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

Europe’s Leading Conventional Lithium Project

SA SAVANNAH R RESO SOURCE CES PLC CORPORATE P E PRESEN ENTATION – September 2019 2019

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

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

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• 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

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“In the near future, lithium will be one of the most sought- after raw materials on earth…” ii

Michael Bäcker, Head of Procurement for Electric Mobility at Volkswagen AG

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ihttps://www.france24.com/en/20180913-booming-electric-car-sales-drive-lithium-rush-portugal iiVW Website (https://www.volkswagenag.com/en/news/stories/2019/04/lithium-the-irreplaceable-element-of-the-electric-era.html) iiihttps://www.telegraph.co.uk/business/2019/06/05/jaguar-land-rover-teams-bmw-develop-electric-vehicles/ ivhttps://www.ft.com/content/95ed34f0-10da-11e8-940e-08320fc2a277

“For us it’s very important to make sure that our plans won’t suffer from a lack of supply” iv

Michael Rebstock, BMW liaison, on BMW securing multiyear Lithium contract

“The pace of change and consumer interest in electrified vehicles is gathering tangible momentum and it’s essential we work to advance the technologies required to deliver this exciting future”iii

Nick Rogers, Jaguar Land Rover, Chief Engineering Director

“I honestly believe Lithium could be the new gold…” i

Maroš Šefčovič, Vice President of the European Commission

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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

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READY FOR THE OPPORTUNITY - IN THE EUROPEAN LITHIUM INDUSTRY

Dominant position:

• Sole owner of the Mina do Barroso lithium project in
• Portugal. Mina do Barroso is the biggest spodumene

lithium discovery in Western Europe in recent times. DFS underway and targeting production in 2021.

Opportunity:

• The EU auto industry needs sustainable domestic

battery raw material supply to support transisiton to

• EVs. Europe’s auto OEMs will experience increased

competition for battery raw materials and EV sales from alternative carmakers in 2020s. SAV is well positioned to be the anchor to this robust supply chain.

Powerful demand drivers for Lithium:

• Lithium and lithium battery demand are ultimately

driven by tightening vehicle emissions legislation and growing public desire to limit climate change. Lithium mining Cos offer good exposure to the sector.

Diverse Corporate Value proposition:

• JV with Rio Tinto on the world-class Mutamba

mineral sands project in southern Mozambique, and JVs on two copper projects in Oman complete a diversified asset portfolio (Award of mining licences in finalisation in both countries).

Many value adding events in 2019/20:

• Multiple major milestones are expected to be

reached at Mina do Barroso including submission of the EIA and completion of the DFS; Confirmation of Mining Licence awards in Mozambique and Oman; conclusion of Oman strategic review.

Board & Management:

• Aligned with shareholders (having invested £8.5m

cash) and focused on project delivery. Experienced mine builders and operators who demand high standards in project appraisal processes to ensure successful future developments.

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LITHIUM MARKET OVERVIEW - AN OPPORTUNITY FOR NEW PRODUCERS IN EUROPE 6

iCanaccord Genuity research note ‘Cosmic Irony’, 12 August 2019, Bloomberg Electric Vehicle Outlook 2019 iiRoskill, ‘Lithium 15th Edition, June 2018; ‘Lithium 15th Edition – update 3’, March 2019 iiiRoskill, pers comm, January 2019 ivBenchmark Mineral Intelligence, Contract Structures Report, June 2019

Substantial growth expected in Li demand:

• Global EV sales forecast to rise from 2.1m in 2018 to

c.10m in 2025i driving a 4x increase in total refined lithium demandii. (EV sales are forecast at 28m in 2030i) Supply crunch ahead:

• 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 2ndlargest market for lithium, but currently

imports 100% of battery grade material requiredii

• Europe’s lithium demand for EV batteries set to grow

7x between 2018 and 2025iii

• Mina do Barroso is a potential foundation for a new

European lithium supply chain

ii, iv iii

Targeted MdB production date

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EU LIB/EV MARKET - REQUIRES ITS OWN SUPPLY BASE

iRoskill, pers comm, January 2019 iiBased on lithium equivalent production vs. Deutsche Lithium, EUA, EMH, INF, KELIBER iii5 of the 6 proposed Li chemical plants are part of combined mine-plant development projects by Deutsche Lithium, EUA, EMH, INF, KELIBER

SAV is well placed to become the largest annual contributor to Europe’s new lithium supply chainii

Various End users Li cell & battery manufactures & assemblers Planned Li cell & battery manufactures & assemblers Li battery material manufactures Large scale existing Li chemical manufacturers Large scale Li mines Key: Planned Li battery material manufactures

