Encouraging first assays from Phase 2 drilling

27 March 2025                                                                            

Savannah Resources Plc

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

First assay results from DFS Phase 2 drilling confirm zone of higher-grade mineralisation 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 announce the first batch of assay results from Phase 2 of its Definitive Feasibility Study ('DFS') drilling programme at the Project. The 117-hole, c.13,000m programme is being undertaken for further JORC Resource definition, geotechnical and metallurgical purposes.

Highlights:

·    The Phase 2 drill programme for the DFS is well underway with six drill rigs (3 Diamond, 3 Reverse Circulation ('RC')) active on site, targeting the Pinheiro, Reservatório and Grandão deposits.

·    To date 48 holes have been drilled for c. 4,817m in the planned 117 hole/c.13,000m programme.

·    Lithium assays have been received from 20 holes to date (7 at Pinheiro, 10 at Reservatório and 3 at Grandão) including results from 14 complete holes and 6 pre-collars which still require diamond drill tails to fully test the pegmatite target.

·    At Pinheiro, where the Project's highest intercepts to date were reported last year (see 12 March RNS), recent drilling has:

o  Returned pegmatite widths which are thicker and have higher lithium grades than originally modelled.

o  Confirmed mineralisation continues along strike to the north and south in both the Western and Eastern Pegmatites, further highlighting the additional resource potential.

·    Significant lithium mineralisation intersections at Pinheiro include:

o  21m @ 1.26% Li₂O from 95m in hole 25PNRRC026

o  26m @ 1.40% Li₂O from 70m in hole 25PNRRC027

o  29m @ 1.33% Li₂O from 47m in hole 25PNRRC028

o  24m @ 1.17% Li₂O from 11m and 28m @ 1.21% Li₂O from 38m in hole 25PNRRC030

·    At Reservatório the RC drilling has initially targeted the depth extension of the pegmatite and results received to date highlight good continuity of contained lithium grades. This gives further confidence to the existing geological modelling and current JORC (2012) compliant Resource estimate for Reservatório of 4.2Mt at 0.94% Li₂O. With some of the deeper holes to be completed, potential for further depth extensions to this orebody remains.

·    Significant mineralised intersections at Reservatório include:

o  20m @ 1.06% Li₂O from 127m including 13m @ 1.27% Li₂O in hole 25RESRC046

o  33m @ 0.84% Li₂O from 132m in hole 25RESRC047

o  21m @ 1.10% Li₂O from 68m in hole 25RESRC053

o  23.1m @ 1.28% Li₂O from 99m in hole 25RESRC054

·    Initial results from Grandão confirm that mineralisation continues in the shallow extensions of the deposit as demonstrated in hole 25GRARC136 which returned 9m @ 1.38% Li₂O from 2m.

Savannah's Technical Director, Dale Ferguson said, "We have made good progress to date with the Phase 2 drilling campaign and now with six rigs operating on site, we expect to pick up the pace over the coming months as we look to complete this c.13,000m programme.

"With reasonable turnaround times at the assay labs on samples, we're very pleased to be able to announce these initial results from the first 20 holes drilled across Pinheiro, Reservatório and Grandão today. There will be many more results to come, but this first set act as a good demonstration of the key objectives we are working on during this campaign.

"Most importantly, these initial results help to reiterate our confidence in the grades and tonnages of the existing JORC Resource estimates for these orebodies. Through this drilling, which will significantly increase the database we have, we expect to be able to upgrade much of the existing Inferred Resources into the higher Indicated and Measured categories. This in turn will allow us to capture as much of the resource into the Project's maiden JORC Reserve statement as possible as part of the DFS study.

"Furthermore, the drilling continues to confirm the continuation of pegmatite and contained lithium mineralisation beyond the current orebody envelopes and initial pit boundaries. This bodes well for future resource delineation from multiple targets, both along strike and at depth. Significant exploration upside remains at the Project, which we will continue to investigate and highlight.

"Finally, the Pinheiro orebody continues to generate excitement, delivering more intercepts which exceed our expectations in terms of widths and grades.

"The team and I look forward to reporting further results over the coming months as we move towards the production of new JORC Resource estimates for these orebodies as part of Project's DFS. Busy and exciting times lie ahead for Savannah."

Further Information

As previously announced, Savannah started Phase 2 of the DFS-related drilling programme at the Barroso Lithium Project in January 2025 (Figure 1). The programme consists of drilling for resource, metallurgical and geotechnical purposes using primarily RC rigs with some supplementary diamond drilling. To date, approximately 4,817m of drilling has been completed of the 13,000m initially planned for Phase 2. The programme is ongoing, and updates will be provided as further results are received.

