SAVANNAH GOLDFIELDS LIMITED — Capital/Financing Update 2018

Nov 28, 2018

Level 9, Waterfront Place, 1 Eagle St, Brisbane QLD 4000 GPO Box 1164, Brisbane QLD 4001 Telephone: 07 3108 3500 Fax: 07 3108 3501 Email: admin@lanewayresources.com.au www.lanewayresources.com.au

ASX ANNOUNCEMENT

29 November 2018

Final Mine Design & Grade Control Drilling Program at Agate Creek

Highlights

• ✚ A drilling program has been undertaken at Laneway’s Agate Creek Gold Project in North Queensland.

• ✚ The program comprised 51 Reverse Circulation (RC) drill holes for 1,314m at the Sherwood deposit.

• ✚ The drilling program has now been completed this week with assay results expected during December.

• ✚ Incorporating the assay results from this program into the Company’s existing resource model will enable:

• Final stages of the mine design to be completed with ore block definition to establish key mining areas;

• Greater definition of near surface (less than 30m) high grade gold zones at Sherwood which will be incorporated into initial grade control mining block definition;

• Confirmation of sterilisation areas for the planned waste dump.

• ✚ The drilling program was conducted over the project area that is intended to be shortly mined pursuant to the Mining and Processing Agreement recently entered into with Maroon Gold.

• ✚ Progress is well advanced on the remaining requirements for the grant of the Mining Lease with the Company expecting these to be completed in the near term.

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Figure 1: Drill rig operating at Sherwood, Grade Control Drilling.

The Board of Laneway Resources Limited ( Laneway , or the Company ) ( ASX:LNY ) is pleased to advise that the Company has completed a drilling program at the Sherwood deposit of the Agate Creek Gold Project in North Queensland.

The drilling program consisted of 51 shallow Reverse Circulation (RC) drill holes for 1,314m and is part of the final stages of the Mine Design processes being undertaken as part of preparation for the anticipated start of mining. Assays from the drilling program will be released when received from the Laboratory which is expected during the course of December.

The Company will incorporate the assay results from this program into the Company’s existing resource model which will enable the final stages of the mine design to be completed with ore block definition to establish key mining areas. Results from this program will also enable greater definition of near surface (less than 30m) high grade gold zones at Sherwood which will be incorporated into initial grade control mining block definition and also provide confirmation of sterilisation areas for the planned waste dump.

The drilling program was conducted over the project area that is intended to be shortly mined pursuant to the Mining and Processing Agreement recently entered into with Maroon Gold Pty Ltd (Maroon), the owner of the Black Jack Mine Site & Processing Plant at Charters Towers. The agreement is for Maroon to undertake mining operations at Agate Creek and process ore through Maroon’s wholly owned CIL processing plant.

The agreement with Maroon establishes the basis for open cut mining, transport and processing operations of high grade ore from the Agate Creek Gold Project (the Project) upon successful grant of the Agate Creek Mining Lease. The Mining Lease Application (MLA 100030) that Laneway lodged in February 2015 with Queensland’s Department of Natural Resources and Mines, covers the near surface high grade Sherwood and Sherwood West prospects, as well as areas for all necessary infrastructure to support mining operations. Progress is well advanced on the remaining requirements for the grant of the Mining Lease with the Company expecting these to be completed in the near term.

Pursuant to the Agreement, mining and processing of initially up to 100,000 tonnes of high grade ore from the Project through Maroon’s Plant. Commissioning works are currently being finalised at the Black Jack Plant Site (which has the capacity to process up to 340,000tpa. Utilising an existing processing plant significantly reduces the capital expenditure and time to first gold production, for Laneway.

Background on the Agate Creek Gold Project

The proposed mining operations will be undertaken in the area covered by Mining Lease Application (MLA 100030) which has been lodged with Queensland’s Department of Natural Resources and Mines (DNRM) over part of the Agate Creek Gold Project. The total area of the MLA is 689.3 Hectares covering the Sherwood and Sherwood West near surface high-grade prospects as well as prospective extensions to the known mineralisation areas. The Environmental Authority is also in place (EPSL03068015) for the start of proposed mining operations. Landholder Compensation Agreements are finalised.

Laneway has reached agreement in principle with Tatampi Puranga Aboriginal Corporation RNTBC (TPAC), the prescribed body corporate of the native title holders for the project area, regarding TPAC’s consent to the grant of MLA 100030. As required under the Native Title (Prescribed Bodies Corporate) Regulations 1999 (Cth), TPAC is currently consulting with, and seeking the consent of, the native title holders to enter into the relevant agreements.

The grant of the ML will allow the Project to progress towards commencing high-grade (low strip ratio) open cut mining operations at Agate Creek. Utilising an existing processing plant will significantly reduce the capital expenditure, and time to first gold production.

Given the simple shallow open cut nature of the orebody and the ores low reagent consumption characteristics, only minor mine planning and infrastructure will be required prior to the start of mining. Start of mining and processing will be able to commence shortly after grant of the Mining Lease subject to any wet season constraints.

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ML Application 100030 which hosts Laneway’s Mineral Resources

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ML Application 100030 Basic Mine Layout & New Drilling

Mineral Resource

A global recoverable Mineral Resource is defined for the Agate Creek Project at a 0.5 g/t Au cut-off suitable for a large open pit operation. A continuous high-grade sub-set of the Mineral Resource can be interpreted at cut-off of 2 g/t Au for Sherwood and 1 g/t Au for Sherwood West shown in Table 2.

	0.5 g/t cut-off		Sherwood		Sherwood		South	Sherwood		West		Total
	Resource Classification	Mt	Gold (g/t)	Gold (oz)	Mt	Gold (g/t)	Gold (oz)	Mt	Gold (g/t)	Gold (oz)	Mt	Gold (g/t)	Gold (oz)
	Indicated	2.80	1.60	140,000				2.20	1.60	112,000	5.00	1.60	252,000
	Inferred	1.40	1.30	57,000	0.30	1.20	12,000	1.50	1.20	59,000	3.20	1.24	128,000
	Total	**4.20 **	1.50	197,000	0.30	1.20	12,000	**3.70 **	1.44	171,000	8.20	1.46	381,000
	Grade and tonnage rounded to two decimal places. Ounces calculated after rounding and									reported to nearest 1,000 ounces.
	High Grade Sub Set		Cut-Off Grade			Indicated			Inferred			Total
			Au	(g/t)	kt	Gold (g/t)	Gold (oz)	kt	Gold (g/t)	Gold (oz)	kt	Gold (g/t)	Gold (oz)
	Sherwood			2	89	6.01	17,300				89	6.01	17,300
	Sherwood West			1	1080	1.82	59,600	146	1.72	8,100	1164	1.81	67,700
	Total				1169	2.16	76,900	146	1.72	8,100	**1253 **	2.16	85,000

~~Mineral Resource Figures and Table 2 - High Grade sub set of Mineral Resource~~

For and on behalf of the Board

JPK Marshall Company Secretary

For further information contact: Stephen Bizzell Chairman, Laneway Resources Phone: (07) 3108 3500 E-Mail: admin@lanewayresources.com.au

Competent Persons Statements

The information in this report that relates to Exploration Results 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 Laneway Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 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.

The information relating to the Mineral Resources at the Agate Creek Project is extracted from the ASX Announcement as follows:

ASX Announcement titled:

‘Resource Update for Agate Creek Gold Project’ dated 1 February 2016.

The report is available to view on the Laneway Resources website www.lanewayresources.com.au. The report was issued in accordance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.