ELEVRA LITHIUM LIMITED - Annual Report 2023

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About Sayona

Sayona Mining Limited is an ASX 200 listed company with a vision to support the global decarbonisation drive by sustainably producing high quality lithium products.

We are a purpose-led organisation that is committed to ensuring our projects are sources of pride for our host communities. We are actively contributing to the electrification of transport and the fight against climate change.

About this Report

This Annual Report is a summary of the operations, activities and performance of Sayona Mining Limited (ABN 26 091 951 978) and its controlled entities for the year ended 30 June 2023, and its financial position as at 30 June 2023. All references to 'Sayona', 'Sayona Mining', 'the Company', 'the Group', 'we', 'us' and 'our' refer to Sayona Mining Limited and its controlled entities, unless otherwise stated. All dollar figures are expressed in Australian dollars (AUD), unless otherwise stated. This report can be viewed together with our Environmental, Social and Governance Report and Corporate Governance Statement at sayonamining.com.au.

Forward-Looking Statements

This report may contain certain forward-looking statements. Such statements are only predictions, based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond Sayona's control. Actual events or results may differ materially from the events or results expected or implied in any forward-looking statement. The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward-looking statements will be or are likely to be fulfilled.

Non-IFRS Measures

This report includes certain non-IFRS financial measures, including underlying measures of earnings or liquidity. Non-IFRS measures should not be considered as alternatives to an IFRS measure of profitability, financial performance or liquidity. In the opinion of the Company's directors, these non-IFRS measures provide useful information to assess the financial performance of the Group over the reporting period.

Acknowledgement

Sayona acknowledges that its operations in Canada take place on the traditional, unceded territories of the Anishnabe and Cree First Nations. We also wish to recognise the Anishnabe communities of Lac Simon, Abitibiwinni and Long Point First Nation, as well as the Cree Nation of Mistissini. Sayona recognises the people and communities that are or have been part of these lands and territories.

In Australia, Sayona acknowledges the Traditional Owners of the land on which we work and recognise their deep connection to the country that they share. We pay our respects to their Elders past, present and emerging.

Sayona undertakes no obligation to update any forward-looking statement or other statement to reflect events or circumstances after the date of this report (subject to securities exchange disclosure requirements).

The information in this report does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this report constitutes investment, legal, tax or other advice.

Overview

About Sayona	IFC
Our Performance	2
Chief Executive Ofcer’s Review	4

Operating and Financial Review

Sayona at a Glance	10
Our Strategy	12
Review of Financial Performance	14
Review of Operations and Projects	16
People and Culture	34
Sustainability	36

Governance

Board of Directors	46
Executive Leadership Team	48
Directors’ Report	49
Remuneration Report	53
Auditor’s Independence Declaration	61

Financial Report

Consolidated Statement of Proft or Loss	64
Consolidated Statement of Comprehensive Income	64
Consolidated Statement of Financial Position	65
Consolidated Statement of Changes in Equity	66
Consolidated Statement of Cash Flows	67
Notes to the Financial Statements	68
Directors’ Declaration	98
Independent Auditor’s Report	99

Additional Information

Mineral Resources and Ore Reserves	106
Tenement Schedule	109
Shareholder Information	133
Glossary	135
Corporate Directory	141

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Sayona | Annual Report 2023 1
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Our Performance

The successful restart of production at NAL was a major milestone not only for Sayona, but also for Queb́ec and North America's battery minerals sector.

James Brown

Portfolio development transforms outlook

A transformational year for Sayona culminating in the commencement of spodumene concentrate production at North American Lithium, and development of our portfolio of lithium assets in Queb́ec, Canada.

Corporate

ASX/S&P 200 Index

17%

Added to ASX/S&P 200 Index in September 2022

Annual Total Shareholder Return for year ended 30 June 2023

Strong balance sheet

$250 million of capital raised to accelerate development of lithium assets in Queb́ec, Canada

Troilus acquisition

Expansion of lithium portfolio through acquisition of Troilus Claims for $44.5 million

Operations

Production restart

Successful restart of operations at North American Lithium, ontime and within budget; first production achieved in March 2023

33,120 dmt

Spodumene concentrate production at North American Lithium for year ended 30 June 2023

Exploration

70.9 Mt

JORC Mineral Resource for Moblan (at 1.15% Li2O)

33,757 m

Exploration drilling at Moblan for year ended 30 June 2023

Project Development

NAL – $2.2B NPV

Completion of NAL Definitive Feasibility Study (DFS); uplift in estimated pre-tax NPV from $1.0 billion to $2.2 billion

Carbonate – $3.2B NPV

Completion of NAL Preliminary Carbonate Technical Study; estimated pre‐tax NPV of $3.2 billion

Sayona | Annual Report 2023 3

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Chief Executive Officer’s Review
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A transformative year for Sayona

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Dear Shareholders,

The past year has been transformative for Sayona.

The successful restart of spodumene concentrate production at North American Lithium (NAL) marked a tremendous year of growth for Sayona, as we evolved from a developer into a producer.

Notably, the March 2023 restart was achieved in the timeframe we set – a rarity nowadays in the global mining industry, where delays and cost overruns are increasingly common.

In August 2023, subsequent to the end of the financial year, the first shipment of NAL concentrate was sent to the international lithium market. This was a significant milestone for our business, achieved within less than two years of NAL's acquisition.

The year also saw the further expansion of our lithium resource base in Québec, both organically and through acquisition, as Sayona cemented its position as the leading hard rock lithium producer in North America.

With studies showing the value of going downstream, Sayona is on track to unlock further value for the benefit of all shareholders and stakeholders.

Successful NAL Restart

The successful restart of production at NAL was a major milestone not only for Sayona, but also for Queb́ec and North America's battery minerals sector. Early procurement of key long-lead items proved crucial as Sayona achieved the successful restart on-time and within budget.

In September 2022, Sayona awarded a four year contract to Queb́ecbased company L. Fournier & Fils to undertake mining operations at NAL, one of the largest such contracts in the province's history, and which delivered significant job opportunities for the region, including First Nations communities.

NAL and Consolidated Lithium Metals Inc. have agreed on an aggressive drilling program of more than 50,000 metres in 2023, both at NAL and Valleé, with the aim of supplying increased tonnages to the NAL concentrator.

In December 2022, the final permit was awarded for NAL's restart, with a successful ore crushing trial conducted in January 2023.

On 8 March 2023, Sayona announced first production with approximately 70 tonnes of concentrate produced, with the first batch of saleable concentrate produced shortly thereafter.

The only major source of new spodumene concentrate production expected in North America in the next two years, NAL has become a hugely significant and strategic asset. Congratulations to everyone associated with NAL for delivering the restart so successfully, while maintaining a strong focus on health, safety and environmental management.

Lithium Carbonate Study

In Apriil 2023, just days after NAL's restart, Sayona announced a Definitive Feasibility Study (DFS) estimating a pre-tax net present value (NPV) of $2.2 billion for spodumene concentrate production at NAL, combining both NAL and the nearby Authier Lithium Project.

This figure compares to the cost of approximately C$100 million to acquire NAL in partnership with Piedmont Lithium and circa C$100 million spent on its restart. Previous owners invested approximately C$400 million on the plant and operation.

The estimated NPV of $2.2 billion was more than double the estimated NPV of $1 billion disclosed in the pre-feasibility study, reflecting the benefits of an accelerated restart program, increased head grade, high initial recovery rate and expanded production.

In June 2023, a preliminary technical study for lithium carbonate production at NAL estimated a fully integrated pre-tax NPV of $5.4 billion.

Continuing Sayona's focus on delivering local economic benefits, a Queb́ec-based material handling operator was awarded the contract to deliver spodumene concentrate from NAL to port, in another major contract.

Sayona and Piedmont will now work with technical advisers to undertake a further trade-off study of lithium carbonate versus lithium hydroxide production at NAL.

In November 2022, Sayona announced a strategic acquisition and earn-in at Consolidated Lithium Metals Inc.'s adjacent Valleé Lithium Project, offering the opportunity to swiftly expand NAL's resource base and future mine production capacity.

Sayona | Annual Report 2023 5

Chief Executive Officer’s Review

Expansion of Moblan Lithium Project

Sayona's Eeyou Istchee James Bay Hub is rapidly becoming a major lithium resource, centred on its Moblan Lithium Project in the booming Eeyou Istchee James Bay region of northern Queb́ec.

In November 2022, Sayona further expanded this emerging hub of hard rock lithium resources with the acquisition of a significant exploration package located near the Moblan Lithium Project from Troilus Gold. Under the agreement, Sayona has acquired 1,824 claims spanning 985 square kilometres – more than 200 times the size of the current Moblan project.

