OPERATIONAL REVIEW FOR THE SIX MONTHS ENDED 30 JUNE 2025

Operational Review

Definitive Feasibility study ('DFS')

During the period the Company advanced multiple workstreams which will feed into the DFS for the Project. The most significant of these was the c.13,000m Phase 2 drilling programme, which the Company began in January to generate vital data for further JORC Resource definition, geotechnical and metallurgical purposes. Following on from the Phase 1 drilling last year, which resulted in a material upgrade in the confidence level of the JORC Resource for the NOA deposit, this campaign has focused to date on completing similar 'infill and upgrade' resource drilling at the Pinheiro, Reservatório and Grandão deposits. Good progress was made throughout the period with the resource-focused element of the programme completed in July with a total of 12,463m drilled across 103 holes (including 11 geotechnical holes). In the process, Savannah passed the milestone of 50,000m of drilling (50,627m to date) on the Project since its acquisition in 2017.

The resource-focused element of the programme was extremely successful, consistently returning higher grade intercepts, delineating extensions to the existing orebodies and identifying new zones of mineralisation. Following the end of the reporting period (in September 2025), a new upgraded and expanded JORC (2012) Compliant Resource of 39.1Mt at 1.05% Li₂O, representing a 40% increase in tonnage and 41% increase in contained Li₂O vs. the May 2024 estimate. In addition, the programme, along with previous surface exploration, allowed the estimation of new Exploration Targets for all the orebodies and the remainder of the Project's Lease areas as well. These new Exploration Targets[3] increased by over 200% from the previous estimate and now total an additional 35-62Mt at 0.9%-1.2% Li₂O. Further details are provided below in the JORC Resource & Exploration Target sections, but these substantial increases in the overall JORC Resource and Exploration Target for the Project gives a very clear indication of its significance and long-term potential.

The geotechnical drilling associated with the deposits was also completed alongside the resource-related drilling. The geotechnical drilling associated with the Project's infrastructure will be completed when a second land easement order is received from the Government, which is expected in Q4 2025.

Work on other fronts associated with the DFS, including mine scheduling, metallurgical testwork, surface and ground water modelling, processing plant equipment engineering and CAPEX estimation, tailings and water storage, hydrogeology, decarbonisation, by-product strategy and contract pricing for mining, earthworks and drilling, proceeded as scheduled during the period.

Savannah expects to complete the DFS as soon as possible in H1 2026. A more precise timetable will be provided once the temporary land easement for the geotechnical drilling has been received.

JORC Resources

As stated, the Phase 2 drilling programme was focused primarily on upgrading the existing JORC (2012) compliant Resources at the project, i.e. allowing more of the lithium mineralisation to be placed in the higher Measured and Indicated JORC categories and hence be potentially convertible into reserves for the Project's first JORC Reserve estimate. This reserve will underpin the mine plan for the operation and thus the whole Project. Pleasingly, the programme not only confirmed known mineralisation and increased the density of drilling data, but also consistently returned higher grade assays, identified new zones of mineralisation and extensions to known mineralisation. These positive results were particularly seen at Pinheiro and Reservatório. In a new JORC (2012) compliant Resource estimate published for the Project following the end of the reporting period, there was a material upgrade in the quality of the resources in terms of JORC classifications at both deposits as well as significant increases to the overall tonnages.

At Pinheiro, the drilling campaign showed that the Eastern Pegmatite continues to carry ore grade lithium mineralisation at depth and extends to the northeast. The deposit's Western Pegmatite was also extended at depth and remains open along strike to the south. Some of the highest grade intercepts recorded at Pinheiro included 67m @1.82% Li₂O from 56m and 30m at 1.5% Li₂O from 46m. Overall its JORC Resource tonnage rose by 140% to 4.8Mt and its grade by 9% to 1.09% Li₂O vs. the May 2024 estimate with the contained Li₂O rising by 159%. The proportion of the ore in the higher Indicated category increased by 30% to 2.6Mt.

At Reservatório the drilling showed the continuation of lithium mineralisation at depth especially extending into the area to the north where Savannah currently has an application to expand the C-100 Mining Licence boundary. Furthermore, the intersections showed the dip of the pegmatite becomes shallower at depth, increasing its minable potential. Some of the highest grade intercepts recorded at Reservatório included 38m @1.67% Li₂O from 41m and 22m at 1.56% Li₂O from 25m. Overall its JORC Resource tonnage rose by 188% to 12.1Mt, its grade by 8% to 0.97% Li₂O and its contained Li₂O by 197% to 117.3kt vs. the May 2024 estimate. The proportion of the ore in the higher Indicated category increased by 131% to 8.1Mt and contained Li₂O increased by 146% to 81.2kt.

