Savannah Resources : Environmental Impact Assessment Underway at Mahab 4 and Maqail South

SAVANNAH RESOURCES PLC

AIM: SAV

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining RNS - 24 October 2016

PROJECT PORTFOLIO

MINERAL SANDS CONSORTIUM AGREEMENT WITH RIO TINTO - MOZAMBIQUE

COPPER/GOLD OMAN

LITHIUM FINLAND

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that it has commenced the preparation of the Environmental Impact Assessment ("EIA") for the Mahab 4 and Maqail South deposits in Oman, which have a current Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% copper. The EIA is required to be submitted to the Ministry of Environment and Climate Affairs ("MECA") in the Sultanate of Oman as part of the licencing requirements for new mine developments in Oman (Figure 1). Both the Mahab 4 and Maqail South deposits are located in Block 5 and Savannah is a 65% shareholder in Al Fairuz Mining, the holder of the Block 5 licence.

• Commencement of the EIA is a key milestone towards the Company's target of commencing copper mining in late 2017

• Leading Omani Environmental Consultant, Geo Resources Consultancy, has been contracted to commence the EIAs

• The EIAs are for an open-cut development at the Maqail South deposit and for an underground development at the Mahab 4 deposit

• Discussions with Government ministries have commenced

• The EIA is expected to take around six months to prepare and go through the approvals process

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  David Archer, Savannah's Chief Executive Officer said "Savannah is targeting to be in production by late 2017 and the lodging of the Mining EIA is an important milestone regarding the development of the combined deposits as an integrated operation. The tempo of our work is increasing and studies that will form the basis of our plans, such as metallurgical testwork and various baseline studies, are now underway.

  "The higher grade nature of the two deposits makes them attractive for priority mine development to be followed by the development of other deposits such as those on Block 4. Following an intensive round of drilling over recent months, an updated Mineral Resource for both Maqail South and Mahab 4 will be released in Q4 2016, which will form an important part of our mining studies regarding a mine development targeted for late 2017."

  Figure 1. Location map showing location of Mining Licence Applications

  G eo Reso u r ces Con sul tan cy (" G RC" )

  Savannah has contracted GRC to complete and co-ordinate the required EIA, which is required for the licensing of the project. GRC is an Omani consulting group registered as Grade One with the Ministry of Commerce and Industry. GRC provides a comprehensive range of multidisciplinary consultancy services and tailors individual support packages for project planning, design, management, integration and supervision, including environmental assessment and management. GRC has prepared environmental permitting documentation for a number of mining /open pit mining projects within Oman and successfully had them approved.

  The primary scope of work to be completed by GRC includes:

  • Preparing Scoping and Strategy for Assessment Document and submitting it to MECA

  • Undertaking baseline monitoring of the Mahab 4 and Maqail South deposits, reflecting possible emissions and land impacts arising from the mine development and operation

  • Preparing and submitting an EIA document to MECA consistent with good Omani and international practice

  • Preparing a mining permit application form in the prescribed manner

  • Preparation of request letters and supporting information to apply for and maintain the mining permits

  • Assisting in discussions with the various government departments and stakeholders to ensure a timely approval of the EIA

Providing there are no delays in the process, it is anticipated that the approval process for the EIA is should take approximately six months.

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

For further information please visit www.savannahresources.com, follow us on Twitter @SavannahRes or contact: