SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2005

Jun 8, 2005

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Mail Address GPO Box 5268 Brisbane Old 4001

Street Address Level 5, 60 Edward Street Brisbane Old 4000

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

ASX ANNOUNCEMENT - 9 JUNE 2005

DRILLING PROGRAM COMMENCES AT STEVE'S HILL GOLD PROSPECT

The Directors of Renison Consolidated Mines NL are pleased to advise that a 12 hole (1,200m) RC drilling program has commenced at the Steve's Hill gold prospect part of the AuQuest Project, in the Northern Territory.

The RC drilling program has been designed to follow up targets generated from the exploration program undertaken last year and from the recently completed ground magnetics \ SAM orientation survey.

Last year's program included costeaning, mapping, BLEG (geochemical) sampling and a shallow 4,859m RAB drilling program carried out over zones of coincident outcropping quartz veins and BLEG anomalies. The RAB drilling was shallow and, due to rig capability, was confined to the gold depletion zone and occasional residual laterite where it had not been eroded away. Where the laterite remained, anomalous gold values were intersected over 2m intervals from surface above the depletion zone with 6 holes greater than 1 $g/t$ gold (and up to 5.7 $g/t$ ) indicating the potential for mineralisation beneath.

The Company has an option to purchase the Steve's Hill gold prospect (EL22068), located 15km to the north west of the Company's wholly owned Tom's Gully CIL gold processing plant and the Tom's Gully underground gold project. Significant quantities of gold have been produced by fossicking activities by the tenement holders. Exploration at Steve's Hill is part of the strategy to provide additional ore sources for the Tom's Gully plant.

The Company continues the advancement of its projects through:

• this 1,200m drilling program at Steve's Hill gold prospect,
• the 7.000m drilling at the Company's 50% Ashford Coking Coal Project which commenced last week.
• the Scoping Studies on the Agate Creek Gold Project which have commenced following last week's 60% increase in gold resources to 247,000oz, and
• at Tom's Gully Gold Mine underground development, amongst design and other preparatory activities, progress being made on the debt financing package with due diligence by the preferred lender for the project nearing completion.

For and on behalf of the Board

JPK Marshall Company Secretary

For further information contact: Richard Seville or Stephen Bizzell Phone: (07) 3303 0630 E-Mail: admin@rcm.com.au Web: www.rcm.com.au

David Waterhouse Waterhouse Investor Relations Phone: 0407 880 937

The information on mineralisation, 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.