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Strategic Lithium Acquisition, Portugal

RNS Announcement

RNS Number : 1749G

Savannah Resources PLC

25 May 2017

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

25 May 2017

Savannah Resources Plc

Strategic Lithium Project Acquisition with Near-Term Production Potential, Portugal

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), is pleased to announce that it has entered into an agreement with a consortium of vendors led by Slipstream Resources Investments Pty Ltd ('Vendors' or 'Slipstream') to acquire a series of highly prospective lithium projects with near-term production potential in the north of Portugal (the "Transaction"). To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/1749G_-2017-5-24.pdf

TRANSACTION HIGHLIGHTS

· Strategic opportunity to become the first significant lithium producer in Europe having acquired the Mina do Barroso prospect in northern Portugal;

· Approved Mining Plan ('MP'), Environmental Impact Assessment ('EIA') and a 30-year mining concession/Mining Licence ('ML') means that with a defined JORC resource a development decision could be made by the end of 2018;

· Significant exploration results include:

o Due diligence rock chip sampling identifying desirable spodumene pegmatites >70m wide with Li₂O grades > 3.12%

o Continuous rock chipping returning broad zones of lithium mineralisation including 30m at 1.18% Li₂O, 30m at 1.35% Li₂O and 35m at 1.67% Li₂O

o High-grade drill results which commence from at or near surface including 32m at 1.16% Li₂O from 20m, 12m at 1.6% Li₂O from 1m and 16m at 1.35% Li₂O from surface;

· Preliminary metallurgical test work has indicated that a high-grade (over 6% Li₂O), clean, low iron, lithium concentrate can be produced;

· Further exploration underway including mapping and rock chip sampling with drilling expected to commence in around two weeks with the initial focus on defining a JORC resource at Mina do Barroso to support a potential mine development;

· Acquisition is part of an enlarged acquisition that included a 75% interest in four project areas covering up to 1,018km² of tenure with proven high-grade lithium mineralisation offering additional upside potential;

· Secured Portuguese operating partner Mineralia Minas, Geotecnia e Construcoes, Lda., which has commissioned over 11 quarries and mines in Portugal;

· Portugal has consistently ranked highly in the world for desirability for investment (2016 Fraser Institute study) and is in the top 7 lithium-producing countries (linked to the ceramics industry); and

· Consideration for the Transaction will comprise of initial cash consideration of AUD$1.0million plus the issue of 20,000,000 ordinary shares of 1p each in Savannah ('Ordinary Shares') to the Vendors.

· Additional milestone based, conditional consideration, as summarised below, which could lead to an aggregate consideration of AUD$10.1m (£5.8m) (cash and shares) based on Savannah's closing share price on 24 May 2017.

Savannah's CEO, David Archer said: "This transaction provides Savannah with a unique opportunity to secure what we believe to be one of the most advanced lithium mining concessions in Europe, in a low-cost and stable political environment. With an approved Mining Plan, Environmental Impact Assessment, Mining Licence and the potential to produce high grade lithium product, we believe the Mina do Barroso prospect could transform the European lithium / Electric Vehicle ('EV') industry by becoming the first producer of battery quality lithium in Europe.

"Mainland Europe currently consumes around 25% of the world's lithium and is an early adopter of EVs and battery storage solutions. With battery production by major European manufacturers rapidly expanding, any potential local supplies from mainland Europe are being keenly sought and we believe the Mina do Barroso, together with our enlarged portfolio of lithium assets in Portugal, is ideally situated to address this strategic need. Work is now underway to define a JORC resource at Mina do Barroso so that we may be in a position to make a development decision by the end of 2018. This is undoubtedly a highly strategic and valuable growth opportunity for Savannah."

FURTHER INFORMATION

Savannah is acquiring a 75% interest in actual and contingent assets spread over four project areas with over 1,018km² of tenure including: one granted mining concession (5.42km²), and nine pending exploration licence applications (the 'Projects').

Of the 1,018km² Project area relating to the pending applications: 348km² is on track for government approval and 670km² is currently subject in part to overlapping exploration licence applications from third parties.

1) TECHNICAL INFORMATION ON THE PROJECTS

The advanced nature of the Mina do Barroso prospect, with an approved ML, MP and EIA means that with the definition of a JORC resource, a development decision could potentially be made by the end of 2018. Mina do Barroso is part of the enlarged Covas do Barroso Project area.

Figure 1. Mining Licence Details

Region	Concession Name	Area	Expiry*
Covas do Barroso	C-100: 'Mina do Barroso'	5.42km²	12/05/2036

*Mining licence may benefit from a contract extension of 20 years at agreement of licence holder and Portuguese State.

Figure 2. Exploration Licence Applications Details

Region	Tenement Name	Area (km²)	Approximate Overlap by Other Applications (km²)	% Economic Interest Held by Slipstream Resources Unipessoal Lda
Covas do Barroso	Vilar	99	79	100%
	Beça	21	Nil	100%
	Reigoso	83	Nil	100%
Serra D'Arga	Calvelo	73	Nil	100%
	Ponte de Lima	294	147	100%
	Caminha	193	174	100%
Barca D'Arga	Meda	171	Nil	60%
Barca D'Arga	Almendra	57	17	100%
Tâmega	Caramos	29	26	100%

Figure 3. Country Map for the Projects - see PDF link

Figure 4. Location of the Projects - see PDF link

(i) Covas do Barroso Project

The presence of swarms of known 'lithium-bearing pegmatite dykes' has made this region a key focus for Savannah. The initial emphasis is on the Covas do Barroso area, which includes:

1) the advanced 'Mina do Barroso' prospect with approved mining licence;

2) the highly prospective Vilar (223km_--²), and Beca prospects; and

3) Reigoso which contains extensive un-explored spodumene bearing pegmatites.

The Barroso-Alvão region is characterised by the presence of a large field of several dozen pegmatite and aplite-pegmatite dykes of granitic composition. Pegmatite dykes are mainly intruded in the granitic rocks of the region whilst aplite-pegmatite dykes are hosted by low- to medium-grade metasedimentary rocks of Silurian age that are strongly deformed (B. CHAROY et al.,1992). The thickness of these dykes ranges from less than 1m up to 70m with the primary focus on lithium rich spodumene-rich aplite-pegmatite dykes.

