Savannah Resources Plc Generating Value - Building a Multi-Commodity Portfolio of Assets HEAVY MINERAL SANDS – MOZAMBIQUE COPPER - OMAN GOLD – MALI, ETHIOPIA AND MAURITANIA Disclaimer These presentation slides (“the Slides”) do not comprise an admission document, listing particulars or a prospectus relating to Savannah Resources plc (“the Company”), or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company. 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Savannah Resources Plc | December 2014 2 Savannah at a glance… AIM listed growth exploration and development company with a multi-commodity portfolio in Oman and Mozambique. • Skilled board and management team - with a proven track record in acquiring, developing and adding value to resource assets • Solid project pipeline – targeting additional value accretive growth in existing geographies through exploration and consolidation • Oman - A high calibre portfolio of advanced development and early stage exploration copper projects. Targeting high margin, low cost, copper/gold operations with low geological risk to establish Savannah as a mid-sized copper producer • Mozambique Heavy Mineral Sands - 80% shareholding in Matilda Minerals Limitada – Matilda owns the highly prospective 180km2 Jangamo Project in Mozambique, located in a world class heavy mineral sands province • Gold - Strategic 19.7% shareholding in AIM listed Alecto Minerals plc (‘Alecto’), Savannah Resources Plc | December 2014 3 Portfolio structure Savannah Resources Plc United Kingdom AIM listed, parent company Mauritania Mali MOZAMBIQUE Jangamo OMAN Blocks 4,5 & 6 Copper Projects INVESTMENT Alecto Minerals Plc (Matilda Minerals Limitada 80% ownership) Heavy Mineral Sands Exploration Licence Oman (earn in up to 65%, 65% & up to 70% respectively) early to advanced exploration projects United Kingdom AIM listed 19.7% ownership Ethiopia Oman Mozambique Key Savannah Resources Plc | December 2014 4 Proven track record CEO – David Archer “Proven record of building value for shareholders through exploration, bringing assets into production and successfully completing trade sales” • Savage Resources Limited (ASX listed) • • • • • • Developed from a small IPO in 1987 to a major mid-tier mining group with a market capitalisation of approximately AUD$400m CEO and Deputy Chairman The Metropolitan Colliery (underground coal mine, New South Wales) Liddell Colliery (open-cut and underground coalmines, New South Wales) The Ernest Henry Copper Mine (a 49% interest in the 10mtpa copper mine, Queensland) Tennessee zinc mines and Clarkesville zinc refinery (United States) • Hillgrove Resources Limited (ASX listed) • • • • • • From a listed shell in 2002/3, undertook a capital reconstruction and developed it into a profitable, dividend paying, AUD$200m market capitalisation company As Managing Director responsible for: The development of the Kanmantoo Copper Mine (2.4mtpa open-cut copper mine, South Australia) Operation of the Kanmantoo heap-leach circuit and copper cement plant (copper, South Australia) Securing and launching exploration programmes for epithermal gold (Sumba) and porphyry copper-gold (West Papua) exploration projects in Indonesia The sale of Hillgrove’s strategic shareholding in Eastern Star Gas Limited for a profit of AUD$155m • PowerTel Limited (ASX listed) • Now part of Telecom New Zealand, as CEO and Executive Chairman developed the Company from inception as the first listed Australian telephone company to the third largest fibre-optic network owner and operator in Australia Savannah Resources Plc | December 2014 5 MANAGEMENT BOARD Board and management team Mike Johnson Chairman (Emeritus) Professor Mike Johnson was previously the Director of Environmental Science and the Industrial Ecology Research Centre at the University of Liverpool. He was Chairman of Glebe Mines Ltd from 2000 until 2008. He is currently Chairman of Alecto Minerals plc and Antracor Mining Limited and a Director of Columbus Copper Corporation. Professor Johnson presently holds a number of business and environmental advisory positions including with Rio Tinto plc, New Boliden SA and Lundin Mining Corporation, and is an adviser on sustainable development programmes for several governments, UNEP and the World Bank. Qualifications : DSc., PhD, MTech, BSc. David Archer Chief Executive