The claims have not been extensively explored for lithium and offer the potential for eastwards extensions to the Moblan mineralisation, as well as regional targets in the emerging lithium district.

In April 2023, following extensive drilling, Sayona announced a significant increase in Moblan's estimated resource. The estimated Measured, Indicated and Inferred Resource of 70.9 million tonnes at 1.15% Li2O represents one of North America's single largest lithium deposits.

Sayona plans to further enhance the size and grade of the resource through additional drilling, with approximately 60,000 metres of drilling undertaken as part of the calendar 2023 drilling program.

In July 2023, Sayona announced further drill results at Moblan, showing another significant expansion to its lithium footprint. Notably, the newly identified mineralisation extends outside of the April 2023 JORC resource pit shell, indicating the opportunity to increase the existing resource.

Sayona aims to make this northern Queb́ec hub a major production centre, with the potential to support future downstream processing options in Québec.

Importantly, Moblan has good access to existing infrastructure in the Eeyou Istchee James Bay region. It is located 85 kilometres from the Cree (First Nations) community of Mistissini and 130 kilometres north-west of the town of Chibougamau, with year-round road access via the Route du Nord and access to environmentally friendly hydropower.

Investor Support

Sayona's success would not be possible without investor support, which has made possible the development of our current lithium resource base.

In March 2023, Sayona secured approximately $55 million from Canadian investors under its flow-through share scheme, with the funds supporting the Company's exploration program in Québec. In May, Sayona secured a further $200 million through an equity placement to institutional, professional and sophisticated investors, providing significant funding to accelerate the development of our portfolio of lithium assets.

The Company's shareholder base has continued to increase, reaching more than 45,000 shareholders as at September 2023, up from around 39,000 last year. Significantly, in September 2022, Sayona joined the benchmark S&P/ASX 200 index, reflecting the Company's significant growth in market value, a move that has put Sayona on the radar of leading institutional investors.

Commensurate with Sayona's elevation to the S&P/ASX 200 index, the Company is undergoing a governance revamp with plans to recruit new independent Non-Executive Directors, including an independent Chairman.

The Company will also establish key governance committees and review Board and executive remuneration to ensure alignment of corporate governance practices with leading practices of S&P/ASX 200 listed companies, including gender diversity.

Growth Strategy

Sayona has an extremely exciting outlook, as shown by our growth strategy which aims to cement our position as the leading hard rock lithium producer in North America.

After the major milestones over the last twelve months, the next fiscal year will see our first revenue following NAL's inaugural shipment in August 2023, with further shipments planned. Drilling at NAL and the nearby Valleé Lithium Project together with resource upgrades at Moblan should further enhance our lithium resource base.

Western Australia is also part of Sayona's future expansion, with drilling planned for the Company's lithium and gold projects in the resource-rich Pilbara region.

Looking further forward, it is obvious that the clean energy transition powered by battery minerals such as lithium is only just getting started. With the global uptake of electric vehicles continuing to accelerate along with energy storage, lithium-carbonate equivalent (LCE) demand has been projected to exceed 3.7 million tonnes by 2030, turbocharged by initiatives such as the U.S. Inflation Reduction Act.

As stated by analysts Benchmark Mineral Intelligence, “The challenge now lies firmly on bringing new lithium mines to production and massively expanding existing operations. New lithium producers have to build into a market in excess of 2 million tonnes LCE a year, not the 640,000 tonne LCE market that we saw in 2022.”

Bridging the gap between demand and supply will require all of our resources, including capital, labour and know-how, together with continued backing from shareholders and government, such as seen from Canadian Prime Minister Justin Trudeau and the Québec Government.

With your support, I am very confident Sayona has a key role to play in this clean energy revolution, now and for decades to come.

Yours sincerely

Such investor support is particularly significant given recent rising interest rates and volatile equity markets. Sayona is conscious of the need to minimise dilution for existing shareholders, while ensuring sufficient funding is available to achieve our strategic growth plans.

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James Brown

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Sayona | Annual Report 2023 7
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Operating and Financial Review

Financial Additional Report Information

Governance

Operating and Financial Review

Review
Sayona at a Glance	10
Our Strategy	12
Review of Financial Performance	14
Review of Operations and Projects	16
People and Culture	34
Sustainability	36

Sayona at a Glance

International portfolio of high quality lithium assets

Eeyou Istchee James Bay Hub

Lac Albert Lithium Project (100%) Stage: Early stage Product: Spodumene concentrate Moblan Lithium Project (60%) Stage: Exploration Product: Spodumene concentrate Troilus Claims (100%) Stage: Early stage Product: Spodumene concentrate

Abitibi-Témiscamingue Hub

North American Lithium (75%) Stage: Production Product: Spodumene concentrate Authier Lithium Project (75%) Stage: Permitting Product: Spodumene concentrate Tansim Lithium Project (75%) Stage: Early stage Product: Spodumene concentrate

Vallée Lithium Project

Stage: Exploration Product: Spodumene concentrate

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M�ntréal �ffi�e
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Operating and Financial Review Governance

Financial Additional Report Information

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WA Graphite (100%)
Stage: Early stage
Product: Graphite
Morella Lithium Joint Venture (49%)
Stage: Exploration
Product: Spodumene concentrate
WA Lithium (100%)
Stage: Exploration
Product: Spodumene concentrate
Lithium WA Gold (100%)
Gold
Stage: Exploration
Graphite Product: Gold
Office
Brisbane Office
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Sayona | Annual Report 2023 11

Our Strategy

Pr��u�in� minerals �riti�al t� the

Our purpose, strategy, values and guiding principles are fundamental in shaping the work that we do and the way that we do it. Our people work tirelessly each and every day to execute our strategy and achieve our purpose for the benefit of all stakeholders.

Our Purpose

Our purpose is to support the global decarbonisation drive by sustainably producing high quality lithium products. We are trusted by our partners and committed to ensuring our projects are sources of pride for our host communities.

Our Strategy

Our strategy is focused on four key pillars which shape the decisions and activities required to achieve our purpose:

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Optimise operations

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Expand resource base

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Develop assets

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Strategic partnerships

Maximise returns and cash flow by sustainably optimising our operations

Expand known mineral resources, and continue value accretive exploration

Rapidly develop upstream assets and pursue value accretive growth options

Develop strategic partnerships to lock-in demand, provide access to end markets, and accelerate development of our portfolio

Operating and Financial Review

Financial Additional Report Information

Governance

Our Values

Integrity

Sayona places the integrity of its organisation and its leaders at the heart of its fundamental values by honouring its commitments and following its guiding principles.

Respect

Sayona is committed to conducting its mining activities with respect for the environment, local communities, and all the stakeholders involved. It ensures that it respects the people around its organisation and treats them with dignity and kindness.

Excellence

Sayona aims to achieve optimal and sustainable results by promoting an approach built on learning and continuous improvement. It uses industry best practices and transforms innovative ideas into tangible results for the benefit of communities, shareholders, and stakeholders.

Our Guiding Principles

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A�t trans�arently

Act t� ensure the ��m�any’s sustainability

Act in harmony Act to protect the Act with respect for with host environment by our teammates, their ��mmunities promoting the health, safety and circular economy wellbeing, and and applying promote the best practice development of their skills

Sayona | Annual Report 2023 13

Review of Financial Performance

Strong balance sheet positions business for future growth

Sayona ended the financial year in a strong financial position. The restart of operations at North American Lithium, which was completed on-time and within budget, paved the way for the inaugural shipment and cash proceeds from customers in August 2023.

During the year, Sayona strengthened its balance sheet and liquidity position to accelerate the development of its portfolio of lithium assets in Queb́ec, Canada.

Highlights

17%

Annual Total Shareholder Return

$1.76B $885M $211M

Market Capitalisation

Cash and Cash Equivalents

Net Assets

Annual Total Shareholder Return for year ended 30 June 2023

Market capitalisation of Sayona Mining Limited as at 30 June 2023

Net assets of the Group as at 30 June 2023

Cash and cash equivalents of the Group as at 30 June 2023

Key Financial Metrics


	FY23	FY22	FY21	FY20	FY19
Total revenue ($M)	-	-	-	-	-
Proft/(loss) after income tax ($M)	(13)	74	(4)	(5)	(2)
Net cash fows from operating activities ($M)	(66)	(14)	(11)	(4)	(3)
Cash and cash equivalents ($M)	211	185	36	1	2
Total assets ($M)	1,010	661	72	22	22
Total liabilities ($M)	125	101	4	1	1
Net assets ($M)	885	561	68	21	21
Basic earnings per share (cents)	(0.16)	0.76	(0.13)	(0.26)	(0.13)
Dividends paid (cents per share)	-	-	-	-	-
Closing share price at 30 June ($)	0.175	0.15	0.087	0.0068	0.008
Market capitalisation ($M)	1,757	1,238	468	17	14
Annual total shareholder return(%)	17	72	1,179	(15)	(80)

Total shareholder return increased by 17% for the year ended 30 June 2023, driven primarily by the successful restart of operations at North American Lithium and expansion of mineral resources at the Moblan Lithium Project. Since 30 June 2020, Sayona has increased shareholder value by approximately 25 times.