Mina Do Barroso Prospect

Based on the work Savannah has undertaken to date, the Directors believe that the Mina Do Barroso prospect is arguably one of the most advanced lithium development projects in Europe with the potential to be fast tracked into production.

Past Exploration

Previous work on the prospect has focused on the production of ceramics and not lithium. As a result, the lithium work is largely unstructured but points to significant potential in a relatively underexplored series of pegmatites that have not had their strike, width or down dip potential defined. Work has included reconnaissance geological mapping, trenching, drilling and preliminary metallurgical test work.

Geology and Rock Chip Sampling

The Mina do Barroso Prospect comprises a series of well-defined pegmatites up to 50m in width and 400m in length, with past exploration confirming the presence of lithium within the pegmatites. A series of high priority opportunities have been defined within the prospect area (Savannah Rock Chips Appendix 2A, Vendor Rock Chips Appendix 2B), these include:

NOA

Rock chip sampling by Savannah during April 2017 including continuous rock chips and scattered rock chips average 1.5% Li₂O. The continuous rock chipping outlined significant widths of mineralisation including:

- 30m at 1.18% Li₂O in NOA 1

- 30m at 1.35% Li₂O in NOA 2

- 35m at 1.67% Li₂O in NOA 3

This sampling confirms the prospectivity of the NOA area with a series of pegmatites in the area which require further detailed and systematic exploration.

Reservatorio

Rock chip sampling by Savannah during April 2017 targeting spodumene bearing pegmatites has confirm the prospectivity of the Reservatorio Lens as the samples ranged from 0.87% Li2O to 2.7% Li2O and averaged 1.6% Li2O. Significant potential exists in the Reservatorio area with the potential for the pegmatite to extend over 400m in strike length.

Grandao

The Grandao area contains some of the most extensive pegmatite outcrop in the Mina do Barroso prospect area. Recent rock chip sampling by Savannah in April 2017 in the area returned results of 1.41% Li₂O to 2.07% Li₂O with an average 1.79% Li2O, the highest average grade for any of the Mina do Barroso aplo-pegmatites. However, it should be noted that there is only limited sampling to date and further work is required to determine the potential of the area.

Figure 5. Two zones of pegmatites within the metasedimentary sequence in the Minas do Barroso area - see PDF link

Figure 6. Below Left: Coarse-grained Lithium bearing pegmatites from the Mina do Barroso tenement.

Below Right: Close-up of coarse-grained spodumene from the Mina do Barroso tenement - see PDF link

Figure 7. Mina Do Barroso Prospect exploration results summary map - see PDF link

Trenching

A programme of 26 trenches was completed during 2002 ranging from 10m to 125m in length has identified a series of pegmatites ranging from 10-50m in width and up to 400m in length. The trenching was focused on identifying the pegmatites and testing the near surface material for ceramics properties, no lithium sampling was completed.

Figure 8. 2002 trenching being conducted - see PDF link

Drilling

Exploration work by past explorers has included a series of shallow drill holes (115 holes ranging from 7m to 84m in depth, with 75 holes confirmed to contain anomalous lithium) targeting near surface ceramic material (refer to Appendix 1). Lithium analysis has highlighted significant anomalies including:

· 10m at 1.1% Li₂O from surface in CB2 (EOH)	· 19m at 1.03% Li₂O from 21m in RES01C
· 7m at 1.22% Li₂O from surface in CB2 (EOH)	· 8.5 at 1% Li₂O from 2m RES06 (EOH)
· 16m at 1.35% Li₂O from surface in GRA05	· 14m at 1.04% Li₂O from surface in RES07
· 17m at 1% Li₂O from 7m GRA15	· 32m at 1.16% Li₂O from 20m in RES019
· 8m at 1.43% Li₂O from 32m in GRA028	· 11m at 1.1% Li₂O from 43m in RES023
· 22m at 1.1% Li₂O from 3m in NOA01 (EOH)	· 12m at 1.6% Li₂O from 1m in RES030
· 15m at 1% Li₂O from 7m in NOA13	· 12m at 1.22% Li₂O from 16m in SAC01 (EOH)
· 10m at 1.5% Li₂O from 2m in RES01 (EOH)	· 13m at 1.24% Li₂O from surface in SP2(EOH)

Note: Intercepts calculated using a 0.7% Li₂O cut-off with no more than 1m of internal dilution and a minimum mineralised width of 7m and an average grade of over 1% Li₂O.

Preliminary Metallurgy

Initial preliminary metallurgical test work has been completed by past explorers which indicates that a clean, high quality spodumene product (over 6% Li₂O) can be produced from the mineralised rock. The mineralisation at Mina do Barroso compares very favourably to the mineralisation at the Pilgangoora deposits of both Altura and Pilbara Minerals in Australia, and a simple comparison is provided below.

· Altura, Pilgangoora: Resource Grade 1.15% Li₂O, 1.7% Fe₂O₃; concentrate grade >6% Li₂O

· Pilbara Minerals, Pilgangoora: Resource Grade 1.29%Li₂O, 1.19% Fe₂O₃; concentrate grade >6% Li₂O

· Mina do Barroso: Mineralisation Grade approximately 1.1% Li₂O, 0.5%Fe₂O₃; concentrate grade >6%Li₂O

Approved 30 Year Mining Licence, Mine Plan and Environmental Impact Assessment

One of the significant advantages of the Mina do Barroso project is the approved Environmental Impact Assessment and Mine Plan to remove approximately 7Mt of lithium, quartz and feldspar from seven pegmatites within the approved mining licence. The term of the current licence is 30 years: commencing in 2006 and expiring in 2036.

The approvals would need to be modified for the extraction of additional material and to build a plant specific to lithium processing, with this process expected to take in the order of 6-8 months as the changes are an amendment to the existing approvals.

Reigoso Prospect

Field reconnaissance at the Reigoso Prospect highlighted an area of at least, 3 x 1.5km with many outcrops of large pegmatites rich in coarse spodumene. The larger pegmatites seem to be sub-horizontal "sills", indicating that they may have large volumes of pegmatite near surface following the down dip extension of the bodies. The main body seems to be quite extensive with at least one of the bodies with the potential to be at over 50m width and 500m in strike at surface with many other smaller pegmatite bodies. Detailed mapping and sampling of the area is now required to determine the potential of the area.

