SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2002

Dec 15, 2002

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Mail Address PO Box 7066 Riverside Centre Brisbane Old 4001

Level 30 Riverside Centre 123 Eagle St Brisbane Old 4000

Phone: (07) 3832 6488 Fax: (07) 3832 6261 Email: sro@siroccoresources.com.au

ASX ANNOUNCEMENT

16 DECEMBER 2002

TERMINATION OF AGREEMENT TO PURCHASE RENISON BELL LTD

The Directors of Renison Consolidated Mines NL (the Company) advise that the agreement to purchase Renison Bell Ltd, the owner of the Renison Bell mine, from Murchison United NL (Murchison) has been terminated.

In the period since the agreement was negotiated the operating performance of Renison Bell Ltd has deteriorated significantly. This has both reduced the Company's assessment of the value of Renison Bell Ltd and also increased substantially the funding required for working capital and for capital to invest in the mine's future

Whilst the Company was successful in receiving offers from a number of parties to provide various components of the funding, it has not been possible to arrange the overall quantum of funding required in a manner which would ensure the acquisition enhanced shareholder value. This is in spite of the Company having investigated a range of financing methods including equity, bank debt, mezzanine debt and also the restructuring of the transaction terms.

The Company's focus now will be to advance the Company's Tom's Gully Gold project. Currently there is an inferred resource of 900,000 tonnes at $7g/t$ gold at Tom's Gully contained on a granted mining lease with a re-furbished CIP gold treatment plant and associated infrastructure. A scoping study undertaken earlier in the year indicated that there was potential to establish a 35,000oz to 40,000oz per annum underground mining operation at Tom's Gully producing an EBITDA of around \$7 million per annum.

The Company will also continue to consider further opportunities with respect to operating mines or development projects.

For further information contact: Richard Seville or Stephen Bizzell Phone: (07) 3832 6488 $(07)$ 3832 6261 Fax:

The information on ore reserves and mineral resources contained in this report is based on information compiled by Mr Chris Creagh who is a member of the Australian Institute of Mining and Metallurgy. Mr Creagh has relevant experience in relation to the mineralisation being reported on to qualify as a Competent Person as defined by the Australasian Code for Reporting of Mineral Resources and Reserves.