.3

SR-12-01 24.8 27 2.2 11.67

SR-12-01 265 321.6 56.6 0.43

SR-12-03 281.9 308 26.1 3.96 0.76

SR-12-11 11 29.7 18.7 1.2 1

SR-12-24 219 322 101.2 0.86

SR-13-01 141.6 235 93.4 0.32

SR-13-03 230.3 263 32.7 1.76 1.45

SR-13-09 151.1 172.5 21.4 1.14

SR-13-12 12 18 6 3.87 2.28

SR-13-14 319.4 433 113.6 0.83 0.52

Notes:

• True widths of intersections are unknown at this time.

• 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.

Sanatana Value Proposition

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1. Sanatana’s joint venture partner acquired for $65 million

in November 2011 by Trelawney Mining and Exploration

Inc. (Trelawney subsequently acquired by IAMGOLD in

June 2012)

2. IAMGOLD will likely need to acquire Sanatana land that

surrounds the Côté Gold Project in order to proceed with

an optimized mine plan. IAMGOLD has applied for

easements over Sanatana claims, which Sanatana is

defending vigorously. Significant case precedent

established (see Cliffs Denied Easement over Canada

Chrome Mining Claims)

3. Sanatana likely has part of the Côté Gold Deposit

trending onto its property.

Investor Presentation – October 2013

TSX.V: STA

APPENDIX

Overview of the Agreement

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Initial Agreement

• In February of 2011, Sanatana entered into the Agreement for the Property with Augen Gold

Corp.

• In November of 2011, Augen Gold Corp was acquired by Trelawney Mining and Exploration

Inc., and subsequently renamed Trelawney Augen Acquisition Corp (“TAAC”) Under the

terms of this agreement, Sanatana issued two million shares to TAAC, as well as providing a

cash consideration of $150,000.

50% Secured

• In November of 2012, Santana exercised its first option in the Agreement, acquiring a 50%

undivided interest in the Property

• In order to exercise this option, Santana paid TAAC $150,000 in cash, issued TAAC an

aggregate of 5 million common shares, and incurred over $5 million in work costs related to

exploration of the Property

• The 46 mineral claims that constitute the Property are now registered in Sanatana’s name

• Sanatana also possesses a right of first refusal on a group of nine additional mineral claims

• Santana is the registered owner of the Property, which is to be held in trust for the benefit of

both parties in accordance with their respective interests

• For the life of the agreement, TAAC will have the option to purchase up to 10% of any

securities issued by Sanatana in any future equity offerings.

Reaching 51%

• In order to earn an additional 1% interest in the Property, Sanatana must prepare a

prefeasibility study (anticipated cost of $4 million) for the Property and deliver it to TAAC by

March 23, 2016

• If Sanatana acquires this 51% total interest, the parties would form a Joint Venture to further

explore the Property

• Under the terms of the Agreement, Sanatana will possess the right to function as Manager of

this Joint Venture, and as a result direct any work programs the Joint Venture conducts

Complete details of the option and joint venture agreement are available in Sanatana’s press release dated February 16, 2011, and on www.sedar.com

Investor Presentation – October 2013

TSX.V: STA

© 2012 SANATANA RESOURCES INC.

PH: 604.408.6680

FAX: 604.408.6682

Investor Relations

Matt Hallaran

604-655-2462

[email protected]