Figure 9. Reigoso main outcropping pegmatite - see PDF link

Figure 10. Reigoso Prospect, massive spodumene crystals up to 1m in size - see PDF link

(iii) Serra d'Arga Project

Savannah has pegged three tenements in the Serra d'Arga area including Calvelo, Ponte de Lima and Caminha. The Serra d'Arga project area covers a swarm of sills associated with the evolution of the diapiric Serra d'Arga granite. The sills exhibit complex associations of lithium minerals.

The spodumene-bearing bodies of aplite and pegmatite can occur intra-granitic, but are mainly found beyond the pluton. In the coastal area north of Viana do Castelo, the bodies of aplite-pegmatite are enclosed in well-exposed metasedimentary host rocks where spodumene may account for up to 20% of the volume of the bodies, and crystals may attain 30cm in length (Gomes & Nunes 1990, Gomes 1992).

The modal proportion of petalite attains 15% in some bodies in the Formigoso area. Some bodies of homogeneous aplite and pegmatite approach 8,000ppm lithium, contain disseminated spodumene-petalite, and lepidolite-bearing pegmatites in the same field may exceed 12,000ppm lithium.

From this exploration, a large pegmatite (>80m) can be seen and the surface indications for W and E indicate that it has, at least, >400m length (see Figures 11 and 12). These bodies seem to be sub-horizontal, so they may have more volume of pegmatite near the surface, following the dip. The presence of feldspar is actually very rare and the percentage of spodumene in this body seems to be around 30 - 40%.

Figure 11. Outcropping spodumene bearing pegmatite in Caminha permit - see PDF link

Figure 12. Outcropping spodumene bearing pegmatite in Caminha permit - see PDF link

Figure 13. Serra D'Agra Project exploration results summary map - see PDF link

(iv) Barca d'Alva Project

The Almendra-Souto (AS) region is a high priority for lithium resources. Surrounded by highly evolved granitoids, it is a region with metalogenic potential, known by its Sn, W and lithium mineralisation. The region is well known for the presence of pegmatite-aplite veins with the lithium minerals lepidolite, spodumene and petalite (Gaspar 1997; Charoy & Noronha 1999). Savannah has pegged two tenements in the region, Meda and Almendra, covering a number of known swarms.

The Meda project surrounds a small mining lease that covers one of the larger veins of this pegmatite-aplite field (an open pit for the ceramic industry known as Bajoca mine). This vein has an extension of 700m, with variable thickness between a few metres to more than 30m. There are many other lithium occurrences in the area but to date they have been largely explored for ceramic mate rial with little exploration directed toward the supply of lithium carbonate for the battery industry.

(v) Tâmega Project

The area contains numerous pegmatite-aplite veins and rare-element-rich granites. Lithium minerals are dominated by layered petalite, spodumene and montebraisite, hosted in NW-trending aplite-pegmatites that surround a leucogranite. Reserves of lithium as spodumene were mined from the Vieiros tin mines 10km to the NW. Slipstream has pegged the Caramos tenement.

Portuguese Operating Partner

Savannah has formed a strong working and business relationship in Portugal with Mineralia Minas, Geotecnia e Construcoes, Lda. ('Mineralia'). Mineralia is a geological and engineering firm that has commissioned over 11 quarries and mines in Portugal and has been involved in the local mining industry for over 50 years.

Current Valuation

The Projects are not currently capitalised in the financial accounts of the Vendors but costs incurred in relation to previous exploration programmes have been expensed both by the Vendors and by the previous owners of the Projects.

The Company commissioned an independent valuation report utilising the Kilburn Geosciences Rating Method indicating that the value of the Covas do Barroso tenements is between USD851,000 - USD2,240,000 in their current state. In addition, the Company understands that historical expenditure by the prior owner of the Projects prior to Slipstream's ownership (mapping, assaying, drill testing, metallurgical testwork, market studies, and activities associated in applying for and being granted mining licenses and associated environmental and technical studies) was significantly in excess of Slipstream's costs.

2) KEY COMMERCIAL TERMS OF THE TRANSACTION

Savannah has acquired the Portuguese assets through the purchase of an effective 75% shareholding in Slipstream Resources Unipessoal Lda (the registered holder of the Mina do Barroso Mining Licence and the registered applicant for the above mentioned nine pending exploration licence applications).

Savannah acquired its equity interest in Slipstream Resources Unipessoal Lda through a transaction with a consortium of vendors led by Slipstream Resources Investments Pty Ltd ('Vendors').

Savannah and the Vendors will form a joint-venture in relation to both the Mina do Barroso Mining Licence and the remaining exploration licence applications, with Savannah taking 75% controlling equity interest in Slipstream Resources Unipessoal Lda. Savannah shall fund the operations of the joint venture up until a decision to mine is made, after which funding of the joint venture shall be shared pro-rata to respective equity interests.

Consideration

The initial consideration for the Transaction is a mixture of cash and the issue of Ordinary Shares to the Vendors, being AUD $1.0m purchase price and the issue of 20,000,000 Ordinary Shares at the current market price at the time of issue. These 20,000,000 Ordinary Shares (to be held in escrow for six months from the date of issue) will be issued to the Vendors shortly and a further announcement will be made at that time.

Deferred consideration of AUD$1.5m cash and a further 20,000,000 Ordinary Shares of the Company (to be subject to orderly market provisions for six months) has also been agreed to be paid to the Vendors upon the announcement by Savannah of a JORC-compliant Indicated Mineral Resource of 7.5 million tonnes at no less than 1% Li₂O ('Milestone 1').

In addition, upon the announcement by Savannah of a further JORC-compliant Indicated Mineral Resource of a minimum of 7.5m tonnes at no less than 1% lithium; final consideration of AUD$1.5m cash and an additional 20,000,000 Ordinary Shares (to be subject to orderly market provisions for six months) be paid to the Vendors ('Milestone 2') (together with Milestone 1, 'the Milestones').

Assuming the Milestones are achieved, the total consideration for the Transaction could equate to an aggregate value of AUD$10.1m (£5.8m) based on the deferred consideration being calculated using the Company's closing share price on 24 May 2017. The consideration is heavily geared towards the Vendors' receipt of Ordinary Shares in Savannah, which will align the respective parties Joint Venture interests and therefore further improve business cooperation in respect of the Projects.

A majority of the consideration paid pursuant to the terms of the Transaction is subject to the successful development of the Project(s) as a result of the Milestones (outlined above), thus minimising initial cost of the Transaction and linking future consideration to a successful Joint Venture and the increase in value in the Project(s).

