SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2004

Nov 21, 2004

RENISON CONSOLIDATED MINES NL

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 November 2004

Ashford Coal Project - Sale of Interest and Farm-In

The Board of Renison Consolidated Mines NL ("Renison" or "the Company") is pleased to announce that the Company has entered into a conditional agreement to sell an interest in its Ashford Coal Project to Poltech International Limited (to be renamed Northern Energy Corporation Ltd) ("Poltech").

The proposed sale and farm-in agreement will see Renison emerge with a 19.9% shareholding in the soon to be re-listed Poltech together with retaining a 25% interest (free carried through to completion of a bankable feasibility study) in the project.

Ashford Coal Project

The Ashford coal project is held within EL 6234 ("Ashford Coal Project"). EL 6234 is located approximately 10 km north of the Ashford township in northern New South Wales, and was granted to Renison's subsidiary Renison Bell Holdings Pty Ltd on 19 April 2004 for a period of 5 years.

The Ashford Coal Project encompasses 8 sq km of the Ashford Coal Measures comprising the only commercial operation to mine the Ashford Seam ("Ashford Colliery"). The Ashford Colliery was in operation from 1959 to 1990 and was initially run by Davis Contractors until 1976 and then by White Industries Limited ("WIL") and supplied coal to the Ashford Power Station under fixed price and term contracts. The tenement covers both the known coal measures at the Ashford Colliery site and also encompasses an area of un-drilled and undefined coal to the west of the colliery site.

In addition to EL 6234, Renison Bell Holdings Pty Ltd has also applied for an additional coal exploration permit adjacent to the Ashford Coal Project ("Ashford No.3"). This additional application covers potential extensions to the coal seam and is also subject to the sale and farm-in agreement with Poltech.

Ashford Sale Consideration and Farm-in

The Company will initially sell 50% of EL 6234 and Ashford No.3 upon successful grant ("Ashford ELs") in consideration for the issue of fully paid post consolidation shares in Poltech equivalent to 19.9% of Poltech's issued share capital on re-listing on the ASX and payment of \$75,000. Based on the proposed capital raisings by Poltech, Renison expects to receive between 8.2 million and 10.6 million fully paid post consolidation shares in Poltech. As part of Poltech's re-listing on ASX, they will be raising between \$2m and \$4m at an issue price of 20 cents per share.

The Company has also agreed with Poltech on the key terms of a farm-in agreement whereby Poltech has the obligation to spend a minimum of \$1,000,000 within two years of exploration and can earn another 25% interest (total 75%) in the Ashford EL's by completing a bankable feasibility study within 3 years of the date of execution of the farm-in agreement and the issue of a further 5,000,000 shares in Poltech to Renison ("Farm-in Agreement"). The obligation to issue a further 5,000,000 shares to Renison will be subject to any shareholder and/or regulatory approvals that may be necessary at the time, and the successful granting of the exploration licence the subject of the Ashford No. 3 application within 3 years from the date of execution of the Farm-in Agreement.

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RENISON CONSOLIDATED MINES NL

ACN 003 049 714

At the completion of that bankable feasibility study, and Poltech making a decision to mine, Renison has a right to elect to maintain a 25% interest in the Ashford EL's and participate in the mining pro rata to its equity basis, or convert its remaining 25% interest into a gross royalty of 6% of the excess of the value per tonne of coal over US\$25 per tonne FOB for export sales and CIF for domestic sales.

Poltech is a formerly ASX listed company whose securities are currently suspended. It is expected that following completion of the proposed acquisition of the interest in the Ashford Coal Project and Poltech's proposed capital raisings that the securities of Poltech will be reinstated to the official list of ASX by the end of January 2005.

Conditions Precedent

The agreement to sell an interest in the Ashford Coal Project contains conditions precedent that include Poltech undertaking satisfactory due diligence on the Ashford EL's and all necessary approvals being obtained for the acquisition from shareholders of Poltech and the consolidation of the share capital of Poltech on a 1:25 basis.

In addition, the acquisition is subject to Renison obtaining all necessary approvals for the transfer of the Ashford EL's to Poltech, Renison completing satisfactory due diligence on Poltech, the completion by Poltech of a seed capital raising of approximately \$1m at 12.5 cents per share (post consolidation), Poltech and Renison entering into the Farm-in Agreement, Poltech completing a public capital raising of between \$2,000,000 and \$4,000,000, recomposition of Poltech's Board and management team and Poltech being relisted on ASX.

The directors of Poltech have advised Renison that they are confident that all the conditions precedent are capable of being satisfied within a reasonable timeframe and by the end of January 2005.

Board and Management of Poltech

Following shareholder approvals Poltech will appoint a new board and management team (including two Renison board appointees) who bring with them a strong background and track record in the coal industry. The incoming Board and management team of Poltech will comprise Renison's Chairman, Dr Christopher Rawlings as non executive chairman and Keith Barker as CEO - both of whom were previously senior executives with coal miner, OCT Resources prior to it being acquired by BHP Billiton and Mitsubishi for \$900 million. Renison's Managing Director, Richard Seville will also be joining the board of Poltech as a non-executive director. They collectively bring to Poltech years of industry experience in addition to a successful track record in creating successful resources companies in Australia. Existing Poltech director, Sam Willis will remain on the Board as a non-executive director.

Poltech's Proposed Chief Executive Officer

Subject to completion of its seed capital raising, Poltech has secured the services of Keith Barker as its CEO.

Keith Barker has over 25 years experience in the mining industry in engineering, investment and evaluation roles. Previously he was employed for 12 years with coal miner OCT Resources, one of Australia's leading mining companies as Manager - Corporate Development responsible for project evaluation, infrastructure contracts and investor relations. He is currently with the Queensland Resources Council where he is employed as an Industry Policy Advisor. Within this peak industry body he was responsible for representing the industry on matters of infrastructure, economic and exploration policy. Over the past four years he has also acted as a consultant providing coal market and infrastructure advice. Keith graduated in Mining Engineering from the Royal School of Mines

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Imperial College UK in 1979 and completed a Master of Business Administration at the Australian Graduate School of Management UNSW in 1985. He has been employed as a mine planning engineer. a consulting engineer and resource investment analyst and has an extensive background in the coal industry.

Renison Shareholder Priority

The board of Poltech have also advised that they will make available up to \$800,000 of their re-listing Prospectus capital raising as a priority offer to existing Renison shareholders with applications treated on a 'first come first served' basis in accordance with the Prospectus to be issued by Poltech.

Summary

The proposed sale of an interest and farm-in with respect to the Ashford Coal Project provides a mechanism for Renison to:

• obtain funding for the Ashford Coal Project which will enable to project to be progressed in $\bullet$ a manner that is not dilutive to the existing issued capital of Renison;
• bring forward the realisation of value for the Ashford Project for Renison shareholders; $\bullet$
• allowing Renison management to remain focussed on the Company's gold development and $\bullet$ exploration projects;
• retain considerable exposure to the projects' future potential through both the 19.9% $\bullet$ shareholding interest in Poltech, and the retained direct project equity of 25% (at the conclusion of Poltech's farm-in).

The continued advancement of the Company's mining assets through this transaction and ongoing progress towards completion of the feasibility study at the Tom's Gully gold mine and the current exploration program at Agate Creek gold project continues the Company's rapid development as an emerging miner.

For and on behalf of the Board

JPK Marshall Company Secretary Brisbane, 22 November 2004

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