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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