Mr Dale Ferguson

Mr Dale Ferguson, the Company's Technical Director, is also a Director of and minority shareholder in Slipstream Resources Investments Pty Ltd (one of the Vendors).

As such, Dale Ferguson has been excluded from any of Savannah's commercial negotiations with the Vendors and is precluded from voting on any matters relating to the sale and purchase agreement between Savannah and the Vendors.

Furthermore, as part of the technical due diligence process, Savannah engaged Wardell Armstrong International to prepare a technical report on the Projects.

3) DEMAND FOR LITHIUM

The Directors believe there is a revolution underway in how we generate and use energy. As such, the demand for materials such as lithium, which is a key component in new energy storage solutions, is rising at record rates.

Respected US group, Morningstar Institutional Equity Research, made the following comments in November 2016: "Accelerating electric vehicle adoption will drive global lithium demand far beyond consensus expectations, affording attractive investment opportunities for long-term investors. We expect EV penetration to surge from less than 1% of global auto sales in 2015 to 10% in 2025, well ahead of the market view for only 4%-6% penetration by 2025. We forecast 16% annual lithium demand growth over the next decade, faster than we've witnessed for almost any major commodity over the past century."

Figure 14. Projected increasing lithium demand, Morningstar Institutional research Nov 2016 - see PDF link

Highlight Issued of the European Lithium Market:

· apart from small Iberian production for local ceramics/glass use, the EU has no internal lithium supply;

· the EU is a major importer of lithium consuming 24% of global market (second only to China); and

· lithium processing sites from imported material in several EU countries.

Most of the large car manufacturers are launching models that integrate lithium ion battery technology whilst Tesla, Inc. is aiming to bring electric vehicles to the mass market by lowering costs and entering into battery manufacture with their 'Gigfactory' in Nevada which will initially produce 500,000 units per annum.

It will invariably take time for leading car manufacturers and society to adopt electric vehicles to a point which will impact the lithium market. However, there is growing concern by governments to take action to reduce global warming and pollution of cities by use of fossil fuels and the adoption of electric vehicles can play a significant role. The market for lithium ion batteries has grown markedly following the adoption by consumer technologies - and car batteries require substantially more lithium to power electric vehicles.

Increased use of lithium ion batteries for heavy duty power storage particularly linked to sources of renewable energy off-grid was also projected by Roskill. The increasing use of lithium-aluminium alloys in aircraft manufacture to lighten weight and improve fuel efficiency has good growth potential.

In global terms, China is the largest consumer of lithium - providing approximately 35% of the market's consumption, with Europe as the second largest consumer (24% consumption), and thereby followed by Japan and South Korea.

Competent Person Statement

The information in this document that relates to technical information is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources Limited. Mr Ferguson is a Member of the Australian 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.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

For further information please visit www.savannahresources.com or contact:

David Archer	Savannah Resources plc	Tel: +44 20 7117 2489
David Hignell / Gerry Beaney (Nominated Adviser)	Northland Capital Partners Ltd	Tel: +44 20 3861 6625
Jon Belliss / Elliot Hance (Corporate Broker)	Beaufort Securities Ltd	Tel: +44 20 7382 8300
Charlotte Page / Lottie Brocklehurst	St Brides Partners Ltd	Tel: +44 20 7236 1177

Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, mineral development company.

Mozambique

Savannah operates the Mutamba heavy mineral sands project in Mozambique in collaboration with Rio Tinto, and can earn a 51% interest in the related Consortium, which has an established initial Indicated and Inferred Mineral Resource Estimate of 3.5 billion tonnes at 3.8% THM over the Jangamo and Dongane deposits. Under the terms of the Consortium Agreement with Rio Tinto, upon delivery by Savannah of the following Savannah will earn the corresponding interest in the Mutamba Project: scoping study - 20%; pre-feasibility study - 35%; feasibility study - 51%. Additionally, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of production to Rio Tinto (or an affiliate).

Oman

Savannah has interests in two copper blocks in the highly prospective Semail Ophiolite Belt in Oman. The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold credits, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.

Portugal

Savannah holds a 75% interest one mining licence and nine prospective applications for the exploration and development of lithium, covering an area in excess of 1,018km² in northern Portugal. This includes the highly strategic Mina do Barroso prospect, which with an approved Mining Plan ('MP'), Environmental Impact Assessment ('EIA') and a 30-year mining concession/Mining Licence ('ML'), means that with a defined JORC resource a development decision could be made as early as Q4 2018.

Finland

Savannah has Reservation Permits over two new lithium projects, Somero and Erajarvi, covering an area of 159km² in Finland. Savannah holds a 100% interest in these projects through its Finnish subsidiary Finkallio Oy. Geological mapping by the Finnish Government within the project areas has highlighted the presence of lithium minerals spodumene, lepidolite and petalite with the Government also identifying Somero and Erajarvi as one of the most prospective areas to discover lithium deposits in Finland. Savannah plans to initiate an exploration programme including data compilation, geological mapping and surface sampling with the aim of generating drill ready targets during 2016.

Appendix 1. List of historical drill Holes completed by past explorers (Datum: UTM36, all holes were vertical)

