SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2004

Aug 4, 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

5 August 2004

FURTHER RESOURCE EXPANSION POTENTIAL CONFIRMED AT TOM'S GULLY

FEASIBILITY DRILLING PROGRAM COMPLETED

The Directors of Renison Consolidated Mines NL are pleased to advise on significant gold intercepts from a further seven drill holes of the drilling program currently being undertaken at the Company's Tom's Gully project in the Northern Territory.

Six of these holes were the last holes of the reserve definition program with the remaining hole being part of the 'step out' resource delineation program. All seven holes intersected gold mineralisation in the Tom's Gully reef.

"Step-out" drill hole TGD374 encountered a high grade intercept of the Tom's Gully reef (1.9m at 15 $g/t$ gold from 278.85m) and was located 120m to the south (down dip) of the drilling used to define the current resource confirming the potential for a further significant increase to the resource base.

Drill hole TGD359 intercepted 1.3m at 10.8g/t gold from 167.7m, TGD388 intercepted 1.6m at 9.2g/t gold from 237.3m, and TGD381 intercepted 1.5m at $6.3g/t$ gold from 192.5m. These results are from the reserve definition program which is designed to outline the mining blocks for the first 3 years of the proposed mine development and were targeted to define the margins of the preliminary design mining blocks.

Already as a result of the current drilling program at the Tom's Gully project the identified mineral resource at Tom's Gully has doubled to over 400,000 ounces of gold increasing the current overall resources at the Company's AuQuest project portfolio in the Northern Territory to over 500,000 ounces of gold. The inferred category resource at Tom's Gully now totals 1.72 million tonnes at $7.3g/t$ gold for $405,000$ ounces gold (previous resource estimate was 900,000 tonnes at 7.0 $g/t$ for 201,200 ounces). The results of the above drill holes have not been included in this resource statement.

A further resource statement will be issued after completion of the current drilling program and geological modelling at which time a significant proportion of the Tom's Gully resources will be elevated to the indicated resource category. The intercept in TGD374 (1.9m at 15 g/t) gold located 120m south of drilling used in the current outlined resource) confirms the potential for a further significant increase to the resource base over time with the mineralisation still open down dip (southern) and along strike to the current resource. The last remaining hole of the current drilling program is targeting an extension to the west of the resource area.

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RENISON CONSOLIDATED MINES NL

ACN 003 049 714

The current drilling program is part of the feasibility study into the development of an underground mining operation at Tom's Gully and comprises two stages:

• a 35 hole $(7.555$ metre) reserve definition infill drilling program aiming to upgrade resources at Tom's Gully to reserve status for the first 3 years proposed mine development and delineate the margins of the preliminary design mining blocks; and
• a 9 hole $(3,300$ metre) 'step out' resource delineation program aiming to significantly upgrade the current gold resources inventory. This program has been drilling areas that are down dip (southern) and along strike extensions to the resource.

A total of 44 RC pre-collars and 43 diamond core tails have been completed to date. Assay results from 43 drill holes have been received to date with all holes intersecting gold mineralisation in the Tom's Gully reef.

The results to date are consistent with the Company's expectations for this program. Details of the significant results for the drilling program to date are contained in the following table:

