SARAMA RESOURCES LTD.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL RESULTS

For the three months (fourth quarter) and year ended December 31, 2022

Dated: March 29, 2023

(All amounts expressed in United States dollars, unless otherwise stated)

INTRODUCTION

The following Management's Discussion and Analysis ("MD&A") is intended to supplement the consolidated financial statements of Sarama Resources Ltd. (the "Company" or "Sarama") and its subsidiaries for the year ended December 31, 2022.

The consolidated financial statements for the year ended December 31, 2022 have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

This MD&A is current as at March 29, 2023.

Additional information relating to the Company is available on SEDAR at www.sedar.com under the Company's profile.

FORWARD-LOOKING STATEMENTS

This MD&A contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company's planned exploration and development activities, statements related to a potential mine development opportunity featuring an initial, long-life CIL project which may be established and paid for by the significant oxide mineral resource base, plans for an extensive drilling campaign at the Sanutura Project, costs and timing of future exploration, statements regarding use of proceeds, results of future exploration and drilling, timing and receipt of approvals, consents and permits under applicable legislation, feasibility work anticipated to commence in 2023, recommencement of drilling, and the adequacy of financial resources. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking information. Wherever possible, words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipate" or "does not anticipate", "believe", "intend" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information.

Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation: our limited operating history, negative operating cash flow and need for additional financing; the early stage of our exploration and the fact that we have no mineral reserves; global economic conditions; our dependence on key management and qualified personnel; exploration, development and mining risks; title and property risks; risks related to the presence of artisanal miners; risks associated with operations in Africa; risks associated with pandemics and health, risks associated with maintaining a skilled workforce; risks relating to government regulations; environmental laws, regulations and risks; uncertainty regarding our ability to acquire necessary permits and comply with their terms; infrastructure risks; uninsurable risks; risks regarding our ability to enforce our legal rights; market factors and volatility of commodity prices; fluctuations in foreign exchange rates; competition; acquisition risks; conflicts of interest; price volatility in publicly traded securities; dilution; dividends and "passive foreign investment company" tax consequences to U.S. shareholders.

Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable.

Assumptions have been made regarding, among other things: our ability to carry on exploration and development activities, our ability to meet our obligations under our property agreements, the timing and results of drilling programs, the discovery of mineral resources and mineral reserves on our mineral properties, the timely receipt of required approvals, the price of gold, the costs of operating and exploration expenditures, our ability to operate in a safe, efficient and effective manner and our ability to obtain financing as and when required and on reasonable terms. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions that may have been used.

Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. We cannot assure you that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. We do not undertake to update any forward-looking information, except in accordance with applicable securities laws.

OVERVIEW

Sarama is a Canadian-incorporated mineral exploration and development company whose principal business objective is to explore for and develop gold deposits in West Africa.

The Company was incorporated on April 8, 2010 under the Business Corporations Act (British Columbia). The Company's primary office is located in Perth, Western Australia. The Company's common shares are listed on the TSX Venture Exchange ("TSXV") and Chess Depositary Interests ("CDIs") on the Australian Securities Exchange ("ASX") under the respective codes 'SWA' and 'SRR' respectively.

The Company has built and advanced substantial exploration landholdings in prospective and underexplored areas in south-west Burkina Faso, West Africa. The Company has significant interests in three projects located principally in the Houndé and Banfora Belts, which are considered highly prospective for gold and remain underexplored.

Sarama's 100%-owned(10) Sanutura Project is principally located within the prolific Houndé Greenstone Belt in south-west Burkina Faso and is the exploration and development focus of the Company. The project hosts the Tankoro and Bondi Deposits which have a combined mineral resource of 0.6Moz gold (Indicated) and 2.3Moz gold (Inferred)(1).

Together, the deposits present a potential mine development opportunity featuring an initial, long-life CIL project which may be established and paid for by the significant oxide mineral resource base.