Refernce	SISTEMA HAYFORD-GAUSS, DATUM 73		Altitude	Depth	Inclination	Azimuth
CAM01	216985.991	28809.167	556.28	10	-90	0
CAM02	216980.717	28810.585	555.927	19	-90	0
CAM03	216899.117	28858.168	553.652	13	-90	0
CAM04	216972.627	28765.313	549.921	13	-90	0
CAM05	216898.638	28749.455	551.492	13	-90	0
CAM06	216857.849	28762.144	550.307	19	-90	0
CAM07	216774.075	28788.118	551.366	16	-90	0
CAM08	216769.360	28786.860	550.541	13	-90	0
CAM09	216864.780	28834.347	561.683	16	-90	0
CAM10	216918.505	28808.607	560.508	13	-90	0
CAM11	216921.391	28802.941	560.446	13	-90	0
CB1	216686.570	26416.650	Unknown	13	-90	0
CB2	216677.790	26394.560	Unknown	16	-90	0
CB3	216704.650	26409.830	Unknown	7	-90	0
CB4	216703.600	26414.830	Unknown	10	-90	0
GRA01	216533.654	29735.557	590.042	13	-90	0
GRA01C	216502.759	29677.151	584.881	49.25	-90	0
GRA02	216511.539	29701.783	589.5	25	-60	50
GRA02C	216554.377	29732.927	584.423	50.65	-90	0
GRA03	216492.443	29634.906	576.105	10	-90	0
GRA04	216488.371	29704.274	585.997	16	-90	0
GRA05	216433.876	29800.609	572.372	25	-90	0
GRA06	216393.432	29780.665	570.073	25	-60	135
GRA07	216421.455	29833.988	577.062	25	-90	0
GRA08	216271.482	29686.967	571.708	25	-90	0
GRA09	216301.008	29689.524	572.07	22	-90	0
GRA10	216328.960	29769.273	595.593	25	-90	0
GRA11	216327.260	29772.162	596.482	25	-60	55
GRA12	216312.061	29826.885	597.697	16	-90	0
GRA13	216127.218	29673.722	602.599	25	-90	0
GRA14	216159.632	29594.982	589.047	19	-90	0
GRA15	216465.018	29758.783	578.356	31	-90	0
GRA16	216496.330	29747.830	589.487	49	-90	0
GRA17	216574.147	29734.825	581.175	37	-90	0
GRA18	216532.309	29800.724	588.61	28	-90	0
GRA19	216593.933	29815.495	587.575	22	-90	0
GRA20	216609.605	29745.825	571.714	22	-90	0
GRA21	216630.887	29695.654	563.183	40	-90	0
GRA22	216625.439	29684.962	564.397	55	-90	0
GRA23	216565.915	29653.589	564.279	37	-90	0
GRA24	216521.111	29593.644	563.098	25	-90	0
GRA25	216548.923	29589.928	558.558	25	-90	0
GRA26	216472.028	29625.394	568.555	52	-90	0
GRA27	216560.015	29718.304	581.613	64	-90	0
GRA28	216543.872	29695.451	581.168	52	-90	0
GRA29	216593.843	29673.597	564.679	70	-90	0
GRA30	216649.53	29757.155	563.571	31	-90	0
NOA01	217927.423	27050.364	689.929	25	-90	0
NOA01C	217949.379	26964.205	688.855	25.4	-70	180
NOA02	217922.289	26989.187	696.528	10	-90	0
NOA03	217935.442	26945.09	695.919	10	-90	0
NOA04	217930.474	26934.224	695.487	10	-90	0
NOA05	218135.9	26802.348	682.899	10	-90	0
NOA06	218130.538	26832.993	687.097	13	-90	0
NOA07	218151.273	26784.416	680.969	13	-90	0
NOA08	218140.089	26796.964	683.368	13	-90	0
NOA09	218127.363	26791.088	685.069	13	-90	0
NOA10	218051.072	26758.72	688.037	16	-90	0
NOA11	217944.088	27042.307	689.131	25	-70	190
NOA12	217948.301	26989.999	689.744	31	-70	180
NOA13	217957.925	26948.318	687.655	28	-70	180
NOA14	217978.795	26916.067	682.408	37	-70	160
NOA15	218014.671	26962.206	672.857	31	-60	180
NOA16	217980.807	27028.687	680.501	31	-70	170
NOA17	217981.494	26986.163	680.54	19	-70	170
NOA18	217990.891	26941.089	680.279	34	-70	170
PGR01	217389.547	28213.799	536.804	22	-90	0
PGR02	217419.387	28139.954	530.975	16	-90	0
PGR03	217400.538	28130.008	532.492	16	-90	0
PGR04	217441.822	28117.918	516.136	16	-90	0
PGR05	217414.089	28082.582	522.014	13	-90	0
PGR06	217377.778	28243.222	538.141	13	-90	0
PGR09	217422.249	28211.18	528.728	22	-90	0
PGRP01	217325.558	27996.046	494.211	22	-90	0
RES01	217666.695	27797.776	585.285	19	-90	0
RES01C	217637.252	27555.293	598.395	52.45	-90	0
RES02	217698.375	27763.957	592.658	16	-60	120
RES02C	217629.294	27449.518	595.475	15.95	-90	0
RES03	217692.524	27760.329	594.009	16	-90	0
RES04	217691.466	27760.133	593.957	13	-60	120
RES05	217346.668	27516.754	573.76	22	-60	95
RES06	217308.787	27566.463	561.046	16	-90	0
RES07	217482.392	27404.824	597.352	22	-90	0
RES08	217599.126	27540.016	584.538	10	-90	0
RES09	217609.099	27487.610	587.46	13	-90	0
RES10	217592.711	27453.538	591.754	19	-90	0
RES11	217534.765	27472.747	591.915	10	-90	0
RES12	217553.003	27388.772	605.365	10	-90	0
RES13	217651.212	27428.685	603.281	10	-90	0
RES14	217644.648	27488.622	596.448	10	-90	0
RES15	217624.603	27538.707	593.255	25	-90	0
RES16	217656.975	27677.694	594.743	22	-90	0
RES17	217506.996	27455.964	590.375	19	-90	0
RES18	217526.417	27414.684	600.389	19	-90	0
RES19	217673.914	27598.770	607.177	61	-90	0
RES20	217658.092	27535.668	603.914	70	-90	0
RES21	217687.398	27688.169	600.181	46	-90	0
RES22	217698.264	27454.664	611.802	40	-90	0
RES23	217689.289	27528.710	611.428	84	-90	0
RES24	217651.288	27476.240	596.846	55	-90	0
RES30	217688.450	27754.200	Unknown	22	-90	0
RES31	217622.420	27656.500	Unknown	22	-90	0
SAC 1	216735.36	26374.39	Unknown	28	-90	0
SAC 2	216706.18	26388.29	Unknown	12	-90	0
SAC 3	216764.55	26436.96	Unknown	6	-90	0
SAC 5	217350.73	25646.71	Unknown	6	-90	0
SAC 6	217417.24	25654.78	Unknown	8	-90	0
SAC 7	218052.79	25130.53	Unknown	8	-90	0
SGA 3	213701.79	27052.94	Unknown	10	-90	0
SGA 4	213745.87	27052.22	Unknown	9	-90	0
SSP 2	214931.63	29274.05	Unknown	Unknown	-90	0
SSP 3	214961.86	29273.24	Unknown	Unknown	-90	0
SSP 4	215399.65	29199.4	Unknown	Unknown	-90	0
SP1	215558.180	29397.320	Unknown	10	-90	0
SP2	215429.860	29326.010	Unknown	19	-90	0