At Grandão, already the largest and most densely drilled of the orebodies at the Project, the infill drilling confirmed the excellent robustness of the lithium mineralisation at depth, especially in the western portion of the deposit, with grades seen to increase with depth. Some of the highest grade intercepts recorded at Grandão included 19m @1.29% Li₂O from 92m and 13.8m at 1.41% Li₂O from 139.2m. Pleasingly, the drilling also highlighted the occurrence of a smaller parallel pegmatite beneath the main orebody. Given the extent of previous drilling at Grandão, it saw the smallest increase (2%) in its tonnage post this campaign to 18.1Mt at 1.05% Li₂O, but did see the Measured and Indicated portion of the overall resource increase by a further 5% to 13.7Mt and contained Li₂O increase by 9% to 144.2kt.

Rounding discrepancies may occur

JORC Exploration Targets[4]

In addition to the new resource estimates, updated or maiden Exploration Targets for all the orebodies on the Project were produced following the end of the reporting period, based on the potential extensions to the orebodies. In addition,  first Exploration Targets for a further eight prospects and areas across the remainder of the leases were also formulated based on the exploration results Savannah has reported from drilling and surface sampling results to date. Overall, the Exploration Target[5] for the Project saw an increase in over 200%+ from the previous estimate to 35-62Mt at 0.9%-1.2% Li₂O.

Environmental licencing & monitoring

Good progress was made during the period on many of the inputs required for the current 'RECAPE' phase of the environmental licencing process and towards the end of the period, work was underway compiling sections of the RECAPE submission for review. During the RECAPE phase, Savannah is required to confirm that the final design of the Project, which is largely defined by the accompanying DFS and Mine Plan, complies with the conditions which were attached to the key 'Declaration of Environmental Impact' approval, which the Project's proposed design received in May 2023. Once the RECAPE submission is made and approved, the Project will be in a position to receive its final environmental licence. Savannah expects to make its submission in 2026 after completion of the outstanding geotechnical drilling.

As required, Savannah also continued with its seasonal monitoring of numerous environmental parameters during the period. The data from these ongoing monitoring campaigns will form the baseline against which the Project's environmental performance will be measured during development and production. These parameters include noise, vibrations, air and water quality, ground and surface water levels as well ecological parameters, such as the flora and fauna found in the local area. This includes the Iberian wolf population in the region with the latest survey again concluding that there are no wolf packs living in the Project area.

Infrastructure

Development planning for the Project's internal and external infrastructure such as roads and its electrical power supply overlaps significantly with the Company's work on the DFS and environmental licence. During the period, Savannah made some important progress on all key infrastructure topics.

Preliminary design work on the Project's internal haul roads between the processing plant and mining areas was advanced and is nearing completion. In April, Savannah submitted its design and Environmental Impact Assessment ('EIA') for the 16km bypass road, which joins the Project's proposed new access road to the national highway, to the Portuguese Environmental Agency ('APA'). Following its review, APA requested that revisions were made to certain sections of the road design and Savannah and its consultants have already engaged with the relevant agencies and the Municipality of Boticas regarding the revisions. The necessary redesign work is underway and the revised EIA is scheduled for resubmission in October 2025.

Regarding power, the Project benefits from an existing overhead grid power line which crosses the Lease area. However, it is necessary to both re-route a section of this line and create a connection to it to develop the Project. During the period the design of the overhead lines and the switching station was completed and submitted to the network operator (E-REDES) for approval.

For the outstanding geotechnical studies required for the sections of the Project's infrastructure, preparations were made for the relevant fieldwork, including on internal roads and the northern access road, to allow for a swift start as soon as the required temporary land easement is approved by the Government.

Land acquisition & access arrangements

During the period, Savannah proceeded with its previously stated three-pronged plan in regard to securing ownership or access to all the land it requires to execute the Project. As such, it continued with its land purchasing strategy through which it offers to acquire land from private owners at generous rates. By the end of the period Savannah had purchased 109 plots in total with a further 10 under promissory note.

Following receipt of a first temporary land easement order last December, which made it possible to access land not owned by the Company to complete the resource element of the current drilling programme, the Company applied for a second temporary land easement during the period over ground it needs to access to conduct geotechnical drilling. All technical requirements for the approval have been met and the process is expected to conclude during Q4 2025.

