Karora will host a call/webcast on March 14, 2022 at 10:00 a.m. (Eastern Time) to discuss the fourth quarter and full year 2021 results. North American callers please dial: 1-888-664-6392, international callers please dial: (+1) 416-764-8659. For the webcast of this event click [here] (replay access information below).

TORONTO, March 14, 2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) ("Karora" or the "Corporation") is pleased to announce its financial results and review of activities for the three and twelve months ended December 31, 2021. All amounts are expressed in Canadian dollars, unless otherwise noted. For additional information please refer to Karora's Management's Discussion & Analysis ("MD&A") and audited consolidated financial statements for the years ended December 31, 2021 and 2020.

Highlights

Record annual gold production of 112,814 ounces (including 27,925 ounces in the fourth quarter) achieving the upper end of 2021 guidance target of 105,000 - 115,000 ounces. Gold sales for 2021 were a record 113,628 ounces (28,734 ounces for the fourth quarter).
AISC1 was US$1,012 per ounce for 2021, achieving the lower end of the 2021 guidance range of US$985 – US$1,085 per ounce sold (US$1,042 per ounce for the fourth quarter), representing an improvement compared to AISC of US$1,026 per ounce sold for 2020.
Net earnings for 2021 of $27.5 million ($0.18 per share) was down compared to $88.1 million for 2020. Net earnings during the fourth quarter of 2021 were $6.1 million ($0.04 per share), compared to $42.9 million ($0.30 per share) for the fourth quarter of 2020. In 2020, Karora recorded a positive impact of an after-tax impairment reversal of property, plant and equipment of $25.3 million ($0.18 per share) and the fourth quarter of 2020 included a $26.1 million deferred tax benefit.
Adjusted earnings1 for 2021 of $48.6 million ($0.33 per share) down $23.5 million compared to 2020. For the fourth quarter of 2021, adjusted earnings were $12.0 million ($0.08 per share) compared to $39.0 million ($0.27 per share) in 2020.
Adjusted EBITDA1 for 2021 of $104.3 million ($0.70 per share) up $8.2 million compared to 2020. For the fourth quarter of 2021, Adjusted EBITDA was $25.0 million ($0.16 per share) compared to $31.7 million ($0.22 per share) in 2020.
Cash flow from operating activities of $106.5 million, a 13% increase compared to 2020. For the fourth quarter of 2021, cash flow from operating activities was $33.5 million, a 12% decrease compared to $38.0 million in 2020.
Karora increased its cash position to $91.0 million at December 31, 2021 after high utilization of capital at the new mining operations at Higginsville and accelerated exploration programs across operations.
During 2021 Karora became one of the world's first carbon neutral gold producers for emissions from its own operations (Scope 1 emissions) and purchased electricity consumption (Scope 2 emissions) following the purchase and retirement of verified carbon offset credits. The offset projects include reforestation and conservation initiatives in Australia, among other projects.
Production commenced at the Spargos open pit mine in the fourth quarter of 2021 in line with schedule. Planning and approvals are underway to extend the open pit at depth.
The fourth quarter saw the completion of the Phase I mill upgrade to 1.6 million tonnes per annum ("Mtpa"). Advanced engineering is underway for the Phase II mill expansion to 2.5 Mtpa.
Beta Hunt Second Decline commenced waste development from underground in the fourth quarter of 2021, having advanced 60 metres as at December 31, 2021. The box cut and portal contracts were awarded in early 2022 and contractors have mobilized on site.
Drilling at Beta Hunt has extended Fletcher Shear Zone (Beta Hunt) gold mineralization to over 500 metres along strike and 150 metres in vertical extent. Potential exists for gold mineralization to extend for up to 2 kilometres of strike length. New results include 3.3 g/t over 9.5 metres, including 5.5 g/t over 4.4 metres and 18.5 g/t over 0.8 metres.
Results received early 2022 for Gamma Block (Beta Hunt) drilling completed in 2021 show the 50C nickel trough extends greater than 200 metres in strike and up to 120 metres in width. In addition to the discovery intersection of 11.6% Ni over 4.6 metres, recent drilling intersected 3.2% Ni over 3.1 metres and 5.1% Ni over 2.1 metres.
New gold mineralized setting intersected beneath the 50C nickel trough in the Gamma Block (Beta Hunt) where drilling has confirmed significant mineralization over a 200 metre strike length including intercepts of returned an intercepts of 40.5 g/t over 4.0 metres, 3.4 g/t over 33.6 metres (including 6.0 g/t over 10.5 metres), and 7.6 g/t over 4.6 metres.
West of the Larkin Gold Zone (Beta Hunt), drilling returned the widest ever mineralized interval ever recorded at Beta Hunt of 1.5 g/t over 90.0 metres, including 50.9 g/t over 0.4 metres.
Paul Andre Huet, Chairman & CEO, commented: "During 2021 we produced a record 112,814 ounces of gold placing us in the upper end our guidance range of 105,000 -115,000 ounces. AISC1 costs for 2021 were very strong at US$1,012 per ounce sold, despite numerous headwinds, placing us at the lower end of our guidance range of US$985 -US$1,085 for 2021. The fact that we were able to achieve guidance for production and costs is an accomplishment our team is very proud of given all the uncertainties due to Covid-19 pressures that impacted labour availability and caused numerous supply chain issues that are certainly well known. Over the last two years, we have demonstrated an ability to overcome many challenges and I am confident we will continue to do so with whatever 2022 brings. I am also proud that that Karora became one of the first junior gold producers to achieve carbon neutrality in 2021 for Scope 1 and 2 at its own operations following the purchase and retirement of verified carbon offset credits. We . We continue to be focused on our efforts in this area across the organization and we are now developing a pathway to a long-term carbon emissions reduction strategy. We will include more information on our strategy development in our inaugural ESG report expected in the coming weeks.

