SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2007

May 24, 2007

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

ASX ANNOUNCEMENT

25 MAY 2007

SALE OF TOM'S GULLY GOLD MINE

The Directors of Renison Consolidated Mines NL ("Renison") are pleased to advise that the Company has executed a full form sale and purchase agreement to sell the Tom's Gully underground gold mine ("Tom's Gully") in the Northern Territory to Canadian gold miner, GBS Gold International Inc. ("GBS Gold").

The purchase price has been adjusted from the Heads of Agreement announced on March 20, 2007 and now comprises the following instalments totalling up to \$51 million:

• \$10 million payable on closing in GBS Gold shares at market price on March 19, 2007, being 3,046,315 shares. GBS have undertaken to place these shares to enable Renison to receive cash proceeds:
• \$3 million payable 6 months after closing in cash or GBS Gold shares at the prevailing market price, at GBS Gold's election:
• \$9 million payable 12 months after closing in cash or GBS Gold shares at the prevailing market price, at GBS Gold's election;
• \$10 million payable 18 months after closing in cash or GBS Gold shares at the prevailing market price, at GBS Gold's election;
• \$8 million payable 24 months after closing in cash or GBS Gold shares at the prevailing market price, at GBS Gold's election;
• \$50 per ounce over 200,000oz of gold of Proven or Probable Reserves or total production to a maximum of \$5 million payable in cash or GBS shares at the prevailing market price, at GBS Gold's election; and
• Upon cumulative production of over 300,000oz of gold from the closing date, a 2% royalty on subsequent production. GBS Gold may purchase the royalty for \$6 million payable in cash or GBS shares at the prevailing market price, at GBS Gold's election.

The transaction is subject to Renison shareholder approval and a notice of meeting and explanatory memorandum will be dispatched to shareholders shortly. Following shareholder approval, completion of the sale is expected by early July, 2007.

GBS Gold has agreed to advance \$2.5 million to Renison by May 31, 2007 for the discharge of certain obligations over the Tom's Gully assets. The advance is secured by a fixed and floating charge over the majority of the Tom's Gully sale assets and shall be immediately repaid from the proceeds of the first instalment. If the transaction is not completed the advance must be repaid and GBS Gold is entitled to a \$500,000 break fee.

On March 2, 2007, Renison announced that mining and processing activities at Tom's Gully were suspended due to an intense monsoonal rain depression, and the operation remains on care and maintenance. Renison has returned the mine to its operational condition in the agreed saleable state as it was prior to the rain-induced suspension of activities.

The agreement with GBS represents an opportunity for Renison to realise a fair value for the Tom's Gully Mine and the funding available from the sale will enable the Company to focus its resources and aggressively pursue the advancement of its portfolio of projects including the Agate Creek and Eidsvold Gold projects, its NSW Coal Projects and also to consider other project opportunities.

For and on behalf of the board

JPK Marshall Company Secretary

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

Waterhouse Investor Relations David Waterhouse 0407 880 937

About GBS Gold International Inc.

GBS Gold is an emerging gold producer at its Union Reefs Operations Centre located in historically productive goldfields in the Northern Territory of Australia. GBS Gold produces gold through its modern dual-mill 2.5Mtpa Union Reefs processing plant and plans to ramp up production from free milling ores during 2007 to a targeted annualized rate of 150,000 ounces. GBS Gold expects to construct a flotation plant and bio-oxidation heap leach facility using the GEOCOAT^® technology at the Union Reefs Plant to process refractory ores and increase gold production from all sources to a targeted annualized rate of 300,000 ounces in 2009. Management has extensive experience in bringing mineral projects into production, operating open pit and underground gold mines and has assembled a team with valuable mining experience in the Northern Territory. The Union Reefs plant is adjacent to the main Stuart Highway and the trans-continental Adelaide-Darwin railway line, and is on the Northern Territory power grid. Within 125km trucking distance of the Union Reefs plant, GBS Gold has consolidated over 2,500km² of prospective tenements and gold deposits and also holds gold exploration properties in Western Australia and Canada. GBS Gold trades on the Toronto Stock Exchange under the symbol "GBS" with a current market capitalisation of approximately \$300m. Further information on GBS Gold can be found at their website www.gbsgold.com.