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Operating
and Financial Financial Additional
Review Governance Report Information
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Sayona | Annual Report 2023 15
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Review of Operations and Projects

North America’s leading hard rock lithium resource base

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Eeyou Istchee James Bay Hub
Abitibi-Témiscamingue Hub
Montréal Office
Lithium
Office
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Operating and Financial Review

Financial Additional Report Information

Governance

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Hudson Bay
QUÉBEC
NEWF�UN�LAN�
Lac Albert Lithium Project
Moblan Lithium Project
Troilus Claims
Eeyou Istchee James Bay Hub
Authier Lithium Project
North American Lithium
�NTARI�
Vallée Lithium Project
Abitibi-Témiscamingue Hub
Lithium
NEW
BRUNSWICK Office
Tansim Lithium Project Port
Québec
City
250km
Montréal Office
Montreal
U.S.A.
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Sayona | Annual Report 2023 17

Review of Operations and Projects

Abitibi-Témiscamingue Hub

Operating and Financial Review

Financial Additional Report Information

Governance

North American Lithium

Operational Performance

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407,034 wmt Ore Mined

33,120 dmt

Spodumene Concentrate Produced

58.0 Mt

JORC Mineral Resource (at 1.23 Li2O)

226,000 wmt

Annual Nameplate Capacity

Project Overview

NAL comprises a contiguous group of 42 mineral titles (41 claims, one mining lease) spanning 1,493 hectares, situated near La Corne township in Québec's Abitibi-Témiscamingue region. The operation has a lithium mine and concentrator, with production of spodumene concentrate having recommenced in March 2023.

The project lies 60 kilometres north of the city of Val d'Or, a major mining service centre, and in proximity to the Authier Lithium Project. NAL is owned 75% by Sayona and 25% by Piedmont Lithium (Nasdaq: PLL; ASX: PLL).

Safety and Sustainability

Sayona is focused on providing a work environment where human health and safety is a priority for everyone. The Company is committed to investing in the communities in which we operate to provide them with a better future, as part of our commitment to sustainability and social responsibility.

The Total Recordable Injury Frequency Rate (TRIFR) for the year ended 30 June 2023 was 6.04. With the rapid increase in employees and contractors to support the ramp-up of operations at NAL, frequent meetings have been conducted with all personnel to reinforce best practice regarding health and safety.

In May 2023, Sayona published its 2022 Environmental, Social and Governance (ESG) report.1 The report reflects Sayona's ongoing commitment to social responsibility in the communities in which it operates. During the year, the Company continued to develop its ESG strategy through engagement with a range of stakeholders.

1 Report can be found at https://sayonamining.com.au/sustainability

Sayona's primary focus in fiscal 2023 was the restart of spodumene concentrate production at NAL. The restart commenced on time in Q3 FY23, culminating in the first spodumene concentrate production in March 2023 as part of the commissioning process. The first shipment of 19,200 dry metric tonnes of concentrate occurred in August 2023, subsequent to period end.

The first full quarter of operations was achieved in Q4 FY23. The average spodumene concentrate grade achieved was in line with targeted grades, with all key spodumene concentrate parameters in line with offtake specifications. For the full financial year, NAL recorded 33,120 tonnes of spodumene concentrate production.

Project Development

In April 2023, Sayona announced a DFS combining the NAL operation and Authier Lithium Project. The pre-tax net present value (NPV) of the project was estimated at $2.2 billion (8% discount rate), representing a significant increase from the pre-tax NPV of $1 billion disclosed in the pre-feasibility study.

The operation is expected to generate estimated total net revenue of $7.6 billion with an EBITDA of $3.7 billion, based on life-of-mine annual average concentrate production of 190,000 tonnes, supporting an after-tax Internal Rate of Return of 2,545%. This clearly demonstrates the Abitibi-Témiscamingue lithium hub's long‐term financial and technical viability.

In June 2023, Sayona announced the results of a preliminary carbonate technical study for NAL, confirming the benefits of moving into downstream processing. Study highlights included an estimated pre‐tax NPV (8% discount) of $3.2 billion and pre‐tax internal rate of return of 60%, with the project expected to generate an estimated EBITDA of $7.5 billion over the 16‐year life of the carbonate plant. The pre-tax NPV of fully integrated downstream operations at NAL is now estimated at $5.4 billion, including the NAL DFS.

Exploration

The current Life of Mine (LOM) has been estimated at 20 years, however Sayona is advancing a 50,000 metre drilling program for NAL and the adjacent Vallée Lithium Project to identify additional resources and conversion of Inferred Resources to Measured and Indicated Resources. The program commenced in Q4 FY23. At 30 June 2023, 31 holes (8,572 metres) had been drilled as part of Phase 1 of the program, with results pending.

FY24 Outlook

NAL's ramp-up will continue in fiscal 2024, with the operations team continuing to focus on improving process plant utilisation, throughput and ore processed based on continuous improvement initiatives.

Sayona | Annual Report 2023 19

Review of Operations and Projects

Authier Lithium Project

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17.1 Mt

JORC Mineral Resource (at 1.01 Li2O)

24

Number of Claims

884 ha

Hectares of Claims

Project Overview

The Authier Lithium Project in Queb́ec is a hard rock spodumene lithium deposit set to play a key role in the Company's multi-project Abitibi-Témiscamingue Hub, providing supplementary ore for processing at NAL.

The project is located approximately 70 kilometres north-west of the city of Val d'Or and is easily accessed by a rural road network connecting to a national highway a few kilometres east of the project site. The project area comprises 24 mineral claims totalling 884 hectares.

Sayona continues to advance regulatory approvals for the project. With the commissioning of the NAL facility, the approval will be based on a much smaller environmental footprint, with no requirement for a concentrator on-site.

Project Development

In November 2022, Sayona submitted the Authier project for Environmental Impact Assessment (EIA) and review under the Québec Government's 'BAPE' (Bureau d'audiences publiques sur l'environnement) process, demonstrating the Company's commitment to transparency and stakeholder engagement. The request was accepted by the Québec Government in February 2023.

In June 2023, Sayona surveyed stakeholders regarding the EIA for the Authier Lithium Project. The survey provided valuable feedback on areas to be addressed in the EIA process.

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FY24 Outlook

A revised Environmental and Social Impact Assessment for the project will be produced by December 2023. Sayona will continue to engage with key stakeholders and advance regulatory approvals for the project during fiscal 2024, with the goal of supporting production at NAL.

Operating and Financial Review

Financial Additional Report Information

Governance

Tansim Lithium Project

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352

Number of Claims

20,372 ha Hectares of Claims

Project Overview

The Tansim Lithium Project is situated 82 kilometres south-west of the Authier Lithium Project. Tansim comprises 352 mineral claims spanning 20,372 hectares and is prospective for lithium, tantalum, and beryllium.

Mineralisation is hosted within spodumene-bearing pegmatite intrusions striking east-west, dipping to the north and hosted by metasedimentary – metavolcanic rocks of the Pontiac sub-province. The main prospects are Viau-Dallaire, Viau and Vezina.

Project Development

No work was carried out at Tansim during the period as activities focused on NAL and Moblan.

Sayona is focused on ensuring the project generates maximum benefits for all local stakeholders, including First Nations people, together with minimising any environmental impacts.

FY24 Outlook

Sayona continues to engage with key stakeholders, including First Nations communities, concerning the project and its potential future development.

Sayona | Annual Report 2023 21

Review of Operations and Projects

Vallée Lithium Project

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28

Number of Claims

1,247 ha

Hectares of Claims

Project Overview

The Vallée project is located in Abitibi, Québec, near the township of La Corne. The project is situated within the heart of the southern portion of the Abitibi Greenstone Belt, approximately 60 kilometres north of Val‐d'Or and contiguous and adjacent to the NAL mine.

In November 2022, Sayona announced a strategic acquisition and earn‐in between NAL and Consolidated Lithium Metals Inc. at CLM's Vallée Lithium Project. The acquisition and earn-in by NAL comprised 48 claims spanning approximately 1,997 hectares, located adjacent to the NAL operation.

Project Development

Key aspects of the transaction included the acquisition of 20 claims outright and the right to earn up to a 51% stake in an additional 28 claims, based on spending and funding milestones.

