Mr. Praveen Varshney reports

SAVANNAH GOLD CORP. ANNOUNCES SHARE CONSOLIDATION AND PRIVATE PLACEMENT

Savannah Gold Corp. will consolidate the company's issued share capital on a ratio of one new postconsolidated common share for every five old preconsolidated common shares.

The company currently has 15,230,153 issued and outstanding common shares and on completion of the consolidation there is expected to be 3,046,030 issued and outstanding common shares. Shareholder approval of the consolidation is not required under the policies of the TSX Venture Exchange or under corporate legislature governing the company. The board of directors determined the consolidation was necessary in order for the company to raise additional capital and seek new business opportunities.

Savannah is pleased to announce that it has negotiated, subject to regulatory approval, a non-brokered private placement for total gross proceeds of up to $255,000. The private placement will consist of up to 1.7 million postconsolidation common shares at a price of 15 cents per postconsolidation common share. Proceeds of the private placement will be used to pay outstanding debt and for general working capital.

On successful completion of the consolidation and private placement, the company expects to have 4,746,031 common shares issued and outstanding. The company does not intend to change its name at this time.

The consolidation and private placement are subject to the acceptance of the TSX Venture Exchange.