Officer David is a non-practising Barrister of the Supreme Court of New South Wales, holds a B.Ec and is a Fellow of the Australasian Institute of Mining and Metallurgy. He has had wide experience in the mining industry for over 30 years, with specific expertise in the development and operation of copper/gold projects. David has held executive and non-executive roles in a number of listed companies and has been actively involved in the international resources industry for over 30 years. He is the former Managing Director and Deputy Chairman of Savage Resources Limited, the Managing Director of Hillgrove Resources Limited, Executive Chairman of PowerTel Limited and Chairman of Hostworks Group Limited. He was a director of Eastern Star Gas Limited from 2006 to 2009. Charlie Cannon-Brookes Non Executive Director Charlie is the Investment Director of Arlington Group Asset Management Limited and the Investment Manager of Praetorian Resources Limited, an AIM listed closed ended investment company focused on the natural resources sector. Previously he acted as investment manager to Arlington Special Situations Fund; a Cayman domiciled OEIC (2005-2010). For the previous five years (2000 – 2005), he ran Arlington Group Plc.’s proprietary trading book, managing all of its public equity exposure. He has extensive fund management experience and has advised and sat on the board of a number of other funds and trusts in a non-executive capacity. Dale Ferguson Technical Director Dale graduated in 1993 with a BSc with 1st Class Honours, Double Major in Geology, from Latrobe University, Melbourne and is a Member of the Australasian Institute of Mining and Metallurgy. He has over 20 years’ experience in the resources industry with Hillgrove Resources Limited, Thundelarra Exploration, Savage Resources Limited and Gasgoyne Gold Mines. His experience spans greenfields and near mine exploration, resource delineation, feasibility studies, due diligence investigations and mine development and operations. Paul O’Donoghue Country Manager Mozambique Paul holds a MA in Development Studies from the University of East Anglia. He jointly founded Matilda Minerals. Prior to this he served as a Diplomatic Attaché with the Embassy of Ireland in Maputo and with a number of NGOs. Paul lives in Maputo and is a fluent speaker of Portuguese. Paul has managed Savannah’s operations in Mozambique since October 2013. Dr Durair A’Shaik General Manager Business Development Oman Dr Durair is an internationally recognised expert in the genesis of base metal deposits and VMS style mineralisation, has published extensively and adds to the geological capability of Savannah’s team. Dr Durair is an Omani national, is based in Muscat. Formerly a senior executive of the Oman mines department. Michael McGarty Chief Financial Officer A graduate in Finance from Manchester University’s Business School, and a qualified accountant (Chartered Institute of Management Accountants, UK). He gained 16 years of experience working with Ingersoll Rand (NYSE:IR), a leading global diversified manufacturer of industrial and engineered products. During which time he has worked in roles of increasing responsibility, covering all areas of accounts payable / receivable, and financial / management accounting. He led the European implementation of the Sarbanes Oxley compliance initiative, and has served for seven years as financial controller for businesses covering Europe, Middle East and Africa, including the provision of business partner support and strategic planning. Michael has four years’ experience in the financial management of African exploration operations. Savannah Resources Plc | December 2014 6 Key data Major Shareholders Market AIM Ticker SAV Share Price* 4.4p Market Capitalisation* £9.1m Shares on issue** 206.7m Cash (pro-forma at 20.11.14) £2.3m Warrants outstanding (3.0p-11.0p av. 4.6p) 13,911,112 Options (3.0p -12.5p av. 5.7p) 26,523,443 Shares not in public hands 12.7% Strategic Investment in Alecto Plc (0.65p*) 19.7% = £1.1m David Archer (Director) - 10.8% Praetorian Resources - 5.9% Fiske - 3.6% Other - 79.8% *as at 28.11.14 **includes Tranche 1 of November 2014 placement. 