SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2002

Dec 15, 2002

ASX, AIM and Media Release 16 December 2002

Murchison announces joint venture with Barminco at Renison Rell

Murchison United NL ("the Company") (ASX:MUR, AIM:MUU) today announced that following the termination of the sale of Renison Bell Limited to Renison Consolidated Mines NL (formerly Sirocco Resources NL), it had entered into a heads of agreement with Barminco Pty Ltd ("Barminco"), a privately owned mining contracting company, currently providing mine contracting services to Renison Bell Limited.

Under the agreement, the Company will retain 100% ownership of Renison Bell Limited, which owns the assets and operations of Renison Bell. Barminco will provide contractual mine operating and management services to Renison Bell on an open book cost plus basis and will fund Renison Bell's working capital requirements. The Company and Barminco will share equally the cashflow surplus after Renison Bell has met its commitments.

The term of the agreement is 5 years and is subject to formal documentation, the parties agreeing a satisfactory mine operating plan and agreement being reached with Westpac Banking Corporation and Barminco on security arrangements.

Managing Director Paul Atherley commented: "We welcome the opportunity to work with one of Australia's most successful mining contractors in developing the full potential of the Renison Bell operation.

Renison Bell has endured several periods of low tin prices during its 40 year history and is currently recovering from last year's sudden collapse in tin prices. The agreement with Barmineo provides the funding and the impetus to complete the recovery."

For further information please contact:

Paul Atherley, Managing Director
Murchison United NL
Telephone:	$+61893217448$
Facsimile:	+618 9321 7747
Email:	patherlev@munl.com.au