Appendix 2A. Rock Chip Sampling completed by Savannah during April 2017

	PROJECT: Mina do Barroso

		UTM 29	WGS 84			Li	Li	Li₂O	Averages	Ta	Ta2O5	Nb	Nb2O5	Sn	Be	Cs
	SAMPLE ID	Easting	Northing	Length (m)	Field Notes	ppm	%	%	%	ppm	ppm	ppm	ppm	ppm	ppm	ppm
	NOA 1A	599135	4609422	25	Rim of old open-cut - centre point	5030	0.503	1.07	1.07	25	31	38	55	43	134	30
	NOA 1-01	599148	4609433	0 to 5	5m x 5m block - centre point	1310	0.131	0.28		52	64	71	102	631	147	115
	NOA 1-02	599146	4609248	5 to 10	5m x 5m block - centre point	3280	0.328	0.70		31	37	45	65	187	119	77
	NOA 1-03	599145	4609243	10 to 15	5m x 5m block - centre point	9660	0.966	2.06	1.18	17	21	29	42	30	94	21
N	NOA 1-04	599146	4609418	15 to 20	5m x 5m block - centre point	7830	0.783	1.67		5	7	15	21	27	65	35
O	NOA 1-05	599146	4609414	20 to 25	5m x 5m block - centre point	6910	0.691	1.48		11	14	24	34	31	82	36
A	NOA 1-06	599150	4609408	25 to 30	5m x 5m block - centre point	4120	0.412	0.88		17	20	41	59	39	142	25
	NOA 2-01	599173	4609401	0 to 5	5m x 5m block - centre point	4550	0.455	0.97		7	9	18	25	26	94	29
L	NOA 2-02	599173	4609405	5 to 10	5m x 5m block - centre point	8860	0.886	1.89		6	7	17	24	29	79	18
E	NOA 2-03	599174	4609410	10 to 15	5m x 5m block - centre point	6620	0.662	1.41	1.35	9	11	18	26	30	88	18
N	NOA 2-04	599175	4609414	15 to 20	5m x 5m block - centre point	4190	0.419	0.89		15	18	39	56	33	148	24
S	NOA 2-05	599175	4609420	20 to 25	5m x 5m block - centre point	9310	0.931	1.99		15	18	27	39	37	110	39
	NOA 2-06	599176	4609425	25 to 30	5m x 5m block - centre point	4330	0.433	0.92		18	21	36	52	46	101	29
1	NOA 3-01	599200	4609427	0 to 5	5m x 5m block - centre point	5520	0.552	1.18		13	16	23	32	102	55	28
	NOA 3-02	599207	4609420	5 to 10	5m x 5m block - centre point	6100	0.61	1.30		10	13	23	33	39	105	17
	NOA 3-03	599200	4609423	10 to 15	5m x 5m block - centre point
	NOA 3-04	599201	4609418	15 to 20	5m x 5m block - centre point	4930	0.493	1.05	1.67	29	35	42	60	48	127	27
	NOA 3-05	599200	4609413	20 to 25	5m x 5m block - centre point	9420	0.942	2.01		8	10	18	26	25	95	17
	NOA 3-06	599199	4609409	25 to 30	5m x 5m block - centre point	14400	1.44	3.07		11	13	17	24	23	52	11
	NOA 3-07	599193	4609406	30 to 35	5m x 5m block - centre point	6560	0.656	1.40		23	28	47	68	37	150	20
	NOA 4	599229	4609414	0 to 5	5m circle - radius	8710	0.871	1.86	1.85	14	17	26	37	32	99	22

NOA	NOA 5	598965	4609650	-	Random chips - 10m radius	9910	0.991	2.12		14	17	28	39	20	85	17
LENS	NOA 6	599046	4609677	-	Scattered o/c - 25m length	5540	0.554	1.18	1.46	8	9	19	27	17	93	12
3	NOA 7	599059	4609649	-	Random chips - 10m radius	4840	0.484	1.03		22	27	35	49	46	117	18
	NOA 8	598995	4609602	-	Random chips - 10m radius	7060	0.706	1.51		9	11	20	29	31	75	15

	RES 1-01	600016	4609146	0 to 20	20m x 10m block	8100	0.81	1.73		11	14	23	32	30	89	20
	RES 1-02	600000	4609163	20 to 40	20m x 10m block	6750	0.675	1.44		7	9	20	28	45	62	28
	RES 1-03	599983	4609175	40 to 60	20m x 10m block	8310	0.831	1.77		7	9	21	30	39	58	17
	RES 1-04	599946	4609185	60 to 80	20m x 10m block	7780	0.778	1.66	1.55	11	14	20	29	18	36	13
	RES 1-05	599601	4608962	-	Random chips - 20m radius	2740	0.274	0.58		10	12	20	28	42	112	53
	RES 1-06	599616	4608870	-	Random chips - 20m radius	8250	0.825	1.76		11	13	23	33	44	90	33
	RES 1-07	599727	4608836	-	Random chips - 10m radius	8760	0.876	1.87		18	22	33	47	101	84	18

	GRA 1	601934	4608026	-	Chips round top of hill (Peg 1)	4060	0.406	0.87		12	15	23	33	57	84	53
	GRA 2	602008	4607944	-	Site of Bh 005 (Peg 2)	8850	0.885	1.89		16	19	29	42	43	98	43
	GRA 3	601915	4607767	-	Chips on isolated outcrop (Peg 2)	9710	0.971	2.07	1.79	17	21	23	33	55	98	68
	GRA 4	601999	4607835	-	Chips on top of hill (Peg 2)	6620	0.662	1.41		6	8	14	19	33	50	56

	2948	599097	4609467	-	Spot sample - top large dump	5280	0.528	1.13		17	20	27	39	61	121	26
	2949			-	Spot sample - regular intervals (~3m)
	2950			-	Spot sample - regular intervals (~3m)	5370	0.537	1.15		17	20	27	38	62	111	24
D	2951			-	Spot sample - regular intervals (~3m)	5590	0.559	1.19		20	25	31	44	71	130	27
U	2952			-	Spot sample - regular intervals (~3m)	5440	0.544	1.16	1.08	24	29	35	50	137	138	26
M	2953			-	Spot sample - regular intervals (~3m)	5450	0.545	1.16		19	23	35	50	32	137	18
P	2954			-	Spot sample - regular intervals (~3m)	3930	0.393	0.84		21	26	37	52	37	161	19
	2955			-	Spot sample - regular intervals (~3m)	4040	0.404	0.86		21	25	37	54	36	139	18
	2956			-	Spot sample - regular intervals (~3m)	5050	0.505	1.08		22	26	40	57	35	141	20
	2957			-	Spot sample - regular intervals (~3m)	5240	0.524	1.12		25	31	43	61	42	119	22
	2958	599072	4609479	-	Spot sample (coarse material)	4200	0.42	0.90		21	26	35	50	33	136	19