15,049,692 to be issued at 4.45p per share subject to shareholder approval in December 2014 Savannah Resources Plc | December 2014 7 OMAN: Copper Targeting developing high margin, low cost, copper/gold operations with low geological risk to establish Savannah as a mid-sized copper producer • Strategic Positioning - Secured major, 1,279km² position in the Omani VMS Belt • Credentialing Savanah by demonstrating exploration capabilities in-country • Build a strategic platform via consolidation of isolated VMS deposits • Develop deposits and discoveries with hub and spoke model with a central processing plant • Outstanding Geology – Significant potential for base and precious metals discoveries • Clusters of 1Mt -15Mt deposits typical of VMS belts • Generally near surface resources • Metallurgically simple ores that produce well accepted copper concentrates • Medium to high grade copper ores with gold credits - Mawarid Mining’s Hatta and Shinas mines made US$120m of free cash-flow in first year of operation • Attractive Fiscal Terms – Five year tax holiday, 12% corporation tax, 5% royalty • Excellent Infrastructure – Projects located close to smelter, port, roads, power and water • Low personnel and fuel costs Savannah Resources Plc | December 2014 8 OMAN: Prospective location The Semail Ophilite belt is an extensive arc of metal bearing rocks extending some 500km, which hosts a large number of volcanic massive sulphide deposits containing copper and gold Semail Ophiolite Belt >150 volcanogenic massive sulphide (‘VMS’) prospects discovered along the 500km strike length of the Oman (Semail) Ophiolite Arabian Ophiolite Belt Savannah Resources Plc | December 2014 9 OMAN: Current Portfolio A high calibre portfolio of advanced development and early stage exploration copper projects, an opportunity to create high margin mines with low inherent operating costs: Savannah Resources Plc | December 2014 10 OMAN: Current Portfolio Three highly prospective Blocks containing high grade Cyprus-type VMS resources, covering 870km² of the highly prospective copper-rich Semail Ophiolite belt • Block • • • • • • Block 5 – 598km² Tenement 50km south of Sohar • Near surface Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% Cu (including a high-grade zone of ~0.5Mt @ 4.5% Cu) • Equity holding 65% in Al Fairuz Mining LLC . • Omani Partner - Al Fairuz Group – Heavy earthmoving equipment & construction/cannery/ boats. • Cost US$800,000 plus three milestone cash/share payments of US$1.0m each on final investment decision first sales of concentrate and six months into production. • High grade copper intersections reported to date include 56.4m at 6.2% copper from 63.2m in B5MH4071 from Mahab 4 prospect in Block 5. • Multiple high priority exploration targets at Block 5 including: • Maqail South – 6.68m at 7.42% copper , Hara Kilab – 5.54m at 3.96% copper, Mahab 2 – 5m at 2.81% copper. • Block 6 – 273km² Tenement ~80km southeast of Sohar • Beneficial interest of 40% in Al Zuhra Mining LLC – right to earn-in to 70% by funding to completion of BFS • Omani Partner – Sheikh Ahmed Fahrid – owner of 21 companies in Oman • Capital Return Agreements – Savannah to re-coup 100% of exploration, feasibility & development costs on commencement of mining before dividend distribution on equity share holdings 4 – 408km² tenement ~20km southwest of export port of Sohar Earn-in agreement to acquire up to 65% interest by spending $4.6M over 4 years Omani partners – Al Bahja Group (copper cable manufacturer in Oman) and WJ Towell conglomerate Secures over 35km in strike of prospective ophiolite with multiple contacts Prime target for VTEM technology as little modern exploration has taken place Historical exploration returned encouraging results (Rockchipping at Salahi 5: 11.3g/t gold and 4.5% copper; Drilling at Zuha: 19.3m at 2.79% Copper from 2.5m) • Area has been a prolific copper producer Savannah Resources Plc | December 2014 11 OMAN: Blocks 5 and 6 VTEM – Multiple targets identified Savannah Resources Plc | December 2014 12 OMAN: Blocks 5 and 6 VTEM – Multiple targets identified Highlights from reprocessing 2010 VTEM survey data on Block 5 and Block 6 New VTEM anomalies identified in the vicinity of known VMS copper deposits and mineralisation indicates excellent potential for VMS clusters • 94 prospective anomalies identified: 8 Priority 1, 12 Priority 2 and 74 Priority 3 • Initial ground reconnaissance of VTEM targets at the Sarami West Prospect has highlighted three high