INDABA PRESENTATION CORPORATE PRESENTATION CAPE TOWN | FEBRUARY 2017 MARCH 2017 l AIM:SAV AIM:SAV CORPORATE A MULTI-COMMODITY MOZAMBIQUE PORTFOLIO WITH NEAR TERM DEVELOPMENT OPPORTUNITIES OMAN FINLAND INVESTMENT
2 Disclaimer These presentation slides (“the Slides”) do not comprise an admission document, listing particulars or a prospectus relating to CORPORATE CORPORATE 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. The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal MOZAMBIQUE presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company or their respective shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud). The Slides contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updates or revisions to such forward-looking statements. OMAN The Slides are directed only at persons in member states of the European Economic Area who are “qualified investors” within the meaning of section 86(7) of the Financial Services and Markets Act 2000 (“FSMA”) . In addition, in the United Kingdom, these slides are being directed only at persons who fall within the exemptions contained in Articles 19, 48, 49 and 50A of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having professional experience relating to investments, high net worth companies, unincorporated associations or partnerships, the trustees of high value trusts and self- certified sophisticated investors) and persons to whom distribution may otherwise lawfully be made. Any investment, investment FINLAND activity or controlled activity to which the Slides relates is available only to such persons and will be engaged in only with such persons. Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides. The Slides should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. INVESTMENT The Slides and their contents are confidential and should not unless otherwise agreed in writing by the company be copied, distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person.
3 Savannah at a glance… AIM quoted development company with an CORPORATE CORPORATE established multi-commodity portfolio Prospective multi-commodity portfolio: Mutamba Project, Mozambique – Consortium Agreement • MOZAMBIQUE with Rio Tinto to develop heavy mineral sands project, which has an initial Indicated and Inferred Mineral Resource Estimate of 4.4 billion tonnes at 3.9% Total Heavy Minerals Blocks 4 and 5, Oman – 1,006km² brownfields copper portfolio • of advanced development projects with additional gold upside targeting first mine development in late 2017 KEY DATA OMAN Somero and Erajarvi Projects, Finland – Two new lithium • MARKET AIM projects, covering an area of 159km² of highly prospective TICKER SAV pegmatite terrain. Seven anomalous pegmatites discovered with SHARE PRICE 1 5p drilling planned for Q2 2017 MARKET CAP 1 £26 million Skilled board and management team: FINLAND SHARES ON 450,946,455 ISSUE 1 Proven track record in acquiring, developing and operating • CASH 2 ~£3 million resource assets Al Marjan Limited – 28.44%* Directors represent 35.76% of the share register – fully aligned • SHAREHOLDERS David Archer – 5.17% INVESTMENT with shareholders Rémy Welschinger – 4.22% 1 as at 27.03.17 2 as at 23.02.17 *Expecting to go to 29.99% after the Company’s forthcoming Annual General Meeting
4 Board and Management Team Experienced team with proven success in bringing resource assets into production CORPORATE CORPORATE Matthew King Chairman MOZAMBIQUE David Archer Chief Executive Officer OMAN Imad Kamal Abdul Dale Ferguson Maqbool Ali Sultan Redha Sultan Technical Director Non-Exec Director Non-Exec Director Murtadha Ahmed Manohar Pundalik FINLAND Sultan Shenoy Alternate for Imad Alternate for Kamal Abdul Redha Maqbool Ali Sultan Sultan INVESTMENT Michael McGarty Paul O’Donoghue Durair A’Shaikh David Price Chief Financial General Manager Country Manager, Exploration Officer Business Mozambique Manager, Oman Development Oman
World-class Heavy Mineral Sands 5 Project: Mozambique CORPORATE CORPORATE Consortium agreement with: MOZAMBIQUE M U T A M B A P R O J E C T Initial Indicated and Inferred OMAN Mineral Resource Estimate of 4.4 billion tonnes at 3.9% Total Heavy Minerals (THM) World class minerals region FINLAND Strategy: Focussed on defining a dry THM mining operation for staged, early INVESTMENT development in conjunction with Rio Tinto Source: Company photos
6 Why heavy mineral sands? USES The mineral sands industry consists of two principal • CORPORATE • Titanium dioxide pigment is a pure white, highly product streams; titanium dioxide minerals – in the refractive and ultraviolet light absorbing product, form of ilmenite, rutile and leucoxene; and zircon which is commonly used in paints, plastics, paper, textiles and inks Heavy mineral sands are placer deposits formed • • Titanium dioxide feedstock is also used in the most usually in beach environments by MOZAMBIQUE MOZAMBIQUE manufacture of welding electrodes and can be concentration due to the specific gravity of the used in foodstuffs, pharmaceuticals and cosmetics mineral grains • Zircon is used in the ceramics industry in the production of opacifiers, which are used in surface Positive price indications for ilmenite: glazes and pigments Four years of price decline ended March 2016 • and steady price increases for the rest of the year as OMAN a result of improving demand from pigment manufacturers and reductions in supply Market currently tight, with spot price increases • accelerating from late 2016 for sulphate ilmenite FINLAND Consolidation in the customer group with mergers • of Sichuan Lomon & Henan Billions and Tronox & Cristal INVESTMENT Higher prices required to justify additional supply • and mine development
7 Rio Tinto / SAV Consortium Agreement Rio Tinto and Savannah entered into a • CORPORATE Consortium Agreement October 2016 to define a potential dry mining operation for staged, early development Savannah is the operator, with an initial 10% • MOZAMBIQUE MOZAMBIQUE beneficial interest and potential to increase to 51% beneficial interest on the achievement of milestones Offtake agreement for the sale of 100% of • production to Rio Tinto (or an affiliate) OMAN Terms of the Consortium Agreement: Phase 1: Scoping Study - Savannah 20% participating interest on completion FINLAND Phase 2: Pre-feasibility Study - Savannah 35% participating interest on completion Phase 3: Feasibility Study – Savannah 51% participating interest on completion Construction Decision INVESTMENT (2) The Mutamba Project includes three deposit areas: Jangamo, Dongane and Ravene. The Chilubane Deposit is located 180km to the south west of the Mutamba Project.
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