Sarama has built further optionality into its portfolio including a 467km², 100%-owned(10) exploration position in the highly prospective Banfora Belt in south-western Burkina Faso. The Koumandara Project hosts several regional-scale structural features and trends of gold-in-soil anomalism extending for over 25km along strike.

Sarama also holds an approximate 18% participating interest in the Karankasso Project Joint Venture ("JV") which is situated adjacent to the Company's Sanutura Project in Burkina Faso and is a JV between Sarama and Endeavour Mining Corp ("Endeavour") in which Endeavour is the operator of the JV. In February 2020, an updated mineral resource estimate of 709koz gold (Inferred)(9) was declared for the Karankasso Project JV.

CORPORATE

Treasury

As at December 31, 2022, the Company had cash and cash equivalents of $843,085.

Use of Funds

The Company confirms that during the quarter ended 31 December 2022, it has used the funds raised pursuant to the Company's prospectus dated 11 March 2022, in relation to its ASX listing, consistently with the "Use of Funds" statement in the prospectus. A comparison of actual expenditure since the date of admission to the official list of ASX as per ASX Listing Rule 4.7C.2 is as follows and presented in Australian dollars:

	Prospectus	Actual	Actual
	(12 month period)	Q4 FY22	Total
	Australian $	Australian $	Australian $
Sanutura Project
• Exploration activities	4,264,000	421,133	3,216,899
• Barrick TZ payment	1,500,000	-	1,727,409
Koumandara Project	466,000	-	46,173
Karankasso Project	-	-	-
Business and corporate development	995,000	-	-
Corporate general and administrativeexpenses and working capital	1,000,000	401,106	1,109,026
Costs of the Offer	775,000	-	704,532
TOTAL	9,000,000	822,839	6,804,040

The table above does not include expenditure between the period of filing the prospectus (11 March 2022) and the Company's admission to the ASX (28 April 2022) of approximately A$870,000 which consisted of exploration activities of A$430,000, Corporate general and administrative expenses and working capital of A$286,000 and costs of the Offer of A$154,000.

Summary of Material Variances

For the quarter ended 31 December 2022, the Company was within its expenditure program since admission to listing on the ASX except for the following:

Payments to Related Parties

For the quarter ended 31 December 2022, payments of $80,679 were made to related parties and/or their associates, which comprised remuneration for the CEO & Managing Director and Non-Executive Director fees.

EXPLORATION AND EVALUATION EXPENDITURES

During the current quarter the Company incurred exploration expenditure of $604,336

The costs per active project area per each quarter for the current period ending December 31, 2022 and preceding four quarters is as follows;

	Three monthsended	Three monthsended	Three monthsended	Three monthsended	Three monthsended
	December 31,2021	March 31,2022	June 30,2022	September 30,2022	December 31,2021
Sanutura	228,437	202,567	1,283,898	603,909	212,185
Koumandara	39,521	37,112	48,333	427	-
Other – BurkinaFaso **	-	-	-	-	-
Total	267,958	239,679	1,334,319	604,336	212,185

** "Other – Burkina Faso" comprises properties within the Boromo and Bingo Projects

For the quarter ended December 31, 2022, the Company incurred exploration expenditure of $604k. Expenditure incurred at the Sanutura Project was $212k which included costs associated with the drilling program of $12k (database management), plus allocation of camp, technical support and administration ($200k).

PROPERTY INFORMATION, RECENTLY COMPLETED ACTIVITIES AND OUTLOOK

Burkina Faso

The Company has interests, directly and indirectly, in mineral properties covering an area of approximately 2,600km2 located principally within the southern Houndé and Banfora Greenstone Belts, in south-west Burkina Faso (refer Figure 1). The exploration activities are primarily focussed within 2 geographical areas:

1. The southern Houndé Belt hosting the

a. Sanutura Project; and
b. Karankasso Project and;

2. The northern Banfora Belt hosting the

a. Koumandara Project.

