Europes Leading Conventional Lithium Project A N E E N ER ERGY M - - PowerPoint PPT Presentation

europe s leading conventional lithium project
SMART_READER_LITE
LIVE PREVIEW

Europes Leading Conventional Lithium Project A N E E N ER ERGY M - - PowerPoint PPT Presentation

Europes Leading Conventional Lithium Project A N E E N ER ERGY M Y M E TALS LS G G ROUP SAVANNAH R SA RESO SOURCE CES PLC CORPORATE P E PRESEN ENTATION Ma March 2020 2020 DISCLAIMER The information contained in these


slide-1
SLIDE 1

Europe’s Leading Conventional Lithium Project

SA SAVANNAH R RESO SOURCE CES PLC CORPORATE P E PRESEN ENTATION – Ma March 2020 2020

A N E E N ER ERGY M Y M E TALS LS G G ROUP

slide-2
SLIDE 2

2

DISCLAIMER

The information contained in these slides and the accompanying oral presentation (together, the "Presentation") have not been approved by an authorised person within the meaning

  • f the Financial Services and Markets Act 2000 ("FSMA"). If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is

authorised for the purposes of FSMA and who specialises in advising on investments of this kind. The information contained in this document does not purport to cover all matters that may be relevant for the purposes of considering whether or not to make any prospective investment and is not intended to provide, and should not be relied upon, for accounting, legal

  • r tax advice. This Presentation is supplied to you solely for information.

The information contained in this Presentation has been prepared by Savannah Resources plc (the "Company"). The Presentation and any further confidential information made available to any recipient, either orally or in writing, must be held in complete confidence and documents containing such information may not be reproduced, used or disclosed without the prior written consent of the Company. The Presentation shall not be copied, published, reproduced or distributed in whole or in part, to any other person, for any purpose at any

  • time. The information contained in the Presentation is not intended to be viewed by, or distributed or passed on (directly or indirectly) to, and should not be acted upon by any class of

person other than (i) qualified investors (within the meaning of the Prospectus Regulation (EU) 2017/1129 and (ii) investment professionals falling within Article 19(5) and high net worth companies, unincorporated associations and partnerships and trustees of high value trusts falling within Article 49(2) respectively of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (or persons to whom it may otherwise be lawfully communicated) (together "Relevant Persons"). Persons who are not Relevant Persons should not attend the Presentation or rely on or act upon the matters communicated at the Presentation. By accepting the Presentation, you agree to be bound by these restrictions. The Presentation does not constitute an admission document, prospectus or listing particulars relating to the Company; it has not been approved by the London Stock Exchange or the Financial Conduct Authority, nor does it constitute or form part of any offer, invitation, inducement or commitment to, sell, issue, or any solicitation of any such offer or invitation to subscribe for, underwrite or buy, any shares in the Company or any of its affiliates to any person in any jurisdiction, nor shall it nor any part of it, nor the fact of its distribution form the basis of, or be relied on in connection with, or act as any inducement to enter into any contract or investment decision in relation thereto. No undertaking, assurance, representation or warranty, express or implied, is made or given by or on behalf of the Company, finnCap Limited, or Whitman Howard Limited or any of their respective existing or proposed members, agents, affiliates, representatives, advisers, employees or directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any such person for any loss however arising from any use of, or reliance on, or in connection with, this Presentation or its contents or otherwise arising in connection therewith. Notwithstanding this, nothing in this paragraph shall exclude liability for any such undertaking, assurance, representation or warranty made fraudulently. Certain statements in the Presentation are forward-looking statements, and the Presentation itself has been based upon a number of assumptions, forecasts and projections of the Company which by their nature are forward-looking and should not be relied upon in isolation. Forward-looking statements are typically identified by the use of forward-looking terminology such as "believes", "expects", "may", "will", "could", "should", "intends", "estimates", "potential", "anticipate", "plans" or "assumes" or similar expressions, or by discussions

