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Sanatana Provides Exploration Update on Its Watershed Property

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/10/13 -- Sanatana Resources Inc. (TSX VENTURE: STA) ("Sanatana" or the "Company") is pleased to provide this exploration and operational update for the Watershed Property.

Exploration Update

During the second half of 2012, the Company's exploration program focused on fulfilling the terms of the option and joint venture agreement and testing potential distal extensions of IAMGOLD Corporation's Cote Gold Deposit and the Company's discovery on Clam Lake claim 3011820. The program comprised exploration drilling of 5,410 metres, collecting 1,454 soil samples from across the entire property and outcrop stripping, mapping and channel sampling over selected sites.

Peter Miles, CEO of Sanatana, stated: "We are pleased with the significant exploration progress we have made on the Watershed Property: not only have we earned a minimum 50% interest in the property, but we have also encountered gold mineralization in 25 of 27 holes drilled to date which is a strong indication of the gold prospectivity of the Swayze Greenstone Belt. We look forward to receiving results from our recently initiated infill drill program on Clam Lake claim 3011820 as this will help us understand the magnitude of its mineralization and how it relates to IAMGOLD's Cote Gold Deposit."

Drilling

The objective of the drill program was to test anomalies previously identified through the Company's Induced Polarization (IP) geophysical work. The IP anomalies tested were predominately well to the west of the Company's previously successful drill program on claim 3011820, and included the Chain of Lakes, Clam Lake claim 3018412, and Chester prospects.

SR-12-10 was collared in mineral claim 3017670 inclined 60 degrees and oriented to the south some 300 m north of hole SR-12-09 (previously reported in a Company news release dated June 19, 2012) on cut Line 3 testing an east - west trending subsurface apparent resistivity anomaly (see Table 1). This concluded the drill program for the Chain of Lakes area.

The drill was relocated to mineral claim 3018412 testing for extensions of the gold mineralization from mineral claim 3011820 across to the western shore of Clam Lake. Holes SR-12-11, SR-12-12 and SR-12-14 - 16 were drilled as a fence along the western boundary of the mineral claim from north to south in sequential order at between 50 to 100 m spacing with hole SR-11-13 collared 150 m east on a peninsular in the north-central area of the claim. Again, the drilling was angled at 60 degrees to horizontal towards the south, allowing for some slight drift to the west at times, except for hole SR-12-12 which was drilled due north at 50 degrees as a scissor hole testing gold mineralization encountered in hole SR-12-11.

Holes SR-12-17 - 21 were drilled south of the Chain of Lakes area on mineral claim 3017674 targeting parallel IP anomaly trends 2.0 km southwest of the Clam Lake claim 3011820. Hole SR-12-22 tested an isolated IP anomaly oriented southeast - northwest in the Chester area within mineral claim 3017665. All the drilling was angled at 60 degrees to horizontal towards the south, allowing for some slight drift to the west at times. Locations and results of this drill program are detailed in the tables below:

Table 1:---------------------------------------------------------------------------Hole Line East North Projection Dip Azimuth Depth------------------------------------------------------------------------------------------------------------------------------------------------------SR-12-10 L3 427,000 5,267,550 UTM Zone 17 -60 degrees 175 degrees 501mSR-12-11 427,910 5,267,012 UTM Zone 17 -60 degrees 175 degrees 505mSR-12-12 427,908 5,266,975 UTM Zone 17 -50 degrees 000 degrees 110mSR-12-13 428,085 5,266,919 UTM Zone 17 -60 degrees 170 degrees 503mSR-12-14 427,919 5,266,865 UTM Zone 17 -60 degrees 175 degrees 409mSR-12-15 427,935 5,266,766 UTM Zone 17 -60 degrees 180 degrees 200mSR-12-16 427,946 5,266,715 UTM Zone 17 -60 degrees 180 degrees 102mSR-12-17 L3 427,000 5,265,050 UTM Zone 17 -60 degrees 180 degrees 559mSR-12-18 L3 427,000 5,265,110 UTM Zone 17 -60 degrees 175 degrees 458mSR-12-19 L4 427,200 5,265,335 UTM Zone 17 -60 degrees 175 degrees 537mSR-12-20 L5 427,400 5,265,050 UTM Zone 17 -60 degrees 175 degrees 518mSR-12-21 L7 427,800 5,264,700 UTM Zone 17 -60 degrees 175 degrees 501mSR-12-22 L10 428,800 5,265,300 UTM Zone 17 -60 degrees 175 degrees 507m--------------------------------------------------------------------------- 5,410m



Sporadic narrow intercepts of gold were encountered in most of the drill holes (see Table 2) except for the two holes located well to the south (SR-12-21 and 22). The gold results were attributed to quartz veins along strike or parallel to the Cote Gold Deposit - Clam Lake trend. Interpretation of the data implies that these narrow zones of gold mineralization may represent stringers peripheral to the main lode.

