SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2005

Dec 15, 2005

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

16 DECEMBER 2005

Phase 2 Drilling commences at Ashford Hard Coking Coal Project

The Director's of Renison Consolidated Mines NL have been advised by the operator of the Ashford Joint Venture, Northern Energy Corporation (NEC) that the Phase 2 drilling program commenced today at the Ashford Hard Coking Coal project (Renison 50%, diluting to 25%).

Following completion of Phase 1 an Initial Inferred Resource of 14Mt was announced in September 2005. As previously announced phase 2 is planned to complete approximately 10,000m of drilling (approximately 9000m $\overline{R}/C$ , 1000m diamond core) with the principle objectives being:-

• Exploration in the North of the project area in the vicinity of the reconnaissance hole drilled in Phase 1, which revealed an encouraging intersection of coal at relatively shallow depth:
• To enable more definitive interpretation of the geological structure of the existing Initial Resource area. This may lead to increases in the current inferred resource;
• Step out drilling to the west of the initial resource with the target being to add to the Initial Resource:
• Wider spaced drilling to the western boundary of EL6428 to identify the presence of the Ashford seam and its geological setting to the west of the project area. This will provide an indication of the potential magnitude of the resource within the Ashford project area;
• Infill drilling within the Initial Resource area to upgrade the resource category to measured status to support feasibility studies planned for 2006.

This phase of the exploration program is anticipated to be completed by the end of the first quarter 2006. It is currently intended that drilling will continue on completion of Phase 2 to both progress the Ashford Project and commence assessment of targets in the Ashford Regional Project in tenements in southern Queensland and Northern NSW.

Conceptual mining studies over the Initial Resource are progressing and are expected to be completed early in the New Year. These studies include further washability and coal quality testing.

Renison currently has a 50% interest in the Ashford Coal Project. ASX listed Northern Energy Corporation Ltd (NEC) owns the remaining 50% interest and is the operator of the joint venture. NEC can earn a further 25% interest in the project by sole funding the project

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RENISON CONSOLIDATED MINES NL

ACN 003 049 714

through to completion of a bankable feasibility study and issuing a further 5 million NEC shares to Renison. Renison also holds a 18% shareholding in NEC (10.4m shares).

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

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Chris Creagh who is a member of the Australian Institute of Mining and Metallurgy. Mr Creagh is a fulltime employee of Renison Consolidated Mines NL. Mr Creagh has sufficient experience which is relevent to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.' Mr Creagh consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.