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Savannah Gold Corp. Announces Share Consolidation and Private Placement

Financings Corporate Actions

22698918.1

SAVANNAH GOLD CORP.

FOR IMMEDIATE RELEASE

Contact: Investor Relations February 10 , 2017

Phone (604) 684-2181

[email protected]

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR

DISTRIBUTION TO U.S. WIRE SERVICES

Savannah Gold Corp. Announces Share Consolidation and Private Placement

Vancouver, BC – Friday , February 10 , 2017 – Savannah Gold Corp. (TSXV – SAV.H) (the

“Company” or "Savannah") announces that the Company's Board of Directors has

determined to consolidate the Company’s issued shar e capital on a ratio of one (1) new post-

consolidated common share for every five (5) old pr e-consolidated common shares (the

"Consolidation "). 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 nor 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 o pportunities. Savannah is pleased to

announce that it has negotiated, subject to regulat ory approval, a non-brokered private

placement (the " Private Placement ") for total gross proceeds of up to $ 255,000 . The Private

Placement will consist of up to 1,700,000 post Consolidation common shares at a price of $0.15

per post Consolidation common share. Proceeds of th e Private Placement will be used to pay

outstanding debt and for general working capital.

On successful completion of the Consolidation and P rivate 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.

ON BEHALF OF THE BOARD OF DIRECTORS

Praveen Varshney, FCPA, FCA

President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined

in the policies of the TSX Venture Exchange) accept s responsibility for the adequacy or

accuracy of this release.