11 July 2024                                                                                 

Savannah Resources Plc

(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the 'Company')

Further results from DFS Phase 1 drilling confirm resource expansion potential

Savannah Resources plc ('Savannah' or the 'Company'), the resource development company, is pleased to announce further results from the first phase of the current two stage DFS drilling programme at the Barroso Lithium Project ('the Project') located in northern Portugal (Figure 1). The Project, currently with a 28Mt @ 1.05% Li₂O Mineral Resource, is Europe's most significant spodumene lithium deposit.

Highlights:

·    Savannah reports significant lithium assays which it has received from a further 8 diamond drill holes (4 at Pinheiro, 3 at NOA, 1 at Reservatório) undertaken for geotechnical, metallurgical, and resource purposes as part of the Phase 1 DFS drill programme.

·    At Pinheiro, where 2 pegmatite bodies (the Eastern and the Western), have been previously identified, the results from metallurgical and resource diamond drilling, have confirmed the tenure of lithium mineralisation from Reverse Circulation ('RC') drilling (see 12 March RNS) and highlight the potential for the expansion of the resource.

·    Significant lithium mineralisation intersections at the Western pegmatite at Pinheiro include:

o  36.5m @ 1.24% Li₂O from 33.5m in 24PNRDD003

o  16.48m @ 1.22% Li₂O from 41.02m in 24PNRDD004

o  14.08m @ 1.04% Li₂O from 9.32m in 24PNRDD007

o  16.43m @ 1.57% Li₂O from 18.57m and 11m @ 0.79% Li₂O from 61m in 24PNRDD008 (vertical hole not true widths)

·    The diamond holes at Pinheiro also show that mineralisation continues to the north on the Western Pegmatite, outlining the greater resource potential, to be tested in the second phase of drilling.

·    At NOA two metallurgical holes that twinned previous RC drilling and a geotechnical hole confirm the continuity of lithium mineralisation.

·    Significant lithium mineralisation intersections at NOA include:

o  9.86m @ 1.3% Li₂O from 49.14m in 24NOADD011 (twinned holes)

o  5.45m @ 1.25% Li₂O from 0.35m in 24NOADD010 (twinned holes)

and 21m @ 1.26% Li₂O from 31m

·    At Reservatório a diamond hole drilled for geotechnical purposes intersected 53.1m of pegmatite and aplite and shows that the Reservatório pegmatite continues to be mineralised at depth.

·    Significant lithium mineralised intersections at Reservatório include:

o  7m @ 1.16% Li₂O from 143m, 5.7m @ 0.81% Li₂O from 172m and 6.5m @ 1.22% Li₂O from 180.5m in 24RESDD013

·    Note that the geotechnical holes were designed to gain structural information about the designed pit walls and the pegmatite intercepts were incidental to that.

·    Next steps: Once the remaining phase 1 assays have been received, analysed and any further significant assays reported, planning for phase 2 of the programme can then be completed.

Savannah's Technical Director, Dale Ferguson said, "Though the resource drilling of our Phase 1 DFS campaign finished in February, we still have assays coming back from some diamond drillholes which were completed towards the end of the campaign, including from geotechnical and metallurgical holes. The results we have announced today, which come from holes at Pinheiro, NOA and Reservatório, all confirm the dual potential, highlighted by earlier results, for these orebodies to contain areas of higher-grade mineralisation than previously identified and to extend in multiple directions.

"In terms of next steps regarding the ongoing drilling campaign, any further assays of note from Phase 1 will be reported once received and we shall complete our planning of phase 2. Many other workstreams relating to the DFS are also being progressed, supported by the recent financing received from our new strategic partner, AMG Critical Materials N.V ('AMG'). We will provide further details on these fronts in due course.

"The technical team and I are expecting another busy period during the second half of year as we look to move forward with all our key deliverables and begin to work more closely with AMG on technical matters, as well as the highly experienced consultants we are using for the Project's DFS, remaining environmental licencing work, and the associated access road."

Further Information

As previously announced, Savannah has completed the first of two phases of drilling at the Barroso Lithium Project as part of the ongoing Definitive Feasibility Study (DFS) (Figure 1). The programme consisted of drilling for resource, metallurgical and geotechnical purposes using primarily RC with some diamond drilling for the resource work and diamond drilling for the metallurgical and geotechnical requirements. A total of 6154m was drilled overall in phase one including water bore drilling. All the core from phase 1 has now been logged with the majority of assays now received from third party laboratories. Significant assays, including those reported in this RNS, have been announced. Any remaining significant assays will be announced once received.

Figure 1. Barroso Lithium Project summary map showing deposits and drill hole locations.

Pinheiro

At Pinheiro, two metallurgical diamond holes were drilled across the Western Pegmatite in the vicinity of recent RC and water bore drilling that returned extensive intercepts of lithium mineralisation (Figure 2) (see RNS 12 March 2024). The diamond drill holes were able to be drilled near perpendicular to the dip of the pegmatite giving a good indication of the true width of mineralisation in the Western Pegmatite and confirming the tenure outlined in the previous drilling. Results of 36.5m at 1.24% Li₂O from 33.5m in 24PNRDD003 and 16.48m at 1.22% Li₂O from 41.02m in 24PNRDD004 have confirmed the potential shown by previous RC drilling that the Western Pegmatite appears to increase in width and grade at depth.

