AMN - MOZAMBIQUE: Mutamba HMS concessions awarded

Savannah Resources has been conditionally awarded two Mining Concessions for the world-class Mutamba Heavy Mineral Sands Project in Mozambique. The company intends to operate a joint venture with Rio Tinto over the project, which contains one of the most significant undeveloped heavy mineral sands deposits in the world.

The concessions, which are contiguous and cover ground in the districts of Inharrime and Jangamo in the country's south, have been awarded by the Minister of Mineral Resources and Energy in Mozambique to Mutamba Mineral Sands SA and Matilda Minerals Lda.

Mining Concession 9735C has a term of 25 years to April 9, 2044, and 9229C has a term of 25 years to May 6, 2044, with the possibility of an additional 25-year extension.

Mutamba contains an indicated and inferred mineral resource of 4.4 billion tonnes grading 3.9% total heavy minerals.

The project benefits from high-quality established transport infrastructure:

• The country's main north/south EN1 highway runs through the project area;
• The port of Inhambane is in close proximity to the project area;
• A daily air service runs to the nearby city of Inhambane; and
• Reliable grid power is already installed and available in close proximity to the concessions.

Another Mining Licence application, 9228C, in the name of Mutamba Mineral Sands SA, has been upgraded on the Mozambique Ministry of Mineral Resources and Energy's mining cadastre to 'Award Pending' which indicates that the grant process has reached the final stage.

Savannah's chief executive officer David Archer said, "The conditional award of these Mining Concessions to Mutamba Minerals Sands SA and Matilda Minerals Lda represents a major milestone for both the project and for Savannah, and places our joint venture with Rio Tinto on a very solid foundation.

"The Government of Mozambique evaluated the Mining Concession applications rigorously, and we are pleased that the Mining Concessions have been conditionally awarded for a term of 25 years each upon satisfaction of customary requirements for granting of mining licenses.

"The project area covered by the Mining Concessions contains an indicated and inferred mineral resource of 4.4Bt at 3.9% total heavy minerals and constitutes one of the largest remaining mineral sands deposits in the world that is yet to be developed.

"With the approval for award of Concession 9228C now in the final stage and given that the demand for global titanium feedstocks remains very strong, these Mining Concessions hold the potential as a significant global project within the sector.

"Finally, once these Mining Concessions are formalised, they will enable the joint venture to progress the PFS towards completion. Upon delivery of the PFS, our interest in this world-class heavy mineral project will rise from 20% to 35%."

Savannah is the operator of the Mutamba Project Joint Venture with an existing 20% interest in a consortium agreement with Rio Tinto, which covers the project area. Savannah is able to increase its equity to 35% upon delivery of the pre-feasibility study, which is underway, and ultimately to 51% upon delivery of a feasibility study.

www.savannahresources.com