Savannah Resources (SAV) Announces First 20Mt JORC Probable Ore Reserve at Barroso Lithium Project, Europe's Largest Spodumene Deposit

Savannah Resources Secures Maiden JORC Probable Ore Reserve at Barroso Lithium Project, Northern Portugal

On 15 July 2026, Savannah Resources Plc announced that independent mining consultants Snowden Optiro estimated a maiden JORC Compliant Probable Ore Reserve of 20 million tonnes grading 0.99% Li2O for the Barroso Lithium Project, located roughly 140 kilometres northeast of Porto. This marks the first conversion of any mineral inventory into an Ore Reserve by the company, signifying economic viability of extraction under feasibility study assumptions.

The Reserve is fully classified as Probable, consistent with the Measured and Indicated Resource categories it derives from, complying with the JORC Code 2012. Mining is planned via conventional open pit methods, utilising contractor-operated drill, blast, load, and haul techniques, with a standard spodumene flotation process targeting a 5.5% Li2O concentrate. The five contributing deposits—Aldeia, Grande3o, NOA, Pinheiro, and Reservatf3rio—are all within the Project’s C-100 mining concession, covering approximately 542 hectares.

Distribution of the 20Mt Reserve Across Five Barroso Deposits: Grande3o Leads with 11.4Mt

The 20Mt Reserve is distributed among the five deposits, with Grande3o as the largest contributor at 11.4Mt grading 0.98% Li2O and 0.94% Fe3. Reservatf3rio follows with 4.4Mt at 0.95% Li2O, Pinheiro at 2.1Mt at 1.02% Li2O, Aldeia at 1.6Mt at 1.09% Li2O, and NOA at 0.5Mt at 0.90% Li2O. The overall Reserve grades average 0.99% Li2O and 1.00% Fe3 across all deposits, as detailed in Table 1 of the announcement.

The Reserve estimate incorporates metallurgical recovery rates between 65% and 73%, with mining operating costs based on contractor quotes and processing costs estimated by engineering firm Sedgman. The mine plan supports a processing throughput of 1.5 million tonnes per annum, featuring staged pit development, selective mining to manage dilution, and progressive waste management including ex-pit dumping and in-pit backfilling. Approximately 3% of the mine schedule includes Inferred Mineral Resources, which the company states do not materially affect production or financial outcomes. No Ore Reserves are derived from Inferred Resources, in line with JORC Code requirements.

Conservative Lithium Price Assumption of US$1,200/t Contrasts with Spot Price of US$2,250/t

The Reserve’s economic modelling uses a conservative long-term spodumene concentrate price of US$1,200 per tonne of 6% Li2O (SC6), compared to spot prices near US$2,250 per tonne at announcement. This conservative pricing aligns with standard feasibility study practices, stress-testing project economics against lower price scenarios to demonstrate resilience.

The Reserve cut-off grade is set at 0.5% Li2O, reflecting the Mineral Resource reporting threshold and a marginal cut-off of approximately 0.43 30.46% Li2O based on project-specific economics. This suggests the Reserve remains economically viable even at prices well below current spot levels, indicating potential robustness across lithium price cycles. The announcement does not disclose net present value or internal rate of return figures, which are included in the separately published Phase 1 Definitive Feasibility Study released the same day.

Updated JORC Resource of 39.2Mt Incorporates Revised Aldeia Estimate by Ashmore Advisory

Alongside the Reserve declaration, Savannah Resources updated the total JORC Mineral Resource Estimate for Barroso to 39.2Mt at 1.05% Li2O and 0.8% Fe3, containing 409,200 tonnes of lithium oxide. Prepared by Ashmore Advisory, this update includes a revised Aldeia orebody estimate, previously reported as 39Mt in September 2025. The Resource is classified as 8.7Mt Measured at 1.06% Li2O, 18.1Mt Indicated at 1.05% Li2O, and 12.3Mt Inferred at 1.04% Li2O.

The Resource is reported inclusive of Ore Reserves per JORC standards. Grande3o remains the largest contributor at 18.1Mt, Reservatf3rio contributes 12.1Mt across both the current C-100 concession and a separate application area, Aldeia totals 3.5Mt at 1.21% Li2O as the highest-grade but smallest deposit, Pinheiro adds 4.8Mt at 1.09% Li2O, and NOA contributes 0.7Mt at 1.03% Li2O.

