Sanatana Earns 50% Interest in Watershed Property

Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA)
announces further to its news release of September 12, 2012 (the "September NR")
that the Company has issued a further 1,500,000 common shares to Trelawney Augen
Acquisition Corp. ("TAAC") in connection with the option and joint venture
agreement (the "Option and JV Agreement") for the Watershed Property. Such
common shares have a hold period expiring on March 16, 2013 as required by
applicable securities laws.


Under the terms of the Option and JV Agreement in order for Sanatana to earn a
50% interest (the "50% Interest") in the Watershed Property it was required to
(i) pay TAAC $150,000, (ii) issue TAAC a total of 5,000,000 common shares in
staged intervals with the last share issuance to be made on or before March 23,
2013 and (iii) incur work costs on the Watershed Property of not less than
$5,000,000 in staged intervals with the last work cost requirement to be
incurred on or before March 23, 2014. Sanatana has satisfied all earn-in
requirements and that it has exercised and has acquired the 50% Interest. As
disclosed in the September NR the mineral claims comprising the Watershed
Property are legally registered in Sanatana's name and taking into account
Sanatana's exercise of the 50% Interest the mineral claims comprising the
Watershed Property are now beneficially held 50% by Sanatana and 50% by TAAC.


Peter Miles, CEO of Sanatana, stated, "Acquiring the 50% Interest in the
Watershed Property is a significant step forward for Sanatana. We are assessing
our options and will determine whether it is in the best interests of
shareholders to immediately move forward with the joint venture or to exercise
our right to acquire an additional 1% undivided interest in the Watershed
Property and then enter into the joint venture."


Additional 1% Interest 

Pursuant to the terms of the Option and JV Agreement, Sanatana has the right to
earn a further 1% interest in the Watershed Property, for a total undivided
interest of 51% (the "51% Interest"). In order to earn the 51% Interest Sanatana
must prepare and deliver to TAAC a pre-feasibility study on or before March 23,
2016. Sanatana is considering its options in this regard and has until March 23,
2016 to decide whether to exercise its right to acquire the 51% Interest. If
Sanatana exercises its right to acquire the 51% Interest the parties would on
the date of such exercise form a joint venture (the "Joint Venture") to further
explore the Watershed Property on terms described in the September NR.
Alternatively, if Sanatana surrenders its right to acquire the 51% Interest the
parties would form the Joint Venture on the date Sanatana surrendered its right
to acquire the 51% Interest and in any event form the Joint Venture not later
than March 23, 2016.


Work Costs

Prior to the formation of the Joint Venture which could, at Sanatana's election,
be as late as March 23, 2016, Sanatana has elected to continue to spend work
costs on the Watershed Property. Under the terms of the Option and JV Agreement
Sanatana will continue to be credited for such work costs. Specifically, any
work costs made or incurred by Sanatana in excess of the work costs required to
earn its interest in the Watershed Property will be credited to Sanatana's
contribution to the first work program after formation of the Joint Venture and
will not automatically dilute the participating interest of TAAC on formation.
Under the terms of the Option and JV Agreement Sanatana has the right to be the
manager (the "Manager") of the Joint Venture when it is formed and will manage
the work program(s) as directed by a management committee (the "Management
Committee") set up based on the parties' respective interests in the Joint
Venture. Ultimately if Sanatana acquires the 51% Interest (and assuming that it
does not dilute its interest in the Joint Venture) Sanatana will control the
Management Committee and thereby control the instructions the Management
Committee gives to the Manager to establish programs. Sanatana has spent excess
work costs to date of approximately $1,000,000 and expects to spend not less
than an additional $1,984,455 (the "Additional Expenditures") on the Watershed
Property before December 31, 2013. The Additional Expenditures represent the
funds Sanatana recently raised in a flow-through private placement (see
Sanatana's news release dated November 9, 2012).


Additional Information Regarding the Option and JV Agreement

The Option and JV Agreement was originally announced on February 16, 2011 and
was accepted for filing by the TSX Venture Exchange on March 23, 2011. Copies of
the news releases issued by Sanatana and Augen Gold Corp. (as it then was) are
available on SEDAR at www.sedar.com under Sanatana's SEDAR profile and TAAC's
SEDAR profile respectively. A copy of the Option and JV Agreement was also
posted to Sanatana's SEDAR profile on May 8, 2012.


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).


SANATANA RESOURCES INC.

Peter Miles, President and Chief Executive Officer

FOR FURTHER INFORMATION PLEASE CONTACT: 
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
Sanatana Resources (TSXV:STA)
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