SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2007

Jun 18, 2007

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

19 June 2007

DRILLING PROGRAM COMMENCES AT AGATE CREEK GOLD PROJECT

The Directors of Renison Consolidated Mines NL are pleased to advise that a 43 hole (3.500m) reverse circulation (RC) drill programme has commenced at the Company's Agate Creek Epithermal Gold Project in North Queensland.

The drilling program at Agate Creek is aimed to significantly increase the current gold resource base and potentially increase the scope of the project (mine life and annual production rate). The exploration program is targeting a larger resource base to justify the lowest operating cost possible for this project. A Feasibility Study, which is currently scoped for a minimum 60,000 ounce per annum low strip ratio open cut gold mine, is continuing with work focusing on longer lead time issues such as electricity supply, water supply, cultural heritage and environmental matters.

The Agate Creek Epithermal gold project is located approximately 50 kms west of Kidston in north-east Queensland and covers an area of approximately 465 sq kms. Renison currently has approximately a 75% interest in the Agate Creek gold project and is increasing its interest with its ongoing work programs. At Agate Creek a combined Indicated and Inferred Mineral Resource of 13.2 million tonnes at 1.0 g/t gold for 428,000 ounces has been estimated at a 0.3 g/t gold cut-off. At a 0.5 g/t gold cut-off, a combined Indicated and Inferred Resource of 7.5 million tonnes at 1.5 g/t gold for 350,000 ounces has also been estimated.

At current gold prices, the 0.3 g/t gold grade cut-off is considered to approximate the variable cost component of processing ore via a CIP processing plant and the 0.5 g/t gold grade cut-off would approximate the total cost of CIP processing at a 1 to 1.5 million tonne per annum processing rate. Metallurgical test work to date has shown the ore to be very amenable to carbon in pulp processing with high recoveries at moderate grinds and low reagent consumptions.

Agate Creek also has bonanza grade targets at depth and regional targets, which will provide potential growth for the project after any initial development at Sherwood. Drilling of these is planned this coming year.

The following targets at the Sherwood North, Sherwood, Zig Zag and Agate Creek Fault prospects are being drilled as part of the current program:

Sherwood North

Drillholes have been located to test the concept that the outcropping chalcedonic breccias may be surface expressions of Sherwood's lower zone and to establish a resource.

RENISON CONSOLIDATED MINES NL

ACN 003 049 714

Sherwood

Drilling is planned for the Sherwood prospect to increase the resource base. Drilling is also planned in the in the "Lower southeast zone" as existing drill hole spacing is too wide to categorise a JORC resource.

Zig Zag

Drillholes are planned for the Zig Zag prospect to explore beneath sub vertical mineralisation and to increase the resource base.

Agate Creek Fault

Drillholes are planned for the Agate Creek Fault to test:

• $\mathbf{i}$ That outcropping breccias in the northern part of the Fault Zone may be mineralised at shallow depth
• That target gold exists in sub vertical structures below mineralisation already ii) identified in drillholes within the western part of the fault zone
• That gold mineralisation is associated with the intersection of the Agate Creek iii) and the Robin Hood Fault zones

For and on behalf of the Board

JPK Marshall Company Secretary

For further information contact: Chris Rawlings or Stephen Bizzell Phone: (07) 3303 0630 $(07)$ 3303 0601 Fax: E-Mail: admin@rcm.com.au

David Waterhouse Waterhouse Investor Relations 0407 880 937

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Scott Hall who is a member of the Australian Institute of Mining and Metallurgy. Mr Hall is a full-time employee of Renison Consolidated Mines NL. Mr Hall has sufficient experience which is relevant 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 Hall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.