Mr. Praveen Varshney reports

DEFINITIVE SHARE EXCHANGE AGREEMENT WITH E3

Savannah Gold Corp. has entered into a definitive share exchange agreement dated May 8, 2017, with 1975293 Alberta Ltd., operating as E3 Metals, and E3's securityholders, whereby all outstanding securities of E3 Metals will be exchanged for securities of Savannah. Savannah has also received conditional approval from the TSX Venture Exchange for the fundamental acquisition (as that term is defined in the policies of the TSX-V).

It is anticipated that Savannah will change its name to E3 Metals Corp. and will carry on with the development of E3 Metals' petro-brine projects in south-central Alberta. The corporation proposes to complete its reactivation and upgrade to Tier 2 on the TSX-V on closing of the transaction.

"I am very pleased to have this important step in the acquisition process completed. As we have solidified the transaction, we can begin to set our sights on the first phase of the project development while the TSX-V finalizes their review of the National Instrument 43-101 technical report on the Clearwater and Exshaw projects," said Chris Doornbos, who will assume the role of president and chief executive officer of the corporation on closing of the transaction. "E3 Metals is working on some exciting new developments that we hope to finalize over the coming months. When the transaction closes, we will outline the details of our project plan for the next 12 months."

Share exchange transaction

On closing of the transaction, Savannah will pay E3 Metals $150,000 and issue to the securityholders of E3 Metals (i) a total of six million common shares of the corporation in exchange for 100 per cent of the outstanding shares of E3 Metals and (ii) 600,000 share purchase warrants in exchange for 100 per cent of the outstanding share purchase warrants of E3 Metals. Each warrant will be exercisable into one common share in the capital of the corporation at an exercise price of 30 cents per share until April 19, 2020. Savannah has also provided a loan of $35,000 to E3 Metals for the purpose of continuing with various project-related initiatives.

Praveen Varshney, president of Savannah, stated: "We are very excited to have quickly come to agreement on this opportunity in the emerging petro-brine field of the lithium resource sector. We look forward to closing the transaction and the resumption of trading shortly."

The completion of the transaction is subject to a number of conditions including, but not limited to, the completion of satisfactory due diligence, including the delivery and satisfactory review of the audited financial statements of E3 Metals and the satisfactory review and approval of the report by the TSX-V.