priority VTEM anomalies located on the key Geotime/Lasail geological contact - the most mineralised contact within the Oman Ophiolite Belt • Significantly, umber units which represent a significant time break to allow potential VMS deposits to form were also noted at these contacts • The SW3 anomaly at Sarami West Prospect is larger and of Target SW1 Target SW2 Target SW3 similar intensity to the nearby Mahab 4 copper deposit anomaly (existing Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper) • Results underpin potential to increase current Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% Cu (including a high-grade zone of ~0.5Mt at 4.5% Cu) • On track to drill in first quarter 2015 Enlarged VTEM image for the Sarami West Prospect (SW1 to 3) showing a series of untested VTEM anomalies which could potentially form part of a VMS cluster at Sarami West. Savannah Resources Plc | December 2014 13 OMAN: Block 4 Delivering Oman expansion strategy Recently acquired Block 4 Permit – Savannah now holds 32km strike of the Semail Ophiolite belt • Block 4 - 408km² Tenement 20km south west of Sohar • Acquiring 65% interest from Omani company Al Thuraya by spending $2m on exploration over two years • Secures over 35km in strike of prospective ophiolite with multiple contacts • Prime target for VTEM technology as little modern exploration has taken place • Historical exploration returned encouraging results: Rockchipping • Salahi 1: 0.3% copper, 37.4g/t gold, 88g/t silver • Salahi 3: 1.17% copper 0.4g/t gold and 0.39% zinc • Salahi 4: 1.8g/t gold and 8.19% copper • Salahi 5: 11.3g/t gold and 4.5% copper Drilling • Zuha (AZU009): 19.3m at 2.79% Copper from 2.5m Savannah Resources Plc | December 2014 14 Mozambique: Heavy mineral sands • Multiple, world class heavy mineral deposits discovered along 2,700km of coastline - heavy mineral assemblage weighted to ilmenite with low slimes • 4th largest producer of TiO2 feed-stocks and 5th largest producer of zircon • Kenmare operates the producing Moma Titanium Minerals Mine, located on the north east coast of Mozambique – target production of 864,000 tpa @3.7% THM • Well understood but under-explored geology in major dune systems – strong potential to make new commercial discoveries • Established infrastructure relatively inexpensive energy (hydroelectricity, natural gas and, in the near future, thermal coal), excellent natural ports and a motivated and available workforce • Pro-mining government committed to creating the conditions for new mine developments Savannah Resources Plc | December 2014 15 Mozambique: Current Portfolio • Matilda Minerals Limitada (‘Matilda’) – 80% shareholding. Matilda wholly owns the 180km2 Jangamo Project in southern Mozambique • Contiguous to Rio Tinto’s Mutamba deposit – exploration target of 7-12Bt at 3-4.5% THM • Large dunal heavy mineral sands accumulation Magnetic surveys have identified possible strandline deposits – scout drilling appears to have confirmed the presence of these strandline targets • Scout sampling returned results of up to 18.1% total heavy mineral, with an ilmenite dominant assemblage • Strandline system appears to run from the Jangamo Project into Rio Tinto’s Mutamba Project • Savannah finances 100% of expenditure to advance the Project to a Definitive Feasibility Study stage • Expecting to release maiden JORC Mineral Resource during Q4 1014 Savannah Resources Plc | December 2014 16 Jangamo Drilling • 3,990m RC Drilling, completed in Q2 2014, intersected broad zones up to 39 metres deep with THM of up to 9.2% • Five significant HMS mineralised zones identified with potential for higher grade HMS mineralisation ranging from 2km to 15 km strike length. • Better results from surface including: • 33m at 5.9% HMS, including 12m at 9.2% • 33m at 5.1% HMS, including 12m at 7% • Higher grade mineralisation highlighted, much commencing from surface. Peak result of 3m at 10.3% HMS. • Final heavy mineral product likely to contain high percentage of titanium dioxide minerals (inc ilmenite, leucoxene and rutile) and appears to be low in slimes. • Discovered a new mineralised dune system in the north-western part of the Project, which significantly expands the exploration potential. • Current drill programme focussing on defining potential of strand line target in the west (39m at 2.9% HMS) and the