HOLE NO.	AMG	AMG	DIP	REEF FROM	REEF TO	INTERVAL	GRADE
	EAST	NORTH				(m)	Au git
TGD355A	777494	8579758	$-90^\circ$	176.1	177.1	1.00	21.11
TGD357	777484	8579785	$-90^\circ$	159.43	163.7	4.27	5.01
TGD358	777524	8579782	$-90^\circ$	166.0	167.9	1.90	6.22
TGD359	777607	8579774	-90	167.7	168.95	1.25	10.75
TGD360	777458	8579831	$-90^\circ$	135.1	136.2	1.10	10.50
TGD361	777509	8579853	$-90^\circ$	126.2	127.3	1.10	8.09
TGD362	777610	8579814	$-90^\circ$	155.7	158.6	2.90	4.80
TGD363	777419	8579720	$-90^\circ$	181.45	182.4	0.95	5.31
TGD364	777457	8579697	$-90^\circ$	205.6	206.5	0.90	9.45
TGD365	777539	8579720	$-90^\circ$	192.5	193.7	1.20	11.64
TGD366	777580	8579717	-90	185.6	186.65	1.05	5.14
TGD367	777619	8579714	$-90^\circ$	176.9	177.6	0.70	8.09
TGD368	777495	8579664	-90°	208.12	208.48	0.36	5.29
TGD371	777450	8579300	$-90^\circ$	248.9	250.4	1.50	8.42
TGD372	777400	8579200	$-90^\circ$	253.65	255.3	1.65	10.63
TGD373	777260	8579100	$-90^\circ$	270.34	270.84	0.50	16.60
TGD374	777121	8578890	-90	278.85	280.75	1.90	15.0
TGD376	777532	8579500	$-90^\circ$	224.5	225.2	0.70	3.52
TGD378	777525	8579541	$-90^\circ$	221.75	222.4	0.65	3.81
TGD379	777565	8579538	$-90^\circ$	213.7	217.7	4.00	9.68
TGD380	777483	8579464	$-90^\circ$	237.1	237.4	0.30	25.05
TGD381	777522	8579462	-90°	228.9	230.9	2.00	8.62
TGD386B	777494	8579385	-90°	241.3	242.9	1.60	10.18
TGD387	777539	8579383	-90	235.95	236.6	0.65	3.76
TGD388	777381	8579579	-90	237.25	238.8	1.55	9.17
TGD393B	777293	8579559	-90	221.05	221.95	0.90	5.10
TGD398	777587	8579680	-90	192.5	194.0	1.50	6.26
TGD404	777605	8579535	$-90^\circ$	215.8	218.9	3.10	7.50
TGD409	777453	8579386	$-90^\circ$	246.1	248.1	2.00	11.49
TGD410	777575	8579383	$-90^\circ$	237.5	238.5	1.00	5.91
TGD411	777323	8579299	$-90^\circ$	265.2	266.8	1.60	7.76
TGD412	777514	8579221	$-90^\circ$	250.4	252.2	1.80	7.52
TGD413	777399	8579099	$-90^\circ$	272.8	273.3	0.50	12.45
TGD414	777645	8579535	$-90^\circ$	222.85	223.5	0.65	4.26

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

In addition, the Company undertook a nine hole RAB drilling program targeting mineralisation at the base of the existing open cut pit at Tom's Gully that has the potential to be mined by open cut methods. Eight of the nine holes encountered gold mineralisation over a strike length of over 80m. Significant mineralized intercepts from this program included 1m at 3.4 g/t gold from 11m, 1m at 2.8 g/t gold from 11m, 2m at 1.7 g/t from 5m and 3m at 1.3 $g/t$ from 5m. Based on the results of this shallow RAB program, it is anticipated that up to 5,000 tonnes of open cut ore could be mined and treated in conjunction with the underground ore through the Tom's Gully mill.

Now that the reserve definition infill drilling program is complete, it is expected that the final stage of the feasibility study can be completed by the Company within the next six weeks. allowing a decision to commence mining at Tom's Gully to be made shortly thereafter. Other technical studies including optimization metallurgical testwork, mine design, process engineering, environmental and water management have been undertaken concurrently with the drilling programs. At Tom's Gully, the Company is targeting the establishment of an underground mining operation producing 35,000 to 40,000 ounces of gold per annum with processing being done at the Company's existing Tom's Gully CIL gold treatment plant. The study is also considering the potential to integrate the re-treatment of the existing tailings resource and also process open cut ores from the Company's tenements at Ouest 29, Steve's Hill (where a 5,000 metre drilling program is currently underway) and elsewhere.

The Tom's Gully gold project (90km to the south east of Darwin) is part of the Company's Northern Territory regional AuQuest project which covers 1,076 square kilometres of the northern end of the Pine Creek Geosyncline.

The advancement of the Company's mining assets through the recent drilling programs at Tom's Gully and Agate Creek, ongoing progress towards completion of the feasibility study at Tom's Gully and the current drilling program at Steve's Hill continues the Company's rapid development as an emerging gold producer.

For and on behalf of the Board

JPK Marshall Company Secretary Brisbane, 5 August 2004

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