In the first half of 2009 Whetstone has reviewed and consolidated its North American land position with a view to seeking farm out opportunities and relinquishing non prospective ground.  Paul Nagerl, President and CEO, has been working closely with Allan Dolan and the Clarity Minerals team to identify new, more advanced, projects in Africa where the "Clarity connection" gives Whetstone a competitive advantage.  Paul and his team have been creative in securing non dilutive sources of funds, including the sale of portions of the company's significant geophysical data base as well as renting out other assets such as the Eppler Lake field camp to the Manitoba Geological Survey.  The team is focused on "finding the right asset for the current environment" first. Once secured, Whetstone intends to finance off the back of this newly created value.

 

Dr Alex Dak, Savannah's Laboratory and Special Projects Manager, has been hard at work on the detailed chemistry of Kimberlite Indicator Minerals (KIMs) recovered from both Savannah's known and newly-discovered kimberlites.  Alex's findings, based on established work carried out by renowned expert Dr Bill Griffin of Sydney, Australia, confirm and reinforce our initial conclusions that a number of kimberlites in Savannah's western licences sampled cooler lithosphere (i.e. a cooler part of the earth's crust) which bodes well for the preservation of diamonds at their formation depths.   Colloquially, "west is best" because it's "cooler".

Uranium is a metal of increasing interest on the world stage.  It will be a focus for Savannah's two "spin out" companies along with gold and base metals.  Several companies, including Mantra Resources ,are actively and successfully exploring for uranium in Tanzania.  A number of our licences hold uranium potential based on airborne radiometric surveys as well as promising surface features similar to those currently being evaluated by competitors.  Programmes will be carried out in Q3 of this year to ground test these prospective areas.

During the first half of 2009 Savannah has been busy compiling and reanalysing its 2008 results in preparation of the proposed "spin out" of the company's gold, base metal and uranium interests into Dhahabu Resources and Mwamba Minerals.  This has included the development of separate work programmes and budgets for each company as well as the identification of ground to be "farmed out" to several parties that have expressed interest.  Don Duncan, CEO will be overseeing the commencement of our uranium exploration programmes later in July as well as meeting several joint venture candidates in Dar es Salaam.

Planned summer field programs were focused on Whetstone Minerals' three extensive Ontario projects and directed towards target generation for a fall drill program. Drilling is scheduled to commence in mid September.

Highlites:

• Pipestone - summer prospecting and mapping completed. Over 500 samples collected and submitted for assay. Target selection for mid-September drilling in progress.
• Warclub North - three priority targets selected for drill testing.
• Redvers - claims consolidated over a targeted magnetic feature covering a continuous 13 kilometre strike length.

The recent 9^th International Kimberlite Conference, an event which takes place only every four or five years (Savannah's director, Barry Hawthorne is a founding member) was held in mid August at the Goethe University in Frankfurt on Main, Germany.  Savannah fielded five attendees amongst a total of over five hundred at this venue where academia and exploration come together - Barry Hawthorne, Don Duncan , Dr Alex Dak , Sudi Mpemba and Benny Haule.    For both Tanzanian geologists, it was a first-time attendance and an introduction to a circle of acquaintances and ideas each of which will assist in their personal endeavours to achieve exploration and economic success for Savannah."