SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2004

Sep 27, 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 Old 4000

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

ASX ANNOUNCEMENT

28 SEPTEMBER 2004

UNDERGROUND MINING AGREEMENT AND STRATEGIC INVESTOR

The Directors of Renison Consolidated Mines NL are pleased to announce that the Company has entered into a Heads of Agreement with PT Petrosea Tbk, a subsidiary of one of Australia's largest multi-disciplinary engineering, construction and operations and maintenance groups. Clough Ltd (ASX: CLO), for the provision of underground mining contracting services at the Company's Tom's Gully gold project in the Northern Territory together with PT Petrosea making a \$2 million investment in Renison.

As part of the agreement, PT Petrosea Tbk has provided initial funding towards the completion of the feasibility studies at the Tom's Gully project by providing a loan of \$1 million. Subject to the successful completion of the feasibility study and execution of a formal Alliance Agreement for the underground mining operations at Tom's Gully, PT Petrosea will convert the loan into \$1 million worth of Renison \$1 convertible notes (ASX code: RSNG) at an issue price of \$2.50 per note and will also subscribe for an additional \$1 million worth of Renison ordinary shares at 12.5 cents per share to provide funding towards the underground mine development. The issue of the convertible notes and shares will be subject to the obtaining of any necessary shareholder and regulatory approvals.

ASX listed Clough Ltd owns 82% of PT Petrosea Tbk which is listed on the Jakarta Stock Exchange. Clough operates globally in industry sectors such as minerals, onshore and offshore oil and gas, petrochemicals, infrastructure and property and has a significant capability in project management, engineering, construction, installation, operations and maintenance

The Heads of Agreement contains the principle terms for an Alliance Agreement which will govern the management and undertaking of the underground mining operations at Tom's Gully. It is anticipated that the formal Alliance Agreement will be entered into shortly after completion of the Tom's Gully feasibility study.

At the Tom's Gully project, the Company has outlined a combined indicated and inferred resource of 1.82 million tonnes at 8.1 $g/t$ gold for 472,000 ounces gold. There is potential for further significant increases to the resource base over time with the mineralisation still open down dip (southern) and along strike to the current resource. The Company is currently completing a feasibility study for the commencement of an underground mining operation at Tom's Gully and under the terms of the heads of agreement. Clough is also providing mining engineering support to expedite the completion of the feasibility study.

The Company is targeting the establishment prior to the end of this year of an underground mining operation at Tom's Gully, producing 40,000 ounces of gold per annum with processing being done at the Company's existing Tom's Gully CIL gold treatment plant.

$\mathbf{I}$

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

The Tom's Gully gold project (90km to the south east of Darwin) is part of the Company's Northern Territory regional AuQuest project where the Company has outlined resources of over 570,000 ounces of gold from its tenement package covering 1,076 square kilometres of the northern end of the Pine Creek Geosyncline.

The entering into of this agreement with PT Petrosea Tbk and their associated investment is a significant milestone for Renison in the advancement of its mining assets. Through this agreement and the ongoing progress towards completion of the feasibility study at Tom's Gully and the recent drilling program successes at Tom's Gully, Agate Creek and Steve's Hill the Company continues its rapid development as an emerging gold producer.

For and on behalf of the Board

JPK Marshall Company Secretary Brisbane, 28 September 2004

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

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.