  • f strategy that involve risk and uncertainties. By their nature, forward-looking statements, assumptions, forecasts and projections involve a number of risks and uncertainties, and in

some cases are based on estimates and incomplete information, that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements or by the Presentation as a whole. These risks and uncertainties, and the impact they have on the assumptions, forecasts and projections contained in the Presentation, could adversely affect the outcome and financial effects of the plans and events described herein. The distribution of this document in certain jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such requirements or restrictions and this document must not be distributed in or into any jurisdiction in which it would be unlawful. Any such distribution could result in a violation of the law of such jurisdictions. The securities referred to in this presentation have not been and will not be registered under the US Securities Act of 1933, as amended, (the "US Securities Act") or under any securities laws of any state or other jurisdiction of the US and may not be offered, sold, resold, taken up, exercised, renounced, transferred or delivered, directly or indirectly, within the US, Australia, Canada, Japan, the Republic of Ireland or the Republic of South Africa, or to, or for the account or benefit of, any person with a registered address in, or who is resident or ordinarily resident in, or a citizen of, the US, Australia, Canada, Japan, the Republic of Ireland or the Republic of South Africa, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and/or any other applicable securities laws.

slide-3
SLIDE 3

3

CORPORATE SNAPSHOT

iAs at 30 Mar 2020, iiAs at 31 Dec 2019, iiiBloomberg, Yahoo Finance (equity prices), S&P Global Platts (Spodumene price)

KEY DATA MARKETS AIM, FWB, SWB TICKER – ALL MARKETS SAV SHARE PRICEi 1.2p MARKET CAPi £15.6m SHARES IN ISSUEi 1,297,459,820 CASHii £3.5m (£0 debt) OPTIONS/WARRANTSi 74,874,428 AVERAGE EXERCISE PRICE 6.7p RELATIVE SHARE PRICE PERFORMANCEiii SHAREHOLDER ANALYSISii

Nemaska TSX suspension (24 Dec-19) Alita ASX suspension (14 Aug-19)

slide-4
SLIDE 4

4

STATUS UPDATE-PROGRESS MADE IN 2019 & 1Q 2020

Mina do Barroso, Portugal – Lithium:

  • Assumed sole ownership – acquired the residual 25% stake in an all share transaction which valued the project at

c.US$48m in Jun-19

  • Commercialisation advanced – Negotiating lithium & co-product offtake, engineering contractor & strategic

partnerships

  • Mining Lease amendments – licencing documents to be submitted shortly to Portuguese regulator
  • Financing preparations continuing - Definitive Feasibility Study to be completed this year; now well engaged with EU’s

lithium battery supply chain initiatives

Mutamba, Mozambique – Mineral sands:

  • Mining Concessions awarded – Three, 25 year, Mining Licences granted covering the project’s 4.4Bt Mineral Resource
  • Pre-Feasibility Study accelerating after slow down in 2019 during the Ministry’s extended Licence application review

Blocks 4 & 5, Oman – Copper:

  • ’Intention’ to award Mining Licences received on Block 5 from Oman authorities
  • Strategic review continuing, including negotiations with potential acquirers of the projects

Corporate:

  • Won the UK Department of International Trade’s Overseas Direct Investment Award for Portugal
  • £5m raised from new and existing shareholders in Sept-19 (6th largest raise by AIM mining Co in 2019)
  • 2019 Year-end cash position of £3.5m, no debt
slide-5
SLIDE 5

5

STATUS UPDATE-MINA DO BARROSO

  • Commercialisation progressing well
  • Lithium offtake: Currently in advanced offtake negotiations for majority of spodumene concentrate produced

and working towards definitive agreement (significant achievement against challenging lithium market background)

  • Co-product offtake: Currently in advanced offtake negotiations following declaration of maiden 14.4Mt co-

product (quartz and feldspar) resource in Sept-19

  • Contractor/Strategic Partner: Formalising potential Strategic Partnership with industrial group for provision of

multiple services during project construction and operation. Potential investment in the project also being considered

  • Licencing process being initiated
  • Environmental Impact Assessment (EIA): 1st key report in licencing process to be submitted to Portuguese

authorities in April for review and approval (c.2,000 page document)

  • Mine Plan (MP): 2nd key report in licencing process covering all aspects of the project’s development and
  • peration, submitted alongside EIA (c.400 page document)
  • Financing preparations ongoing
  • Definitive Feasibility Study (DFS): For debt providers and other financiers, DFS to be completed this year once

metallurgical test work programmes completed. Can draw significant content from completed EIA and MP

  • EU battery initiative funding: Engagement with the EU’s lithium battery industry development initiatives
  • Stakeholder engagement to be expanded
  • EIA and MP provide factual basis for comprehensive stakeholder engagement throughout 2020
  • Benefit Sharing Plan in development
slide-6
SLIDE 6

