TORONTO - Karora Resources Inc. (TSX: KRR) ('Karora' or the 'Company') today announced financial and operating results for the third quarter ('Q3 2023') and first nine months ('YTD 2023') of 2023.

The Company's full unaudited condensed interim financial statements and management discussion & analysis ('MD&A) are available on SEDAR at www.sedarplus.ca and on the Company's website at www.karoraresources.com. All dollar amounts are in Canadian dollars, unless otherwise noted.

STRONG QUARTERLY AND YTD GOLD PRODUCTION

Production of 39,547 gold ounces increased 3% from 38,437 ounces in the third quarter of 2022, down slightly compared to record production of 40,823 ounces in the second quarter of 2023 ('the previous quarter').

YTD 2023 production of 120,197 ounces increased 24% from 96,578 ounces for the same period in 2022, with the Company ending the third quarter well positioned to achieve full-year 2023 production guidance of 145,000 - 160,000 ounces.

AISC ON TRACK TO ACHIEVE 2023 GUIDANCE

Cash operating costs1 and all-in sustaining costs ('AISC')1 per ounce sold averaged US$1,062 and US$1,196, respectively, in Q3 2023 compared to US$991 and US$1,069, respectively, in Q3 2022 and US$1,068 and US$1,160 the previous quarter. Previous quarter 2023 cash operating cost per ounce included by-product credits of US$38 per ounce. No nickel by-product credits were recorded in the third quarter of 2023 due to timing of sales, however 5,193T at 1.6% of nickel was mined during the quarter (approximately US$22 per ounce).

Cash operating costs1 and AISC1 per ounce sold for YTD 2023 averaged US$1,083 and US$1,188, respectively, versus US$1,128 and US$1,202, respectively, for YTD 2022; YTD 2023 AISC1 per ounce sold in line with full-year 2023 guidance of US$1,100 - US$1,250.

ROBUST QUARTERLY AND YTD REVENUE

Revenue in Q3 2023 of $107.1 million increased 32% from Q3 2022 and was slightly lower than Q2 2023 which was driven by record quarterly gold ounces sold of 42,172 ounces. For Q3 2023 41,278 gold ounces were sold at an average realized gold price of US$1,931 per ounce.

YTD 2023 revenue totalled $314.5 million, 42% higher than $220.2 million in YTD 2022 mainly reflecting a 30% increase in gold sales and a realized gold price that was US$89 per ounce higher than comparable period in 2022.

SOLID OPERATING CASH FLOW GENERATION

Cash flow provided by operating activities in Q3 2023 of $45.3 million, up 60% from $28.3 million in Q2 2022 and 32% from $34.4 million in Q2 2023.

YTD 2023 cash flow provided by operating activities of $100.6 million was almost double from $51.7 million in YTD 2022.

STRONG EARNINGS PERFORMANCE

Net earnings of $6.9 million ($0.04 per share) compared to net earnings of $4.4 million ($0.03 per share) in Q3 2022 and net earnings of $6.6 million (0.04 per share) in Q2 2023. Adjusted earnings of $14.0 million ($0.08 per share) compared to $6.6 million ($0.04 per share) in Q3 2022 and $13.9 million ($0.08 per share) the previous quarter.

Net earnings for YTD 2023 of $10.6 million ($0.06 per share) compared to net earnings of $0.3 million ($0.00 per share) for the same period in 2022; Adjusted earnings totalled $32.8 million ($0.19 per share), a 164% increase from $12.4 million ($0.08 per share) reported for YTD 2022.

CONTINUED PROGRESS ON GROWTH PLAN

Following completion of a second (west) decline the final ventilation raise (number three of three planned) has been completed. Primary ventilation fans have been procured and are expected to be installed and commissioned towards the end of 1H24. In the interim, temporary ventilation vans are operational. During the quarter, Karora continued expansion of the mining fleet with delivery of two new underground trucks and one underground loader. Further expansion of the fleet is planned in 2024. With the expected significant improvements to the mine's primary ventilation circuit to accommodate the increase in mining fleet, the expansion project remains on track to support growth to an annualized production rate of 2.0 Mtpa by the end of 2024.

