Sanatana Announces Private Placement and Election to Include Additional Mining Claims in the Watershed Property

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 25, 2013) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) will proceed with a private placement of up to 12,500,000 Units (the "Units") at the price of $0.08 per Unit for gross proceeds of up to $1,000,000 (the "Offering"). Each Unit will consist of one common share in the capital of the Company (a "Share") and one share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one Share at a price of $0.12 per Share for a period of two years from the closing of the Offering.

The Company may pay a finder's fee on the Offering within the maximum amount permitted by the policies of the TSX Venture Exchange (the "TSX-V"). Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSX-V. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. The net proceeds from the Units will be used for general corporate purposes and to fund the costs associated with the hearing before the Ontario Mining and Lands Commissioner in connection with Trelawney Mining and Exploration Inc.'s ("Trelawney") application for easements over the Watershed Property (see the Company's news releases of April 29, 2013 and July 4, 2013).

Peter Miles, Chief Executive Officer of Sanatana stated: "The uncertainty surrounding Trelawney's application for easements over the Watershed Property has created a difficult environment for Sanatana to raise funds. Specifically, the modest sized offering is the lowest price that Sanatana has offered its securities in a private placement. Sanatana believes that Trelawney's application does not meet the requirements for the granting of an easement under the Mining Act (Ontario) and Sanatana is opposing the application vigorously."1 With respect to the election to include additional mining claims in the Watershed Property (as described below), Mr. Miles further stated: "We are extremely pleased to have made an election to acquire the additional land package."

Area of Interest

Pursuant to the terms of the Option and Joint Venture Agreement (the "Option and JV Agreement") between Sanatana and Trelawney Augen Acquisitions Corp. ("TAAC"), the Watershed Property is protected by an area of interest extending at least one kilometre from any portion of the Watershed Property (the "AOI") as it existed as of the date of the Option and JV Agreement. If either party to the Option and JV Agreement (or its affiliate as defined in the Option and JV Agreement) stakes or acquires any interest in mineral claims or any other form of mineral tenure located wholly or partly in the AOI (the "AOI Tenure"), then such acquiring party must immediately notify the other party of such staking or acquisition and provide the other party with (i) details of the acquisition/staking costs associated therewith and (ii) all details in its possession with respect to the nature of the AOI Tenure and the known mineralization thereon. As noted above, the AOI is at least one kilometre but the exact size is confidential pursuant to the terms of the Option and JV Agreement.

Election to Exercise Area of Interest

Trelawney Mining and Exploration Inc. ("Trelawney"), an affiliate of TAAC, acquired a 20% undivided legal and beneficial interest in and to unpatented mining claims 4240522, 4241016 and 4220425 (the "Mining Claims") situated in the Yeo and Chester townships, which are situated within the AOI. Concurrently, TAAC took an assignment of Crown Gold Corporation's ("Crown Gold") rights under an Amendment and Assignment of Mining Claim Acquisition Agreement (the "Acquisition Agreement"). The 20% undivided legal and beneficial interest in the Mining Claims is identified as a "carried interest" under the Acquisition Agreement and is defined to mean that until completion of a positive pre-feasibility study, all costs and expenses of the exploration programs, preparation and filing of assessment reports and other obligations relating to the Mining Claims are the sole and exclusive obligation and liability of Trelawney and Sanatana will not have any obligation or liability in respect thereof.

Having reviewed the geological information associated with the Mining Claims along with the Acquisition Agreement, Sanatana has elected to (i) have the interest in the Mining Claims be included and form part of the Watershed Property for the benefit of Sanatana and TAAC and (ii) acquire the rights under the Acquisition Agreement.

Acquisition Costs

The acquisition costs for the interest in the Mining Claims and the assignment of the Acquisition Agreement totalled $143,317 and the Company has reimbursed TAAC for such costs as required by the Option and JV Agreement.

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 consisting of 46 mining claims totalling approximately 19,006 acres and located within the townships of Yeo, Chester, Neveille and Benneweis. As at November 28, 2012, Sanatana exercised its first option and is the legal and beneficial owner of 50% of the Watershed Property. Sanatana has until March 23, 2016, to decide whether to exercise its right to acquire a further 1% in 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:STA).

SANATANA RESOURCES INC.

Peter Miles, President and Chief Executive Officer

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.

1 Trelawney Augen Acquisition Corp. (a wholly-owned subsidiary of Trelawney) disagrees with Sanatana's assessment of Trelawney's easement application.

Sanatana Resources Inc.
Peter Miles
President and Chief Executive Officer
604-408-6680
[email protected]
www.sanatanaresources.com