6

STATUS UPDATE-THE LI MARKET 2019 & Q1 20

Positive:

  • 2019 Li chemical demand +14.6% (+41kt LCE) y-o-y at 305kt LCEi
  • US$17.4bn estimated funding secured by e-mobility companies in 2019ii
  • 2019 Global EV sales +9% y-o-y to 2.26m (2.5% market share vs. 2.2% in 2018)iii
  • Global EV sales now > total new car sales in South Koreaniv and in-line with UK salesV
  • 44% growth in European EV sales and rapid development of domestic LIB industry
  • Li supply industry reacted to falling prices with cuts to current & future production
  • Chinese Government cancelled planned 2020 EV subsidy reduction

Negative:

  • China’s cut of 2019 EV subsidies impacted sales (+3% y-o-y), and N.Am sales fell y-o-yiii
  • 2019 Li chemical production outweighed demand by 7% (73% produced in China)
  • Li prices ↓ ↓ ↓ : 2019 SC6 price 33%↓, Lithium carbonate 43%↓, Lithium Hydroxide

41% ↓ivas inventories of SC6 and Li chemicals built up

  • Li suppliers severely challenged by price falls & weak market sentiment
  • 1Q 2020 SC6 inventory c.400kt, Li chemical inventory c.30kt. Equivalent to 10 weeks

and 6 weeks demand respectively in a ‘normal’ market Pre-Coronavirus 2020 outlook:

  • EV sales growth in all major markets, especially in Europeiv
  • Inventories to clear during year and market in balancei
  • 16 % growth in Li chemical demandi

iRK Equity Lithium Supply/Demand Update, March 2020 iiEV Boosters, Global E-Mobility Funding Report, Q4 2019 iiiEV-volumes.com ivBloombergNEF vhttps://www.best-selling-cars.com/

slide-7
SLIDE 7

7

ii, iii

Lithium Chemical Supply/Demand & Spodumene price forecast

Targeted MdB commissioning & ramp up

STATUS UPDATE- LONG TERM LI MARKET OUTLOOK

iCanaccord Genuity research note ‘Cosmic Irony’, 12 August 2019, Bloomberg Electric Vehicle Outlook 2019 iiRK Equity Lithium Supply/Demand Update, March 2020 iiiBenchmark Mineral Intelligence from Altura Mining’s ‘Proposed Debt Refinancing’ RNS, 2 Dec 2019 ivCompany estimates based on IHS Markit data in Transport & Environment, ‘Electric Surge: Carmakers’ electric car plans across Europe 2019-2025’, July 2019

iv

Equivalent 50KWh BEV (000)

Substantial long term growth expected in Li demand:

  • Global EV sales forecast to rise from 2.3m in

2019 to c.10m in 2025i driving a 3x increase in total lithium chemical demandii. (EV sales are forecast at 28m in 2030i) Supply crunch ahead:

  • Demand set to grow 6x by 2028ii and 10x by

2035iii

  • Output of refined lithium is expected to fall

short of the required demand generating a deficit in the 2020sii. Positive for prices and new producers like SAV Europe – strong demand, great opportunity:

  • The world’s 2nd largest market for lithium, but

currently imports 100% of battery grade lithium chemicals required

  • Europe’s lithium demand for EV batteries set

to grow 7x between 2019 and 2025iv

  • Mina do Barroso is a potential foundation for

a new European lithium supply chain

slide-8
SLIDE 8

8

STATUS UPDATE-EUROPEAN LITHIUM MARKET

Number of EV models available in Europeii

i

  • c.70% CAGR in EV sales 2010-19, and major EV

growth centre in 2019 with 590k EVs sold (3.4% mkt share)i

  • The EU’s European Battery Alliance launched its

Business Investment Platform (BIP) in 2019 to accelerate investments in the LIB value chain including mining. The BIP is targeting €70bn of transactions 2019-23.