FLETCHER ZONE EXPLORATION SUCCESS AT BETA HUNT

Fletcher Shear Zone ('FSZ') drilling results reported during Q3 from Beta Hunt (KRR news releases of August 7 and September 12) continued to extend mineralization with new high-grade gold intersections. Results from a nine-hole FSZ drill program designed to test over 500 metres of strike north of the Alpha Island Fault were highlighted by broad, high-grade intersections from the most northern infill line which indicate the strike of the FSZ within 250 metres of the Western Flanks Mineral Resource.

KALI METALS LITHIUM SPIN-OFF AND MANAGEMENT CHANGES

The Kali Metals lithium spin-off transaction, originally announced during the second quarter, remains on track for completion by year end. On November 3, 2023, Kali announced that it had lodged a prospectus for its initial public offering on the ASX. The new lithium vehicle involves Karora and a third party vending their lithium exploration projects into a new entity, Kali Metals Limited, with a goal of creating a new, separately run lithium-focused, ASX-listed exploration company to be led by an experienced board and management team.

During the quarter Mr. Tony Makuch joined the Company as a Director, Mr. Barry Dahl retired as the Company's Chief Financial Officer, replaced by Mr. Derek Humphry, and Mr. Peter Ganza joined Karora's Australian operations as Chief Operating Officer, Australia.

Non-IFRS: the definition and reconciliation of these measures are included in the 'Non-IFRS Measures' section of this news release and in the MD&A for the three and nine months ended September 30, 2023.

Karora will host a call/webcast on November 10, 2023 at 10:00 am (Eastern Time) to discuss the third quarter 2023 results. North American callers please dial: 1-888-664-6383; Local and international callers please dial: 416-764-8650. To join the conference call without operator assistance, you may register and enter your phone number at the Callback Link to receive an instant automated call back and be placed into the call. For the webcast of this event click the Webcast Link

'Comparing our performance year to date with last year, we've delivered strong improvements year-over-year with production growing 24%, average milled grade up 11% and cash operating costs improving by 4%. At the Beta Hunt Mine, we continued to advance our expansion on schedule and on budget. The third and final ventilation raise installation is now complete, which will facilitate the ongoing expansion of our mining equipment fleet, putting us on track to grow Beta Hunt's annualized production rate to 2.0 Mtpa by the end of 2024. At HGO, performance was strong in the third quarter as higher grades associated with the final stopes at the Aquarius Mine were processed. HGO production was up 17% and cash operating costs1 per ounce sold improved by 28% compared to the previous quarter.

'We ended the third quarter in a very strong financial position with a cash position of $84 million, up $13 million from the prior quarter, placing us in an excellent position to deliver on our growth objectives. We've also reported some very exciting exploration results from Beta Hunt, most recently in the Fletcher and Mason zones that point toward the potential for years of ongoing Mineral Resource additions outside the main zone of Western Flanks and A Zone. On this front, I am looking forward to reporting our next Mineral Resource update, which we expect to issue before year end.'

Consolidated Operations

Consolidated gold production in the third quarter of 2023 was 39,547 ounces, a 3% increase from the third quarter of 2022 and 3% lower than the record 40,823 ounces in the previous quarter. The increase from the third quarter of 2022 resulted primarily from an 8% improvement in the average grade reflecting final stoping at the Aquarius underground gold mine at the Higginsville gold operation. Tonnage was 6% down on the comparative period in 2022 due to crushing interruptions at the Higginsville gold operation. Contract crushers were utilized while crusher bridge repairs continue and expected to be concluded during the final quarter of the year.

Cash operating costs1 per ounce sold for the third quarter of 2023 averaged US$1,062 compared to US$991 for the same period in 2022 and $1,068 the previous quarter. The increase from the third quarter of 2022 largely reflected the impact of higher processing costs during the quarter due to two months contract crushing following the crusher bridge failure at HGO, and continued cost pressures in areas such as labour, contractors, power and fuel. In addition, nickel produced in the third quarter 2023 was not sold during the quarter. During the previous quarter, the cash operating cost1 per ounce included nickel by-product credits of US$38 per ounce. AISC1 per ounce sold in the third quarter of 2023 averaged US$1,196 compared to US$1,069 in the third quarter of 2022 and $1,160 the previous quarter due to the impact of the higher cash operating costs per ounce sold and higher sustaining capital for the quarter.