NAL is required to spend C$4 million on exploration activities prior to 14 November 2023 to earn an initial 25% interest in the Vallée JV. NAL has a second option to spend an additional C$6 million by 14 November 2024 to earn a cumulative 50% interest.

The 20 claims acquired outright span 755 hectares, providing an immediate extension to the NAL operating area and allowing for potential future infrastructure expansion at the NAL mine and its processing facility. Pegmatite targets are located close to and along strike from the NAL ore body.

Exploration

In May 2023, a drilling program commenced over the NAL claims. Of the 50,000 metres of planned drilling, approximately 15,000 metres relates to the Vallée Lithium Project claims.

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FY24 Outlook

Post period end, in September 2023 CLM announced the start of the 2023 drilling program, consisting of 14,500 metres of drilling in around 45 drill holes. This aims to expand upon the lithium pegmatites discovered in 2021, 2022 and 2023, which remain open along strike to the south-east and at depth, as well as testing the on-strike extension of the NAL pegmatite swarm.

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Operating
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Sayona | Annual Report 2023 23
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Eeyou Istchee James Bay Hub

Operating and Financial Review Governance

Financial Additional Report Information

Lac Albert Lithium Project

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121

Number of Claims

6,592 ha

Hectares of Claims

Project Overview

In January 2022, Sayona announced the acquisition of 121 new claims in the vicinity of Moblan known as the Lac Albert Lithium Project. Located 3.5 kilometres west of the Moblan Lithium Project, in the same proven lithium mining province, the new claims span 6,592 hectares and will be assessed for lithium pegmatite occurrences.These claims are separate to the Moblan Lithium Project.

Project Development

Past work has been limited and the geology of the new claim area at Lac Albert is modestly understood, with much of the area obscured by glacial moraines. A till and soil sampling program was undertaken at Lac Albert in May 2022 and mapping of outcrops and boulders completed.

The identified pegmatite occurrences are located in an area afforded favourable access by its proximity to the Route Du Nord, an allweather regional highway.

No activities were undertaken at the project during the period.

FY24 Outlook

Sayona continues to evaluate the project for potential further exploration, with the project adding to the Company's Eeyou Istchee James Bay Hub centred on the Moblan Lithium Project.

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Sayona | Annual Report 2023 25

Review of Operations and Projects

Moblan Lithium Project

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70.9 Mt

JORC Mineral Resource (at 1.15 Li2O)

Number of Claims

433 ha

Hectares of Claims

Project Overview

The Moblan Lithium Project is located in the Eeyou Istchee James Bay region of northern Québec. The project comprises 20 claims covering approximately 433 hectares and is host to high-grade lithium mineralisation.

In October 2021, Sayona completed the acquisition of the Moblan project in a joint venture with SOQUEM Inc, a wholly owned subsidiary of Investissement Québec (Sayona 60%; SOQUEM Inc 40%).

Project Development

In October 2022, Sayona announced the launch of a feasibility study for Moblan, targeting the development of a lithium mine and concentrator.

Exploration

In April 2023, Sayona announced a significant resource upgrade for the Moblan Lithium Project with an initial JORC Mineral Resource estimate, including a maiden resource for the South Pegmatite discovery.

Sayona now estimates a total JORC Measured, Indicated and Inferred Resource of 70.9 million tonnes at 1.15% Li2O (0.25% Li2O cut‐off grade), representing one of North America's single largest lithium resources.

This estimate includes higher grade tonnage opportunities with a Measured, Indicated and Inferred Resource of 51.4 million tonnes at 1.31% Li2O (0.55% Li2O cut-off grade in the sensitivity analysis).

At 30 June 2023, a total of 163 holes totalling 33,757 metres had been drilled as part of the 2023 exploration drilling program.

FY24 Outlook

Sayona aims to further enhance the size and grade of this resource through additional drilling. A total of 60,000 metres of exploration drilling is planned to be completed during calendar 2023.

Positive drilling results were announced in July 2023 identifying a 750 metre extension to the flat lying South Pegmatite system, as well as new, near surface pegmatite identified in eastern step out drilling.

Following the announcement of the April 2023 Mineral Resource estimate, Sayona will proceed directly to a DFS, expected to be released by the end of 2023. The study will examine the development of a mine and concentrator, with Moblan serving as the centre of Sayona's Eeyou Istchee James Bay Hub.

Operating and Financial Review Governance

Financial Additional Report Information

Troilus Claims

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1,824

Number of Claims

98,423 ha

Hectares of Claims

Project Overview

In an expansion of Sayona's northern lithium hub, in November 2022 the Company acquired 1,824 claims comprising 985 square kilometres from Troilus Gold Corp. The claim area is more than 200 times the size of the existing Moblan project.

These claims are separate to the Moblan Lithium Project and extend over a major part of the Frotêt‐Evans Greenstone Belt.

The claims have not been extensively explored for lithium and offer potential for eastwards extensions to the Moblan mineralisation, as well as regional targets in the emerging lithium district.

Project Development

No activities were undertaken during the period.

FY24 Outlook

Sayona continues to evaluate the project for potential further exploration, with the Troilus claims considered an investment in future lithium production potential.

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Sayona | Annual Report 2023 27

Review of Operations and Projects

Highly prospective lithium and gold assets in Western Australia

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WA Graphite
WA Gold
NORTHERN
WA Lithium TERRITORY QUEENSLAND
WESTERN
AUSTRALIA
Brisbane Office
WA Lithium SOUTH
AUSTRALIA
NEW SOUTH WALES
Lithium VICTORIA
Gold
Graphite
Office
TAS.
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Operating and Financial Financial Additional Review Governance Report Information

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Lithium
Gold
WYNDHAM
Graphite
Port
WA Graphite
WA Lithium
PORT HEDLAND
WA Gold
PILGANGOORA LITHIUM MINE
WODGINA LITHIUM MINE
WESTERN
AUSTRALIA
MT MAGNET
GERALDTON
WA Lithium KALGOORLIE
PERTH
250km
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Sayona | Annual Report 2023 29

Review of Operations and Projects

Operating and Financial Review Governance

Financial Additional Report Information

WA Lithium and Gold Projects

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14

Number of Claims

106,400 ha

Hectares of Claims

Project Overview

Morella Lithium Joint Venture Project

Morella Corporation Limited (ASX: 1MC) is manager and major stakeholder in the Morella Lithium Joint Venture Project in Western Australia, having satisfied its requirements under the Earn-in Agreement of expenditure of $1.5 million on exploration within three years to earn a 51% stake. The JV comprises lithium rights to six tenements in the Pilbara covering 545 square kilometres and two tenements in South Murchison covering 48 square kilometres.

WA Lithium Projects

Sayona holds the lithium rights to the Deep Well, Tabba Tabba, Red Rock, Mt Dove, Friendly Creek and Indee tenements, which cover a total of 471 square kilometres. The most advanced is the Tabba Tabba Project, where exploration has identified rare metal pegmatites.

WA Gold Projects

Sayona's 10 Pilbara gold leases are prospective for intrusion-related gold mineralisation, similar in style to the Hemi gold discovery. The Company is using its knowledge of late-stage intrusions, built up in the search for pegmatite mineralisation, to fast-track identification of Hemi style targets.

Exploration

Morella Lithium Joint Venture Project

Project work has continued to advance targeting for albite – spodumene pegmatite.

WA Lithium Projects

Exploration has focussed on advancing the early stage lithium tenure. An increase in the geological understanding of the areas combined with geochemistry and other activities has been carried out to identify drill targets.

WA Gold Projects

Activities advanced the planned first drill testing at the Mt Dove project and encouraging results from stage 1 Deep Well drilling outlined scope for further deeper drilling.

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At Mt Dove, a Heritage Survey was successfully completed in consultation with the Kariyarra Traditional Owners and Kariyarra Aboriginal Corporation. This will allow drilling to test magnetic features and structural targets for bedrock gold anomalism.

Sayona | Annual Report 2023 31

Review of Operations and Projects

FY24 Outlook

Morella Lithium Joint Venture Project

Subsequent to the end of Q4 FY23, Morella announced that Mallina drilling results had identified new areas of mineralisation and extensions to existing mineralised zones, suggesting the strong possibility of additional lithium discoveries beyond the currently explored area. Further infill drilling to further develop an understanding of the width and depth of the Pegmatite 2 target area is planned, together with work to advance other areas at the Mallina project and the regional tenure.

WA Lithium Projects

Drilling is planned at Tabba Tabba to test the Turley and Roadside prospects and for potential spodumene rich zonation to the south of the Tabba Tabba Tantalum Mine pegmatite system. Further work is planned to advance drill targeting within the greater project area.

WA Gold Projects

Drilling is planned at Mt Dove once the final Heritage Survey report has been delivered and at Deep Well as a follow up to geochemical anomalism and in further testing of magnetic targets. Systematic first pass exploration will continue over the other leases.