Figure 1 – Location of Sarama's Projects in South-West Burkina Faso

Sanutura Project

Property Information

The primary focus of the Company has been the advancement of its 100%-owned(10) Sanutura Project covering approximately 1,420km² (refer Figure 2) in south-west Burkina Faso. The Sanutura Project is an advanced-stage exploration project that hosts a significant, well-defined mineral resource base and a suite of exploration targets.

Figure 2 Sanutura Project – Tankoro and Bondi Deposits within Sanutura Project

The Sanutura Project is located in the southern Houndé Belt, which hosts Endeavour's Mana and Houndé Gold Mines and Fortuna Silver Mines Inc.'s Yaramoko Gold Mine and recent +1Moz Au discoveries including Endeavour's Golden Hill and Kari Pump deposits, and the Bantou and Bantou Nord deposits which are approximately 6km west of the Tankoro Deposit at Sarama's Sanutura Project.

On November 16, 2021 the Company announced an updated mineral resource estimate for the Sanutura Project(1) of:

9.4Mt @ 1.9g/t Au for 0.6Moz gold (Indicated); and
52.7Mt @ 1.4g/t Au for 2.3Moz gold (Inferred).

This is comprised of mineral resources for the Tankoro Deposit of 9.4Mt @ 1.9g/t Au for 0.6Moz Au (Indicated) and 43.6Mt @ 1.4g/t Au for 1.9Moz (Inferred)(2) and the Bondi Deposit of 9.2Mt @ 1.5g/t Au for 0.5Moz (Inferred)(3).

The Sanutura Project's mineral resource contains a significant higher-grade component of 6.3Mt @ 2.5g/t Au for 0.5Moz gold (Indicated) plus 29.8Mt @ 1.9g/t Au for 1.8Moz gold (Inferred)(4) using a 1.0g/t Au cut-off. This highlights the presence of higher-grade zones within the greater mineralised system which will be the focal point for project development. Infill drilling in certain higher-grade areas provides considerable geological confidence, allowing for the classification of a significant part of the mineral resources as 'indicated'.

The combined oxide and transition component of the project's mineral resource totals 0.2Moz gold (indicated) plus 0.8Moz gold (inferred)(5) , representing approximately a third of the total mineral resource. The Company's exploration focus going forward will be on this near-surface oxide material, which is anticipated to provide significant, early plant feed to support a potential staged development of the Sanutura Project.

Exploration by the Company has identified a number of targets within the Sanutura Project which have the potential to make meaningful additions to the mineral resource base of the project, namely:

a primary exploration target of 3.5-4.3Mt @ 1.2-1.4g/t Au for 135-190koz Au(6) for the Tankoro Deposit, consisting of modelled and estimated (but unclassified) mineralisation contained within the open pit shell and underground blockouts which constrain the mineral resource;
a primary exploration target of 2.5-3.1Mt @ 0.9-1.1g/t Au for 70-100koz Au(7) for the Bondi Deposit, consisting of modelled and estimated (but unclassified) mineralisation contained within the open pit shell and underground blockouts which constrain the mineral resource;
a secondary exploration target of 12.0-14.7Mt @ 1.2-1.4g/t Au for 0.5-0.7Moz Au(8) for the Tankoro Deposit, consisting of modelled and estimated mineralisation located outside of open pit shell and underground blockouts which constrain the mineral resource;
the early-stage Zanawa Prospect, located approximately 4km north-east of the Bondi Deposit, at which reconnaissance drilling has returned 22m @ 3.85g/t Au from 5m in DJR0029, 29m @ 1.44g/t Au from 1m and 10m @ 1.24g/t Au from 67m in DJR0030 and 5m @ 4.54g/t Au from 15m in DJA0141;
a large area of artisanal workings at the Bamako 2 Property, measuring approximately 3km-long x 2kmwide, where numerous, subparallel gold-bearing quartz veins, extending for over 3km in strike length have been exposed. Gold-in-soil surveys returned peak values of 13.6g/t Au and drilling has returned a number of significant intercepts including 15m @ 6.17g/t Au from 9m in FRC384, 8m @ 18.4g/t Au from 42m in BAR004 and 18m @ 1.20g/t Au from 44m in BAR003; and
numerous extensional and additional targets throughout the project generated from soil geochemistry and geophysical surveys.