Karora delivered solid financial performance in 2021 with Adjusted EBITDA1 of $104.3 million or $0.70 per share and operating cash flow of $106.5 million or $0.71 per share. Our 2021 Adjusted earnings1 were $48.6 million or $0.33 per share. Karora ended 2021 with a strong cash balance of $91.0 million. With a very healthy balance sheet, we are well positioned to deliver our fully funded organic growth plan to double production from approximately 100,000 gold ounces in 2020 to approximately 200,000 ounces in 2024.

Given the recent increased nickel market activity, I am particularly excited about our prospects to increase our nickel production, having recently provided Karora's first payable nickel production guidance of 450 - 550 tonnes in 2022. With our recent nickel exploration successes, we look forward to nickel production increases beginning in 2023 that I expect will be a real differentiator for Karora going forward. With the current strong nickel price environment, we expect to see increase by-product credits to lower our gold production costs. We are making every effort to capitalize on this opportunity and are moving as quickly as possible to bring new nickel areas such as the 50C and 30C discoveries into production early next year. Additionally, we will be providing an updated nickel resource at Beta Hunt around mid year."

Non-IFRS: the definition and reconciliation of these measures are included in the Non-IFRS Measures section of this news release and Karora's MD&A dated March 14, 2022.
COVID-19 Protocols

In response to the global COVID-19 pandemic, protocols and contingency plans have been established by Karora to comply with government actions and mitigate operational impacts which include the charter of our own aircraft to service our operations, review of staff rostering to run two distinctive crews, employment of a full time medical team to oversee screening and testing protocols on site and the immunization of our workforce. Karora's management has maintained its Run of Mine ("ROM") stockpile levels should disruptions to the mining operations or supply chain occur in the future.

Management continues to monitor developments in order to be in a position to take appropriate actions to minimize any significant impact on the Corporation's operations including with respect to suppliers, service providers and employees due to the ongoing global COVID-19 pandemic.

Results of Operations

Table 1 - Highlights of operational results for the periods ended September 30, 2021 and 2020
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