	NOA 9					7060	0.706	1.51		9	11	20	29	31	75	15

Appendix 2B. Rock Chip Sampling completed by Vendor during 2016

Project	Sample No	Datum	Co-ord Type	Easting	Northing	Comments	Li PPM	Li₂O %
Imeryss	IMY001	WGS84	UTM	598599	4608155	Pegmatite near CB2	7500	1.61
Imeryss	IMY002	WGS84	UTM	598622	4608179	Drill spoils from aroud CB3	3100	0.67
Imeryss	IMY003	WGS84	UTM	598621	4608182	Pegmatite near CB3	5810	1.25
Imeryss	IMY004	WGS84	UTM	597849	4608834	Pegmatite drilled by SAC6	5230	1.12
Imeryss	IMY005	WGS84	UTM	597845	4608859	Pegmatite	2450	0.53
Imeryss	IMY006	WGS84	UTM	599030	4609608	Large pegmatite near pit	8050	1.73
Imeryss	IMY007	WGS84	UTM	598963	4609533	Pegmatite near mine	2600	0.56
Imeryss	IMY008	WGS84	UTM	598952	4609538	Pegmatite from small pit	3590	0.77
Imeryss	IMY009	WGS84	UTM	599088	4609431	Pegmatite from large pit	1920	0.41
Imeryss	IMY010	WGS84	UTM	599110	4609434	Pegmatite from large pit	5970	1.28
Imeryss	IMY011	WGS84	UTM	599160	4609430	Drill spoils from aroud NOA01C	5430	1.17
Imeryss	IMY012	WGS84	UTM	599777	4609113	Pegmatite	3290	0.71
Imeryss	IMY013	WGS84	UTM	599956	4609180	Pegmatite near colar of RES004	14500	3.12
Imeryss	IMY014	WGS84	UTM	601593	4607017	Pegmatite near colar of SP001		0.0000
Imeryss	IMY015	WGS84	UTM	601593	4607030	Pegmatite	137.5	0.03
Imeryss	IMY016	WGS84	UTM	601553	4606948	Drill spoils from colar of SP002	1770	0.38
Imeryss	IMY017	WGS84	UTM	601547	4606941	Pegmatite	9970	2.14
Imeryss	IMY018	WGS84	UTM	601552	4606925	Pegmatite	7300	1.57
Imeryss	IMY019	WGS84	UTM	602012	4607834	Pegmatite near GRA006	7630	1.64
Imeryss	IMY020	WGS84	UTM	601999	4607840	Pegmatite	9140	1.97
Imeryss	IMY021	WGS84	UTM	601953	4608026	Pegmatite	2140	0.46
Imeryss	IMY022	WGS84	UTM	601963	4608033	Pegmatite	138.5	0.03
Imeryss	IMY023	WGS84	UTM	601932	4608083	Pegmatite	1340	0.29
Imeryss	IMY024	WGS84	UTM	601911	4608115	Pegmatite	295	0.06
Imeryss	IMY025	WGS84	UTM	601374	4606885	Pegmatite near SP2 and 3	4110	0.88
Imeryss	IMY026	WGS84	UTM	601390	4606889	Pegmatite near SP2 and 4	7500	1.61

