REG - Savannah Resources - Official signing of the Portuguese State Grant

Savannah ResourcesAnnouncement

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RNS Number : 6807P  Savannah Resources PLC  21 January 2026

 

21 January 2026

 

Savannah Resources Plc

(AIM: SAV) ('Savannah', or the 'Company')

 

Official signing of the Portuguese State Grant

Savannah joins other grant recipient companies at official signing ceremony

 

Savannah Resources Plc, the developer of the Barroso Lithium Project in
Portugal, a 'Strategic Project' under the European Critical Raw Materials Act
and Europe's largest spodumene lithium deposit (the 'Project'), was delighted
to join with other recipients of State grants yesterday at the official
signing ceremony at the Port Authority in Sines, southern Portugal. Savannah's
attendance at the ceremony follows the award to the Company of a
non-reimbursable grant (the 'Grant') of up to approximately €110 million
(approximately US$128 million) from the Portuguese State and supported by
national funds under the European Commission Temporary Crisis and Transition
Framework, as announced on 9 January 2026.

 

Reflecting the significance of these grant awards and the underlying
investments being made by the companies involved, which amount to over €3
billion , the ceremony took place in the presence of Portugal's Prime Minister
Luís Montenegro, Minister of Economy and Territorial Cohesion Castro Almeida,
Secretary of State for the Economy João Rui Ferreira, and the President of
AICEP, Madalena Oliveira e Silva.

 

The Grant signing ceremony took place in the presence of Portugal's Prime
Minister Luís Montenegro (fifth from left), Minister of Economy and
Territorial Cohesion Castro Almeida (4(th) from left), Secretary of State for
the Economy João Rui Ferreira (fifth from right), and the President of AICEP
Madalena Oliveira e Silva (second from left). CEO, Emanuel Proença (second
from right) represented Savannah alongside officers from the other grant
recipient companies.

 

 

Savannah was one of six companies invited to be part of the public signing
ceremony of the investments contracted with AICEP. Of the six companies
selected, four (Savannah Resources; Lifthium; Topsoe Battery, and CALB)
represent investments within the lithium battery value chain in Portugal
which, in addition to Savannah's own Project, comprise a hydroxide finishing
refinery and large manufacturing plants for cathode active materials and
batteries. Savannah is the only recipient within the lithium mining sector,
and the only company with a project in the interior of the country, where long
term economic growth catalysts are required to create local employment.

 

During the ceremony, Prime Minister Luís Montenegro stressed the importance
of "creating value chains in critical sectors", calling the lithium value
chain "fundamental for the green transition and for Europe's autonomy". The
Prime Minister added, "We want to be less and less dependent, and it is with
projects like these that we can achieve this goal, from extraction - which
must be done with the least possible environmental impact - to
industrialisation in the production of batteries that will be essential for
the automotive sector in Portugal."

 

The President of AICEP, Madalena Oliveira e Silva, expressed her gratitude to
the investing companies for "choosing Portugal for their industrial
investments", stressing that these projects are " ...  a vote of confidence in
the country, reflecting the positive conditions that Portugal has been able to
create" and adding that, "These export investments are structuring for the
national economy due to their ability to create value."

 

Savannah Resources CEO, Emanuel Proença said, "It gives us great pride to be
part of this small group of industrial projects that are recognised today for
the potential they represent for the country. We have been saying that our
Project will be transformative, first of all for our region of
Trás-os-Montes, through job creation and local economic development, but also
for the country as it represents the origin of the lithium battery value
chain, attracting other projects further downstream, and, of course, for
Europe for being able to contribute decisively to energy independence and to
the green transition that will mark the coming years and decades."

 

Background information & next steps

Grant details: The Grant is executed through an investment contract entered
into between AICEP and Savannah's Portuguese subsidiary, Savannah Lithium
Unipessoal Lda. Through the award Savannah can receive up to a maximum total
value of €109.67 million (US$128.31 million) in the form of Non-Refundable
grant funding divided into two parts as follows:

o  An amount of up to €82.25 million (US$96.23 million) equivalent to 75%
of the total, granted as consideration for the execution of the operation
(CAPEX); and

o  An amount of up to €27.42 million (US$32.08 million) equivalent to 25%
of the total, awarded as a contractual performance bonus sometime between 2031
and 2042.

Next steps: Following the signing of the investment contract, Savannah will
work with AICEP to complete its execution and the fulfilment of all
contractual and legal obligations, notably regarding the Grant's compatibility
with any future Project Financing and/or other potential funding option to
complement the development of the Project.

Conditions precedent and execution risk: Savannah notes that while this Grant
represents a significant milestone, the Project remains subject to permitting,
financing, construction, and operational risks typical of mining developments.
Shareholders should note that the timing and quantum of Grant receipts are
contingent on meeting all contractual conditions. Should Savannah or the
Portuguese State not comply with the conditions precedent before the end of
the year, the contract would be void.

 

 

 

Regulatory Information

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

**ENDS**

 

Follow @SavannahRes on X (Formerly known as Twitter)

Follow Savannah Resources on LinkedIn

 

For further information please visit www.savannahresources.com
(https://www.savannahresources.com) or contact:

 

 Savannah Resources PLC                                            Tel: +44 20 7117 2489

 Emanuel Proença, CEO
 SP Angel Corporate Finance LLP (Nominated Advisor & Broker)       Tel: +44 20 3470 0470

 David Hignell/ Charlie Bouverat (Corporate Finance)

 Grant Barker/Abigail Wayne (Sales & Broking)

 Canaccord Genuity Limited (Joint Broker)                          Tel: +44 20 7523 8000

 James Asensio / Charlie Hammond (Corporate Broking)

 Ben Knott (Sales)
 Portugal Media Relations

 Savannah Resources: Antonio Neves Costa, Communications Manager   Tel: +351 962 678 912

 

About Savannah

Savannah Resources is a mineral resource development company and the sole
owner of the Barroso Lithium Project (the 'Project') in northern Portugal. The
Project is the largest battery grade spodumene lithium resource outlined to
date in Europe, was classified as a 'Strategic Project' by the European
Commission under the Critical Raw Materials Act in March 2025 and was approved
for a Portuguese State development Grant of up to €110m in January 2026.

 

Through the Project, Savannah will help Portugal to play an important role in
providing a long-term, locally sourced, lithium raw material supply for
Europe's lithium battery value chain. Once in operation the Project will
produce enough lithium (contained in c.190,000tpa of spodumene concentrate)
for approximately half a million vehicle battery packs per year and hence make
a significant contribution towards the European Commission's Critical Raw
Material Act goal of a minimum 10% of European endogenous lithium production
from 2030.

 

Savannah is focused on the responsible development and operation of the
Barroso Lithium Project so that its impact on the environment is minimised and
the socio-economic benefits that it can bring to all its stakeholders are
maximised.

 

The Company is listed and regulated on the AIM Market of the London Stock
Exchange and trades under the ticker "SAV".

 

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