As previously announced, due to the Project's Mining Lease, the Company has the right under Portuguese law to apply for compulsory acquisition/access to land properties that it has not been able to acquire or access to date. This process, which Savannah began last year, is initiated through a 'Declaração de Utilidade Publica' (Declaration of Public Utility or 'DPU'). During the period, the Company's first application for a DPU, which was submitted in February 2025, was progressed by the relevant public bodies and Savannah is now awaiting its conclusion.

Project development timetable

Savannah currently expects to complete the DFS in the first half of 2026 and achieve first production in 2028. A more detailed update on scheduling will be provided once the second land easement has been granted, which will allow the completion of the current drilling programme.

Governmental and European Commission Engagement

As part of its wider stakeholder engagement efforts, Savannah maintains regular contact with key actors in the national government and its relevant agencies. Engagement with EU actors is also made directly and through several trade bodies and EU-backed agencies of which Savannah is a member.

Portuguese Government

Following on from the first temporary land easement, which was approved by the Government in December 2024 to allow Savannah to access land at the Project which it did not own, the Government's support was further demonstrated when the temporary easement was challenged in court by 3 local landowners. The Government responded swiftly with a 'Reasoned Resolution' which underlined the importance of the Project to the wider public interest in Portugal and allowed work to continue following a brief suspension.

As outlined above, the Company is currently waiting on approval for a second land easement to complete the geotechnical drilling necessary for the Project's DFS. This is now expected in Q4 2025. While this is later than expected and the delay this causes is frustrating, the Company remains confident that the second land easement will be granted. Furthermore, the subsequent expropriation procedures for the concession's Eastern block and supporting infrastructures, which are already advanced, should proceed rapidly afterwards.

Pleasingly, Savannah did receive more positive news in relation to ongoing assistance after the end of the period when AICEP, Portugal's Trade & Investment Agency, confirmed that the Project would be followed by its Permanent Committee for Investor Support (the 'CPAI'). The CPAI's mission is to support high-impact investments that contribute to national development goals and it can help to streamline administrative processes, anticipate potential bottlenecks, and accelerate project implementation. Savannah is now engaging regularly with the CPAI on its previous and upcoming work steps with the various public administration bodies which are key stakeholders in the Project's future development.

European Commission

In March 2025 the European Commission ('EC') classified the Barroso Lithium Project as a 'Strategic Project' under the Critical Raw Materials Act. Described as a "landmark moment for European sovereignty as an industrial powerhouse" by Stéphane Séjourné, European Commission Executive Vice-President for Prosperity and Industrial Strategy, our Project was one of the first 47 domestic European projects to be given this classification. This endorsement reflects the Commission's view that our Project will contribute to the EU's secure supply of strategic raw materials, adhere to environmental, social and governance criteria, is technically feasible within a reasonable timeframe, achieve its expected production volumes, demonstrates clear cross-border benefits for the EU and can be implemented sustainably. In return for fulfilling these many criteria, our Project should benefit from coordinated support from the Commission, Member States and associated financial institutions to become operational, with particular regard to access to finance, support to connect with relevant off-takers and streamlined permitting provisions.

Savannah is now engaging in the first initiatives being organised by the EC for Strategic Projects which includes connecting raw material suppliers with potential customers and investors.

German Government

Savannah was informed last December that through its proposed offtake with AMG Critical Materials, N.V., the Project was 'eligible in principle' for a guarantee from the German Government on a loan for up to USD 270m. During the period, Savannah has continued to work with Euler Hermes AG (the German export credit agency) and the German bank, KfW IPEX on the next phase in the process. This involves due diligence being undertaken by KfW IPEX-Bank, Euler Hermes AG and its advisers across a range of topics.

Strategic Partnerships and Project financing

During the period, the Company continued to build its relationship with its first strategic partner, proposed offtaker and largest shareholder, AMG Critical Materials, N.V. This included continuing to work together on the next steps to secure the potential loan guarantee from the German Government as part of the 'full financing solution' for the Project's development, which AMG is leading on. If such financing is successful, the Offtake heads of terms anticipate the increase and extension of the offtake arrangements to 90ktpa for 10 years from the current 45kpta for 5 years. Following the end of the period, AMG also maintained its shareholding in Savannah by investing nearly £700k in the £4.8m equity fundraise in July.