Appendix 3. JORC 2012 Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	· 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.	· Information presented and referred to in this release relate to a combination of historical rock chip samples, bulk samples, channel sampling, RC drilling and diamond drilling sources from a combination of open sourced academic literature and private company information and recent rock chip sampling completed by both the vendor of the project and Savannah. · Key open file reports referenced include Barroso-Alvao Aplite-Pegmatite Field. Granitic Pegmatites: the state of the art - International Symposium. Field Trip Book; Lima, A and Noronha, F, 1999. Spodumene-Petalite-Eucryptite: Mutual relationships and pattern of alteration in Li-rich aplite-pegmatite dykes from northern Portugal The Canadian Mineralogist Vol. 39, pp. 729-746 (2001) Charoy, Noronha and Lima, 2010 The Crystal Chemistry of Spodumene in Some Granitic Aplite-Pegmatite Bodies of Northern Portugal. The Canadian Mineralogist. Vol. 32, pp 223-226. and Moura, S, Leal Gomes, C, and Lopes Nunes, J, 2010. Spatial analysis applied to the Barroso-Alvão rare-elements pegmatite field (Northern Portugal); David Barbose Da Silva, 2014 · Reverse circulation (HQ size) and diamond drill (NQ size) samples were taken on either 1 intervals. Most holes were RC holes were drilled vertically and diamond holes angled at 60degree dip at various azimuths. RC samples were collected in large plastic bags from a cyclone then rifle split and a 2-3kg representative sample taken for analysis. Diamond samples were cut and sampled
	· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	· Drilling was conducted on a irregular spacing based on geological targets using RC and drilling technology, an industry standard drilling technique. Drilling rods are 3m or 6m long and 1 sample is taken for each rod interval. · Collar surveys are carried using hand held GPS with an accuracy to within 5m, and the z direction was determined by satellite derived elevation data and is accurate to less than a metre.
	· 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.	· Lithium mineralisation is confined to the pegmatite bodies and is predominantly spodumene with petalite. · Down hole sampling is carried out at 1 or 2m intervals from which 3kg of pulverized material (RC) or 3kg of cut material (diamond) was pulverized to produce a 50g charge for assaying
Drilling techniques	· 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 with hole diameter approximately 81mm, and a drill rod diameter of approximately 75mm, all holes 60degrees inclined to geology which produced a full rock core for sampling. RC drilling at a diameter of 120mm is a form of reverse circulation drilling requiring annular drill rods. Compressed air is pumped down the outer tube and the sample is collected from the open face drilling bit and blown up the inner tube.
Drill sample recovery	· Method of recording and assessing core and chip sample recoveries and results assessed.	· Field assessment of sample volume. A theoretical dried sample mass was estimated to be within the range of 18 kg to 24 Kg, 70% of samples are within the expected range. Lower than average sample recovery is recorded only for the very top of the drill hole due to air and sample losses into the surrounding soil
	· Measures taken to maximise sample recovery and ensure representative nature of the samples.	· In the case of diamond drilling, speeds and ground conditions were monitored to ensure good recoveries. · In the case of RC drilling sample weights were monitored to ensure samples were maximized. Samples were carefully loaded into a splitter and split in the same manner ensuring that the sample split to be sent to the assay laboratories were in the range of 2-3kg.
	· 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.	· No obvious releationships
Logging	· 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.	· Historical RC drill logs show that all drill holes were logged in the field at the time of sampling. Each 1m sample interval was carefully homogenized and assessed for lithology, colour, grainsize, structure and mineralization. · The diamond drill core was logged onto paper to geological intervals and structural measurements taken where appropriate · Recent rock chip samples were geologically logged
Sub-sampling techniques and sample preparation	· 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.	· Records show that the diamond drilling was cut in half and half the core taken for assaying. · Pictures and indicate that the RC samples were rifle split and sampled dry
	· For all sample types, the nature, quality and appropriateness of the sample preparation technique.	· A review of the historical sample preparation method indicates that it was appropriate. · For recent rockchip sampling at least 2kg of representative rock material from a 2m radius around the sample point was collected
	· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	· It is not clear from the historical records what practices were in place · For recent sampling 1 in 25 samples were duplicated in the field
	· 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.	· It is not clear from the historical records what practices were in place · Every effort was made to ensure that the samples were representative and not bias in anyway
	· Whether sample sizes are appropriate to the grain size of the material being sampled.	· The 18-24kg sample of the rig, the 2-3kg rifled lab samples and the 50g charge is considered appropriate for the rock type. · A minimum sample size of 2kg was collected for recent rock chip sampling
Quality of assay data and laboratory tests	· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	· Laboratory and procedures for historical sampling unknown · Fine crushing of rock chip and drill samples to 90% nominal -2mm · Split sample using a rotary splitter · Pulverize entire sample up to 85% passing 75 microns. · 48 element 4 acid digest with ICP-AES/ICP-MS finish · REE's may not be totally soluble in this method.
	· 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.	· Not used.
	· 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.	· Unknown for historical samples · Standards and duplicates we used and we off acceptable levels of accuracy
Verification of sampling and assaying	· The verification of significant intersections by either independent or alternative company personnel.	· Unknown for historical samples
	· The use of twinned holes.	· No drill holes appear to be twinned
	· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	· Most assays are Li2O occasionally they are Li assays and the conversion used was Li2O = Li x 2.153
	· Discuss any adjustment to assay data.	· No adjustments are made to the assay data for the purposes of public reporting.
Location of data points	· 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.	· The coordinate of each rockchip was taken at the time of collecting using a handheld GPS with an accuracy of 5m. · The grid system used is the Portuguese national ETRS89 - PT-TM06 datum. · Topographic accuracy was +/- 5m
Data spacing and distribution	· 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.	· Historical drilling was at irregular spacing and geological targets · Drill data is not currently at sufficient spacing to define a mineral resource. · Some samples were composited on a 2m basis based on geological criteria
Orientation of data in relation to geological structure	· 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.	· Unknown due to limited data · Unknown due to limited data
Sample security	· The measures taken to ensure sample security.	· Samples were delivered to a courier and chain of custody is managed by Savannah.
Audits or reviews	· The results of any audits or reviews of sampling techniques and data.	· Internal company auditing

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	· 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.	· Covas do Barroso Project: Mina do Barroso, Vilar, Beca and Regioso · Serra D'Agra Project: Calvelo, Ponte de Lima and Caminha · Barca D'Alve Project: Almedra and Meda · Tamega Project: Caramos · Vilar, Calvelo and Ponte de Lima tenements are subject to partial competing tenure as outlined in the maps below · Caramos is subject to a 100% competing tenure. · It is Savannahs current understanding based on advice from the DGEG that the areas subject to competing tenure will be the subject of a closed tender between the parties who have applied for the areas. · It is Savannahs opinion that it is well placed to win the tenders for the competing areas. · Overlapping areas at the Serra D'Arga Project · Overlapping areas at the Covas de Barroso project
Exploration done by other parties	· Acknowledgment and appraisal of exploration by other parties.	· include Barroso-Alvao Aplite-Pegmatite Field. Granitic Pegmatites: the state of the art - International Symposium. Field Trip Book; Lima, A and Noronha, F, 1999. Spodumene-Petalite-Eucryptite: Mutual relationships and pattern of alteration in Li-rich aplite-pegmatite dykes from northern Portugal The Canadian Mineralogist Vol. 39, pp. 729-746 (2001) Charoy, Noronha and Lima, 2010 The Crystal Chemistry of Spodumene in Some Granitic Aplite-Pegmatite Bodies of Northern Portugal. The Canadian Mineralogist. Vol. 32, pp 223-226. and Moura, S, Leal Gomes, C, and Lopes Nunes, J, 2010. Spatial analysis applied to the Barroso-Alvão rare-elements pegmatite field (Northern Portugal); David Barbose Da Silva, 2014
Geology	· Deposit type, geological setting and style of mineralisation.	· The lithium mineralization is predominantly in the form of Spodumene-bearing pegmatites which are hosted in meta-pelitic and mica schists, and occasionally carbonate schists of upper Ordovician to lower Devonian age. The pegmatites are unzoned and vary in thickness from 10m-50m. Lithium is present in most aplite compositions.
Drill hole Information	· 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.	· See table in main release
Data aggregation methods	· 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 intercepts were calculated using a 0.7%Li2O cut off, no more than 1m of internal dilution and only results over 4m at 1% Li2O have been reported in the summary table of results.
Relationship between mineralisation widths and intercept lengths	· 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. · The drill holes are vertical and the mineralisation is sub vertical.
Diagrams	· 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.
Balanced reporting	· 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 substantive exploration data	· 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 is consistent with the observations and information obtained from historical data collected.
Further work	· 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.	· Rock chip sampling, channel sampling and RC drilling. Once planning has been completed the detail will be provided

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RNS metadata

Title: Strategic Lithium Acquisition, Portugal
Time: 08:00:11
Date: 25 May 2017
Category: Acquisitions and alliances
ID: 1749G