Grid drill out of the higher grade HMS as defined by the scout drilling in the east of the Project area. Savannah Resources Plc | December 2014 17 Alecto Minerals: Gold 19.7% interest in Alecto Minerals Plc provides exposure to: • Mali – Kossanto • Mali – Karan • Ethiopia – Wayu Boda • Ethiopia – Aysid-Metekel JV with Centamin • Mauritania – Wad Amour (copper-gold) Savannah Resources Plc | December 2014 18 Development milestones JANGAMO – MOZAMBIQUE OCT 2013 Completion of acquisition & £500,000 cash placement NOV 2013 Completion of drilling FEB-MAR 2014 MAR 2014 Q2/Q3 2014 Q4 2014 Q1 2015 Initial assay & further analysis of results Raised £1.5m for 2014 exploration programme Geophysics and 2 drilling programmes Potential JORC resource at Jangamo Commence Scoping Study OMAN APRIL 2014 APRIL 2014 MAY 2014 Agreement to acquire interest in Block 5&6 Secures investment of up to US$6.3 million Commence exploration on Block 5 JULY 2014 NOV 2014 H1 2015 Complete acquisition Agreement to acquire Block 4 VTEM survey of Block 4 H1 2015 Drilling to define mineralisation in Block 5 ALECTO 2014 Develop portfolio of Malian and Ethiopian gold projects and Mauritanian copper-gold project Utilise JV with Centamin for development of Ethiopian assets PIPELINE PORTFOLIO Targeting additional multi-commodity projects that add value and complement existing portfolio Savannah Resources Plc | December 2014 19 Investment case • Growth company with defined strategy – focussed on building a multi-commodity, geographically diverse exploration and development company • Secured rare opportunity with a major position in copper-rich Oman – focussed on developing as mid-tier copper production company • Prospective Jangamo project located in world class mineral sands province in Mozambique – targeting a maiden resource in Q4 2014 and commencing scoping study Q1 2015 • Strategic 19.7% investment in Alecto provides upside potential to gold markets with no expenditure costs • Strong project pipeline – continue to target additional value accretive organic growth in existing geographies • Completed significant milestones on time and on budget – further strong news flow scheduled over coming months • Strong balance sheet with cash and current assets of £3.4m Savannah Resources Plc | December 2014 20 Contact CEO David Archer Savannah Resources Plc 18 Pall Mall London, SW1Y 5LU United Kingdom T: +44 20 7389 5019 E: [email protected] Savannah Resources Plc | December 2014 21 APPENDIX OMAN HEAVY MINERAL SANDS – MOZAMBIQUE COPPER - OMAN Savannah Resources Plc | December 2014 GOLD – MALI, ETHIOPIA AND MAURITANIA 22 Geology • >150 volcanogenic massive sulphide (VMS) prospects discovered along the 500km strike length of the Oman (Semail) Ophiolite • Copper has been mined in Oman since the Bronze Age • Confined to sequence 1.5-2.0km thick pillow-lava • Hosts cyprus-type VMS deposits • Deposits found in clusters – containing ~10Mt of massive sulphide • Clusters spaced volcanic centres ~20-25km apart around • Fault–controlled deposits on sea floor positions • 2 metallogenic types: • • Cyprus-type - copper, cobalt, selenium, nickel & molybdenum [eg. Bayda & Lasail] Rift Graben-type – copper, zinc, lead, silver & gold [eg. Aarja] • Alteration: Silicification, Epidotization Savannah Resources Plc | December 2014 Chloritization & 23 Stratigraphic position of Oman VMS deposits Lasail Lasail/Geotimes Contact Zone Geotimes • Clear Exploration Model: Most of the known deposits to date occur near the top of the Geotimes unit or within the Lasail or Alley units • Past exploration focused only on the Geotimes – Lasail contact Savannah Resources Plc | December 2014 24 Blocks 5 and 6 Exploration Savannah is planning to implement a fast paced exploration programme with a view to commencing drilling in H2 2014 The initial work programme will include: • Detailed targeting assessment of the geophysical data looking at subtle targets, targets under cover, and targets potentially concealed by cover along known prospective trends • Acquire, compile and assess all data and GIS databases • Improve understanding through better characterisation of known deposits, inside and outside the Blocks, especially through litho-geochemical signatures of mineralisation and alteration and a better definition of structural and litho-stratigraphic control • Drill