6iii 6

Large scale planned Li mines Large scale planned Li chemical manufacturers Potential SAV customers

i

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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

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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

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MINA DO BARROSO - CONCEPTUAL SITE LAYOUT

Conceptual plant design

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MINA DO BARROSO LITHIUM - KEY PROJECT FEATURES

iRoskill, ‘Lithium 15th Edition, June 2018; ‘Lithium 15th Edition – update 3’, March 2019, Pers comm, January 2019 iiRenewable energy (hydro, wind, biomass and solar) accounted for 52% of Portugal’s domestic power generation in 2018. Source: www.renewablesnow.com iiiFigures based on June 2018 Scoping Study, RNS 13.06.18 ivCautionary 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

Regionally Significant Scale Annual Li concentrate production equates to c.40% of Europe’s Auto Lithium battery demand in 2025 & 20% in 2030i Largest conventional lithium project in Western Europe (27Mt resource, approximately 286kt contained Li2O, 707kt LCEiii as at 31 May 2019) Significant exploration upside including current Exploration Target of 11-19Mtiv Ideal Location Portugal is already the world’s 10th largest lithium miner in 2018, and no.1 in Europei Project development aligned with Portuguese Government strategy to create a major new national lithium industry and first mover advantage The Project benefits from excellent road and powerii infrastructure; Situated just 140km (1h45m drive) from industrial ports

• n Portugal’s Atlantic coast and the city of Porto

EU funding available as part of green energy and EV supply chain initiatives Compelling Economicsiv Post-tax Economics: NPV (8%) US$241m; IRR: 48.6%; Pay back: 2.1 years CAPEX (ex-contingency): Initial US$109m; Sustaining US$11.8m OP COSTS (/t conc): C1 – US$210 (Yr 1-4) & US$271 LoM; AISC LoM: US$277 Strategic Opportunity, Next Steps & Targets DFS well developed, expected to be completed Q2 2020 ‘Achievable’ capex Project could provide the baseload tonnage for a potential Li hydroxide production plant near Porto EU determined to establish domestic Li supply chain to sustain European Auto industry Experienced management team Project construction to commence in 2020 with commissioning completed mid/late 2021 Expected to be first major producer of Lithium in Europe

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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

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iBased on project economic studies reported on company websites, in presentations and press releases and share prices as at 17 June 2019

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EUROPEAN PEERS I- SAVANNAH COMPARES WELL

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MINA DO BARROSO - MAJOR PROJECT DEVELOPMENTS

SAV share price (p)

5 project upgrades in 2 years, leveraging market developments, acquired 100% ownership via all share acquisition

1.

Acquisition of 75% stake in MdB

2.

Maiden resource estimate 3.2Mt at 1.0% Li2O

3.

2nd resource estimate 9.1Mt at 1.03% Li2O

4.

Scoping study initiated

5.

Positive Li met result

6.

3rd resource estimate 14.0Mt at 1.1% Li2O

Source: LSE website and company RNS

1

7. Scoping Study results released 8. £12.5m placing at 9p 9. DFS initiated 10. 4th resource estimate 20.1Mt at 1.04% Li2O 11. Aldeia option acquired 12. Pinheiro discovery

6 2 7 3 8 4 9 5 10 11 12 13 14 15 17 16 18

13. Positive Li Met result 14. Aldeia Block A discovery 15. 5th resource estimate 23.5Mt at 1.02% Li2O 16. Move to 100% ownership via acquisition 17. 6th resource estimate 27.0Mt at 1.06% Li2O 18. Aldeia option exercise & positive co-product testing results

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• 5.0

10.0 15.0 20.0 25.0 30.0 May-18 May-19

Million tonnes

Total JORC resource by orebody May-19 vs. May-18

Grandao Reservatario NOA Pinheiro Aldeia

MINA DO BARROSO - 2018/19 RESOURCE EXPANSION

A successful year of exploration and resource delineation at Mina do Barroso has: + Shown the project’s potential to have a resource range between 37-47Mti - multi-decade Li source for Europe’s battery industry + More than doubled the Measured & Indicated Resources to 15Mt - now available for conversion to reserves + Reduced geological risk by increasing the number of orebodies from 3 to 5 + Maintained the overall Li2O grade and confirmed low iron content - confirmed export spec

• Added to drilling and assaying schedules & costs
• Added greater complexity to project planning and orebody sequencing for DFS
• Added greater complexity to mineral processing due to variations in mineralogy between orebodies

3

• rebodies

5

• rebodies

Li2O grade: ~ unchanged at 1.06% Fe2O3 grade: -38% at 0.8%

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.