In addition, two further diamond holes were drilled for exploration purposes at the known northern extent of the Western Pegmatite and continued to intersect the pegmatite, proving its continuity towards the north. Hole 24PNRDD007, which was drilled across strike indicated a true width at surface of 15m. Hole 24PNRDD008 was drilled vertically due to rig access issues and followed the pegmatite at a shallow angle to the dip, intersecting the pegmatite for approximately 65m. Although the intercept does not reflect the true width of the pegmatite, when viewed in cross section it is apparent that the pegmatite is increasing in width at depth (Figures 3 and 4).

Figure 2. Location of Phase 1 diamond drilling at Pinheiro with significant intercepts from assays received to date.

Figure 3. Cross section 1 of Pinheiro deposit.

Figure 4. Cross section 2 of Pinheiro deposit.

NOA

At NOA, results have been received from two metallurgical drill holes and one geotechnical drill hole that intersected the pegmatite. Drill holes 24NOADD010 and 24NOADD011 were drilled as twins of previous RC holes (18NOARC012 and 17NOARC004 respectively) to get representative core for metallurgical testing. The results were as expected with similar widths and grades to the previous drilling and are considered representative of the ore that will be processed during mining. The third diamond hole 24NOADD007 was a geotechnical hole drilled at the western end of the main pegmatite and results were as expected (Figure 5).

Figure 5. Location of Phase 1 diamond drilling at NOA with significant intercepts from assays received to date.

Reservatório

At Reservatório a diamond drill hole was drilled for geotechnical purposes to intersect the base of the designed pit to gain structural information. The hole intersected 53.1m of pegmatite/aplite, which was a much greater thickness than has been modelled previously at this location. The assay results that were received indicate two mineralised zones, one along the hanging wall and the other along the footwall of the body (Hanging wall: 7m at 1.16% Li₂O from 143m and Footwall: 6.5m at 1.22% Li₂O from 180.5m). The results are still being interpreted but possibly indicate the coalition of a deeper pegmatite with the main Reservatório pegmatite (Figures 6 and 7).

Figure 6. Location of Phase 1 diamond drilling at Reservatório with significant intercepts from assays results.

Figure 7. Cross section 1 of Reservatório deposit.

Next steps

Planning is currently underway for Phase 2 of the DFS drilling programme with the results from Phase 1 being used to fine tune the planned holes to infill and extend the known lithium mineralisation.

Competent Person and Regulatory Information

The information in this announcement that relates to exploration results is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources Limited. Mr Ferguson is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and 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 December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

Regulatory Information

This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

Savannah - Enabling Europe's energy transition.

**ENDS**

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About Savannah

Savannah Resources is a mineral resource development company and the sole owner of the Barroso Lithium Project in northern Portugal, the largest battery grade spodumene lithium resource outlined to date in Europe.

Through the Barroso Lithium Project (the 'Project'), Savannah will help Portugal to play an important role in providing a long-term, locally sourced, lithium raw material supply for Europe's rapidly developing lithium battery value chain. After the Environmental Licence was granted in May 2023 and the Scoping Study confirmed the economic potential of the Project in June 2023, production is now targeted and on track to begin in 2026. At that stage, Savannah will start producing enough lithium (contained in c.190,000tpa of spodumene concentrate) for approximately half a million vehicle battery packs per year, equal to a significant portion of the European Commission's Critical Raw Material Act goal of a minimum 10% of European endogenous lithium production set for 2030. Savannah is focused on the responsible development and operation of the Barroso Lithium Project so that its impact on the environment is minimised and the socio-economic benefits that it can bring to all its stakeholders are maximised.

In June 2024, Savannah entered a strategic partnership with AMG Critical Materials N.V., the global critical materials business and established lithium market participant. AMG has invested GBP 16m in Savannah in exchange for a 15.8% stake in the Company and a 5 year, 45ktpa spodumene offtake agreement. This investment alongside existing cash provides Savannah with the finance required to take the Project to a Final Investment Decision point. AMG can increase its offtake to 90ktpa for 10 years if it provides an acceptable full project funding solution for the Project's construction.

The Company is listed and regulated on the London Stock Exchange's Alternative Investment Market (AIM) and the Company's ordinary shares are also available on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".

APPENDIX 1 - Drill hole locations of Phase 1 RC and Diamond Resource Holes.

APPENDIX 2 -Summary of Significant Intercepts from the diamond drilling using a 0.5% Li2O Cutoff.

APPENDIX 3 - JORC 2012 Table 1 -DFS Infill Drilling

JORC Table 1 Section 1 Sampling Techniques and Data

JORC Table 1 Section 2 Reporting of Exploration Results