New Lithium Mineralisation Identified at Project

22 January 2025

Savannah Resources Plc

(AIM: SAV) ('Savannah', or the 'Company')

Extensive New Lithium Mineralisation Identified at the Barroso Lithium Project

Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company'), the developer of the Barroso Lithium Project (the 'Project') in Portugal, Europe's largest spodumene lithium deposit, is pleased to announce further excellent results from rock chip sampling completed as part of the ongoing exploration programme at the Project. These results provide a firm indication that significant follow up targets exist on the Project's licence areas in addition to the potential extensions of the existing orebodies.

Highlights:

·    Lab generated assay results from exploration works on both the C-100 and Aldeia (Block B) Mining Licences have shown that lithium mineralisation within the two licence areas is extensive.

C-100 Licence:

·    New mineralised pegmatites have been identified at the western end of the C-100 licence, which provide further targets for follow up work.

·    Extensions to the known lithium mineralisation at Carvalha da Baccora and Altos dos Cortiços have been confirmed, increasing the potential of these areas. Significant lithium mineralisation from rock chip samples include:

o  From Carvalha da Bacora: 1.66% Li₂O; 1.5% Li₂O; 1.75% Li₂O; 1.46% Li₂O

o  From Alto dos Corticos: 3.01% Li₂O; 1.9% Li₂O

Aldeia Licence, Block B:

·    Reconnaissance rock chip and channel sampling on Aldeia Block B has highlighted multiple new lithium bearing pegmatites which are beyond Savannah's initial estimation. Significant lithium mineralisation includes:

o  Rock chips: 2.11% Li₂O and 1.32% Li₂O

Channel samples:

o  6m @ 1.39% Li₂O from Trench 1

o  14m @ 1.01% Li₂O from Trench 1b

o  4m @ 2.08% Li₂O and 4m @ 2.62% Li₂O from Trench 2

Light and Detection ('LIDAR') Survey:

·    The first LIDAR drone survey conducted over the Project has identified several historical tin mining areas hidden by vegetation. Savannah will follow up these targets as at Grandão and Pinheiro, zones of historical mining indicate a possible association between the spodumene and tin bearing pegmatites.

Conclusions:

·    These results reiterate the significant potential which exists to add to Savannah's current 28Mt at 1.05% Li₂O (at 0.5% Li₂O cut-off) JORC resource inventory in the future.

Savannah's Chief Executive Officer, Emanuel Proença said, "The results from the surface exploration which our team undertook are truly exciting. All of these results come from targets which have received little or no significant exploration work to date and are separate to the Project's five existing orebodies, all of which themselves have known extensions we are still to fully define. While there remains much work to do as a result of these initial high-grade chip and channel samples, the early conclusion is very clear: the Barroso Lithium Project remains highly prospective for further spodumene lithium resource delineation.

"We are firmly focused on the many workstreams required for the Definitive Feasibility Study and enablement of the Project's startup. However, we can and will continue to develop these, and other, additional exploration targets at the same time. In this way, we can build a pipeline of opportunities to increase the Project's existing resources and life of mine over time. Furthermore, as our experience on the C-100 licence has shown, the full extent of the mineralisation is easily underestimated from outcrops alone. For example, at Grandão, outcropping pegmatite is found mainly at the top of the hill with no indications of subsurface continuity. Through subsequent drilling however, Grandão has now been delineated as the largest orebody at the Project.

"It's great to be able to add significant further exploration upside to our already compelling European lithium development story."

Further Information

Savannah has completed a field exploration programme of rock chip sampling and mapping to identify further mineralised pegmatite targets for future follow up drill programmes (Figure 1). The pegmatite field within the C-100 and adjoining Aldeia Licence B licence areas is extensive and is controlled by a broad east - west trending structural corridor. To date Savannah has concentrated most of its work on the main pegmatite clusters at Grandão, Reservatório, Pinheiro, NOA and Aldeia Block A. Some initial preliminary evaluations have been carried out at several locations including Piagro Negro and Carvalha da Bacora which demonstrated their prospectivity. The field programme concentrated on locating more pegmatites with lithium mineralisation at the western end of the C-100 licence, and on the Aldeia Block B licence area, which have only had a limited amount of historical exploration work carried out.

Figure 1: Project summary map showing location of rock chip sampling & mapped pegmatites

Access in these areas was very limited in places due to the amount of dense undergrowth requiring a significant amount of clearing to assess an area in detail. However, the team managed to conduct a comprehensive programme, collecting 110 samples in total.

Aldeia Block B licence area

In the Aldeia Block B licence area, several northeast trending pegmatite bodies seen in the western part of the Block follow the same trend as the pegmatite at the Reservatório deposit, and rock chip sampling has shown them to contain significant lithium mineralisation (Figure 2). Two of the larger outcrops are seen to align along the same strike, similar to what is seen at Reservatório, and could represent a part buried pegmatite with approximately 500m of strike length. In the eastern part of the Block, two distinct north - south trending clusters of pegmatites have been sampled in detail with channel samples collected across available faces of the pegmatite. Significant Aldeia Block B results are as follows:

Rock chips: 2.11% Li₂O and 1.32% Li₂O

Channel samples:

·    6m @ 1.39% Li₂O from Trench 1

·    14m @ 1.01% Li₂O from Trench 1b

·    4m @ 2.08% Li₂O and 4m @ 2.62% Li₂O from Trench 2

Figure 2. Aldeia Block B potential showing location of significant rock chip and channel samples

In addition, several historical tin mining areas were evident from Savannah's recently flown LIDAR (Light detection and ranging survey), which was able to map the underlying topography in fine detail through the vegetation cover. While not the main focus of the exploration programme, these tin mining areas are of potential interest as significant amounts of lithium mineralisation may be associated with these pegmatite bodies. Further assessment is required but at Grandão and Pinheiro there are also zones of historical mining peripheral to the main pegmatite bodies that indicate a possible association between the spodumene and tin bearing pegmatites.