For the first nine months of 2023, gold production totalled 120,197 ounces, 24% higher than 96,578 ounces in the first nine months of 2022 reflecting a 11% increase in tonnes milled and a 11% improvement in the average grade. Higher tonnes milled reflected an increase in milling capacity following the acquisition of Lakewood Mill in August 2022. The Company ended the first nine months of 2023 well positioned to record achieve an annual production record and target annual production above the midpoint of the 145,000 - 160,000 ounces gold production guidance range for 2023.

Cash operating costs1 per ounce sold for the first nine months of 2023 averaged $1,083 compared to $1,128 for the same period in 2022 with volume and grade improvements largely accounting for the year-over-year improvement. AISC1 per ounce sold averaged US$1,188 in the first nine months of 2023 versus $1,202 a year earlier.

Beta Hunt

During the third quarter of 2023, Beta Hunt mined 357,204 tonnes at an average grade of 2.00 g/t containing 22,912 ounces of gold. This represented a 14% improvement on the third quarter of 2022, and a 20% improvement on the prior quarter ore tonnes reflecting progress in the ongoing production ramp up at the Beta Hunt mine. Contained gold was 5% lower than the third quarter of 2022 (313,000 tonnes at 2.40 g/t for 24,188 contained ounces) and 19% lower than the prior quarter (297,100 tonnes at 2.97 g/t for 28,416 contained ounces) reflecting the mining of a planned lower grade section of Beta Hunt during the current quarter with improved grade planned in the final quarter. The majority of the scheduled mined tonnes during the third quarter came from the central section of Western Flanks with fewer scheduled higher grade ore zones.

Gold production from Beta Hunt in the third quarter of 2023 totalled 21,926 recovered ounces based on milling 333,311 tonnes at an average grade of 2.17 g/t and 94% plant recovery. The lower mined grade contributed to 0.2% lower gold production for the quarter (21,977 ounces) compared to the third quarter of 2022 and 15% lower than the prior quarter (25,709 ounces).

Cash operating costs1 per ounce sold at Beta Hunt averaged US$1,233 in the third quarter of 2023, which compared to US$953 in the third quarter of 2022, and US$1,017 the previous quarter with the increase from the previous quarter of 2023 reflecting the impact of lower grade and no by-product credits, as the nickel produced in the quarter was not sold in the period (US$61/oz reduction of cash cost per ounce for the previous quarter).

For the first nine months of 2023, Beta Hunt mined 954,304 tonnes at an average grade of 2.56 g/t containing 78,439 ounces of gold, which compared to 828,984 tonnes mined at an average grade of 2.33 g/t containing 62,152 ounces of gold in the first nine months of 2022. Year-to-date gold production in 2023 totalled 74,212 ounces, a 27% increase from production of 58,254 ounces in the first nine months of 2022, which resulted from 14% higher mill throughput and 12% higher grade. Cash operating costs1 per ounce sold averaged US$1,071 broadly in line with the US$1,067 in the first nine months of 2022.

In addition to gold production, Beta Hunt mined 5,193 tonnes of nickel ore at an estimated grade of 1.66% nickel during the third quarter of 2023 compared to 5,915 tonnes of nickel ore mined at an estimated grade of 1.76% nickel for the same period in 2022 and 6,071 tonnes of nickel ore at an estimated grade of 2.47% nickel the previous quarter. For the first nine months of 2023, 18,035 tonnes of nickel ore were mined at an estimated grade of 2.14% nickel, which compared to 18,851 tonnes mined at an estimated average grade of 1.66% nickel a year earlier.

Higginsville Mining Operations ('HGO')

During the third quarter of 2023, HGO mined 96,367 tonnes at an average grade of 5.16 g/t containing 15,994 ounces, which compared to 171,000 tonnes mined at an average grade of 3.05 g/t containing 16,742 ounces in the third quarter of 2022 and 178,100 tonnes at an average grade of 2.76 g/t containing 15,806 ounces the previous quarter. The quantity of tonnes mined during the third quarter of 2023 largely reflected the completion of stoping activities at the Aquarius underground mine in the quarter as the Pioneer open pit mine was brought into production.