targets on identified target trends will be defined by a combination of VTEM conductors, ground EM follow-up, systematic surface geochemistry, and litho-geochemical targeting • Ground EM along known mineralised trends and downhole EM will be considered for all prospect drill testing • Further geological mapping, geochemical sampling and drilling Savannah Resources Plc | December 2014 25 Block 5 Mahab 4 – typical cyprus type VMS deposit • Resource of 1Mt drilled out on 25m-50m spacing • 330m long massive sulphide 10-50 m thick massive sulphide wedge • Open-pittable depth (20-90m) GRB5D035: 54.19m @ 4.97% Copper GRB5D047: 24.40m @ 4.68% Copper Mineralised Zone Savannah Resources Plc | December 2014 26 Block 5 JORC Resource Oxide Resources at Mahab 4 (0.3g/t Au cut-off) in Block 5 Tonnage Density Cu Au Ag Pb Zn (kt) (t/m3) (%) (g/t) (g/t) (%) (%) Mahab 4 Indicated 9 2.4 0.2 1.4 19.7 0.01 0.04 Mahab 4 Inferred 19 2.4 0.1 0.8 7.7 0.03 0.04 Sulphide Resources at Mahab 4 and Maqail South (0.3% Cu cut-off) in Block 5 Tonnage (kt) Density (t/m3) Cu (%) Au (g/t) Ag (g/t) Pb (%) Zn (%) Mahab 4 Indicated 916 3.5 2.8 0.2 8.5 0.080 0.54 Mahab 4 Inferred 590 3.3 0.9 0.1 2.5 0.012 0.14 Maqail South Inferred 160 3.6 3.8 0.1 2.4 0.002 0.02 Total Indicated 916 3.5 2.8 0.2 8.5 0.080 0.54 Total Inferred 750 3.3 1.5 0.1 2.5 0.010 0.12 Significant figures quoted do not imply precision and are to minimise round-off errors Savannah Resources Plc | December 2014 27 Block 5 Mahab 4 – high grade copper intercepts Hole No. From To Mahab 4 m m Mineralisation Intercept Copper Gold Zinc Silver m % g\t % g/t GRB5D020 40.15 55.55 MS 15.40 7.40 0.17 0.91 7.90 GRB5D030 32.05 63.00 MS + SMS + QVS 30.95 3.16 0.28 1.29 17.40 GRB5D032 67.15 87.45 Jasper + MS 20.30 5.79 0.37 2.42 22.00 GRB5D035 44.42 98.61 MS + SMS + QVS 54.19 4.97 0.19 0.85 9.60 B5MB4D059 33.50 43.69 MS 10.19 6.69 0.48 3.20 20.00 B5MB4D064 13.50 53.00 GOS/MS/SMS 39.50 4.81 0.25 0.38 16.70 B5MB4D070 12.42 36.46 MS 24.04 6.32 0.49 1.10 24.2 B5MB4D071 63.15 120.00 MS + SMS 56.85 6.21 0.22 0.90 10.4 B5MB4D074 70.35 105.44 MS 35.09 4.82 0.38 17.70 0.85 B5MB4D083 45,15 88.44 MS + SMS + QVS 43.29 3.62 0.24 0.90 11.8 Savannah Resources Plc | December 2014 28 Block 6 Large areas of transported cover Prospective rocks under transported cover Savannah Resources Plc | December 2014 29 APPENDIX Mozambique HEAVY MINERAL SANDS – MOZAMBIQUE COPPER - OMAN Savannah Resources Plc | December 2014 GOLD – MALI, ETHIOPIA AND MAURITANIA 30 Mineral sands A promising market Global demand for titanium dioxide and zircon is expected to outstrip levels of supply in 2014 – provides Savannah with favourable market dynamics for growth • Heavy mineral sands are placer deposits formed usually in beach environments by concentration due to the specific gravity of the mineral grains • Ilmenite and Rutile: • • • • Used in the manufacture of titanium dioxide pigment and titanium metal Titanium dioxide (TiO2) is a very white, opaque compound used in products such as paint, plastics and paper Titanium feedstock production represents an approximately US$2 billion per annum industry and the TiO2 pigment supply chain has annual revenues of over US$10 billion, which in turn supply products to other industries TiO2 Feedstock Supply/Demand Balance Zircon: • • Zircon sand supplied to a wide range of consuming industries, of which the ceramics sector is the largest consuming end use market Zircon sand supply sector represents an approximately US$1.2 billion per annum industry, which in turn is supplied to end user markets generating strong annual revenues Zircon Supply/Demand Balance Savannah Resources Plc | December 2014 31 Mozambique: Current Portfolio • 180km2 Jangamo Mozambique Project in Southern • Project contiguous to Rio Tinto’s Mutamba deposit, which, combined with Rio’s Mutamago deposit in Mozambique, has a declared exploration target of 7-12Bt at 34.5% THM • Heavy mineral strand line system and mineralised horizons appear to run from Rio Tinto’s Mutamba deposit into Jangamo • Scout sampling returned results of up to 18.1% THM, with ilmenite, rutile and zircon recorded in the mineral concentrate • Targeting to delineate a JORC resource in H2 2014 • Established infrastructure and services Savannah Resources Plc | December 2014 32 Jangamo Evaluation • 2014 field exploration programme commenced