  • €3.2bn granted by the EC in state aid to 7 states

for battery projects under IPCEI* programme. €3.2bn is expected to attract €5bn more in private investment

  • Sweden’s

Northvolt AB has raised €1bn+ including €350m from EIB for Europe’s first ‘homegrown gigafactory’ for LIBs

  • French

(€700m) & German (€1bn) Governments have committed to secure €5- 6bn in state and private investment for a collaborative project to develop battery plants in each country

iEV-volumes.com iiTransport & Environment, ‘Electric Surge: Carmakers’ electric car plans across Europe 2019-2025’, July 2019 *important Project of common European Interest

slide-9
SLIDE 9

9

EU EV MARKET - NEEDS ITS OWN LIB SUPPLY CHAIN

iIHS Markit in Transport & Environment, ‘Electric Surge: Carmakers’ electric car plans across Europe 2019-2025’, July 2019; Company estimates iiBloomberg New Energy Finance iiiCompany estimates based on Benchmark Mineral Intelligence, ‘Europe’s Role in the Battery Megafactory Supply Chain’, Mar-19 ivCompany estimate based on LCE production rates in latest studies from Deutsche Lithium, EUA, EMH, INF, KELIBER, SAV, assuming all are in production by 2025 v5 of the 6 proposed Li chemical plants are part of combined mine-plant development projects by Deutsche Lithium, EUA, EMH, INF, KELIBER

Large scale planned Li chemical manufacturers Large scale existing Li chemical manufacturers Li battery material manufactures Large scale Li mines Planned/in construction Li battery material plants Large scale planned Li mines End users Li cell/battery/pack plants Planned/in construction Li cell/battery/pack plants Key: Potential SAV customers 2019: c.18 GWhii 2020: c.46 GWhi 2025: c.176 GWhi 2025: >198 GWhiii 2030: >274 GWhiii 2020: 0 GWh 2025: c.100 GWhiv or c.82ktpa LCE with Savannah contributing minimum 22ktpa ~28% 2020: 0 GWh 2025: ??? GWh

+?v

Independent suppliers of battery

  • materials. Many battery producers

manufacture their own. Auto LIB Demand 2030: c.215 GWhi Mine Capacity LIB plant Capacity Conversion plant Capacity 2030: ??? GWh 2030: >100 GWh?, assuming other projects are developed

slide-10
SLIDE 10

10

MINA DO BARROSO - LITHIUM PROJECT OVERVIEW

iMina do Barroso Mining Lease with 30 year term to May 2036 iiThe pending applications are currently subject to government review and may go to public tender

Mina do Barroso is one of four highly prospective lithium tenements covering 546km2 in northern Portugal - one granted Mining Leasei (5.42km2), a Mining Licence application and three pending Exploration Licence Applicationsii Savannah acquired a 75% interest in the Portuguese Li portfolio in May 2017 and secured 100% control via an all share transaction for the

  • utstanding

25% completed in June 2019 In June 2019 Savannah exercised an

  • ption with Aldeia & Irmão S.A. for the

acquisition of a 2.94km2, three-block Mining Lease (once granted) near the Mina do Barroso Mining Lease

*Pending exploration licence applications

Source: Company Source: Company Photograph

slide-11
SLIDE 11

11

MINA DO BARROSO - KEY DEPOSITS AND TARGETS

iGranted May 2006

Pegmatite quarrying taking place on Block A

Mina do Barroso features multiple lithium deposits across the 30 year c-100 Mining Leasei

The acquisition of the additional Aldeia Mining Lease Application ground adds potential to enhance mine site logistics with significant further resource expansion potential

Source: Company photograph Source: Company Photograph

slide-12
SLIDE 12

12

MINA DO BARROSO - CONCEPTUAL SITE LAYOUT

Conceptual plant design

slide-13
SLIDE 13

13

MINA DO BARROSO – GOOD GOVERNMENT SUPPORT

Above: Portuguese Secretary of State for Energy, João Galamba (3rd from left) visiting the Mina do Barroso project in 2019 Right: Savannah receiving the UK Department of International Trade’s Overseas Direct Investment Award for Portugal, 2019

slide-14
SLIDE 14

14

PROJECT TIMELINE – MINA DO BARROSO

2017 2018 2019 2020

2019 Targets achieved  Acquisition of

  • utstanding 25%

stake in project to become 100%

  • wner

 4th and 5th lithium Mineral Resource increases - now 27Mt @ 1.06% Li2O  First resource estimate made for co-products, 14.4Mt at 33% quartz & 43% feldspar  Exercise of Aldeia

  • ption, increased

project area by 50%  Commercial discussions ongoing with numerous groups 2020 Targets

