SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2005

Jan 19, 2005

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Mail Address GPO Box 5268 Brisbane Qld 4001

Level 5 60 Edward St Brisbane Old 4000

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

ASX Announcement

20 January 2004

Please find attached for release to the market a letter that is being sent to all Renison securityholders in relation to the priority entitlement to shares in the Northern Energy Corporation Ltd prospectus raising.

JPK Marshall Company Secretary

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Mail Address GPO Box 5268 Brisbane Old 4001

Level 5 60 Edward St Brisbane Old 4000

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

20 January 2005

Dear Shareholder

The Directors of Renison Consolidated Mines are pleased to advise of the limited priority allocation of shares for Renison security holders in the upcoming prospectus raising of Northern Energy Corporation Ltd.

Northern Energy is a coal exploration company which has the objective of identifying economic coal resources suitable for development to supply the global coal markets.

Northern Energy's project areas include the Ashford Coal Project which it is acquiring an interest in from Renison pursuant to a sale and farm-in agreement that was announced on 22 November 2004. The sale and farm-in agreement will see Renison emerge with a 19.9% shareholding in Northern Energy together whilst retaining a 25% interest (free carried through to completion of a bankable feasibility study) in the Ashford Coal Project.

The Board of Renison consider the sale by Renison of an interest and farm-in with respect to the Ashford Coal Project provides a mechanism for Renison to:

• obtain funding for the Ashford Coal Project which will enable the project to be progressed in $\bullet$ a manner that is not dilutive to the existing issued capital of Renison;
• bring forward the realisation of value for the project for Renison shareholders; $\bullet$
• retain considerable exposure to the projects' future potential through both the 19.9% shareholding interest in Northern Energy, and the retained direct project equity of 25% (at the conclusion of Northern Energy's farm-in).

Northern Energy's projects encompass a range of exploration targets in Oueensland and New South Wales which are considered by Northern Energy to have an acceptable economic, resource and political risk profile. The company's initial focus will be on the Ashford Coal Project in northern NSW and the Elimatta Coal Project in the Surat Basin, Queensland.

The Ashford Coal Project has been previously exploited for thermal coal supply to a local power station, even though the coking properties of the coal were recognized at the time. Northern Energy believes that Ashford hosts the potential for the discovery and delineation of a prime coking coal resource, which could compete with currently supplied, high value coking coals. The Elimatta Coal Project is a thermal coal project which has the potential to supply coal for future thermal coal power stations in Queensland and for supply to the export market.

Northern Energy will have an active program of drill testing on the portfolio of projects as detailed in its prospectus.

The Board and Management of Northern Energy will include Dr Christopher Rawlings (nonexecutive Chairman) and Mr Keith Barker (CEO), both of whom were senior members of the management team at QCT Resources – a successful coal mining and development company prior to its takeover by BHP and Mitsubishi in 2000. They provide significant industry experience to assist in positioning Northern Energy as a successful coal exploration and development company over the coming years.

Priority Allocation

Renison has obtained for its security holders the rights to a limited priority allocation of up to 4 million 20 cent shares in the Northern Energy issue. A total of 20 million shares are being offered by Northern Energy pursuant to the public offer in its prospectus.

Renison Security Holders registered as at 21 January 2005, (Renison Securities includes holders of Renison's listed ordinary shares and listed partly paid shares), will be afforded part of the Priority Entitlement to the Shares allotted to them under the prospectus provided that:

• Renison Security Holders applying for Shares shall be afforded a minimum entitlement of 10,000 $\bullet$ Northern Energy shares ("minimum entitlement"), on a first come, first served basis until the priority entitlement is fully subscribed:
• In the event of Renison Security Holders applying for Shares in excess of the minimum $\bullet$ entitlement, Northern Energy, in consultation with the issue's manager, Cygnet Capital Pty Ltd, will use its best endeavours to accommodate such applications in a fair and equitable manner, but with a view to maximising the spread of shareholders in Northern Energy from applications received:
• Existing Renison Security Holders (like any other member of the public) are entitled to apply for $\bullet$ as many Shares under the Northern Energy Prospectus as they wish.

Key Issue Dates for Renison Security Holders

Applications open	21 January 2005
Date for determining Renison Security Holders Entitlement	21 January 2005
Renison Security Holders Entitlement Closing date	11 February 2005
Anticipated Date of Trading of Shares on ASX	22 February 2005

A copy of the Northern Energy prospectus will be available to Renison shareholders upon request.

If you are interested in receiving a prospectus and applying for shares through your priority entitlement offer as a Renison shareholder please contact Nick Gold at Cygnet Capital (Managers of the prospectus issue) on 03 9669 1900 or email on $n\mathcal{D}(\mathcal{D})$ are approximate to be downloaded from Northern Energy's web-site at www.northernenergy.com.au.

Investors seeking to acquire shares in Northern Energy will only be able to do so pursuant to an application form contained in the company's prospectus. There is a special Renison Shareholder Priority Offer Application Form contained in the prospectus for use by Renison Security Holders. Investors are encouraged to obtain their own independent advice before any decision is made to apply for shares in the issue.

For and on behalf of the Board

JPK Marshall Company Secretary