SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2004

Dec 21, 2004

ACN 003 049 714

Mail Address GPO Box 5268 Brisbane Old 4001

Level 5, Santos House 60 Edward Street Brisbane Qld 4000

Phone: (07) 3303 0630 Fax: (07) 3303 0601 Email: admin@rcm.com.au

ASX ANNOUNCEMENT

22 December 2004

CONTINUING EXPLORATION SUCCESS AT AGATE CREEK GOLD PROJECT TOM'S GULLY AND EIDSVOLD GOLD PROJECTS UPDATE

The Directors of Renison Consolidated Mines NL are pleased to advise of significant drilling results from a further 19 drill holes of a 39 drill hole RC drilling program at the Company's Agate Creek epithermal gold project in North Queensland.

Assay results have been received for 18 of the drill holes located within the Sherwood West prospect which is located approximately 700m to the west of the Sherwood prospect with the remaining results from a drill hole located within the Sherwood prospect. At the Sherwood prospect the Company has previously reported an Inferred Resource of 3.7mt at 1.3 g/t gold for 154,000 ounces which was outlined prior to the current drilling program.

A further resource estimate will be made after completion of the current drilling program and geological modelling. Based on interpretation of the modelling and other geological data, the Company is targeting a doubling of the current resource between the Sherwood and Sherwood West prospects to over 300,000 ounces with this phase of drilling. An increase in resource grade is also targeted as indicated by interpretation of the recent channel sampling, drilling data, surface mapping and rock chip samples.

A total of 3,812m of RC drilling has been completed during this program. The drilling program has been completed this week with the final assay results from 14 drill holes expected in the New Year.

Sherwood West Prospect

A total of 22 holes have been drilled at Sherwood West in this program with assay results received for 18 holes to date. All 22 holes intercepted the main target, a consistent quartzchalcedony zone $\pm$ brecciation within a rhyolite identified from previous drilling that dips between 30-45° E and ranges from 10-30m thick. The holes drilled represent a nominal 40x40m drill spacing drill-out of the prospect over a strike length of approximately 450m to a vertical depth of a maximum 110m.

Best grades are found over a zone that has a strike length of approximately 300m with mineralised intercepts that average between 7-8m in width (refer table below). Within this central zone there appears to be a near surface irregular higher grade chalcedonic zone (Drill hole CCRC154 - 5m at 9.44g/t gold from 0m). CCRC154 also contained 11m at 2.41g/t gold from 43m. The mineralisation remains open along strike to the north.

A summary of the mineralised zones intercepted in these holes at Sherwood West using a $0.3g/t$ gold cut off are as follows:-

$\mathbf{1}$

ACN 003 049 714

Hole No.	AMG	AMG	Azimuth	Dip	From	To	Interval	Grade
	East	North	(grid)		(m)	(m)	(m)	g/t Au
CCRC140	767320	7897390	$\mathbf 0$	$-90$	$\overline{2}$	7	5	0.65
CCRC140					13	15	$\overline{2}$	2.64
CCRC141	767400	7897370	270	$-60$	63	69	6	1.22
CCRC141					$\overline{71}$	76	$\overline{\bf 5}$	1.27
CCRC142	767290	7897430	$\overline{0}$	$-90$	1	$\overline{14}$	13	0.87
CCRC143	767370	7897455	270	$-60$	$\overline{0}$	4	4	0.57
CCRC143	767370	7897455			$\overline{30}$	$\overline{32}$	$\overline{2}$	2.74
CCRC143					35	41	$\overline{\mathbf{6}}$	0.43
CCRC143					$\overline{61}$	67	6	1.14
CCRC144	767410	7897460	270	$-60$	$\overline{3}$	6	$\overline{\mathbf{3}}$	1.06
CCRC144					$\overline{47}$	$\overline{56}$	$\overline{9}$	0.9
CCRC144					62	63	1	4.03
CCRC145	767355	7897095	$\overline{0}$	$-90$	$\overline{20}$	$\overline{24}$	$\overline{4}$	1.18
CCRC149	767310	7897235	$\overline{270}$	$-60$	16	19	$\overline{\mathbf{3}}$	0.64
CCRC150	767390	7897245	270	$-75$	64	68	$\overline{\bf{4}}$	0.84
CCRC152	767360	7897280	270	$-60$	42	46	4	0.52
CCRC153	767400	7897280	270	$-60$	61	69	$\overline{\mathbf{8}}$	1.35
CCRC154	767375	7897400	270	$-60$	0	5	$\overline{\mathbf{5}}$	9.44	(inc. 1m at
									$39.40$ g/t from 0m)
CCRC154					$\overline{27}$	$\overline{28}$	1	2.44
CCRC154					43	54	$\overline{11}$	2.41	(inc. $1m$ at
									20.1g/t
									from 46m)
CCRC155	767335	7897680	270	$-60$	4	$\overline{5}$	1	1.92
CCRC155					41	43	$\overline{2}$	0.75
CCRC155					50	$\overline{57}$	$\overline{\mathbf{z}}$	1.09
CCRC156	767350	7897525	270	$-60$	$\overline{7}$	$\overline{13}$	6	0.98
CCRC156					$\overline{29}$	$\overline{32}$	$\overline{\mathbf{3}}$	0.86
CCRC156					44	45	$\overline{\mathbf{1}}$	1.19
CCRC156					50	51	1	1.16
CCRC157	767430	7897500	270	$-60$	13	$\overline{15}$	$\mathbf 2$	1.19
CCRC157					$\overline{84}$	$\overline{91}$	$\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\overline{\over$	1.23