Production at HGO in the third quarter of 2023 totalled 17,621 recovered ounces based on milling 182,489 tonnes at an average grade of 3.13 g/t. Production in the third quarter of 2023 increased 7% from 16,460 ounces in the third quarter of 2022 (241,000 tonnes at 2.29 g/t for 16,460 ounces), reflecting the 37% higher grade processed, and was 17% higher than the previous quarter (216,894 tonnes at 2.31 g/t for 15,114 ounces), again reflecting the 36% higher grade in the current quarter driven by final stoping from the Aquarius underground mine.

Cash operating costs1 per ounce sold at HGO averaged US$832 in the third quarter of 2023 versus US$1,043 for the same period in 2022, with the 20% improvement reflecting the higher processing grade and resultant 20% higher ounces sold for the period. Cash operating costs1 per ounce sold in the third quarter of 2023 improved 28% from US$1,151 the previous quarter with the improvement again reflecting the higher processed grade from the Aquarius stoping ore and associated higher produced ounces.

For the first nine months of 2023, HGO mined 346,667 tonnes at an average grade of 3.65 g/t containing 40,727 contained ounces of gold, which compared favourably to the 363,853 tonnes mined at an average grade of 3.03 g/t containing 35,397 ounces of gold in the first nine months of 2022 reflecting ore source timing in accordance with the mine plan. Year-to-date gold production in 2023 totalled 45,985 ounces resulting from processing 602,932 tonnes at an average grade of 2.52 g/t versus gold production of 38,324 ounces based on processing 568,581 tonnes at an average grade of 2.26 g/t for the same period a year earlier. Cash operating costs1 per ounce sold averaged US$1,101 compared to $1,223 in the first nine months of 2022 with the lower cash costs largely due to a higher grade.

Processing Operations

A total of 515,800 tonnes were milled at an average grade of 2.51 g/t with average recoveries of 95% for production of 39,547 ounces during the third quarter.

Beta Hunt contributed 100% of the throughput at the Lakewood Mill during the third quarter of 2023, totalling 217,347 tonnes at an average grade of 1.92 g/t. Recovered gold during the quarter totalled 12,297 ounces. The balance of Beta Hunt was dedicated to the Higginsville mill with Beta Hunt contributing 39% of the mill throughput and HGO providing the remaining 61% with the higher-grade Aquarius ore prioritized. At Higginsville mill, 298,453 tonnes of material were processed at an average grade of 2.95 g/t for a recovered gold of 27,250 ounces.

For the first nine months of 2023, throughput at the Lakewood Mill totalled 548,590 tonnes (97% from Beta Hunt and 3% from HGO) at an average grade of 1.98 g/t. Recovered gold during the nine-month period totalled 32,712 ounces. 1,005,466 tonnes were milled at the Higginsville Mill (with 42% of mill feed coming from Beta Hunt and 58% from HGO) at an average grade of 2.84 g/t. Recovered gold totalled 87,485 ounces.

About Karora Resources

Karora is focused on increasing gold production at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations ('HGO') in Western Australia. The Higginsville treatment facility is a low-cost 1.6 Mtpa processing plant, which is fed at capacity from Karora's underground Beta Hunt mine and Higginsville mines. In July 2022, Karora acquired the 1.0 Mtpa Lakewood Mill in Western Australia. At Beta Hunt, a robust gold Mineral Resource and Reserve are hosted in multiple gold shears, with gold intersections along a 5 km strike length remaining open in multiple directions. HGO has a substantial Mineral gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. Karora has a strong Board and management team focused on delivering shareholder value and responsible mining, as demonstrated by Karora's commitment to reducing emissions across its operations. Karora's common shares trade on the TSX under the symbol KRR and on the OTCQX market under the symbol KRRGF.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains 'forward-looking information' including without limitation statements relating to the liquidity and capital resources of Karora, production guidance, consolidated production guidance and the potential of the Beta Hunt Mine, Higginsville Gold Operation, the Spargos Gold Mine, the Lakewood Mill, and the completion of the second Beta Hunt decline system.

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.sedarplus.ca.

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.

Contact:

Tel: (416) 363-0649

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