SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2004

Jan 15, 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 Qld 4000

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

ASX ANNOUNCEMENT - 16 JANUARY 2004

GOLD PROJECTS UPDATE

Mine feasibility moves to final stages and additional exploration programs to commence

The Directors of Renison are pleased to provide an update on the Company's gold projects and forward plans as the Company enters a new and exciting phase of growth and development.

The Company's focus is on the discovery and development of gold resources and production from existing Company gold projects in the Northern Territory including the Tom's Gully project, Quest 29 project and extensive surrounding exploration licences whilst also targeting for acquisition additional resource projects that can be developed within a short time frame.

We have made significant progress in the execution of this strategy in the past six months by:

• Becoming a gold producer at the Quest 29 mine in the Northern Territory;
• Completing a diamond drilling program and advancing the feasibility study at the Tom's Gully gold project including metallurgical testwork, geo-technical review, mine design studies and economic modelling; and
• Acquiring an interest in the Agate Creek gold project which has the potential to be $\bullet$ another leg of growth for the Company.

Over the next six months the Company will be embarking on an aggressive program of exploration and development including:

• Undertaking a $10,000$ metre (45 RC drill holes) infill drilling program aiming to upgrade current resources at Tom's Gully to mineable reserve status:
• Completing the feasibility study on the Tom's Gully gold project enabling a decision to commence mining to be made;
• Undertaking a 'step out' resource delineation program at Tom's Gully consisting of $\bullet$ 4,000 metres (12 RC drill holes) aiming to significantly upgrade the current gold resources inventory;
• Continued gold production from the Ouest 29 dump leach operation;
• Ongoing exploration and review of the Company's other Northern Territory exploration licences targeting open cut resources within cartage distance of the Tom's Gully and Ouest 29 processing infrastructure; and
• Undertaking a 5,000 metre (50 RC drill holes) drilling program at Agate Creek $\bullet$ 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.

Further details of the recent work and program forward with respect to each of the Company's projects are outlined below.

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ACN 003 049 714

TOM'S GULLY GOLD PROJECT Feasibility moves to final stages

In the latter part of 2003, a diamond drilling program was successfully completed at the Tom's Gully gold project. The drilling program provided excellent geological and structural information and significantly increased the Company's understanding of the mineralisation controls. Core from the program was used for metallurgical testwork that has recently been completed by SGS Oretest, and for geo-technical review work. In addition mine design studies have been undertaken by consulting mining engineers. Tennent, Isokangas Pty Ltd.

The metallurgical characteristics, processing route and mining methodology are now sufficiently well determined to allow the final stage of the feasibility study to be completed. Metallurgical testwork has shown that recoveries of approximately 85% can be expected, employing a processing route of crushing, primary grind, sulphide concentration, fine grind of the concentrate and leaching. The mining engineering studies have confirmed the applicability of conventional mining methods to the project.

The results from this review have confirmed the economics of the project to be similar to previous scoping studies undertaken by the Company, and 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.

The studies undertaken by the Company confirm the potential for 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 250,000 tonnes per annum CIP gold treatment plant. Economic studies indicate forecast operating costs of around A\$350 per ounce (current A\$ gold price is \$545 per ounce).

As the next stage in the feasibility process, the Company has finalised the planning for further drilling utilising reverse circulation drilling techniques. This infill drilling program will commence in early February and will consist of over 10,000 metres of drilling comprising approximately 45 RC drill holes and aims to upgrade to reserve status the first 3 years proposed mine development.

In addition to the infill drilling program, the Company will also be embarking on a 'step-out' resource delineation program at Tom's Gully consisting of a further 4,000 metres of drilling comprising approximately 12 RC drill holes. This program will aim to test both down dip and along strike extensions to the current resource. A significant 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.

OUEST 29 GOLD MINE Production continues

The Quest 29 dump leach gold mining operation was successfully commissioned within capital budget in the latter half of 2003 and was brought into production within 3 months of the funding being raised to commence development. Mining was completed in mid October and all the ore mined is now stacked on heaps and under irrigation. A total of 1,748 ounces of gold have been produced and sold since the first gold pour in September 2003. Leaching

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

performance to date indicates that the original production estimate of around 4.500 ounces is expected to be achieved.

OTHER NORTHERN TERRITORY PROJECTS

In addition to the Tom's Gully and Quest 29 projects in the Northern Territory, the Company has approximately 270 square kilometres of granted exploration licences and an additional 597 square kilometres of exploration licences under application. The Company is targeting the delineation of further open cut gold resources within cartage distance of the Tom's Gully and Ouest 29 processing infrastructure on these areas. Analysis of existing aero-magnetic survey data together with undertaking ground magnetics surveys and geochemical sampling methods will be used to define drill targets within these tenements.

AGATE CREEK GOLD PROJECT - NORTH QUEENSLAND Exploration program to commence

In November 2003 the Company announced that it had entered into an agreement with Barrick Gold to earn a 65% interest in the Agate Creek Epithermal Gold Project in North Oueensland. The project is located in a highly mineralised gold province containing the Pajingo, Kidston, Mt Leyshon, Red Dome, Ravenswood and Charters Towers gold mines.

Agate Creek is an advanced exploration project with over 114 RC and diamond drill holes already drilled and has had approximately \$4.4m spent on the project since 1993. There is extensive near surface mineralisation on which a non-JORC compliant estimate of 5.6Mt at $1.7$ g/t (approximately 300,000 ounces of gold) at the Sherwood prospect was made by Plutonic in 1999 (provided as a guide to the quantum of resources in the current resource area which may be expected to be outlined with further drilling).

The Company considers that this near surface, lower grade mineralisation has the potential for development into a low capital, open cut mining and heap leaching operation within a 2-3 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 the 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 intends to carry out a shallow 50 hole (5,000 metres) reverse circulation drilling program during March, following the current wet season, to increase the near surface drilling density in the Sherwood project area. This will provide better understanding of the mineralisation controls in the first 50m from surface and allow a JORC compliant resource to be estimated. A pre-feasibility study for an open cut mining and heap leach gold operation will also be undertaken.

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

After targeting and reviewing a wide range of projects throughout 2003 we are very pleased to have been able to locate, and transact on, an asset of this calibre. Agate Creek fits in well with the Company's corporate strategy of both developing the maximum potential from its existing asset base in the Northern Territory and acquiring advanced resources projects which have the potential to be developed in 2-3 years time. Agate Creek adds greater depth to our asset base and provides an exciting potential development profile going forward.

Progress at the Company's Northern Territory gold assets where the Company has gold production and over 300,000 ounces of gold resources, together with expansion of the Company's project portfolio via the Agate Creek acquisition, continues the Company along the path towards becoming a profitable growing mining company.

For and on behalf of the Board

JPK Marshall Company Secretary Brisbane, 16 January 2004

For further information contact: Richard Seville or Stephen Bizzell Phone: (07) 3832 6488 Fax: (07) 3832 6261 E-Mail: admin@rcm.com.au Web: www.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.