Savannah Resources secures more community agreements and Barroso land access

Savannah Resources (AIM: SAV) has signed three agreements designed to strengthen community cooperation and secure further land access for its Barroso Lithium Project in northern Portugal.

The announcement is not a construction decision or financing update. However, it addresses an important practical issue for any major mining development: gaining access to the required land while building workable relationships with the communities that manage it.

Savannah now has land access agreements with two of the three communal land groups, known locally as baldios, that manage land within the project's mining concessions.

What has Savannah Resources announced?

Savannah has signed agreements with two local baldios and one regional representative organisation:

• A land access and benefit-sharing agreement with the Baldio of the villages of Alijó, Canedo and Penalonga.
• An addendum to Savannah's existing agreement with the Baldio of Couto de Dornelas.
• A memorandum of understanding with the Secretariat of the Baldios of Trás-os-Montes and Alto Douro, or SBTMAD.

A baldio is communal land possessed and managed collectively by members of a local community. Securing cooperation from these groups is therefore different from negotiating with a single private landowner.

The agreements share three principles: community participation in project oversight, reinvestment of benefits locally and rent-based compensation linked to inflation.

Investors can read the original company announcement for the full contractual and operational detail disclosed by Savannah.

The key figures

Item	Detail
Communal land agreements on mining concessions	Two of three baldios
Land covered by the Alijó, Canedo and Penalonga agreement	150 hectares
Initial term of that agreement	10 years
Possible annual extensions	Up to five years
Aldeia mineral resource	3.5 Mt
Aldeia reserve	1.6 Mt
Savannah-owned agroforestry area covered by SBTMAD partnership	Approximately 100 hectares
Private land plots purchased	111
Additional plots under promissory contracts	16
Cash ring-fenced for future compulsory purchases	£2.4 million
Foundation budget from first year of production	At least €500,000 annually

Why the new land access matters

The agreement with the Baldio of Alijó, Canedo and Penalonga covers 150 hectares in Serra do Pinheiro. This includes Blocks A and C of the C-190 Aldeia mining concession.

Block A contains the JORC-compliant 3.5 Mt Aldeia resource and 1.6 Mt reserve. JORC is an industry reporting standard used to classify mineral resources and reserves.

The agreement permits exploration work and potential future extraction. It runs for an initial 10 years, with the option for annual extensions for up to another five years. Annual rent will be adjusted in line with the consumer price index.

This is significant because access to a mineral deposit is not enough on its own. A developer also needs practical and legal access to the surface land required for exploration, infrastructure and potential extraction.

The agreement also protects several existing community uses. Livestock grazing, scrub cutting and herbaceous cultivation can continue, while timber from vegetation clearance will belong to the community. Savannah must rehabilitate drilling platforms and pits, and community members will participate in planning the area's environmental and landscape recovery.

Community involvement goes beyond rent

Representatives from Alijó, Canedo and Penalonga and Couto de Dornelas will join the proposed Local Consultative and Monitoring Committee.

This committee is expected to review and approve local development projects funded by the Barroso Lithium Foundation. It will also monitor Savannah's social performance and assess whether the company is meeting its commitments.

The foundation has already been established and will receive a minimum annual budget of €500,000 from the first year of production. Local and regional stakeholders will decide collaboratively how that money is allocated.

Savannah has also offered technical assistance for the proposed Canedo Sports Hall and support with an application to the foundation. Funding approval for that facility has not been disclosed.

The revised Couto de Dornelas agreement builds on a relationship dating from 2020. The original arrangement covered access roads and tracks used for exploration. The addendum gives the community direct representation on the monitoring committee.

Forest management adds another dimension

Savannah's memorandum of understanding with SBTMAD covers an agroforestry area of approximately 100 hectares owned by the company.

SBTMAD will prepare and implement a Forest Management Plan, provide ongoing technical supervision and identify potential agricultural, energy and voluntary carbon-market projects.

Savannah will finance a dedicated forestry technical team and a four-wheel-drive vehicle fitted with a first-response wildfire kit. These resources will be shared across the municipalities of Boticas and Ribeira de Pena.

Net economic benefits generated by the partnership will either flow to the local community through the Barroso Lithium Foundation or be reinvested in forest management, reforestation, natural regeneration and fire prevention.

This part of the announcement does not directly expand Savannah's mineral resource. Its value is more strategic: better land management and wildfire prevention could support the project's wider environmental and community relationships.

One important agreement remains unresolved

The announcement is positive, but it does not mean Savannah has completed its land-access programme.

The company has not reached an agreement with the Baldio of Covas do Barroso, which manages land on the C-100 concession. Savannah said the group's leaders have declined to engage in dialogue so far.

There is also communal land associated with the project's proposed northern access road, which will connect Barroso to the national road network.

Alongside community agreements, Savannah has purchased 111 plots from private owners and has another 16 under promissory contracts. It has also acquired stakes in additional plots with multiple owners.

The company continues to prepare for compulsory purchases where commercial agreements cannot be completed in time to maintain the development schedule. Preparations have been underway since the first half of 2025, with £2.4 million ring-fenced for potential purchases.

Compulsory purchase may provide a legal route to necessary land, but it can also add procedural complexity and potentially increase local tensions. Investors should therefore distinguish between having a legal mechanism available and having all required land secured.

What investors should take from the announcement

The main positive is that Savannah has converted further community engagement into formal agreements covering land access, project oversight and local benefit-sharing. The agreement covering the Aldeia concession is particularly relevant because it includes an area hosting a stated resource and reserve.

It also reduces one element of development risk by taking Savannah to agreements with two of the three baldios managing land on the mining concessions. The inflation-linked rent and local decision-making structures provide clearer terms for participating communities.

The main limitation is that land access remains incomplete. The unresolved Covas do Barroso position and potential use of compulsory purchase powers show that this is still an active workstream rather than a finished job.

This RNS also contains no new project cost, construction timetable, funding requirement or production guidance. Those wider development questions remain important when assessing Savannah Resources PLC and its progress towards building Barroso.

For broader context on the company's previous financial and development update, see my coverage of Savannah's 2025 results and €110 million Portuguese grant.

A useful step, but not the end of the land process

These agreements represent tangible progress because they combine access rights with compensation, community oversight and local reinvestment. That is more meaningful than a general statement of support.

The next test is whether Savannah can secure the remaining land and access arrangements without disrupting the project's schedule. Investors should watch for further updates on Covas do Barroso, the northern access road, private purchases and any compulsory purchase process.