  • EIA & Mine Plan

submission & approval

  • Strategic

partnerships secured

  • Lithium Offtake

contracts secured

  • Co-product Offtake

contracts secured

  • Community

engagement programmes expanded

  • Completion of DFS
  • Final Investment

Decision

  • Project finance

negotiations continued 2017 Targets achieved  Staged acquisition

  • f 75% project stake

announced  Positive preliminary metallurgical test work completed  Resource drilling commenced  Maiden Inferred JORC Resource estimate made 2018 Targets achieved  3 increases made to JORC Resource  Positive Scoping Study published  £12.5m capital raised  Staged acquisition

  • f 75% stake

completed  DFS commenced  Option executed on adjacent Mining Lease Application (Aldeia)  Strategic Partner/Offtake contract discussions commenced 2021 Targets

  • Completion of

project licencing process

  • Project finance

secured

  • Project construction
  • Commence project

commissioning

  • First spodumene

concentrate produced

2021

slide-15
SLIDE 15

15

ADDITIONAL UPSIDE - MOZAMBIQUE

  • One of the largest undeveloped, globally

significant, mineral sands projects

  • Three, 25-year, mining concessions awarded

in Dec-19 and Jan-20

  • Joint venture with Rio Tinto earning up to

51% interest by completing a PFS (underway) and a DFS

  • Indicated and Inferred Mineral Resource
  • f 4.4Bt at 3.9% THM
  • Scoping study completed in 2017
  • Initial LOM of 30 years with mining inventory
  • f 451Mt at 6% THM
  • Pre-Feasibility Study accelerating following

the award of the mining licences

M U TA M B A H E A V Y M I N E R A L S A N D S

Source: Company Photograph Source: Company Map

World class project with significant scale being developed in partnership with Rio Tinto

slide-16
SLIDE 16

16

MOZAMBIQUE - MUTAMBA IN NUMBERS

30 years

Life of mine (LOM)

US$4.23i billion

LOM revenue forecast

US$152 million

Initial CAPEX (excl. EPC/ contingency

451Mt at 6% THM

Mining inventory

NPVii

US$245M Targeting annual average production of 456,000t of ilmenite and 118,000t of non-magnetic concentrate

2:451

LOM strip ratio (waste:ore)

iBased on Management Case Two +20% Product Price (US$/t), RNS 30.05.17 iiBased on Management Case One +10% Product Price (US$/t) and Pre-tax figures. RNS 30.05.17

IRRii

23%

Paybackii

4 years

100% Basis

M AY 2 0 1 7 S C O P I N G S T U D Y B Y T Z M I S H O W S P O T E N T I A L F O R A L O N G L I F E , R O B U S T P R O J E C T

slide-17
SLIDE 17

17

ADDITIONAL UPSIDE - OMAN

  • Two low capex, high-grade copper mines

planned to initiate cash flow

  • Central processing plant and tailings

storage facility to support multiple mine developments

  • Resource of 1.7Mt at 2.2% Cu, including a

high-grade zone of 0.5Mt at 4.5% Cu in Block 5 (65% interest)

  • In Aug-2019 Public Authority for Mining

confirmed its intention to grant the relevant mining licences

  • Additional resource upside from Block 5

and Block 4 (51% interest, earning up to 65%)

  • Metallurgically

simple

  • res,

with potential recoveries ~95%

  • Strategic review initiated in 2019 and

discussions underway with potential acquirers

B L O C K 4 & 5 C O P P E R P R O J E C T S – S T R AT E G I C R E V I E W U N D E R W AY

Source: Company Photograph Source: Company Map

Majority stake in two large exploration blocks on the copper rich Semail ophiolite belt

slide-18
SLIDE 18

18

THE INVESTMENT CASE - EUROPE’S LEADING CONVENTIONAL LITHIUM PROJECT

  • Owner/operator of the 100% owned Mina do Barroso Lithium Project in Portugal - Western

Europe’s largest spodumene lithium discovery…and growing!

  • Strategically located close to the EU’s fast-growing lithium ion battery production hubs. Geo-

economically strategic to the development of an end-to-end lithium value chain in Europe

  • Objective to become the first significant lithium spodumene producer in Europe
  • Strong market fundamentals for Electric Vehicles – European automotive lithium demand to

rise 7x by 2025 as OEMs are forced to produce more EVs to meet tightening emissions legislation and respond to growing public awareness of climate change issues