• 10.0

20.0 30.0 40.0 50.0 May-18 May-19

Million tonnes

Resource by JORC category May-19 vs. May-18

Exploration Target (Upper end of range) Inferred Indicated Measured Measured & Indicated: +108%

15Mt 12Mt 19Mt

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MINA DO BARROSO - LI METALLURGICAL TEST WORK

A lesson from recent history – SAV has 2nd mover advantage:

• New spodumene producers in Australia targeting Li2O recovery rates of

75%-80% have reported recoveries of 55%-65% (73%-81% of target) 11 months after producing first concentrate

• Lower recovery = potential for lower production, ’off-spec’ material,

higher unit operating costs, lower cash flow generation...pressure on business during critical initial operating phase

• Conclusion: Lab and Pilot Scale testing must identify the processing

route which gives optimum results for all the Mina do Barroso

• rebodies before commercial scale up

Achievements to date, next steps:

+ Pre-Scoping study test work showed 80% recovery and that battery grade concentrate could be produced through conventional processing routes + 2nd phase tested 3 conventional processing options. 2 produced 6%+ Li2O concentrate, other option eliminated

• Multiple orebodies with subtle variations in mineralogy and weathering profiles led to test work on samples from all orebodies (as

discovered) + 3rd phase test work expected to be completed in September 2019 + Pilot plant scale testing of selected processing route to begin in October and run into Q1 2020

Source: Company Photograph

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Key Reasons we have extended the Mina do Barroso Definitive Feasibility Study:

• Drilling success & resource expansion: Sustained successful resource delineation on known
• rebodies and discovery of Pinheiro & Aldeia – Pinheiro has been brought into DFS and EIA work

programmesi

• Metallurgy: The project’s orebodies show variations in non-Li mineralogy and have weathering
• profiles. All ore types must be rigourously tested to ensure the project’s processing plant is

designed to consistently produce battery grade concentrate over the life of project: More

• rebodies = more test work
• Leverage recent Australian experiences: New hardrock lithium producers in Australia have

experienced issues during the commissioning phase relating to low recovery rates, poor product quality and high operating costs all impacting cash flow

• Acquisition of minority 25% stake in project: Required significant management time in Q4 2018 –

Q2 2019. Successfully completed in June 2019 via all share deal - project now 100% owned and vendors locked in until June 2020, followed by a nine month orderly market restriction

MINA DO BARROSO - REASONS FOR DFS EXTENSION

iAldeia earmarked for later production following separate Mining Lease award for the Aldeia Blocks

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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 and 16x by 2030i as OEMs are forced to produce more EVs to meet tightening emissions legislation and respond to growing public awareness of climate change issues

• Scope and budget for completion of current DFS have been extended due to new resource

discoveries and decision to increase intensity of metallurgical test work

• Current market valuation doesn’t reflect significant value adding/de-risking of the project in the

past 12 months

• Additional upside from world class heavy mineral sand project in JV with Rio Tinto and high

grade copper project in Oman

iRoskill, ‘Lithium 15th Edition, June 2018; ‘Lithium 15th Edition – update 3’, March 2019, Pers comm, January 2019

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APPENDIX

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Source: Company Photograph

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50 100 150 200

01/01/2018 01/04/2018 01/07/2018 01/10/2018 01/01/2019 01/04/2019 01/07/2019 Savannah Resources plc Livent SQM Albemarle Bacanora Altura Pilbara Power Metals Corp Galaxy Resources Global Lithium and Battery Tech ETF

CORPORATE SNAPSHOT

iAs at 13 September 2019 ii, iii Proforma as at 13 September 2019, ivBloomberg

KEY DATA MARKETS AIM, FWB, SWB TICKER – ALL MARKETS SAV SHARE PRICEi 3.0p MARKET CAPi £39.6m SHARES IN ISSUEi 1,297,459,820 PROFORMA NET CASHii £6.8m OPTIONS/WARRANTSi 74,874,428 AVERAGE EXERCISE PRICE 6.7p RELATIVE SHARE PRICE PERFORMANCEiv SHAREHOLDER ANALYSISiii

Source: Bloomberg

Al Marjan 20.7% MdB project vendors 16.8% HNWs 9.0% Institutions 18.9% Board & Management 4.5% Retail 30.2% (inc. Slipstream Resources 12.9%)

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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 no.1 in Europe

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PORTUGAL COULD BE THE EU’S LITHIUM HUB

Source: Direcao-Geral de Energia e Geologia, Portugal

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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 - RAPIDLY EXPANDING RESOURCE BASE

45 50

Apr 2019

24

LI HYDROXIDE FOR HV BATTERIES

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DEFINITIVE FEASIBILITY STUDY KEY CONSULTANTS

• Primero Group – Lead Consultant: Primero (ASX: PGX) is a leading provider of diversified engineering services to the global

resources industry, which specialises in the design, construction, operation and maintenance of mineral processing facilities and their associated infrastructure. The Group brings valuable hard rock lithium experience to the Project, having been engaged on recent lithium projects in Australia, North America and South America at both the study and EPC project delivery levels.