While the potential quantity and grade of these exploration targets is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource, they present viable exploration targets for the Company to pursue.

A technical report prepared in accordance with Canadian National Instrument ("NI 43-101") titled "NI 43-101 Technical Report, Sanutura Project, South-West Burkina Faso" and dated February 7, 2022, supporting the updated mineral resource is available on SEDAR (www.sedar.com). There are no material differences in the technical information contained in the technical report compared to the disclosure in the November 16, 2021 news release regarding the estimate of mineral resources for the Sanutura Project.

Activities Completed in Q4 2022

Sarama continued to liaise with the Ministry of Mines and Quarries after it made notification to the Company of the successful applications for the granting of the Tankoro 2 and Gbingue 2 Exploration Permits. These permits cover substantially the same area as the predecessor Tankoro and Gbingue Exploration Permits which had expired and were required to be re-issued. The new Exploration Permits have an initial term of 3 years and are renewable for an addition two 3-year terms, subject to satisfaction by the Company of certain conditions including the filing of progress reports and the attainment of minimum exploration expenditures. Sarama has paid the requisite processing fees and the issuance of the Exploration Permits' arretés and related paperwork is an administrative process which is anticipated to be completed in due course.(10)
Sarama continued ongoing engagement with local community and government leaders as well as its community support and development programs. Sarama continues to enjoy very good community and local government support for its field activities . In September 2022, the Company received the "Emerging ESG Leader" award from AAMEG (Australia-Africa Minerals and Energy Group), an award sponsored by the Mineral Council of Australia, for its community programs at Norkarma and the surrounding areas.

• Approximately 15,200m aircore ("AC") and 5,600m reverse-circulation ("RC") drilling was completed at the Project between May and August 2022, with drilling activities terminating in late-July 2022 due to the onset of seasonal rains limiting access to drill targets and leading to high levels of groundwater being encountered. All assays for the completed drilling were receipted in Q3 2022 with the compilation and reporting of results commencing in Q3 2022 and continuing in Q4 2022.

The program marks the recommencement of exploration works on the project after a significant hiatus and has been primarily designed to increase the oxide component of the current multi-million ounce gold mineral resource. Due to exploration commencing well into the field season, the program was structured to maximise available field time by starting in the south of the project where early seasonal rains have the greatest potential to impact drilling and field work. The Company's highest priority exploration targets are currently situated in the northern permits of the Sanutura Project and testing of these is expected to commence in 2023 after seasonal rains have abated, access is established, and other field preparation is undertaken.

• Figure 3 shows the various drilling areas and results reported for the Tankoro Deposit during H2 2022. In total 3 tranches of results were reported in Q4 2022, covering certain drilling within the central and southern areas of the Tankoro Deposit and summaries are included.

Figure 3 Sanutura Project – Drilling Areas Reported at Tankoro Deposit in H2 2022

• On 6 October 2022, the Company reported further results from 2,200m exploration drilling at the MC Prospect (refer Figure 4). The drilling targeted the near-surface footwall region of the prospect and successfully intersected new mineralisation in oxide material outside the current mineral resource and has potential to enhance open pit stripping ratios in any eventual mine development.

