SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2004

Mar 9, 2004

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Mail Address PO Box 7066 Riverside Centre Brisbane Old 4001

Level 30 Riverside Centre 123 Eagle St Brisbane Old 4000

Phone: (07) 3832 6488 Fax: (07) 3832 6261 Email: admin@rcm.com.au

ASX ANNOUNCEMENT

10 March 2004

COMMENCEMENT OF DRILLING PROGRAM TO ADVANCE FEASIBILITY STUDY AT TOM'S GULLY GOLD MINE

The Directors of Renison Consolidated Mines NL are pleased to advise that a 14,000 metre (57 hole) drilling program has commenced at Tom's Gully in the Northern Territory.

The drilling program will comprise two stages:

• $\bullet$ a 10,000 metre (45 drill holes) infill drilling program aiming to upgrade resources at Tom's Gully to mineable reserve status for the first 3 years proposed mine development; and
• a 4,000 metre (12 hole) 'step out' resource delineation program aiming to significantly upgrade the current gold resources inventory. This program will drill areas that are down dip and along strike extensions to the current resource.

A significant increase and upgrade of the current resource estimate at Tom's Gully of 900,000 tonnes at 7 $g/t$ gold (200,000 contained ounces) is targeted from this program.

This drilling program is the next stage of the feasibility study into the development of an underground mining operation at Tom's Gully and should take approximately 10 weeks to complete with the first assay results from the initial drill holes in the program expected within 3 weeks.

In addition to the drilling at Tom's Gully the Company will be undertaking a 1,000m drilling program at the recently acquired Steve's Hill prospect 15 kms to the northwest of Tom's Gully where gold mineralisation is exposed at surface. The drilling will commence after completion of the current wet season and will be targeting gold mineralisation which could be mined by open cut methods and transported for treatment at the Tom's Gully processing facilities. The mineralisation at Steve's Hill has highlighted the prospectivity of the Company's other tenements and reinforced the Company's strategy for the development of an integrated open cut and underground mining project supplying multiple ore feeds to the Tom's Gully processing facilities. In light of this expanded strategy encompassing several projects in the Northern Territory, the Company's Northern Territory projects will collectively now be called the AuOuest Project.

The AuQuest Project covers 1,076 square kilometres of the northern end of the Pine Creek Geosyncline including 16 square kilometres of granted mining tenure. Key elements of AuQuest are:

• The plus 250,000 tpa Tom's Gully CIL treatment plant and associated infrastructure;
• Over 320,000 ounces of gold in various resource categories currently outlined at Tom's Gully and Quest 29;
• The Tom's Gully underground resources on which a feasibility study for a 35,000 to 40,000 oz gold per annum underground operation is currently being undertaken;
• Existing gold production from the Quest 29 dump leach operation;
• A strategy to increase production through the Tom's Gully processing facilities from additional open cut sources to over 50,000 oz per annum. These sources could be from the higher grade mineralisation with the Company's current resources at Quest 29 or from 1,060 square kilometers of exploration licenses including the highly prospective Steve's Hill.

$\mathbf{I}$

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Feasibility Study Nearing Completion

It is expected that the final stage of the feasibility study can be completed by the Company around mid-year allowing a decision to commence mining at Tom's Gully to be made at this time. 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 CIP gold treatment plant. Economic studies indicate forecast operating costs of around A\$350 per ounce (current A\$ gold price is approximately \$525 per ounce).

Mining Consultants, Tennant Isokangas Pty Ltd have been appointed as the lead consultants for the study and the scope for the balance of the programme has been defined. The study will investigate extracting 200,000 to 250,000 tonnes per annum of ore from underground and treatment through an upgraded Tom's Gully treatment plant. The study will also consider the potential to integrate the retreatment of the existing tailings resource and open cut ores from the Company's tenements at Ouest 29 and elsewhere.

Agate Creek

In addition to AuQuest in the Northern Territory the Company will also be advancing its north Queensland gold project over the next few months. At completion of the current wet season the Company will be undertaking a two phase 5,000 metre (50 RC drill holes) drilling program at the Agate Creek gold project in North Oueensland allowing a JORC compliant resource estimation to be made and pre-feasibility study for a open cut mining and heap leach gold operation to be undertaken.

The advancement of the Company's Northern Territory mining assets through this drilling program, ongoing progress towards completion of the feasibility study at Tom's Gully and the upcoming exploration at Agate Creek continues the Company's development as an emerging gold producer.

For and on behalf of the Board

JPK Marshall Company Secretary Brisbane, 10 March 2004

For further information contact: Richard Seville or Stephen Bizzell Phone: (07) 3832 6488 Fax: (07) 3832 6261 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.