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Operating
and Financial Financial Additional
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Sayona | Annual Report 2023 33
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People and Culture

Establishing a highly talented, diverse and inclusive workforce

Our workforce is our most important resource, providing the skills, experience and technical expertise required to run our business.

At Sayona, we aim to attract, recruit and retain the best talent by supporting our people and providing meaningful employment and career development opportunities.

Attraction and Retention

Talent markets across the globe are dynamic and increasingly competitive. We continue to refine our attraction and retention strategies to improve our total value proposition. This is achieved through strategic workforce planning, talent acquisition, inclusion and diversity, internal talent management, and employee mobility.

Culture and Values

Sayona has built a strong and dynamic culture, based fundamentally on its core set of values:

– Integrity

We place the integrity of our organisation and its leaders at the heart of our values by honouring our commitments and following our guiding principles.

– Respect

We are committed to conducting our mining activities with respect for the environment, local communities, and all the stakeholders involved.

– Excellence

In addition, Sayona regularly reviews its remuneration frameworks and reward structures to ensure we are competitively placed in the market. We believe our purpose, strong culture and values, and unwavering commitment to our people is our competitive edge in attracting and retaining the best talent to run our business.

We offer competitive remuneration and invest in development programs to build capability and improve performance.

Inclusion and Diversity

At Sayona, we believe that an inclusive and diverse workforce promotes safety, productivity and wellbeing, and greatly assists our ability to attract and retain employees.

Our approach is centred on establishing a workforce that is truly representative of society. Our systems, processes and practices are also designed to support the fair treatment of our people.

We aim to achieve optimal and sustainable results by promoting an approach built on learning and continuous improvement.

Our values are demonstrated through our guiding principles:

1) act transparently;
2) act to ensure the Company's sustainability;
3) act in harmony with host communities;
4) act to protect the environment by promoting the circular economy, and applying best practice;
5) act with respect for our teammates, their health, safety and wellbeing, and promote the development of their skills.

Highlights

189 232%

22%

21%

Total Global Workforce

Annual Workforce Growth

Total Female Participation

Total Female Participation at NAL

Total Indigenous Participation at NAL

Global workforce as at 30 June 2023, including employees and excluding contractors

Growth in global workforce from 1 July 2022 to 30 June 2023

Female representation across global workforce as at 30 June 2023

Female

representation at North American Lithium as at 30 June 2023

Total Indigenous employees and contractors at North American Lithium as at 30 September 2023

Operating and Financial Review Governance

Financial Additional Report Information

Flexibility and Support

Sayona offers employees the flexibility to work remotely to improve their work-life balance.

We also provide accommodation for employees who live more than 130 kilometres from their workplace.

Actions and Key Focus Areas

Other key focus areas for Sayona include:

continuation of transparent day-to-day communication at all levels;
continuation of wellness and other activities to improve employee wellbeing;
creation of a diverse and inclusive workforce;
elimination of “undue barriers”;
enhancement of localised human resource practices through personal development interviews and training, and improved career monitoring;
establishment of share purchase plan for employees;
implementation of ongoing career development levers;
improvement in female and Indigenous participation across all levels of the organisation;
ongoing consultation with employees who reside in host communities impacted by our projects;
ongoing training and professional development;
refinement of onboarding processes;
refinement of remuneration frameworks and structures to ensure parity at all levels;
refinement of rules and expectations for staff;
standardisation of compensation policies.

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Sayona | Annual Report 2023 35

Sustainability

Creating long-term value from sustainable operations

Say�na is ena�lin� the �l��al transiti�n t� a l�w �ar��n w�rl� �y sustaina�ly �r��u�in� hi�h �uality lithium �r��u�ts.

The su��ly �f lithium is essential t� manufa�ture �atteries use� t� ��wer �lean ener�y te�hn�l��ies, whi�h is a key ena�ler t� �eliver �e�ar��nisati�n tar�ets a�r�ss the �l��e.

�ur Sustaina�ility A��r�a�h

Sustaina�ility is at the heart �f �ur �r�anisati�n an� un�er�ins the �elivery �f �ur strate�y. In �eliverin� �ur �ur��se, Say�na seeks t� �reate l�n�-term s��ial, envir�nmental an� e��n�mi� value f�r the ��mmunities in whi�h we ��erate.

�ur a��r�a�h t� sustaina�ility is �ase� �n f�ur key �rin�i�les whi�h are �riti�al t� �ur �usiness an� stakeh�l�ers:

– Res�e�t

We ��erate with res�e�t f�r �ultures, �ust�ms, s��ial values, laws an� human ri�hts.

– Health an� Safety

We are ��mmitte� t� �r�vi�in� a w�rk envir�nment in whi�h the health, safety an� well�ein� �f �ur �e��le is a �ri�rity.

– Envir�nmental ��vernan�e

We aim t� minimise �ur envir�nmental im�a�t an� are ��mmitte� t� �r�te�tin� natural res�ur�es in�lu�in� air, �i��iversity, water an� surr�un�in� e��systems.

– S��ial Res��nsi�ility

We are ��mmitte� t� ��ntri�utin� t� the s��ial an� e��n�mi� �evel��ment �f the ��mmunities in whi�h we ��erate, an� maintainin� fair an� res�e�tful relati�nshi�s with �ur em�l�yees an� external �artners. We a�tively en�a�e with �ur h�st ��mmunities �y listenin� t� their nee�s an� ��ntri�utin� t� their visi�n �f a sustaina�le future.

Re��rtin� Stan�ar�s an� Framew�rks

�ur strate�ies an� re��rtin� are �re�are� in a��r�an�e with the f�ll�win� stan�ar�s an� framew�rks:
E�uat�r Prin�i�les (EPs);
�l��al Re��rtin� Initiative (�RI);
IF� Perf�rman�e Stan�ar�s �n Envir�nmental an� S��ial Sustaina�ility;
Internati�nal Sustaina�ility Stan�ar�s B�ar� (ISSB);
Sustaina�ility A��untin� Stan�ar�s B�ar� (SASB);
Task F�r�e �n �limate-Relate� Finan�ial �is�l�sures (T�F�);
Task F�r�e �n Nature-Relate� Finan�ial �is�l�sures (TNF�).

Pri�rities f�r a Sustaina�le Le�a�y

In 2022, Say�na �e�an �evel��in� its Envir�nmental, S��ial an� ��vernan�e (ES�) strate�y �ase� �n �ur key �rin�i�les. �ur strate�y is use� t� mana�e risk an� inf�rm strate�i� �e�isi�n-makin�, an� als� �ui�es Say�na's a�ti�ns an� ��r��rate values.

In a��iti�n, Say�na has i�entifie� seven main �ri�rities �ase� �n market tren�s, in�ustry insi�hts an� stakeh�l�er ex�e�tati�ns:

Health an� Safety
Ÿ Health, Safety an� Well�ein�
Ÿ Trainin� an� �evel��ment
Ÿ W�rk�la�e �ulture an� En�a�ement
Envir�nmental ��vernan�e
Ÿ �limate �han�e
Ÿ Envir�nment an� Bi��iversity
S��ial Res��nsi�ility
Ÿ In�i�en�us ��mmunities
Ÿ S��i�-E��n�mi� �evel��ment

These �ri�rities have als� �een ali�ne� t� the Unite� Nati�ns Sustaina�le �evel��ment ��als (UNS��).

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36
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Operating and Financial Review Governance

Financial Additional Report Information

Health and Safety

At Say�na, the health an� safety �f �ur em�l�yees is �aram�unt in everythin� that we ��. We are ��mmitte� t� w�rkin� t��ether t� �uil� an in�lusive an� �iverse w�rk envir�nment in whi�h �ur �e��le are su��rte�.

Effe�tive ��mmuni�ati�n an� En�a�ement

In �1 FY23, Say�na hel� a maj�r meetin� with em�l�yees at NAL t� share the ��m�any's �ur��se, strate�y an� values. The meetin� was a �reat ��rtunity t� �is�uss as�e�ts �f Say�na's �ulture, whilst als� �r�vi�in� an �verview �f �ther key �r�je�ts a�r�ss �ue�́e�.

In �2 FY23, Say�na laun�he� an internal ��mmuni�ati�ns �am�ai�n at NAL t� f�ster team ��hesi�n, m�tivate staff an� unite em�l�yees ar�un� a ��mm�n ��al – namely, the su��ess �f the �r�je�t. Milest�nes were i�entifie� t� frame ea�h small a�hievement as a ste� t�war�s the su��essful restart �f the �r��essin� �lant at NAL. The �am�ai�n in�lu�e� internal si�ns an� ��sters, newsletters, �ele�rati�ns with em�l�yees, an� rewar�s t� re��nise the eff�rts �f em�l�yees.