Importantly, the agreement with AMG leaves Savannah with 100% ownership of the Project and at least 50% of its future concentrate offtake available to place with other partners. With the Company expecting to complete the DFS and licencing process and take a Final Investment Decision on the Project next year, preparation for increasing engagement with other potential commercial partners and finance providers is being accelerated. In support of this, Cutfield Freeman & Company Limited ('CF&Co') was appointed as Project Finance Advisor during the period. CF&Co is an independent international corporate finance advisor to mining and metals companies on all aspects of corporate, project and offtake-related finance, mergers and acquisitions and joint ventures. Since it was founded in 2000, CF&Co has closed over USD22bn of transactions.

In parallel with its discussions with potential partners and lenders, Savannah continued to evaluate and prepare for public funding opportunities which may become available from the Portuguese Government and from the European Commission for Strategic Projects via the CRMA. While the Company's current funding plans for the Project do not assume any contribution from these sources, it seems reasonable to expect that Savannah and its lithium Project could qualify for any such funding given the critical raw material being targeted.

Building our team

During the period, Savannah's senior team was strengthened in areas including finance, commercial and HR as it looks to gear up for the upcoming completion of the assessment and design phase of the Project and entry into the financing and construction stages. Key appointments included Chief Financial Officer, Henrique Freire, a seasoned executive with extensive experience in financial leadership across diverse sectors. Prior to joining Savannah, Henrique spent nine years as CFO of USD2bn listed energy entity, EDP Brazil and 13-years in M&A, having served as a Partner in one of the 'Big Four' accountancy firms. Former Group CFO, Michael McGarty, assumed the new role of Chief Corporate Officer. Working alongside Henrique is Savannah's new Project Finance Manager, Egídio Ribeiro. A former investment banker whose previous role was as Funding Manager at the Portuguese lithium refinery venture, Aurora Lithium.

Savannah also appointed Mike Tamlin to the role of Offtake Adviser. Mike brings over 20 years of expertise in the lithium industry. In previous roles, Mike has negotiated and managed significant material offtake agreements and identified and developed major international corporate joint venture partnerships in the lithium mining and converting sectors in Australia and internationally.

Manuela Salgado joined as Group Head of HR bringing over 20 years of HR experience to the Company as it looks to establish a new dedicated and coordinated HR function to support its current and future growth.

On the ground, staff numbers were increased during the period in support of the drilling campaign. While staffing levels are closely regulated to match short term commitments and skilling requirements, Savannah remains committed to its target of growing its staff base in Portugal and employing local people where possible.

Stakeholder engagement

During the first half of the year Savannah continued to build on its prior commitment to engagement with all stakeholders in the Project. This ranges from the national government, European Commission and local government through shareholders, customers, and local businesses to members of the public living in the towns and villages around the Project area.

As has been highlighted previously, at the local level the Company's continued integration into the area has benefited from simply being more present through greater numbers of staff in the area, including an increasing number of local employees, and having more Savannah properties (both working spaces and staff accommodation) in local towns and villages. However, our long term engagement strategy is increasingly directed through the comprehensive stakeholder engagement plans, frameworks and tools which we have developed in-house and with guidance from external consultants. These are helping us continue to better 'hear' our stakeholders and record, analyse and identify topics, concerns and opportunities. This makes our subsequent communication and actions more effective. In turn, this has also given the community a great opportunity to interact with Savannah and to maximise the benefits that the Project can generate for the area.

Central to this strategy is regular communication. Hence, Savannah continued to communicate accurate information about the Project through a number of channels including local radio and press as well as through formal and informal meetings, social events, social media and our own publications.

Other pillars in our strategy include sustained support for local groups and initiatives, regular interaction with local authorities, community leaders, local businesses and landowners, and effective social mapping and data collection.

Most importantly during the period, the community relations team worked diligently to ensure that stakeholders were kept informed and prepared for the DFS drilling programme which was being undertaken on land under the first temporary land easement. Stakeholder engagement is now underway in preparation for work beginning on land under the second land easement once it is approved.

However, there were numerous other highlights in terms of stakeholder engagement during what was a very busy period for the team. Savannah's team greatly enjoyed hosting its own social events as well as attending many other local festivals and events. Perhaps two events of most note were the creation of the 'Future of Barroso Association' by a group of local people, and the second community trip which Savannah organised for local residents to meet members of an existing mining community.