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

Pinheiro

Both pegmatites at Pinheiro (the Eastern and Western Pegmatites) have been drilled in the vicinity of holes from previous programmes (RC and diamond drilling). The focus of the drilling is to increase confidence in the existing JORC Resource estimate, by demonstrating the continuity of lithium mineralisation within the pegmatites. Hence, the Phase 2 holes have been designed to infill the previous drilling by narrowing the grid spacing between holes to 40m x 40m or less. Importantly, it has been possible to drill the RC holes near to perpendicular to the dip of the sub-vertical pegmatites, giving a good indication of the true width of mineralisation in both the Eastern and Western Pegmatites. This has confirmed the geologic model outlined by the previous drilling.

Significant recent lithium mineralisation intersections at Pinheiro include:

·    21m @ 1.26% Li₂O from 95m in hole 25PNRRC026

·    26m @ 1.40% Li₂O from 70m in hole 25PNRRC027

·    29m @ 1.33% Li₂O from 47m in hole 25PNRRC028

·    6m @ 1.01% Li₂O from 29m and 16m @ 0.78% Li₂O from 38m, including 3m @ 1.03% Li₂O and 3m @ 1.08% Li₂O, in hole 25PNRRC029

·    6m @0.73% Li₂O from 1m and 24m @ 1.17% Li₂O from 11m, including 6m @ 1.64% Li₂O, and 28m @ 1.21% Li₂O from 38m, including 6m @ 1.67% Li₂O in hole 25PNRRC030

·    9m @ 0.77% Li₂O from 42m, including 2m @ 1.54% Li₂O, and 2.9m @ 0.55% Li₂O from 54m in hole 25PNRDD009

The drilling has shown that the Eastern Pegmatite is thicker than was originally modelled, with drill hole intersections of up to 29m while grades have been higher than the average resource grade of 1.0% Li₂O. This has confirmed the potential shown by previous drilling that both Eastern and Western Pegmatites appear to increase in width and grade at depth.

This programme has also been designed to increase the resource by drilling both of the pegmatites along strike to the north and south. To this end, 8 additional holes have been completed to date, including metallurgical and geotechnical (diamond) drill holes, that intersected the main pegmatites at Pinheiro. Results from these holes are awaited as drilling continues.

Figure 2. Location of Phase 2 diamond drilling at Pinheiro with significant intercepts to date.

Figure 3. Cross section 1 Eastern Pegmatite of Pinheiro deposit (Section A-A').

Figure 4. Cross section 2 Western Pegmatite of Pinheiro deposit (Section B-B').

Reservatório

At Reservatório Phase 2 drilling has focused on deeper parts of the deposit with (RC) drill holes in the central sector of the pegmatite intersecting fresh and strongly mineralised pegmatite. Significant mineralised intersections at Reservatório include:

·    20m @ 1.06% Li₂O from 127m, including 13m @ 1.27% Li₂O, in hole 25RESRC046

·    33m @ 0.84% Li₂O from 132m, including 11m @ 1.08% Li₂O and 7m @ 1.01% Li₂O, in hole 25RESRC047

·    21m @ 1.10% Li₂O from 68m, including 6m @ 1.76% Li₂O, and 9m @ 1.02% Li₂O from 93m in hole 25RESRC053

·    23.1m @ 1.28% Li₂O from 99m including 5m @ 1.92% Li₂O in hole 25RESRC054

Drill holes in the western limits of the pegmatite crossed a weathered sector related to a local fault and did not cut through the foot wall (diamond tail assay in progress).

The drilling operations at Reservatório are ongoing (Figures 5 and 6).

Figure 5. Location of Phase 2 diamond drilling at Reservatório with significant intercepts from assays results.

Figure 6. Cross section 2 of Reservatório deposit (Section A - A').

Grandão

At Grandão a total of 8 drill holes have been completed to date as part of the Phase 2 drilling, and the assaying process is in progress (Figure 7). The assay results received so far include, 9m @ 1.38% Li₂O from 2m in hole 25GRARC136, confirming that mineralisation continues in the shallow extensions of the deposit.

Next steps

As part of the ongoing work required to deliver the DFS by the end of 2025, Savannah's technical team and consultants are focused on:

·    Completion of current Phase 2 drilling programme with assay results and updates released periodically during the programme.

·    Updates to the Pinheiro, Grandão and Reservatório JORC compliant Resource estimates.

·    Use of data and samples from the ongoing drilling programme to complete the remaining metallurgical testwork and detailed geotechnical work for the pits.

Figure 7. Location of Phase 1 diamond drilling at Grandão with significant intercepts from assays results.

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 a Qualified Person under the AIM Rules for Companies. 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 (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 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 1Drill hole locations of Completed Phase 2 RC and Diamond Resource Holes (* with assays)

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