  • Progress made over the past 12 months has significantly de-risked the Mina do Barroso Project
  • Additional value from world class heavy mineral sand project in JV with Rio Tinto and high-

grade copper project in Oman

iCompany estimates based on IHS Markit data in Transport & Environment, ‘Electric Surge: Carmakers’ electric car plans across Europe 2019-2025’, July 2019

slide-19
SLIDE 19

19

APPENDIX

19

Source: Company Photograph

slide-20
SLIDE 20

20

THE EXECUTIVE TEAM

MICHAEL MCGARTY - CFO

  • Qualified accountant with extensive M&A, Financial Leadership, and strategic planning experience
  • Previous roles at blue chip MNC (Ingersoll Rand - NYSE:IR) covering Europe, Middle East and Africa: Commercial

Financial Controller, Director

  • f

FP&A, Leader

  • f

European Sarbanes-Oxley compliance initiative, Finance and Project Management DAVID ARCHER - CEO

  • Over 30 years’ mining experience
  • Outstanding track record of successful public company development – resources, telecommunications, oil & gas
  • CEO of ASX quoted Savage Resources - developed from small IPO to a major, mid-tier mining group with a

market cap of ~AUD$400m

  • Advanced ASX quoted Hillgrove Resources from a listed shell into a profitable, dividend paying, AUD$200m market

cap company DALE FERGUSON - TECHNICAL DIRECTOR

  • Over 20 years' experience in the resources industry with Hillgrove Resources Limited, Thundelarra Exploration, Savage

Resources Limited, Gasgoyne Gold Mines and Slipstream Resources

  • Experience spans greenfields and near mine exploration, resource delineation, feasibility studies, due diligence

investigations and mine development and operations MARTIN STEINBILD - LITHIUM BUSINESS DEVELOPMENT DIRECTOR

  • Over 20 years’ experience in prestigious companies with previous roles primarily in strategic management, marketing

and business development

  • Most

recent past position

  • f

Senior Manager with Rockwood Lithium/Albemarle, the leading lithium producer in the world

Technical Consultants

slide-21
SLIDE 21

21

MINA DO BARROSO - THE PROJECT IN NUMBERS i

Production in context:

  • Lithium carbonate equivalent (net of conversion losses): 22,100tpaiii
  • Lithium carbonate requirement/kWh of battery capacity: 0.8kg/kWhiv
  • BMW i3 2019 battery pack capacity: 42kWhv
  • Jaguar i-Pace 2019 battery pack capacity: 90kWhv

The June 2018 Scoping Study by Hatch demonstrated Mina do Barroso’s economic viability

iFigures based on June 2018 Scoping Study, RNS 13.06.18 iiRevenue: lithium and co-products iiiAssuming plant Li2O conversion rate of 85% ivRoskill, pers comm, January 2019 vhttps://ev-database.uk

Mina do Barroso annual production vehicle battery pack equivalent: 307,000 (Jaguar I-Pace) – 655,000 (BMW i-3)

Operating parameters and assumptions Financial & economic outcomes Mineable open pit resource 14.4Mt @ 1.07% Li2O Revenue (LoM; Avg pa) ii US$1,555m; US$140m LoM Stripping ratio (waste: ore) 5.2: 1 EBITDA (LoM; Avg pa) US$805m; US$73m Final Lithium concentrate product 6% Li2O spodumene (Spod) Pre-tax FCF (LoM; Avg pa) US$651m; US$59m Spod concentrate production & Avg price 175,000tpa; US$685/t Net FCF (LoM; Avg pa) US$458m; US$41m Lithium carbonate/hydroxide equivalent ~26,000tpa/~29,000tpa Pre-tax NPV (8% discount rate) US$356m Co-products feldspar, quartz, pegmatite Pre-tax IRR 63.2% Li recovery processing route (80% recovery) crush-grind-DMS-flotation Pre-tax payback 1.7 years C1 cash costs (net of co-product revenues) US$271/t concentrate Post-tax NPV (8% discount rate) US$241m Initial capex (ex. Contingency) US$109m Post-tax IRR 48.6% Initial life of mine (LoM) 11 years, 1.3Mt per annum Post-tax payback 2.1 years