The Future of Barroso Association represents those members of the community who wish to engage with the Project to ensure that the opportunities it generates are maximised for local people. Savannah welcomes this initiative and is now engaging regularly with this group. On the community visit, following on from the well-attended community trip to the Neves Corvo mine community in southern Portugal last year, Savannah was delighted to take another large group of local residents to meet community members living near to the Barruecopardo tungsten mine in Spain. As at Neves Corvo, our hosts were extremely welcoming to our community and were very keen to explain how many benefits their community enjoyed as a result of its location near to a long term mining operation.

Significant effort continued to be made to build Savannah's brand within wider Portuguese society through the media during the period. As a result, the Company featured regularly across multiple platforms and formats of the local and national media. Further work remains to be done, but reporting on the Project continues to become more balanced and more fact based.

Alongside the progress made with the community, Savannah continued to see its in-country shareholding rise during the period, surpassing the 20% level in the process as existing shareholders added to their positions and new participants joined the register. Following the reporting period, additional investment from existing and new Portuguese investors, both institutional and private individuals, was seen in the July fundraise, further cementing Portugal's position as Savannah's second largest investor base behind the UK. In parallel with the Government's stance towards the Project we believe the growing national shareholder base reiterates the significance of the Project to Portugal and the growing interest in it from the public and financial institutional alike.

Legal matters

Operation Influencer

Though the Operation Influencer investigation, which was initiated by the Portuguese Public Prosecutor in November 2023, continues Savannah has had no contact with the investigating authorities since Q1 2024 and has been able to continue with all its work unencumbered. No guidance on future steps or outcome from the investigation can be given at this stage.

Other legal matters

In the five legal cases (further details can be found in the 2024 Annual Report) brought against various parties in relation to the Project which were underway at the start of 2025, there were no material developments or final judgements made during the period beyond the setting of preliminary hearing dates in September 2025 in both the land border dispute brought by the Covas Baldios against Savannah and six other private landowners, and the administrative claim made by 3 private landowners against the Ministry for the Environment in regard to the first temporary land easement. The brief suspension to fieldwork which was caused by this latter claim was lifted in February 2025 when the Ministry of Environment issued a 'Reasoned resolution' in response. Following submission of the Reasoned Resolution, the same 3 private landowners brought an administrative claim against it, which the court dismissed having found the claim to be without merit. The 3 private landowners subsequently appealed against this ruling during the period, which was also dismissed by a higher court though subsequent appeals to this ruling may be filed.

Most importantly, these ongoing cases have had no impact on the good standing of the Project's Mining Lease or its 2023 DIA. Nor have they stopped Savannah carrying on its work at the Project. Savannah's lawyers continue to advise that the cases relating to licensing and permitting are without foundation. In respect of the disputed land borders case, Savannah continues to be allowed to work on the land in question which it has purchased, and has the right under Portuguese law to use established legal processes for outright compulsory purchase if required.

Financials

The Company ended the period with a cash position of GBP 9.5m (30 June 2024 GBP 21.6m). This position was increased to GBP 13.3m in July following completion of a Fundraise which raised gross proceeds of GBP 4.78m from the issuance of 136.6m new Ordinary shares at a placing price of 3.5p/share. This cash reserve puts Savannah in a strong financial position to continue with its current development of the Project.

Losses from continued operations during the period decreased by 21% versus first half 2024 to GBP 1.5m (30 June 2024: GBP 1.9m) due to lower administrative expenses and a GBP 0.2m foreign exchange gain. In contrast, cash expenditure committed to exploration (GBP 3.2m vs. 30 June 2024: GBP 2.3m) increased by 39% due to the increased level of work at the Project during the period. As result, Intangible assets grew by 19% vs. end of the 2024 to GBP 25.8m within a broadly unchanged total asset base of GBP 42.2m (GBP 42.7m 31 Dec 2024).

Outlook

Savannah remains very well placed to play a prominent role in Europe's lithium supply chain. Supported by the national Government, the European Commission, its strategic partner, shareholders and stakeholders who share its vision of making the Barroso region a leader in Europe's new lithium industry, Savannah expects to make meaningful progress in the remainder of 2025 and 2026. Against the backdrop of an increasingly positive, demand driven, lithium market, in which new supply is beginning to be valued once again for its strategic importance, Savannah will complete its Project's DFS and environmental licencing. It will also begin to draw together the financing and commercial elements it will need to develop the Barroso Lithium Project into an operating reality. By achieving this Savannah can generate significant shareholder value and makes an important contribution towards the economic and social regeneration of its host region.

With such significant milestones ahead, news flow will be frequent, and Savannah will continue to market its unique, European, offering to investors looking for exposure to underlying critical raw materials in regions where stringent regulations call for high quality, responsible man.