A�ti�ns an� Key F��us Areas

S�me �f the key a�ti�ns un�ertaken �y Say�na �ver the �ast year in�lu�e:

��ntinuati�n �f ��VI�-19 �r�t��ls, as instru�te� �y �u�li� health auth�rities;
��ntinue� vi�ilan�e �y ��erati�nal teams t� �revent any ex�l�rati�n in�i�ents;
�evel��ment �f relevant ��u�ati�nal health an� safety ��umentati�n f�r E��L��® �ertifi�ati�n ahea� �f �e�l�yment in 2023;
�a� analysis in relati�n t� risk mana�ement �r��esses an� �ra�ti�es;
im�lementati�n �f Syna�se mana�ement s�ftware t� im�r�ve a��ess t� trainin� materials;
man�at�ry trainin� f�r em�l�yees u��n ��mmen�ement �f em�l�yment.

�ther key f��us areas f�r Say�na in�lu�e:

��ntinue� enhan�ement �f injury �reventi�n a�tivities;
�evel��ment �f Emer�en�y Measures Plan (EMP);
�evel��ment �f trainin� ��urses �n envir�nmental �est �ra�ti�e.

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Sayona | Annual Report 2023 37

Sustainability

Environmental Governance

Say�na values the �i�l��i�ally an� e��l��i�ally ri�h envir�nments in whi�h it ��erates, an� is ��mmitte� t� mana�in� an� �r�te�tin� these �iverse e��systems.

Envir�nmental Mana�ement System

Say�na's internal envir�nmental mana�ement system (EMS) was �evel��e� an� im�lemente� in 2022.

The EMS �r�vi�es a framew�rk f�r im�r�vin� the ��m�any's envir�nmental �erf�rman�e, all�win� �e�isi�n makers t� evaluate risks an� take �ifferent as�e�ts int� a��unt when makin� strate�i� �e�isi�ns. As a ��re �art �f Say�na's �usiness strate�y, this system is �esi�ne� t� mana�e an� m�nit�r risks an� �r�vi�e the means t� a��ly in�ustry-lea�in� stan�ar�s an� �ra�ti�es.

In the �ast year, Say�na �evel��e� a Sustaina�le �evel��ment P�li�y whi�h i�entifie� an� evaluate� the si�nifi�ant envir�nmental im�a�ts �f all a�tivities a�r�ss �ur ��erati�ns. This ��li�y resulte� in an a�ti�n �lan with ��je�tives an� tar�ets f�r strate�i� �e�isi�ns an� risk mana�ement.

Say�na als� �evel��e� an Envir�nmental Mana�ement Manual, whi�h �utlines its �eneral �hil�s��hy an� the way envir�nmental a�ti�ns are im�lemente�.

T�war�s Sustaina�le Minin� Initiative

Say�na is ��mmitte� t� its �ui�in� �rin�i�les �f a�tin� res��nsi�ly an� a��tin� s��ial, envir�nmental an� e��n�mi� �ra�ti�es that refle�t the �ri�rities an� values �f its h�st ��mmunities.

As �art �f �ur ��mmitment, Say�na is �arti�i�atin� in the Minin� Ass��iati�n �f �ana�a's (MA�) T�war�s Sustaina�le Minin� (TSM) initiative, a �l��ally re��nise� �erf�rman�e system that hel�s minin� ��m�anies evaluate an� mana�e their envir�nmental an� s��ial res��nsi�ilities.

T� �r�vi�e the �eneral �u�li� with a ��m�rehensive insi�ht int� the ��m�any's �erf�rman�e a�r�ss vari�us s��ial an� envir�nmental areas, the MA� re�uires its mem�ers t� im�lement hi�h-level measures an� �u�lish the results �f these measures within three years �f j�inin� the initiative.

UL E��L��® �ertifi�ati�n f�r Mineral Ex�l�rati�n

Say�na has ��mmitte� t� ��tainin� UL E��L��® �ertifi�ati�n f�r mineral ex�l�rati�n t� maintain sustaina�ility �est �ra�ti�es a�r�ss its ex�l�rati�n �r��rams. This �ertifi�ati�n — the �nly vali� thir�-�arty �ertifi�ati�n f�r mineral ex�l�rati�n in �ana�a — re��nises �� s��ial, envir�nmental, e��n�mi� an� ��vernan�e �ra�ti�es. Say�na �evel��e� its �r��ram in 2022, with the first in�e�en�ent au�it s�he�ule� t� take �la�e in 2023.

Operating and Financial Review

Financial Additional Report Information

Governance

Bi��iversity Mana�ement

In 2022, Say�na �evel��e� an� im�lemente� a Bi��iversity ��nservati�n P�li�y, an� ��mmitte� t� the �r�te�ti�n �f status s�e�ies an� their ha�itats at NAL thr�u�h an u��ate� Avian Wil�life M�nit�rin� Pr��ram.

Mine �l�sure an� Reha�ilitati�n

�l�sure an� reha�ilitati�n �f a minin� asset is a ��m�lex task whi�h ��ses many �hallen�es f�r the ��erati�n, envir�nment an� key stakeh�l�ers. �l�sure �lannin� ��mmen�es in the early sta�es �f the �r�je�t an� ��ntinues thr�u�h�ut the ��erati�nal life �f the mine t� i�entify risks ass��iate� with �l�sure �ver time.

Say�na re��nises that str�n� en�a�ement with the re�ulat�r an� key stakeh�l�ers is �riti�al in ensurin� a ��sitive le�a�y �n�e ��erati�ns have �ease�.

Tailin�s Mana�ement

Say�na has a��te� in�ustry �est �ra�ti�e f�r the safe an� res��nsi�le mana�ement �f its tailin�s st�ra�e fa�ilities.

The �evel��ment �f the ��erati�ns, Maintenan�e an� Surveillan�e (�MS) Manual aims t� im�lement site-s�e�ifi� systems f�r res��nsi�le tailin�s mana�ement an� ena�le tailin�s en�ineerin� an� mana�ement �rin�i�les t� �e a��lie� ��nsistently.

A�ti�ns an� Key F��us Areas

S�me �f the key a�ti�ns un�ertaken �y Say�na �ver the �ast year in�lu�e:

�ar��n Se�uestrati�n Pr�je�t

Say�na is ��lla��ratin� with the �r�u�ement f�restier ��ératif A�iti�i an� the ��érative �e s�li�arité �e Pik��an t� re�u�e its �ar��n f��t�rint.

In 2023, m�re than 38,000 trees have �een �lante� in Villem�ntel, in A�iti�i, t� �ffset �ar��n emissi�ns fr�m �ur ��erati�ns �ver the �ast tw� years. This �ar��n se�uestrati�n �r�je�t is als� an e��l��i�al enhan�ement initiative, �rimarily �ue t� �iversifie� �lantin� f�r the ��real f�rest.

Envir�nmental Inn�vati�n Pr�je�t

Say�na has initiate� a �r�je�t in �artnershi� with Ram�, the Université �u �ué�e� en A�iti�i-Témis�amin�ue (U�AT) an� the Institut �e re�her�he en �i�l��ie vé�étale �e M�ntréal t� �reate a filterin� �lantati�n �f fast-�r�win� little tree will�ws.

The will�ws, whi�h will �e su�je�te� t� �re�ise irri�ati�n �f effluents usin� the inn�vative Eva�lant te�hn�l��y, will all�w f�r the re��very an� re�u�ti�n �f the v�lume �f minin� water �is�har�e� int� the envir�nment fr�m NAL, while �reatin� �i�mass that �an �e use� in the rest�rati�n an� reha�ilitati�n �r��ess.

Water Mana�ement

Water use� in �re �r��essin� at NAL is 100% re�y�le�. The water use� is �um�e� fr�m the tailin�s ��n�, with any sur�lus water at the en� �f the treatment �r��ess returne� t� the same ��n� f�r reuse. N� fresh water is intr��u�e� int� the treatment �r��ess at NAL.

Envir�nmental Lea�ershi�

�ver the �ast year, Say�na has �em�nstrate� envir�nmental lea�ershi� �n an in�ivi�ual an� ��lle�tive level. Say�na has a��te� numer�us ��li�ies t� �etter f�rmalise its �ra�ti�es an� ensure effe�tive envir�nmental mana�ement an� �r�te�ti�n.

Say�na's envir�nmental re��rt �ar� is �ase� �n ei�ht �r�t��ls esta�lishe� �y the Minin� Ass��iati�n �f �ana�a f�r the TSM initiative. These �r�t��ls �ui�e Say�na in �evel��in� mana�ement systems an� ��m�lyin� with vari�us re�uirements t� meet the ��mmitments in the TSM �ui�in� �rin�i�les.