Table 2: From To Length AuHole (m) (m) (m) (g/t) Au Cut (25g/t)SR-12-10 164.5 165.0 0.5 0.5SR-12-11 11.0 29.7 18.7 1.2 1.0Including:SR-12-11 11.0 12.0 1.0 3.4SR-12-11 29.1 29.7 0.6 32.4 25.0SR-12-11 401.9 402.4 0.5 1.0SR-12-11 432.1 432.6 0.5 0.7SR-12-12 42.7 45.4 2.7 0.5Including:SR-12-12 44.7 45.4 0.7 1.2SR-12-12 59.0 60.0 1.0 0.9SR-12-12 79.7 80.5 0.8 0.8SR-12-12 108.7 109.4 0.7 4.5SR-12-13 15.5 16.3 0.8 0.9SR-12-13 139.8 140.6 0.8 14.5SR-12-13 317.3 318.0 0.7 0.3SR-12-13 370.0 370.6 0.6 0.4SR-12-14 65.6 66.2 0.6 0.5SR-12-14 91.2 91.9 0.7 0.3SR-12-14 149.0 153.0 4.0 0.6Including:SR-12-14 152.0 153.0 1.0 1.8SR-12-14 162.0 163.0 1.0 0.4SR-12-15 6.0 7.0 1.0 0.4SR-12-15 102.0 113.0 11.0 0.3Including:SR-12-15 107.0 107.7 0.7 1.4SR-12-15 133.0 134.0 1.0 1.0SR-12-16 80.7 81.4 0.7 0.8SR-12-17 22.0 23.0 1.0 0.4SR-12-17 53.0 54.0 1.0 0.7SR-12-17 129.7 130.5 0.8 0.6SR-12-17 230.0 231.0 1.0 0.4SR-12-17 404.0 405.0 1.0 0.5SR-12-18 307.0 311.8 4.8 1.0Including:SR-12-18 308.0 309.0 1.0 3.1SR-12-19 476.0 477.0 1.0 0.4SR-12-20 386.0 386.7 0.7 0.6SR-12-21 No significant resultsSR-12-22 No significant resultsNotes:1. True widths of intersections are unknown at this time.2. 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.



Soil Sampling

The regional soil-sampling program comprised 1,042 samples at a staggered grid spacing of 400 metres collecting B horizon soil from till cover to test for gold anomalism across the property. Interpretation of geochemical anomalies based on statistical analysis of the complete dataset of assay results defined five areas of anomalous gold in soil. A further 412 samples were collected from these areas at a regular grid spacing of 100m. Re-analysis after incorporating the infill data highlighted one area in the southeast of the property warrants follow up with ground prospecting and this work is planned for the 2013 summer program.

Silver Butte Prospecting

Fresh mechanized outcrop stripping, mapping and channel sampling at the pre-existing "Silver Butte" showing just off Highway 144 near the Mesomikenda Lake turn-off in the eastern part of the property was commenced in 2012. Of prime focus was the Northern Shear zone Au occurrence where hand stripping, mapping and channel sampling early in the program revealed an interval of 8.4m @ 1.63g/t Au within a 12m outcrop cut in two sections by a diabase dike.

Within the shear zone the rocks have been deformed to a mylonite fabric with quartz involved with the deformation. There is an overprinting of sericite and disseminated sulphides that exhibits a positive association with the gold values. The Northern Shear trends southeast to northwest and is sub-vertical and lies close to the interpreted gold trend in the area. Mechanized outcrop stripping has so far revealed 150m of strike extent to the shear zone varying in width from 5 to 15m. Gold assay results from channel sampling across the shear zone at intervals of 25m along strike have not been fully collated at this time.

Operational Update

In late December 2012, Sanatana began an infill drilling program on Clam Lake claim 3011820. The purpose of this approximately 5,000-metre program is to test the continuity of the gold bearing intervals previously drilled and referred to in the Company's news releases dated April 20 and June 19, 2012.

Results from this program are expected throughout the first and second quarter of 2013.

About the Sampling

Drill samples were collected from split NQ2 drill core at a nominal 1 metre interval breaking at major geological boundaries such that no sample interval was less than 0.5 metres or greater than 1.5 metres. The samples were submitted to AGAT Laboratories (AGAT), Sudbury, Ontario for drying, crushing and pulverization in preparation for analysis of gold by Fire Assay and a suite of trace elements by ICP methods at the Mississauga, Ontario facility. Gold assay results measuring over 10 g/t are re-analyzed by Fire Assay using a gravimetric finish.

AGAT is accredited by the Standards Council of Canada, the Canadian Association for Laboratory Accreditation and QMI-SAI Global and is an ISO 9001 and 17025 certified analytical laboratory.

A rigorous QA/QC program was implemented as part of the sampling procedures throughout the drill program. Duplicate, standard and blank samples were inserted into the sample stream prior to being sent to the laboratory and the adherence of results to strict parameters was monitored.

Soil samples of approximately 1kg were collected from the B horizon of till and submitted to ALS Minerals Laboratory, Sudbury. Each sample was dried and sieved to -63 micrometres and analyzed for Au by trace level 25g aqua regia ICP-MS method and for 51 elements by aqua regia ICP-MS. Duplicate sample splits were taken every 20 samples to check sample result variation. Internal lab standards results were requested to assess sample precision. ALS is an ISO 9001:2008 and 17025 certified analytical laboratory.

Channel samples are collected over approximately 1m intervals from 2-3cm wide channels cut with a motorized saw using twin diamond impregnated blades to a depth of 5-10cm. The samples were submitted to SRX Assay Lab, Sudbury for 50g Fire Assay gravity finish analysis for gold and multi acid digest ICP-MS analysis for 51 other elements. Results of internal lab duplicates and standards were requested to gauge sample result accuracy and precision. SRX is an ISO 9001:2008 and 17025 certified analytical laboratory.

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. 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).

The technical portions of this news release were reviewed and approved by Troy Gill, Exploration Manager for the Company, a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

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.



Contacts:
Sanatana Resources Inc.
Mr. Peter Miles
President and Chief Executive Officer
604-408-6680 or Toll Free: 1-877-881-6680
604-408-6682 (FAX)
investor@sanatanaresources.com
www.sanatanaresources.com



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