The drilling program targeted certain sections of the MC Prospect over a zone extending for approximately 2.8km along strike and had multiple objectives; testing for strike and dip extensions to lodes contributing to the current mineral resource and follow-up of isolated and unmodelled intersections encountered in previous exploration drilling. Highlighted downhole intersections include:

17m @ 2.00g/t Au from 29m in TAA213 (hole ended in mineralisation);
23m @ 1.38g/t Au from 15m in TAA227 (including 7m @ 2.51g/t Au);
14m @ 2.16g/t Au from 32m in TAA226 (including 5m @ 5.30g/t Au);
17m @ 1.40g/t Au from 43m in TAA290 (including 5m @ 2.47g/t Au & hole ended in mineralisation);
15m @ 1.51g/t Au from 36m in TAA210; and
19m @ 1.00g/t Au from 35m in TAR061 (hole ended in mineralisation).

The recent drilling successfully intersected new gold mineralisation outside the current Mineral Resource in 3 key areas(refer Figure 5). This new mineralisation is generally located in the footwall of the modelled lode package that forms the MC Prospect (refer Figures 6-8) and highlights the potential for future growth around the eastern limit of drill coverage of the mineralised corridor.

Further drilling is planned to delineate the extent and geometry of mineralisation, including areas where several holes ended in strong mineralisation; 4m @ 4.30g/t Au (from 46m in TAA378), 6m @ 1.74g/t Au (from 60m in TAA213), 17m @ 1.40g/t Au (from 43m in TAA290) and 19m @ 1.00g/t Au (from 35m in TAR061) which illustrates the potential for further gold mineralisation to be discovered.

Figure 4 –Tankoro Deposit Location Plan – Continued Exploration Success for Oxide Targets

Figure 5 –MC Prospect – Drilling & Mineralisation Plan

Figure 6 –Cross Section A-A' of Figure 13 (Looking NNE)

Figure 7 –Cross Section B-B' of Figure 13 (Looking NNE)

Figure 8 –Cross Section C-C' of Figure 13 (Looking NNE)

• On 29 November 2022, the Company reported results from 2,200m drilling which represented the fifth area of new mineralisation discovered in the 21,000m drill program completed between May and August 2022. Drilling intersected new high-grade mineralisation and identified extensions to selected lodes at the MM Prospect within the central area of the Tankoro Deposit (refer Figure 3) with a headline intercept of 21m @ 7.57g/t gold from surface.

Highlighted downhole intersections in oxide material from new assays include:

21m @ 7.57g/t Au from surface in TAA359;
15m @ 2.48g/t Au from 15m in TAR041;
13m @ 1.41g/t Au from 21m in TAR042; and
13m @ 1.36g/t Au from 29m in TAR040.

These drilling results are a positive development for the project, indicating potential for further growth in the Mineral Resource. The intersection of new high-grade mineralisation and identified extensions to selected lodes within the central area of the Tankoro Deposit is promising. Additionally, the new mineralisation is located in near-surface oxide material outside the current Mineral Resource, which could enhance open pit stripping ratios in any eventual mine development. The results also support the thesis that significant new discoveries remain possible close to known mineralisation.

• On 14 December 2022, the Company reported results for a further 2,900m of drilling that was primarily focussed on testing for new mineralisation in lightly-drilled areas in the southern portion of the Tankoro Deposit (refer Figure 3). The results represent the sixth discovery of additional/extensional mineralisation in the 21,000m drill program completed between May and August 2022 and continue to demonstrate the strong potential to grow the oxide component of the Project's Mineral Resource.

Highlighted downhole intersections in oxide material from new assays include:

5m @ 7.05g/t Au (incl 1m @ 25.60g/t Au) from 9m in TAA173;
22m @ 1.52g/t Au from 22m in TAA278;
10m @ 1.33g/t Au from 23m in TAR059;
14m @ 1.20g/t Au from 10m in TAA178;
6m @ 1.90g/t Au from 15m in TAA171; and
6m @ 1.49g/t Au from 7m in TAA141.