�ther key f��us areas f�r Say�na in�lu�e:

��ntinuati�n �f �aseline stu�ies in relati�n t� the Envir�nmental an� S��ial Im�a�t Assessment (ESIA) f�r M��lan;
�evel��ment �f �reenh�use �as (�H�) emissi�ns re�u�ti�n strate�y f�r NAL;
�evel��ment �f �r�un� an� surfa�e water m�nit�rin� �r��ram f�r NAL;
�evel��ment �f �r�je�t exe�uti�n an� �elivery �hil�s��hy f�r M��lan, in��r��ratin� existin� �est �ra�ti�es an� te�hn�l��ies in relati�n t� mine �evel��ment;
enhan�ement �f tailin�s mana�ement an� emer�en�y �re�are�ness system f�r NAL;
esta�lishment �f �i��iversity ��nservati�n �lan f�r NAL;
�r��ressi�n �f BAPE assessment f�r Authier;
�r��ressi�n �f im�a�t assessment an� ��nsultati�n �r��ess f�r Authier an� M��lan.

Sustainability

Social Responsibility

Say�na is ��mmitte� t� makin� a meanin�ful ��ntri�uti�n t� �e��le's lives �y �reatin� lastin� s��ial, envir�nmental an� e��n�mi� value. We listen t� �ur stakeh�l�ers an� w�rk t��ether t� �reate share� value.

�ur Relati�nshi�s with First Nati�ns

The su��rt an� trust �f First Nati�ns �e��le is �riti�al t� the sustaina�ility �f �ur �usiness. �ver the �ast year, Say�na has ��ntinue� t� stren�then its relati�nshi�s with First Nati�ns �e��le �ase� �n trans�aren�y an� mutual ��lla��rati�n.

Say�na �lans its en�a�ements with First Nati�ns �e��le well in a�van�e t� ensure their views are in��r��rate� int� �r�je�t �lans. This all�ws Say�na t� a�t as a true �artner. These ��nstru�tive, res�e�tful an� ��en �is�ussi�ns are �entre� ar�un� �evel��in� sustaina�le �artnershi�s that �r�m�te em�l�yment ��rtunities an� �eliver e��n�mi� �enefits f�r l��al ��mmunities.

As �art �f this �r��ess, Say�na is �lannin� t� initiate several �r�je�ts t� �eliver �enefits t� the �ree ��mmunities �f �ujé-B�u��um�u an� Mistissini.

Say�na is ��mmitte� t� �uil�in� �a�a�ility �y in�lu�in� First Nati�ns �e��le in all �r��esses. The ��m�any a�tively seeks t� re�ruit em�l�yees fr�m In�i�en�us ��mmunities, an� �r�m�tes �usinesses wh� �artner with In�i�en�us enter�rises.

�ur Relati�nshi�s with H�st ��mmunities

Say�na seeks t� esta�lish meanin�ful l�n�-term relati�nshi�s whi�h res�e�t l��al �ultures an� �reate lastin� �enefits.

The ��m�any en�a�es re�ularly an� trans�arently a��ut u��min� a�tivities, there�y all�win� the ��mmunity t� �e m�re a�tively inv�lve� in its �r�je�ts. Say�na als� w�rks with ��mmunities t� i�entify h�w it �an im�r�ve its minin� �r�je�ts, an� whi�h transf�rmative �r�je�ts �an �e �evel��e� t��ether t� �reate a �r�u� le�a�y f�r l��al ��mmunities.

In Se�tem�er 2022, Say�na visite� the h�st ��mmunities near its �r�je�ts in A�iti�i-Témis�amin�ue, in�lu�in� the muni�i�alities �f Am�s, Barraute, La ��rne, Laf�r�e, La M�tte, M�ffet, Preissa�, SaintMar�-�e-Fi�uery an� Saint-Mathieu-�'Harri�ana.

The ��en h�use events, whi�h were wel��me� �y the ��mmunities, were an ��rtunity t� hear a variety �f �ers�e�tives an� re�eive ��nstru�tive fee��a�k fr�m l��al resi�ents. They als� �r�vi�e� an ��rtunity f�r atten�ees fr�m Say�na an� the l��al ��mmunity t� �is�uss ways t� im�r�ve the �r�je�ts.

In �4 FY23, further meetin�s were hel� t� �is�uss ways t� ��-�reate an� ��timise the �r�je�ts in the re�i�n.

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Operating and Financial Review Governance

Financial Additional Report Information

M�nit�rin� ��mmittees

Say�na has esta�lishe� m�nit�rin� ��mmittees whi�h all�w l��al ��mmunity ex�e�tati�ns, ��n�erns an� su��esti�ns t� �e hear�, there�y ena�lin� �ur �r�je�ts t� fit int� their envir�nment m�re seamlessly. The �is�ussi�ns hel� thr�u�h the m�nit�rin� ��mmittees als� ena�le l��al kn�wle��e t� �e in�lu�e� in the �r�je�t's �esi�n an� �evel��ment s� that it �an �e �etter a�a�te� t� the l��al ��ntext.

The N�rth Ameri�an Lithium M�nit�rin� ��mmittee was initiate� t� ��m�ly with the Minin� A�t, while the Authier Lithium M�nit�rin� ��mmittee was esta�lishe� in a�van�e �f the �r�je�t, with�ut any le�al ��li�ati�n t� �� s�.

In late 2022, mem�ers �f the Authier Lithium an� N�rth Ameri�an Lithium M�nit�rin� ��mmittees �e�i�e� t� j�in f�r�es t� �ain ali�nment �n vari�us issues that affe�te� ��th ��mmittees.

The ��je�tives �f the m�nit�rin� ��mmittees are:

1) 70.9 �is�uss the �r��ress �f the �r�je�t an� a�tivities relate� t� Mt @ 1.5 % Li2O site ��erati�ns;
2) Esta�lish ��en an� trans�arent �ial��ue �etween Say�na an� m�nit�rin� ��mmittee mem�ers;
3) Pr�m�te the sharin� �f l��al kn�wle��e an� inf�rmati�n as well as s�ientifi� kn�wle��e am�n� l��al a�t�rs, the ��m�any an� external ex�erts;
4) En��ura�e ��mmuni�ati�n �f any new ��n�erns ��serve� in the area an�, where a��r��riate, �r�vi�e a�vi�e �n ��tential next ste�s;
5) Maximise the tan�i�le �enefits �f the �r�je�t f�r the ��mmunity, en��ura�e the �arti�i�ati�n �f l��al �usinesses, an� ��ntri�ute t� the �reati�n �f Say�na's s��ial ��mmitment �r��ram.

��mmittee mem�ers have �een ke�t a�reast �n the �r��ress �f Say�na's �r�je�ts thr�u�h a series �f meetin�s an� �resentati�ns. T� �ate, �is�ussi�ns have ��vere� a ran�e �f t��i�s in�lu�in�:

�enefits �f a��uirin� NAL an� mer�in� with the Authier Lithium Pr�je�t;
a�ti�n �lan t� �e��me the su��lier �f �h�i�e t� in�ustry in N�rth Ameri�a;
�urrent an� future ste�s f�r restart �f ��erati�ns at NAL;
amen�ments t� �e ta�le� f�r the Authier Lithium Pr�je�t;
BAPE hearin� f�r the Authier Lithium Pr�je�t;
envir�nmental u��ra�in�;
h�usin� issues;
�ermit ��m�lian�e;
sustaina�le �evel��ment;
�n��in� la��ur re�uirements.

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Sayona | Annual Report 2023 41

Sustainability

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��nstant Presen�e

�urin� the year, Say�na was a�tively inv�lve� in numer�us events thr�u�h�ut �ue�e� an� �ntari� in �ana�a as well as atten�in� vari�us ��nferen�es an� �ther in�ustry events in N�rth Ameri�a, Eur��e an� Asia Pa�ifi� re�i�ns.

These events have �een im��rtant f�r Say�na t� share its �r�je�ts, sh�w�ase its ex�ertise, meet with key in�ustry fi�ures, an� netw�rk with �r�s�e�tive em�l�yees an� �usiness �artners. They have als� hel�e� t� �uil� str�n� relati�nshi�s with key stakeh�l�ers inv�lve� in �evel��in� inn�vative an� sustaina�le te�hn�l��ies an� s�luti�ns f�r the minin� in�ustry.

Finan�ial ��ntri�uti�ns

Say�na has �evel��e� a ��nati�n an� S��ns�rshi� P�li�y whi�h �utlines the un�erlyin� �rin�i�les f�r finan�ial ��ntri�uti�ns. The ��m�any aims t� �arti�i�ate in im�a�tful �r�je�ts that are a s�ur�e �f �ri�e f�r its h�st ��mmunities. We als� aim t� ��ntri�ute t� the sustaina�le �evel��ment �f the ��mmunities near �ur ��erati�ns, as well as �r�je�ts that �enefit In�i�en�us ��mmunities.

