SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2004

May 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 Qld 4000

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

ASX ANNOUNCEMENT - 5 May 2004

Drilling Program Commences at Agate Creek Epithermal Gold Project

The Directors of Renison Consolidated Mines NL are pleased to advise that the Company has commenced a two stage 50 drill hole (5,000 metre) drilling program at its Agate Creek epithermal gold project in North Queensland.

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 Paiingo. Kidston, Mt Levshon, Red Dome, Ravenswood and Charters Towers gold mines.

The Company considers that this near surface, lower grade mineralisation that has already been identified has the potential for development into a low capital, open cut mining and heap leaching operation within a 2 year timeframe and this will be the Company's initial focus on the project.

In addition there is potential for the occurrence of "bonanza grade" style mineralisation beneath the lower grade near surface mineralisation. At the Sherwood prospect, the following high grade gold intercepts have already been obtained from drilling to date:

• $\bullet$ 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 Company has commenced a two stage shallow 50 hole $(5,000)$ metres) reverse circulation drilling program 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. The first stage (25 drill holes) of the program will take approximately one month to complete with assay results from initial drill holes expected within two weeks. A pre-feasibility study for an open cut mining and heap leach gold operation at Agate Creek will also be undertaken this year.

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 upcoming exploration 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

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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