Sherwood Prospect

At Sherwood, results from one RC hole (CCRC139) have been received for a hole drilled to test the northern fault bound margin of the main Sherwood deposit. The hole intersected a broad zone of pervasively altered and weakly foliated rhyolite with frequent chalcedonic veining. Further deeper drilling will be required to determine the extent of the continuation of the mineralization at depth adjacent to the fault.

The mineralised zones intercepted in this hole at Sherwood using a 0.3g/t gold cut off are as follows:

Hole No.	AMG East	AMG North	Azimuth (grid)	Di D	From (m)	To (m)	Interval (m)	Grade g/t Au
CCRC139	768270	7897710	315	$-75$	43	53	10	0.85
CCRC139					93	98		1.26
CCRC139					118	120		0.91

ACN 003 049 714

Agate Creek Overview

The Company has an agreement with Barrick Gold to earn a 65% interest in the Agate Creek Epithermal Gold Project in North Queensland. The project is located in a highly mineralised gold province containing the Pajingo, Kidston, Mt Leyshon, Red Dome, Ravenswood and Charters Towers gold mines.

Work to date on the project confirms the potential for the Sherwood prospect area to host a bulk tonnage ore body (over 5 million tonnes) that would be amenable to an open cut mining and heap leach development. The current inferred resource grade of 1.3 $g/t$ is typical of better margin heap leach developments. A pre-feasibility study for an open cut mining and heap leach gold operation at Agate Creek is targeted for completion in the first quarter of 2005.

The resource at Sherwood occurs in sub-horizontal thick zones within a hill which is approximately 75m high. The resource estimate extends to a depth of approximately $75m -$ 100m below land ground surface and is expected to have a relatively low strip ratio due to the benefits of the topography.

Metallurgical testwork is continuing at Hydrometallurgical Research Laboratories in Brisbane on the amenability of the Agate Creek ore to heap leaching.

The Company considers that the near surface mineralisation that has been identified has the potential for development within a short timeframe into a low capital, open cut mining and heap leaching operation producing over 50,000 ounces of gold per annum and this is the Company's initial focus on the project.

In addition, the Company considers that there is also potential for the occurrence of "bonanza grade" style mineralisation beneath the near surface mineralisation. None of these deeper targets have been drilled in the initial phase of the drilling program although there have been a number of significant higher grade intercepts near surface which have indicated the occurrence of multi phase mineralisation. These have included from the recent programme 12m at 6.9 g/t gold from 25m, 8m at 8.4 g/t gold from 59m, 2m at 5.6 g/t gold and 2m at 5.3 $g/t$ gold and from previous drilling 18m at 20.7 g/t from 14m; 8m at 24.3 g/t from 56m; and 7m at 7.2 g/t from 86m.

Tom's Gully Feasibility Study

A mine development optimization review is currently being undertaken on the feasibility study for the Tom's Gully underground mine to minimize operational and financial risk during the initial years of the project development. Negotiations for electricity tariffs from the Power and Water Company of the Northern Territory are also currently being finalised.

Eidsvold Gold Project

Field work consisting of a mapping, soil geochemistry, and rock chip sampling program has been recently completed at the Eidsvold Gold project in Queensland. Results from this program will be available in the New Year.

ACN 003 049 714

The advancement of the Company's mining assets through this continuing exploration success at Agate Creek and ongoing progress towards completion of the feasibility study at Tom's Gully continues the Company's development as an emerging gold producer.

For and on behalf of the Board

JPK Marshall Company Secretary Brisbane, 22 December 2004

For further information contact: Richard Seville or Stephen Bizzell Phone: (07) 3303 0630 Fax: (07) 3303 0601 E-Mail: admin@rcm.com.au

The information on exploration data and 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. Mr Creagh is an employee of the Company and consents to the release of this information in the form and context in which it appears.

Resource	Indicated				Inferred		Total
Category:
	Tonnes	Grade g/t Gold	Ounces Gold	Tonnes	Grade g/t Gold	Ounces Gold	Tonnes	Grade g/t Gold	Ounces Gold
Tom's Gully
Underground	690,000	7.6	170,000	1,130,000	8.3	302,000	1,820,000	8.1	472.000
Tailings				250,000	2.4	19,300	250,000	2.4	19.300
Quest 29
Koolpin l Formation				105.000	1.3	4,400	105,000	1.3	4,400
IZamu Dolerite				1,050,000	2.3	77,300	1.050,000	2.3	77,300
Agate Creek*
Sherwood				3,700,000	1.3	154,000	3.700,000	1.3	154,000

Company's Gold Resources:

* Renison is earning 65% of the Agate Creek project.