Subsequent Activity Post Q4 2022

• On 17 January 2023, the Company reported results for a further 2,000m of drilling that was primarily focussed on testing for new mineralisation within the Phantom series of Prospects (refer Figure 3). This drilling resulted in the discovery of a new mineralised trend in the northern area of the Tankoro Deposit. The results represent the seventh discovery of additional and extensional mineralisation in the 21,000m drill program completed between May and August 2022 and continue to demonstrate the strong potential to grow the oxide component of the Project's Mineral Resource.

The new mineralised trend has strike length of 700m and remains open in all directions. The mineralisation is oblique with potential to link Phantom and Phantom West Trends over a 1,200m strike length. The intersections of new mineralisation are in shallow, oxide material with high potential to add to the oxide and transition component of the Mineral Resource.

Highlighted downhole intersections in oxide material from new assays include:

20m @ 1.68g/t Au from 16m in TAA405 (ended in mineralisation);
13m @ 1.79g/t Au from 7m in TAA403 (incl. 2m @ 8.88g/t Au);
9m @ 2.14g/t Au from 7m in TAA404;
6m @ 2.91g/t Au from 31m in TAA422 (incl. 1m @ 12.10g/t Au);
7m @ 2.18g/t Au from 22m in TAA389;
5m @ 3.01g/t Au from 43m in TAA429 (incl. 2m @ 6.70g/t Au); and
10m @ 1.13g/t Au from 7m in TAA420.
On 27 February 2023, the Company reported drilling totalling approximately 5,400m, reflecting the balance of unreported assays from the multi-purpose 21,000m drill program completed in August 2022 which was primarily focussed on testing for new, near-surface mineralisation within the Tankoro Deposit.

This drilling resulted in the discovery of a new mineralised trend in the northern area of the Tankoro Deposit. The results represent the seventh discovery of additional and extensional mineralisation in the 21,000m drill program completed between May and August 2022 and continue to demonstrate the strong potential to grow the oxide component of the Project's Mineral Resource.

Highlighted downhole intersections in oxide material from new assays include:

20m @ 1.68g/t Au from 16m in TAA405 (ended in mineralisation);
13m @ 1.79g/t Au from 7m in TAA403 (incl. 2m @ 8.88g/t Au);
9m @ 2.14g/t Au from 7m in TAA404;
6m @ 2.91g/t Au from 31m in TAA422 (incl. 1m @ 12.10g/t Au);
7m @ 2.18g/t Au from 22m in TAA389;
5m @ 3.01g/t Au from 43m in TAA429 (incl. 2m @ 6.70g/t Au); and
10m @ 1.13g/t Au from 7m in TAA420.

Outlook

The significant oxide and free-milling resource outlined in the November 2021 mineral resource estimate has the potential to support development of a straightforward CIL project with compelling economics based on oxide and free-milling feed alone.

The large amount of oxide and free milling material, combined with the very favourable leach kinetics, strip ratio and grade profile of this material, provides the Company with flexibility in its approach to development. These characteristics will allow the Company to leverage the significant resource base through a multi-stage, long-life and higher output project whilst preserving the significant exploration potential of the project.

The Company has completed internal assessment work evaluating various project sizes and throughput rates and staging the development of the Sanutura Project. As a result of this work, the company has commenced a PEA to evaluate accelerating the Sanutura Project via a staged approach, commencing with a mid-sized mine development established using high-grade, free-milling oxide material. The results of the PEA will inform the next steps of the company from both an exploration and development point of view.

The quantum and type of future exploration drilling will be guided by project needs and availability of suitably priced capital in the equity markets. Drilling completed in 2022 is expected to increase the inventory of oxide material and will be included in future mineral resource updates. Field activities will nominally include reconnaissance work and AC and RC drilling primarily in and around the Bondi Deposit. The availability and cost of capital will ultimately dictate the rate at which the Company can advance the Project.

The Company will continue to work with the relevant government authorities to expedite the issuance of the arretés for several of the properties within the Sanutura Project including the Tankoro 2 Property. (10)

Koumandara Project