Savannah Resources - Operational and Sector Update

Operational and Sector Update

Savannah Resources Plc (AIM: SAV), the developer of the Barroso Lithium Project in Portugal, provided an update on its operational activities and developments within the lithium sector following its recent oversubscribed £9.8m fundraise. The company now holds total cash reserves of approximately £21m (c.US$27m), positioning it strongly to advance the Project towards a Final Investment Decision next year.

Key Developments

The company is finalizing the acquisition of the Aldeia Mining Lease, a highly prospective three-block lease adjacent to its C-100 Mining Lease. Previous drilling on Block A of Aldeia has defined a JORC (2012 Compliant) Resource of 3.5Mt at 1.30% Li.
Staff from Germany's KfW IPEX-Bank visited the project in November as part of the due diligence process for a possible German Government guarantee on a project finance loan of up to US$270m. Savannah continues to engage with additional project finance providers through its adviser, Cutfield Freeman & Co.
Savannah has appointed Mr. João Nunes as Operations Readiness Manager, bringing over 28 years of experience in the mining industry and senior leadership roles across mining operations, projects, consultancy, and engineering companies.

Stakeholder Engagement and Land Acquisition

The company continues to strengthen its ties with local communities, recently hosting around 100 residents at a social event in Boticas. In October, an additional promissory purchase contract was agreed for a group of land properties, including owners who previously opposed the project.
Savannah is preparing to finalize the purchase of the Aldeia Mining Lease, leveraging its recent fundraise to secure the necessary capital.

Market and Sector Outlook

The lithium market continues to improve, with spodumene prices nearly doubling since the end of June and showing dramatic acceleration in recent weeks as the market tightens. Savannah believes lithium markets will remain volatile but persistently tight for years, requiring incentive prices significantly above the minimal threshold for the project's success.

"The recent oversubscribed fundraise gives us fresh impetus to push on with the development of our Project. We remain busy on all project-related fronts, including finalising the acquisition of the additional Aldeia Mining Lease and preparing for the upcoming fieldwork." — Emanuel Proença, Chief Executive Officer of Savannah

Author’s Summary

Savannah Resources is advancing its Barroso Lithium Project with strong financial backing, key appointments, and positive community engagement, while the lithium market shows robust growth and tightening supply.

Research Tree — 2025-11-26

Operational and Sector Update

Key Developments

Stakeholder Engagement and Land Acquisition

Market and Sector Outlook

Author’s Summary

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