SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2004

Jun 2, 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

3 June 2004

High Grade Drilling Intercepts at Agate Creek Epithermal Gold Project

The Directors of Renison Consolidated Mines NL are pleased to advise on further excellent results from the next seven drill holes (988m) from the two stage 50 drill hole (5,000 metre) drilling program currently being undertaken at the Sherwood prospect within the Company's Agate Creek epithermal gold project in North Oueensland.

Significant intercepts from these drill holes included 12m at 6.9 $g/t$ gold from 25m, 8m at 8.4 $g/t$ gold from 59m (including 1m at 36.4 g/t), 2m at 5.6 g/t gold and 2m at 5.3 g/t gold. Full details of all significant intercepts from these six holes are set out in the attached Table 1. Results of the first five holes (previously announced) of this program are contained in Table $\overline{2}$ .

These latest drill holes were testing zones of more discrete mineralisation away from the broad lower grade zones intercepted with the first holes of the current program. Preliminary interpretation of these results indicates that the mineralisation may belong to the same structure identified by previous drilling which obtained the following high grade intercepts in the Sherwood prospect:

• 18m at 20.7 g/t from 14m
• 8m at 24.3 g/t from 56m
• 7m at 7.2 $g/t$ from 86m

The drilling to date in this program provides confirmation of the Company's concept for both the potential for the Sherwood prospect to host a bulk tonnage ore body (over 5 million tonnes) that would be amenable to an open cut mining and heap leach development and also the potential for higher grade zones which may be amenable to a CIP processing route.

Agate Creek is an advanced exploration project with over 114 RC and diamond drill holes already drilled and with extensive near surface mineralisation already identified. The project is located in a highly mineralised gold province containing the Pajingo, Kidston, Mt Leyshon, Red Dome, Ravenswood and Charters Towers gold mines.

The Company considers that the near surface mineralisation that has been identified from these initial drill holes and previous drilling has the potential for development within a short timeframe into a low capital, open cut mining and heap leaching operation producing 50,000 to 75,000 ounces of gold per annum and this is the Company's initial focus on the project.

The objective of the current program is to increase the near surface drilling density in the Sherwood project area. This will provide better understanding of the mineralisation controls in the first 80m from surface and allow a JORC compliant resource to be estimated. Drilling

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RENISON CONSOLIDATED MINES NL

ACN 003 049 714

of the 18 holes which comprise the first stage of the program is now complete with assay results outstanding for 6 drill holes which are expected in approximately one week. The second stage of the drilling program will commence once the Company has completed a review and interpretation of the results from the drilling to date. A pre-feasibility study for an open cut mining and heap leach gold operation at Agate Creek will also be undertaken this vear.

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 this initial phase of the drilling program.

The advancement of the Company's Agate Creek project through this drilling program, ongoing progress towards completion of the feasibility study at Tom's Gully and the recently commenced exploration program at the Steve's Hill project continues the Company's rapid development as an emerging gold producer.

For and on behalf of the Board

JPK Marshall Company Secretary Brisbane, 3 June 2004

Table 1 Significant Mineralised Intercepts

Hole ID	IAMG Eastl	AMG North	RL	Αz AMG	Dip	Total Depth (m)	From $(m)$	To $(m)$	Interval (m)	g/t Gold
CCRC119	768320	7897660	513	$\Omega$	$-90$	148	31	40	9	1.0
							50	56	6	0.9
							84	93	9	1.4
							104	106	2	0.6
ICCRC120	768235	7897655	508	0	-90	136	16	18	2	0.6
							25	37	12	6.9
CCRC121	768265	7897625	507	0	-90	142	25	29	4	0.9
CCRC122	768300	7897590	507	$\theta$	$-90$	154	44	45	1	3.0
							129	139	10	0.8
CCRC123	768140	7897645	507	$\Omega$	$-90$	130	28	30	2	1.7
							33	39	6	1.6
							79	81	2	5.6
							107	110	3	2.8
							121	122	1	3.9
ICCRC124	768170	7897615	503	0	$-90$	148	14	22	8	1.9
							48	49	1	3.5
							59	67	8	8.4
							116	118	2	3.3
							122	123	1	3.3
CCRC125	768200	7897680	505	0	$-90-$	130	3	14	11	0.6
							23	31	8	0.5
							62	64	2	5.3
							78	80	2	1.3

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Table 2 Significant Mineralised Intercepts from first 5 drillholes (announced 14 May):

		AMG				Total Depth
Hole ID	AMG East	North	RL	Az AMG	Dip	(m)	From $(m)$	To $(m)$	Interval $(m)$	g/t Gold
CCRC114	768325	7897690	520	315	-60	132	4	7	3	0.9
							21	23	$\overline{\mathbf{2}}$	0.6
							38	62	24	1.3
							64	69	5	0.5
							75	88	13	0.9
							90	113	23	2.4
							113	117	$\ddot{\mathbf{4}}$	0.5
							119	122	3	4.1
CCRC115	768290	7897690	519	0	$-90$	136	22	40	18	0.8
							42	45	3	0.9
							69	71	2	1.2
							118	121	$\overline{\mathbf{c}}$	3.3
							122	124	$\mathbf 2$	1.1
CCRC116	768290	7897725	526	315	$-60$	124	1	8	$\overline{I}$	1.5
							13	21	8	0.8
							30	32	2	0.7
CCRC117	768365	7897645	514	315	$-80$	154	1	3	$\mathbf{2}$	0.7
							8	17	9	0.6
							32	35	3	1.3
							38	41	3	1.4
							43	51	8	0.7
							76	80	4	1.3
							83	85	2	1.8
							87	90	3	1.4
CCRC118	768260	7897670	514	315	$-60$	136	35	48	13	1.6
							79	82	3	5.8
							82	96	14	0.6

Results are based upon a 0.3 g/t gold cut-off.

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 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.

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