Three Growth Pathways Identified to Expand Barroso Reserves Beyond Initial 20Mt

The announcement outlines three potential avenues for expanding Barroso’s Ore Reserve beyond the initial 20Mt. First, converting remaining Measured and Indicated Resources not included in the current Reserve, notably 2.8Mt of Indicated Resources in Reservatf3rio outside the current C-100 concession boundary pending a future concession adjustment.

Second, upgrading 12.3Mt of Inferred Resources—which cannot be directly converted under JORC rules—into Measured and Indicated categories through additional drilling, enabling future Reserve conversion. Third, converting the Project’s Exploration Target of 35 62Mt into Mineral Resources and eventually Ore Reserves. The Exploration Target is conceptual, with insufficient exploration to estimate Mineral Resources and uncertainty about future outcomes. CEO Emanuel Proene7a highlighted that this work can proceed post-production start and could significantly extend Project life.

Strategic Importance of Barroso Lithium Project Under European Critical Raw Materials Act and e2110m State Grant

The Barroso Lithium Project holds strategic significance within Europe’s regulatory framework. It was designated a Strategic Project by the European Commission under the Critical Raw Materials Act in March 2025, reflecting the EU’s goal to secure domestic battery-grade material supply chains vital for the energy transition. This status places Barroso among select projects contributing to the Act’s target of sourcing at least 10% of Europe’s lithium domestically by 2030.

In January 2026, the Portuguese government approved a State development grant of up to e2110 million for the Project. Once operational, Barroso is expected to produce approximately 183,000 tonnes per annum of spodumene concentrate, sufficient to supply lithium for about half a million electric vehicle battery packs annually. These figures underscore the Project’s scale and potential role in bolstering European battery manufacturing capacity, positioning Savannah Resources as a key future supplier amid a value chain currently reliant on non-European lithium sources.

Competent Persons Allan Earl and Shaun Searle Endorse Reserve and Resource Estimates

The technical data in the announcement is certified by multiple independently qualified Competent Persons per JORC Code 2012. The Ore Reserve estimate was prepared by Allan Earl, Fellow of the Australasian Institute of Mining and Metallurgy and Executive Consultant at Datamine Australia Pty Ltd (Snowden Optiro). Mr Earl conducted a site visit in November 2025, inspecting core sheds, open pits, processing plant site, and tailings storage facilities, with no material issues found.

The Mineral Resource and Exploration Target estimates were compiled by Shaun Searle, Member of the Australasian Institute of Geoscientists and consultant at Ashmore Advisory. Exploration results were compiled by John Morris Pereira, Exploration Manager at Savannah Resources and Member of the European Federation of Geologists. Metallurgical test work was reviewed by Robert Simmons, MAusIMM, engaged as a contract consultant. All Competent Persons consented to the inclusion of their technical information as presented.

Permitting and Regulatory Status: C-100 Concession, RECAPE Process, and Aldeia Approval

The Barroso Lithium Project is held under the C-100 mining concession, granted by the Portuguese government and covering about 542 hectares, with planned extensions to enlarge the exploitation area. The Environmental Impact Assessment (DIA) has been approved, and the RECAPE process—the Portuguese regulatory procedure for final environmental licensing—has progressed, except for the Aldeia pit, which awaits final approval.

An application to transfer mining rights for the C-190 concession, covering Aldeia, is underway at Portugal’s Directorate-General for Energy and Geology (DGEG). The company expects this administrative process to conclude well before mining commences at Aldeia. Investors will likely monitor these permitting developments closely, as mining all five deposits and executing the staged pit development depend on timely regulatory approvals. Permitting risk remains among the key uncertainties alongside metallurgical variability.

Barroso Project’s Contribution to Europe’s EV Battery Supply and Spodumene Production Target

Savannah Resources aims to support Europe’s energy transition, with the Barroso Lithium Project central to this strategy. It is the largest battery-grade spodumene lithium resource identified in Europe, hosted in continuous spodumene-bearing pegmatite dykes within schist units across five deposits. The Project’s spodumene concentrate output will provide lithium directly usable by European lithium-ion battery manufacturers.

Upon operation, Barroso is expected to produce about 183,000 tonnes per annum of spodumene concentrate. The 14-year Phase 1 production profile, backed by the 20Mt Reserve, offers a sustained domestic lithium supply source at a time when reducing import dependency is a key policy and industry goal. The company’s revenue model focuses on spodumene concentrate sales, with the Reserve estimate based on a long-term price of US$1,200 per tonne SC6. The announcement does not disclose offtake agreements, projected revenues, or financing details in this update.