slide-22
SLIDE 22

22

MINA DO BARROSO - CO-PRODUCT CREDITS

+ Co-products from the Li concentrator tail include: High purity feldspar & quartz and a bulk, mixed feldspar-quartz stream + Commercial test work has shown that: + The feldspar product is suitable for use in ceramics, float & container glass and could sell at US$65-100/t vs. Scoping Study assumed price of US$39/t + The quartz product is suitable for use in lead crystal & container glass and could sell at US$60-100/t vs. Scoping Study assumed price of US$33/t + Bulk tail (mixed feldspar & quartz) suitable for use in ceramics and could sell at US$40-45/t + Bulk tail production only could save c.US$15m on plant capex + Portugal and Spain produce 570 million m2 of ceramic tiles per yeari (Europe has a ~€30bn ceramics market)ii + ~33Mt of container and float glass are produced in Europe each year, including from plants in Portugal and Spainiii + Discussions are underway with potential offtake partners/customers for all products to determine sales volumes + Co-product resource estimates to be published this year

iSource: First Test Minerals Ltd iiSource: Cerame-Unie iiiSources: Glass Alliance Europe, Glass for Europe, EY

Testing has shown tailings stream from the lithium concentrator has significant commercial value

slide-23
SLIDE 23

23

May 2017 Dec 2017 Feb 2018 May 2018 Sep 2018 May 2019

5 10 15 20 25 30 35 40 (Mt)

Potential Project Mineral Inventory Range Exploration Target Range Mineral Resource

Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.

MINA DO BARROSO –THE LI RESOURCE HAS GROWN RAPIDLY

45 50

Apr 2019

slide-24
SLIDE 24

24

Deposits included Current JORC (2012) Mineral Resource Estimate on the C-100 Mining Lease (May 2019, 0.5% Li2O cut-off) Measured Indicated Inferred Total Grandao Million tonnes 6.6 8.4 12.0 27.0 Reservatorio Li2O (%) 1.1 1.0 1.1 1.0 Pinheiro Fe2O3 (%) 0.7 0.7 0.9 0.9 NOA Aldeia Block A Contained Li2O (000t) 72 87 128 286 Contained LCE equivalent (000t) 177 214 316 707 Deposits included Current Exploration target on the C-100 Mining Leasei Low High Grandao Million tonnes 11.0 19.0 11.0-19.0 Reservatorio Aldeia Block A Li2O (%) 1.0 1.2 1.0-1.2 Mineralisation identified on other pegmatites on the C-100 Mining Lease (e.g. Altos dos Corticos & Carvalha da Bacora) Further Mineralisation on the Aldeia Blocks A, B & C MULTIPLE OPPORTUNITIES TO ADD TO THE CURRENT MINERAL RESOURCE BASE AND EXTEND THE PROJECT’S CURRENT 11 YEAR SCHEDULE

MINA DO BARROSO - LARGE RESOURCE + GROWTH POTENTIAL

  • Spodumene is the primary Li2O bearing mineral, with trace or low amounts (~1%) of Li2O also present within eucryptite and petalite,

both lithium aluminosilicate minerals, similar in structure to spodumene. Trace epidolite (lithium bearing mica) is also present

  • Primary gangue minerals are feldspar (albite and microcline), quartz and mica (muscovite and phlogophite)

iCautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource

and it is uncertain if further exploration will result in defining a mineral resource.

slide-25
SLIDE 25

25

LITHIUM MINING IN PORTUGAL -

THE INDUSTRY EXISTS - AND MOVING TO 5TH PLACE

  • Like Australia, lithium production in Portugal is solely from

hardrock, and principally pegmatites. Current production is less than 1% of that in Australia

  • Production in Portugal has been used in lithium’s traditional

markets of glass and ceramics. There was previously production from pegmatites at Mina do Barroso

  • With the significant growth in the Australian lithium mining

sector, hardrock production has become the dominant source of supply globally (72% vs. 28% for brine in 2018ii)

  • The Portuguese Government is keen to develop a new

lithium production industry based

  • n

the country’s significant in-ground lithium resources

iLCE = Lithium carbonate equivalent iiSource: Roskill, ‘Lithium 15th Edition update 3’, March 2019 iiiDSO = Direct Shipping Ore

Rank Country 2018 Mine production (LCEi, 000t)ii 1. Australia (inc 125kt. DSOiii) 324.2 2. Chile 79.7 3. China 37.8 4. Argentina 31.9 5. Canada 12.9 6. Zimbabwe 9.5 7. Namibia 4.4 8. USA 4.3 9. Brazil 1.4 10. Portugal 0.8 Total 506.9

Conclusion: O P E R A T I O N A L R I S K I S L O W

Portugal is already the world’s 10th largest lithium miner in 2018, and the largest in Europe

slide-26
SLIDE 26

@SavannahRes www.savannahresources.com info@savannahresources.com SAVANNAH