Oman Exploration Update

·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·    Aspects of the determination of mineralisation that are Material to the Public Report.

·    In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

·    All data at the Aarja and Dogs Bone Prospects has been gathered from diamond core. HQ and NQ core sizes have been used.  Holes have been angled to optimally intersect lithology structures.

·    Sampling from diamond drilling is by half core sampling of NQ or HQ core

·    Core is geologically logged and samples selected based on geological logging.  Samples are then dispatched to Bureau Veritas in Turkey for analysis using the following process route.

·      Whole sample is dried at 85°C, Crush to 70% -10 mesh (2mm), 100% pulverize to 85%passing -200 mesh (75 μm).

·      Au: 30gr Fire Assay / lead collection fusion / AAS finish / 5ppb - 10ppm

·      Au>10ppm (& Ag if also over-limit): 30gr / fire assay fusion / GRAVIMETRIC finish

·      24 Element (Mo, Cu, Zn, Ag, Ni, Co, Mn, Fe, As, Sr, Cd, Sb, Bi, Ca,P, Cr, Mg, Al, Na K, W, Hg, S) Aqua Regia Digest ICP-OES finish.

·    Bulk density determinations are made for all samples that are assayed, using the Archimedes method.  This measurement is completed in Oman by Savannah employees.

·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

·    Diamond drilling used HQ2 or NQ2 sized equipment.  Diamond core was not orientated.

·    Down hole surveys are completed using a single shot Tropari device at approximately 30-50m intervals down hole.

·    Method of recording and assessing core and chip sample recoveries and results assessed.

·    Measures taken to maximise sample recovery and ensure representative nature of the samples.

·    Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

·    Diamond core recoveries were recorded in the drill logs.  It is unknown if a relationship exists between sample recovery and grade.

·    Areas of poor recoveries were observed and recorded in the logging.

·    In areas of poor recovery additional drilling muds were applied to improve recovery.

·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

·    The total length and percentage of the relevant intersections logged.

·    All drill holes were logged for recovery, RQD, geology and structure.

·    Logging of recorded lithology, mineralogy, mineralisation, weathering, colour and other features of the samples. Diamond core was photographed wet.

·    All drill holes were logged in full.

·    If core, whether cut or sawn and whether quarter, half or all core taken.

·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

·    For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·    Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

·    Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

·    Whether sample sizes are appropriate to the grain size of the material being sampled.

·    HQ and NQ core was cut in half using a core saw. 

·    Certified reference standards, blanks and duplicates are routinely inserted in the sample sequence to assess the quality of sampling and analysis.

·    Sample sizes are considered appropriate for the style of mineralisation expected.

·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

·    The analytical techniques used are appropriate for the elements and mineralization styles being explored for.

·    Savannahs QAQC protocol is to industry standards with standard reference material and blanks submitted at a minimum of 5% frequency rate.

·    The verification of significant intersections by either independent or alternative company personnel.

·    The use of twinned holes.

·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·    Discuss any adjustment to assay data.

·    No independent or alternative verification of the assays has been made

·    No twin holes have been drilled

·    No adjustments have been made to the assay data

·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·    Specification of the grid system used.

·    Quality and adequacy of topographic control.

·    Holes have been located using a handheld GPS unit using WGS84 Zone 40N co-ordinates.

·    Holes have been downhole surveyed using a Tropari single shot device

·    Topographic data for Dogs Bone is restricted to a survey of the historical open pit and immediate surroundings.

·    Data spacing for reporting of Exploration Results.

·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·    Whether sample compositing has been applied.

·    Hole spacing at Dogs Bone is approximately at 20m centers selectively targeting the mineralized zone.

·    Data at Aarja and Dogs Bone is insufficient to establish geological and grade continuity needed for Mineral Resource estimation.  The current drilling is infilling previously drilling.

·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·    If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

·    Drill holes are angled approximately perpendicular to the orientation of the lithological trends

·    Orientation of the holes does not bias sampling data.

·    Reported intervals are down hole widths and are not necessarily true widths of mineralisation.

·    The measures taken to ensure sample security.

·    Chain of custody is managed by Savannah. Samples are stored on site in a locked yard.  Samples are then transported to Turkey by airfreight.  Savannah personnel have no contact with the samples once they have been dispatched.

·    The results of any audits or reviews of sampling techniques and data.

·    No audits or reviews of the sampling techniques or data have been completed.

·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

·    The Aarja/Dogs Bone Prospect is located with the exploration permit referred to as Block 4.  Savannah has a 65% interest in the Block with the remainder being held by a local JV partner.

·    The tenement is in good standing with no known impediment to renewal.

·    Acknowledgment and appraisal of exploration by other parties.

·    Previous exploration has been completed around Dogs Bone between 1980-1994 by OMCO with historical mining being completed in the area.

·    Deposit type, geological setting and style of mineralisation.

·    The deposit type being tested is the Cyprus type VMS model.  VMS mineralisation is interpreted to have formed on a mid ocean ridge and then emplaced as an ophiolite on the Arabian Craton.  Several examples of this model exist in the region.

·    A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

·    If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

·    The location of the drilling at Aarja and Dogs Bone are summarised in Table 1 in the body of this release.

·    Previously completed holes by OMCO at Dogs Bone are not all reported in this release.

·    Not all holes completed in this program by Savannah have been reported in this release.

·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·    The assumptions used for any reporting of metal equivalent values should be clearly stated.

·    Significant copper intersections are based on assays greater than 0.5% Cu and may include up to a maximum of 3.0m of internal dilution, with a minimum composite grade of 0% Cu. The minimum width for an intersection is 0.2m.

·    Significant zinc intersections are based on assays greater than 1% Zn and may include up to a maximum of 3.0m of internal dilution, with a minimum composite grade of 0% Zn. The minimum width for an intersection is 0.2m.

·    All grades used for calculating significant intersections are uncut.

·    Minimum and maximum diamond core sample intervals used for intersection calculation are 0.2m and 1.2m respectively subject to location of geological boundaries.

·    No metal equivalents are used in the intersection calculation.

·    Where core loss occurs; the average length weighted grade of the two adjacent samples are attributed to the interval for the purpose of calculating the intersection. The maximum interval of missing core which can be incorporated with the reported intersection is 1m.

·    These relationships are particularly important in the reporting of Exploration Results.

·    If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

·    If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

·    Exploration results are reported as length weighted averages.

·    No high grade cuts have been applied to the reporting of the exploration results.

·    No metal equivalent values have been used.

·    Down hole intervals have been reported.  True widths are not known.

·    Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

·    Relevant diagrams and maps have been included in the main body of the release.

·    Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

·    All results have been reported.

·    Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

·    The interpretation of the results at Dogs Bone are consistent with the observations and information obtained from historical data collected and geophysical surveys completed in the area.

·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

·    Further drilling is planned for Dogs Bone to improve the confidence in the dimensions of the identified mineralisation.