Pinheiro Drilling Results Update

12 March 2024

Savannah Resources Plc

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

Broad High-Grade Zones of Lithium Mineralisation Intersected at Pinheiro

Savannah Resources Plc, the developer of the Barroso Lithium Project (the 'Project') in Portugal, Europe's largest spodumene lithium deposit, is pleased to report the highest-grade lithium intercepts to date from the Project. These results have come in the latest batch of assays received from the recently completed first phase of resource-focused drilling in the current, two stage, programme. These results outline a new high-grade zone of spodumene lithium mineralisation within the pegmatite at the Pinheiro deposit, which has a current JORC (2012) compliant resource of 2.0Mt @ 1.00% Li₂O within the overall Project JORC (2012) compliant resource of 28Mt @ 1.05% Li₂O. Pinheiro is the first deposit scheduled to be mined when the Project begins production, and these new high-grade results point towards the potential for a significant improvement in the Project's early cashflow and overall NPV.

Highlights:

·    Results from the drilling at Pinheiro highlight a new zone of high-grade lithium in the deposit's Western Pegmatite. Pinheiro currently has two mineralised pegmatites identified.

·    Six Reverse Circulation ('RC') holes were drilled to test the extent and mineralisation of the Western Pegmatite for resource upgrade purposes. Two further holes, drilled as part of the hydrogeological assessment programme, also intersected the same pegmatite.

·    Best results from five of the RC holes and the two hydrogeological holes include:

o  76m @ 1.85% Li₂O from 24m in 24PNRRC024 including 39m @ 2.21% Li₂O from 38m and 10m @ 2.28% Li₂O from 80m.

o  46m @ 1.65% Li₂O from 84m in EX7 (hydrogeological hole) including 14m @ 2.15% Li₂O from 97m.

o  85m @ 1.45% Li₂O from 45m in EX9 (hydrogeological hole) including 39m @ 2.15% Li₂O from 59m.

·    As the holes were drilled obliquely to the main strike of the pegmatite, the true width of the pegmatite is interpreted to be between 25m and 35m. The two, deeper, hydrogeological holes terminated within the pegmatite, indicating further potential mineralisation with depth.

·    Overall, 12 sample intervals reported greater than 3% Li₂O, with 3.85% Li₂O (77m-78m) and 3.65% Li₂O (79m-80m) from hole EX9, and 3.53% Li₂O (62m-63m) from 24PNRRC024, being the three highest grade intercepts from the Project to date.

·    Assays are awaited from the sixth RC hole and two diamond drillholes which also intercepted the Western Pegmatite

Savannah's Technical Director, Dale Ferguson said, "We're delighted with these intercepts from the drilling undertaken recently at Pinheiro, which include the best lithium intercepts we have produced to date on the whole Project. Despite having drilled well over 30,000m at the Project, these results, along with those reported last month from Reservatorio and NOA, demonstrate how significant the upside potential still is for both resource expansion and grade improvement within the Mining Lease."

Savannah's Chief Executive Officer, Emanuel Proença added, "These latest drilling results from Pinheiro are a great reminder of the Project's remaining geological potential. They may also prove to be economically significant for the Project as a whole. Pinheiro is the first deposit we plan to develop in our sequential mine plan, so any upside we can capture on tonnage, but particularly grade, in our new resource estimate for the orebody could have a beneficial effect on early cash flow during the first year of the operation. We're all now looking forward to the remaining results due from Pinheiro."

Further Information

At Pinheiro six RC holes have been completed for a total of 705m and an additional 260m of percussion drilling for hydrogeological testing. The fact that the hydrogeological drill holes also intersected the pegmatite at depth has added further potential to the extent of the lithium mineralisation at Pinheiro, especially at depth where significant high-grade extensions have been identified.

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

The assay results for five of the six RC holes and the two percussion holes drilled for hydrogeological purposes have been received to date (See Appendices 1-3 for full details and relevant JORC disclosures). The results indicate that the Western Pegmatite at Pinheiro continues to contain high grade lithium mineralisation with some of the highest Li₂O grades seen from the whole Project. From the 492 samples submitted 12 returned assays greater than 3% Li₂O (with 3.85% Li₂O (77m-78m) and 3.65% Li₂O (79m-80m) from hole EX9, and 3.53% Li₂O (62m-63m) from hole 24PNRRC024), 67 assayed at greater than 2% Li₂O and 150 greater than 1% Li₂O. These results are highly encouraging with lithium grades showing an increase with depth.  

Key lithium intersections returned to date at Pinheiro include:

·    36m @ 1.28% Li₂O from 28m in 24PNRRC021

·    15m @ 1.4% Li₂O from 86m in 24PNRRC021

·    22m @ 1.27% Li₂O from 74m in 24PNRRC023

·    76m @ 1.85% Li₂O from 24m in 24PNRRC024 Including 39m @ 2.21% Li₂O from 38m and 10m @ 2.28% Li₂O from 80m.

·    46m @ 1.65% Li₂O from 84m in EX7 (percussion holes) including 14m @ 2.15% Li₂O from 97m.

·    85m @ 1.45% Li₂O from 45m in EX9 (percussion holes) including 39m @ 2.15% Li₂O from 59m.

The drilling at Pinheiro has been orientated at oblique angles to the known dip of the pegmatite due to access and topographical issues encountered. Three of the drill holes that targeted the central portion of the pegmatite were successful in intersecting the pegmatite, however, two of the holes to the north failed to intersect it as it now appears that the strike of the pegmatite is more to the northwest than the initial north-south interpretation. The two hydrogeological holes were vertical holes and were stopped in pegmatite as they were drilled for the purpose of hydrogeological data collection. The lithium grades received from these two holes were very consistent and of high grade. These results were further supported by similar lithium grades in the RC drill holes at depth, providing further confidence in the samples from the percussion drilling.

Two recently completed diamond drill holes that have been drilled for metallurgical sampling purposes were drilled across the pegmatite at more orthogonal angles and have provided valuable information on the widths of the pegmatite in this region (25m to 35m). The logging and sampling of these cores is in process, with the imminent dispatch to ALS' laboratory in Seville for assay.

Figure 2. Location of Phase 1 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.

Figure 5. Cross section 3 of Pinheiro deposit.

The second phase of drilling in the current programme is being planned and drilling will endeavour to target the pegmatite at angles that better reflect the true width of 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").

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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 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 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.

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 Pinheiro 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