• Wood – Mining Consultant: International consulting group Wood (trading as Amec Foster Wheeler Australia Pty Ltd) has a

wealth of procurement and estimating experience in lithium studies and mining projects worldwide, including Europe. It also has a track record of developing relationships with European mining contractors and securing quotes for mining services

• Knight Piésold – Tailings, Water and Geotechnical: Knight Piésold is an international firm of consulting engineers with

Australian offices in Perth and Brisbane, which provide specialised services to the mining industry in the fields of geotechnical, geological, waste management, and water resources engineering. The Knight Piésold Group is an international organisation with over 90 years of experience in the fields of mining, power, water, transport and environmental engineering. In addition to the Australian offices, the Knight Piésold Group has offices in Ghana, South Africa, the USA, UK, Canada, Singapore, Chile, Peru, Argentina, Colombia and China

• Nagrom – Spodumene DMS/Floatation, By Product Test work: Nagrom, based in West Australia, has been providing

metallurgical services to the mining industry for the past 40 years. The group, which can conduct ore characterisation and circuit specification based on all major processing techniques, provided the metallurgical test work services which formed the basis for the plant design and recovery rates presented in the Mina do Barroso Scoping Study. Nagrom is now performing a second, more comprehensive, phase of test work for the Definitive Feasibility Study

• VISA Consultores – Environmental Studies and Licensing: Established in 1992, Visa Consultores (‘Visa’) is a Portuguese

consultancy specialising in the areas of applied geology and environmental management, with strong expertise in the mining

• industry. Visa has worked on over 600 projects in Portugal, including a number of mine related Environmental Impact

Assessment (‘EIA’) briefs. The group conducted the EIA on the Mina do Barroso project as part of the successful 2006 Mining Lease application by the Project’s previous owner, and is conducting a new EIA on the Project based on the latest mine and processing plant parameters

26

SAVANNAH’S OWNER’S TEAM

Savannah’s owner’s team is made of a group of highly experienced and motivated mining executives with a strong record of delivering mining development projects

• Dean Wadsworth – Chief Geologist: Dean is a very experienced geologist with over 30 years’ experience of

managing exploration programs in remote places around the world

• David Price – Exploration Manager (Portugal): David is a highly experienced exploration, development and

mining geologist with over 20 years’ industry experience

• Joao Barros – Country Manager Portugal: Joao has a BSc (Egineering) and MSc (Geology), has more that 14

years of relevant experience in the field of exploration and mining

• Paul O’Donoghue – Social and Landholder Manager: Former diplomat turned entrepreneur with directorships

and/or involvement in property development, mining activities with a focus on community/social issues and corporate investment banking

• Alan Rubio – Feasibility Manager: Alan is a private consultant operating through his private company,

Combined Effort, and has over 20 years’ experience working in design, study management and project engineering roles within the resource and petrochemical industries

• Noel O’Brien – Metallurgical Manager: Noel holds a Bachelor of Metallurgical Engineering, a MBA, is a fellow
• f the AusIMM, has over 40 years’ of industry experience and consults through his private consulting

company, Trinol, providing metallurgical support to develop flow sheets and process plant solutions

• Nigel Spicer – Mining Manager: Results orientated and highly experienced Mining Engineer providing first

class engineering and commercial advice and services with over 30 years’ experience in the mining industry

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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.

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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 waste products from the lithium concentrator have significant commercial value

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ADDITIONAL UPSIDE - OMAN

• Two low capex, high-grade copper mines

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

• Well-developed infrastructure
• Strong interest from Cu off-takers
• Additional resource upside from Block 5

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

• Metallurgically

simple

• res,

with potential recoveries ~95%

B L O C K 4 & 5 C O P P E R P R O J E C T S

Source: Company Photograph Source: Company Map

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

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ADDITIONAL UPSIDE - MOZAMBIQUE

• 25-year mining concessions offered for

award in September 2019*

• Joint venture with Rio Tinto earning up

to 51% interest with PFS (underway) and DFS

• Indicated and Inferred Mineral Resource
• f 4.4Bt at 3.9% THM
• Scoping study completed, high level

refresh underway to include higher market prices now being achieved

• Initial LOM of 30 years with mining

inventory of 451Mt at 6% THM

• Pre-Feasibility Study to recommence

following the award of the mining licences

*subject to fulfilment of customary requirements

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

Mining Concession Awarded

Award Pending Main Roads River/Lake Administrative Division

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

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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

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