C-100 licence area

At Carvalha da Bacora, on the C-100 licence area, previous drilling (see RNS announcements dated 25 May 2017 and 6 September 2018) had intersected a west dipping pegmatite body that contained significant mineralisation which included:

·   26m at 1.09% Li₂O from 17m in 18CDBRC002*

·   12m at 1.22% Li₂O from 50m in SAC2

*Assay corrected from that reported in the Company's RNS dated 6 September 2018. The Carvalha da Bacora target and this assay do not feature in any JORC Resource estimations for the Project and had no impact on the Project's economics, as reported in the June 2023 Scoping Study.

The mapping was able to locate further pegmatite bodies to the south of the drilling (Figure 3) and rock chip sampling highlighted these pegmatites as lithium bearing with significant results at Carvalha da Bacora including: 1.75% Li₂O; 1.66% Li₂O; 1.5% Li₂O; 1.46% Li₂O.

This area will be the target for follow up work, with the aim of carrying out further preliminary reverse circulation drilling to define the extent of the lithium mineralisation.

Figure 3. Carvalha da Bacora potential showing significant drill intersections and rock chip sample location

At Altos dos Corticos, there is a pegmatite body that outcrops in a forestry road cutting that can be traced to the north on satellite imagery. The trend of the pegmatite is north - south and it extends for approximately 600m up to the major ridge line where it is seen to outcrop in a large fire break clearing. The Altos Corticos pegmatite zone contains areas of historical tin workings and rock chip sampling from this zone returned significant lithium mineralisation including 3.01% Li₂O and 1.9% Li₂O.

This zone has only had a very limited amount of exploration work on it to date and is worthy of further evaluation so its full potential can be understood. Results to date have indicated that there could be a significant zone of lithium mineralisation that will be the focus of future follow up exploration work.

A third area of pegmatite occurrence is found at the western end of the licence. Called Altos da Urreta, the area is marked by small, isolated outcrops and sub outcrops of pegmatite consisting of small blocks visible above the surface vegetation. There is evidence that the previous holders of the licence carried out a trenching programme in the area and mapped an east - west trending pegmatite. However, this area has been backfilled and there is little evidence of pegmatite apart from small pegmatite rocks and boulders in the general vicinity. While no high-grade lithium mineralisation was encountered there were several samples that contained anomalous Li₂O, greater than 0.1% Li₂O, with two of the samples being above 0.5% Li₂O. The limited outcrop highlights that more work needs to be carried out to fully assess the potential of the area.

Conclusion

The results of the mapping programme have continued to highlight the enormous potential to discover and delineate further resources within Savannah's Barroso Lithium Project and in particular the C-100 and Aldeia Block B mining licences.

The surface mapping highlighted that pegmatite outcrop is often randomly dispersed and, from Savannah's experience on the C-100 licence, is often not indicative of the full extent of the associated mineralisation. For example, at Reservatório, pegmatite outcrop was limited to just two locations at the eastern and western end of the deposit, but Savannah's drill programme highlighted the continuity of the pegmatite body (Figure 4). This was also evident at Grandão where the pegmatite is found mainly at the top of the hill and no indications of subsurface continuity were evident. Grandão has now been delineated through drilling as the largest orebody at the Project. At Pinheiro outcropping pegmatite was confined to three restricted areas and drilling has confirmed continuity of the pegmatite below the surface.

Hence, Savannah is encouraged by the findings from this field programme, indicating that significant follow up targets exist on the Project's licence areas in addition to extensions of the existing orebodies. This highlights that the Barroso pegmatite field is a major lithium bearing province and that Savannah is ideally placed to add to its already considerable lithium resource.

Figure 4. Outlining pegmatite outcrop vs actual extent of pegmatite body at Reservatório and NOA

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) and is a Qualified Person under the AIM Rules. 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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**ENDS**

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About Savannah

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

Through 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 lithium battery value chain. Once in operation the Project will produce enough lithium (contained in c.190,000tpa of spodumene concentrate) for approximately half a million vehicle battery packs per year, and hence make a significant contribution towards the European Commission's Critical Raw Material Act goal of a minimum 10% of European endogenous lithium production from 2030. Savannah is being supported in its development goals by its strategic partner and largest shareholder, AMG Critical Materials N.V., the global critical materials business.

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 trades under the ticker "SAV".

APPENDIX 1 - Rock Chip Locations from Mapping Program.

APPENDIX 2 - JORC 2012 Table 1

JORC Table 1 Section 1 Sampling Techniques and Data

JORC Table 1 Section 2 Reporting of Exploration Results