early April 2014 – comprising geophysics, further drilling and mineralogical studies • Ground magnetic survey confirmed it is possible to detect the geophysical signature of the HMS deposits using an airborne platform will rapidly advance and lower cost of exploration • Primary objective to drill out and further define mineralisation and identify target zones for drilling – due to commence in Q3 2014 • Commissioned leading minerals sands consulting group TZ Minerals International to scope out and characterise potential of Jangamo and outline a path for the Project through to a Scoping Study • Focussed on defining a maiden JORC resource in Q4 2014 and commencing scoping study Q4 2014 / Q1 2015 Savannah Resources Plc | December 2014 33 Jangamo Evaluation 2014 Scout Drilling Programme • 96 Holes, 3990m Savannah Resources Plc | December 2014 34 APPENDIX MALI, ETHIOPIA AND MAURITANIA HEAVY MINERAL SANDS – MOZAMBIQUE COPPER - OMAN Savannah Resources Plc | December 2014 GOLD – MALI, ETHIOPIA AND MAURITANIA 35 Alecto Minerals Plc Following the strategic sale of three gold assets in Mali to Alecto Minerals Plc in October 2013, and two legacy assets in March 2014, Savannah owns 19.7% of Alecto • AIM Listed resource company with a multi-commodity portfolio across highly prospective but previously under-explored regions of Africa • Strong management team with solid in-country contacts and experience developing mining projects Event Quantity Shares Shareholding Divestment of AME West Africa / Kossanto Gold Project (£1,250,000) 108,695,652 12.4% New shares subscribed for in cash (£150,000) 13,043,481 1.5% New shares acquired via Convertible Loan Note subscribed for in cash (£350,000) 30,434,783 3.6% Divestment of remaining Malian permits (£250,000) 20,000,000 2.3% Total Shareholding 172,173,916 19.7% Savannah Resources Plc | December 2014 36 Alecto Mali • 207km² project located in the highly prospective Kenieba inlier in western Mali: • The Gourbassi target in Kossanto East currently holds a JORC-code compliant inferred resource estimate of 247,000 oz Au* – an increase of 131% since acquisition in October 2013 • In Kossanto West multiple high-grade targets were discovered and drill tested in 2014 making the area ready for a dedicated exploration drill programme in the forthcoming season • Strong potential to increase resource potential: • • Alecto undertaking further RC drilling in order to prove continuity between two gold zones at Gourbassi West Additional RAB drilling at Gourbassi West has demonstrated a further wide zone of mineralisation • Located close to and in between major mines: • • • • Randgold’s 12.5 Moz Au Loulo mine AngloGold Ashanti and IAMGOLD’s 13.0 Moz Sadiola Gold Mine Randgold’s 5.4 Moz Au Gounkoto mine Teranga Gold’s 3.0 Moz Au Sabodala mine Savannah Resources Plc | December 2014 ALO Projects 37 Alecto ETHIOPIA “Mining and exploration in Ethiopia is increasing with majors and juniors alike gaining exposure to the highly prospective gold mineralisation incountry” • Two highly prospective gold licences (Wayu Boda and AysidMeketel) in Ethiopia covering 2,898km² – both close to known economic deposits and have strong exploration potential • US$14m JV with Centamin to significantly accelerate development of Alecto’s Ethiopian gold properties to earn up to a 70% JV interest Wayu Boda Gold Project: • 945 km² licence in the Adola greenstone belt, southern Ethiopia • Field work commenced – core drilling to commence shortly • Rock chip samples of up to 47.4 g/t Au • 24km south of National Mining Corporations’ 17Moz Dawa gold discovery Aysid-Metekel Gold Project: • 1,953 km² North-West Ethiopia • Six exploration targets identified Savannah Resources Plc | December 2014 MAURITANIA • Three gold and base metal licences - Chegar (756km2), Wad Armour (613km2) and Zreibya (459km2) • Exposure to a highly prospective and emerging mineral district – targeting Iron Oxide Copper Gold (IOCG) style mineralisation • Four phase exploration programme underway – focussed on the Zreibya and Wad Amour licences • Delineated two defined copper anomalies with strike lengths of over 800m and 900m at the Wad Amour licence - Alecto likely to implement a scout drilling programme to improve understanding of the mineralisation at the licence areas 38
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