Savannah Resources Plc Robust Lithium Intersections, Portugal

Savannah Resources plc (LON:SAV), the AIM quoted resource development company, has today announced that the first part of a reverse circulation (‘RC’) drill programme aimed at defining a JORC compliant Mineral Resource Estimate at the Mina do Barroso Lithium Project (‘Mina do Barroso’ or the ‘Project’) in Portugal (Figure 1) has returned significant intersections of lithium mineralisation. To view the press release with the illustrative maps and diagrams please use the following link:

Savannah-full-RNS.pdf

HIGHLIGHTS:

· Assay results from the drill programme have returned a series of robust lithium intercepts on two of the high priority targets within the C-100 Mina do Barroso mining lease

· Reservatorio Deposit: drilling confirmed mineralisation over a 200m strike length together with good down dip extensions of at least 80m. Results include:

– 36m at 1.26% Li₂O from 29m in 17RESRC05

– 33m at 1.15% Li₂O from 16m in 17RESRC07

– 26m at 0.92% Li₂O from 61m in 17RESRC04

– 25m at 1.01% Li₂O from 36m in 17RESRC03

· Grandao Deposit: drilling confirmed mineralisation over a 200m strike length in a large, near surface, sub horizontal pegmatite body. Results include:

– 18m at 1.27% Li₂O from 1m in 17GRARC06

– 17m at 1.24% Li₂O from 16m in 17GRARC05

– 15m at 1.08% Li₂O from 39m in 17GRARC04

– 14m at 1.18% Li₂O from surface in 17GRA07

· Both Reservatorio and Grandao remain open along strike and down dip leaving excellent upside potential for both deposits

· Drilling is due to commence again shortly at NOA and will be followed by further drilling at both Reservatorio and Grandao with a view to defining a JORC compliant resource by the end of 2017

· Further mapping at five additional high priority targets, some with significant historical drill intersects, has also commenced to fast track the targets to drilling

· Phase 2 of the Metallurgical Test Work programme is scheduled to commence shortly. This is aimed at providing the required data for a scoping study, with results of the test work expected before the end of 2017.

· The intersection of near surface lithium mineralisation supports the potential for the Project to be fast tracked towards production via a series of open pit mines – targeting a development decision before the end of 2018.

Savannah’s CEO, David Archer said: “The drilling of the first two targets at Mina do Barroso has confirmed excellent lithium grades over a series of broad intercepts. These results further highlight the appeal of the Project, which we believe is one of the most promising lithium projects in Europe, thanks to a number of key features:

* Spodumene is the dominant lithium mineral. It has high percentages of lithium relative to other lithium minerals and is a mineral with a conventional and well understood processing path;

* Metallurgical test work has shown very good recoveries producing a 6% Li₂O low iron concentrate product;

* There is near surface mineralisation with open pit potential;

* We have a granted mining lease with 19 years to run;

* There is excellent existing infrastructure, including the export port of Leixoes ~140km by road; and

* It is strategically positioned in Europe.

“Taking these positive attributes into consideration, we believe Mina do Barroso could be brought into production relatively quickly to produce a Li₂O concentrate for the manufacture of battery grade lithium. This is within a highly favourable context as there is a clear intent on the part of governments, communities and car manufacturers to foster accelerated adoption of electric vehicles. This will bring into focus lithium mines that can be brought into production swiftly to meet growing demand.

“We believe that hard rock, lithium spodumene deposits like those at Mina do Barroso will be playing the leading role in the upstream part of the lithium value chain going into the 2020s.”

Figure 1. Mina do Barroso Project Summary Map showing prospects and 2017 drilling – see PDF link

Reservatorio

Assay results from the drilling at Reservatorio has confirmed lithium mineralisation (Table 1 and Figure 2-3) in pegmatite up to 49 metres in width (down hole). Drilling intersected significant zones of lithium mineralisation along a 200m strike length and on one section to at least 80m down dip confirming the potential for good depth extensions of the lithium mineralisation. Drilling suggests that the pegmatite body has a dip of about 40 degrees to the northwest and the pegmatite remains open along strike and down dip. Importantly, the mineralisation starts from surface suggesting excellent potential for the use of open pit mining methods as part of any potential mine development.

Table 1. Summary of drill results for Reservatorio reported at both a 0.2% and 0.5% Li2O cut-off

Figure 2. Summary of drilling at Reservatorio, together with historical drill holes and planned drill holes. (It is important to note that may of the historical drill holes intersected only sediments as they were not drilled deep enough to intersect the underlying pegmatite body) – see PDF link

Figure 3. Reservatorio: Cross Section through 17RESRC04, 17RESRC05 and 17RES07 – see PDF link

Grandao

Assaying at Grandao has returned lithium mineralisation (Table 2 and Figure 4-5) to a maximum down hole width of 19m. Drilling intersected mineralised pegmatite along a 200m strike length and drilling has indicated that the body is close to flat or shallowly dipping to the southwest. This near surface, relatively flat body would have significant mining cost benefits for any potential development of the deposit as it could be mined using an open pit with what is likely to be a very low strip ratio. The pegmatite body remains open in all directions; further work is required to better define the full potential of the Grandao pegmatite bodies.

Table 2. Summary of drill results for Grandao reported at both a 0.2% and 0.5% Li2O cut-off

Figure 4. RC drilling at Grandao together with historical drill holes and planned drill holes. (It is important to note that many of the historical drill holes intersected only sediments as they were not drilled deep enough to intersect the underlying pegmatite body) – see PDF link

Figure 5. Grandao: Cross Section through 17GRARC0X, 17GRARC0X, 17GRARC0X – see PDF link

Drilling is now underway at NOA and with follow up drilling at both Reservatorio and Grandao to be completed following this to further define the mineralisation with a view to achieving a JORC compliant mineral resource before the end of 2017.

Additional Projects

Apart from Reservatorio, Grandao and NOA there are a series of five other advanced exploration opportunities which are currently being mapped and sampled to determine their order of priority for follow up drilling. All of the prospects were drilled by a small number of shallow drill holes by a previous explorer evaluating the project for potential feed for ceramic products. These initial results are very encouraging and represent what appear to be a series of walk up drill targets for future evaluation.

A summary of the key characteristics of each prospect is provided below in Table 3.

Table 3. Summary of other advanced prospects in the Mina do Barrosa tenement

Figure 6. Small bulk sample pit on lithium bearing pegmatite on the NOA prospect – see PDF link

Figure 7. Lithium bearing pegmatite from drilling at the Mina do Barroso Project – see PDF link

Figure 8. The export port of Leixoes, located ~140km by road from Mina do Barroso – see PDF link

Savannah has a 75% shareholding in Slipstream Resources Portugal Unipessol Lda, which is the registered holder of the Mina do Barroso mining licence.