Say�na's ��je�tives in �r�vi�in� ��nati�ns an� s��ns�rshi�s are:

�r�vi�e finan�ial su��rt t� �r�anisati�ns wh�se �r�je�ts ali�n with �ur values;
��ntri�ute t� the s��i�-e��n�mi� �evel��ment �f l��al an� nei�h��urin� ��mmunities;
remain ali�ne� an� ��mmitte� t� the nee�s �f l��al an� First Nati�ns ��mmunities;
�em�nstrate �ur ��mmitment t� �e a �� r��rate �itizen.

Investin� in Future �enerati�ns

Thr�u�h�ut the year, Say�na h�ste� stu�ents an� interns t� tea�h them a��ut the minin� in�ustry an� all�w them t� �ain �ra�ti�al ex�erien�e in the fiel�.

A�ti�ns an� Key F��us Areas

S�me �f the key a�ti�ns un�ertaken �y Say�na �ver the �ast year in�lu�e�:

��ntinue� su��rt �f ��mité Mikis, a ��mmittee �e�i�ate� t� the �reservati�n �f tra�iti�nal �raftsmanshi� in the ��mmunity �f A�iti�iwinni;
s��ns�rshi� �f the Pik��an an� La� Sim�n ��ww�ws.
�ther key f��us areas f�r Say�na in�lu�e:
��ntinue� ��nsultati�n an� ��lla��rati�n with m�nit�rin� ��mmittees;
f�rmati�n �f e��n�mi� �evel��ment ��mmittees with the ��mmunities �f A�iti�iwinni, La� Sim�n, L�n� P�int First Nati�n an� the �ree Nati�n �f Mistissini t� �evel�� ur �artnershi�s.

E��n�mi� �enefits in �ur h�st ��mmunities

We are ��mmitte� t� �reatin� value f�r all stakeh�l�ers.

With the restart �f ��erati�ns at NAL an� a�van�ement �f a�tivity �n the M��lan Lithium Pr�je�t, Say�na is fast �e��min� a truste� �artner an� em�l�yer �f �h�i�e in the A�iti�i-Témis�amin�ue an� Eey�u Ist�hee James Bay re�i�ns. By su��rtin� an� �rivin� l��al e��n�mi� �evel��ment, the ��m�any is ensurin� these re�i�ns rea� the e��n�mi� �enefits ass��iate� with �ur ��erati�ns.

Thanks t� �ur L��al Pur�hasin� P�li�y, whi�h fav�urs ��s an� servi�es fr�m �r�anisati�ns an� �usinesses near its ��erati�ns, Say�na has inje�te� a ��m�ine� �$266.9 milli�n int� the l��al e��n�mies in the A�iti�iTémis�amin�ue an� Eey�u Ist�hee James Bay re�i�ns �ver the �ast year. This re�resents a ��nsi�era�le in�rease f�r �usinesses in these re�i�ns ��m�are� t� the �revi�us year.

Governance

Board of Directors	46
Executive Leadership Team	48
Directors’ Report	49
Remuneration Report	53
Auditor’s Independence Declaration	61

Sayona | Annual Report 2023 45

Board of Directors

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Mr James Brown

Executive Director and Interim Chief Executive Officer

A�e 60

L��ati�n Sin�a��re

Term �f �ffi�e

Mr Br�wn has serve� as a N�n-Exe�utive �ire�t�r sin�e 12 Au�ust 2013. He was a��inte� as Exe�utive �ire�t�r an� Interim �hief Exe�utive �ffi�er �n 27 Au�ust 2023.

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Mr Allan Buckler

Non-Executive Director

A�e

L��ati�n Australia

Term �f �ffi�e

Mr Bu�kler was a��inte� as a N�n-Exe�utive �ire�t�r �n 5 Au�ust 2013.

�ualifi�ati�ns

Mr Br�wn h�l�s a �ra�uate �i�l�ma in Minin� fr�m University �f Ballarat an� is a �ra�uate �f the Australian Institute �f ��m�any �ire�t�rs.

Mr Bu�kler h�l�s a �ertifi�ate in Mine Surveyin� an� Minin�, First �lass Mine Mana�ers �ertifi�ate an� Mine Survey�r �ertifi�ate fr�m the �ueenslan� ��vernment's �e�artment �f Mines.

Ex�erien�e

Mr Br�wn is a seni�r exe�utive with �ver 40 years' ex�erien�e in the minin� in�ustry in Australia, Unite� States, Afri�a an� In��nesia, in�lu�in� the last 14 years as Mana�in� �ire�t�r �f M�rella ��r��rati�n Limite�. Mr Br�wn has su��essfully s�ur�e�, �evel��e� an� ��erate� numer�us key �l��al �r�je�ts with a f��us �n lithium an� �attery materials. He has an extensive �l��al investment netw�rk t� un�er�in the �a�ital re�uirements f�r �r�je�t investment an� �evel��ment.

�urrent �ire�t�rshi�s in �ther Liste� Entities

Mana�in� �ire�t�r – M�rella ��r��rati�n Limite� N�n-Exe�utive �ire�t�r – �reenwin� Res�ur�es Limite�

Mr Bu�kler is a seni�r exe�utive with �ver 55 years' ex�erien�e in the minin� in�ustry an� has �een �ire�tly res��nsi�le f�r the ��mmer�ialisati�n �f several �r�je�ts fr�m res�ur�e i�entifi�ati�n thr�u�h t� �r��u�ti�n in Australia an� In��nesia.

�urrent �ire�t�rshi�s in �ther Liste� Entities

N�n-Exe�utive �ire�t�r – M�rella ��r��rati�n Limite�

�ther �ire�t�rshi�s Nil

F�rmer �ire�t�rshi�s in the last 3 years N�n-Exe�utive �ire�t�r – Interra Res�ur�es Limite�

�ther �ire�t�rshi�s

Nil

F�rmer �ire�t�rshi�s in the last 3 years Nil

Operating and Financial Financial Additional Review Governance Report Information

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Mr Paul Crawford

Executive Director and Chief Financial Officer

A�e 66

L��ati�n Australia

Term �f �ffi�e

Mr �rawf�r� was a��inte� as a �ire�t�r �n 10 Mar�h 2000.

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Mr Philip Lucas

Non-Executive Director

A�e 56

L��ati�n Australia

Term �f �ffi�e

Mr Lu�as was a��inte� as a N�n-Exe�utive �ire�t�r �n 27 Au�ust 2023.

�ualifi�ati�ns

Mr �rawf�r� h�l�s a Ba�hel�r �f Business fr�m �ueenslan� University �f Te�hn�l��y an� is a �ertifie� Pra�tisin� A��untant (�PA). He als� h�l�s a �ra�uate �i�l�ma in Business Law fr�m University �f S�uthern �ueenslan�, �ra�uate �i�l�ma in ��m�any Se�retarial Pra�ti�e fr�m ��vernan�e Institute �f Australia an� Master �f Finan�ial Mana�ement fr�m �entral �ueenslan� University.

Ex�erien�e

Mr �rawf�r� has �ver 45 years �f ��mmer�ial ex�erien�e, in�lu�in� vari�us te�hni�al an� mana�ement r�les within the minerals, ��al an� �etr�leum in�ustries. In 2001, Mr �rawf�r� esta�lishe� his �wn ��r��rate ��nsultan�y firm, �r�vi�in� a��untin�, ��r��rate ��vernan�e, �usiness a�vis�ry an� ��mmer�ial mana�ement servi�es. Mr �rawf�r� was a��inte� as ��m�any Se�retary in 2012 an� has hel� the ��siti�n �f �hief Finan�ial �ffi�er sin�e 2018.

�urrent �ire�t�rshi�s in �ther Liste� Entities Nil

�ualifi�ati�ns

Mr Lu�as h�l�s a Ba�hel�r �f Laws an� Juris ��t�r fr�m University �f Western Australia.

Ex�erien�e

Mr Lu�as is Partner an� �hairman at ��uti�ue ��r��rate an� res�ur�es law firm, Alli�n Partners. He has extensive kn�wle��e �f the Australian ��r��rate an� res�ur�es se�t�rs. He als� �r�vi�es a�vi�e �re��minantly in the areas �f �u�li� ��m�any mer�ers an� a��uisiti�ns, e�uity �a�ital markets, ��r��rate ��vernan�e an� ��r��rate law.

�urrent �ire�t�rshi�s in �ther Liste� Entities

�hair – �hilwa Minerals Limite�

�ther �ire�t�rshi�s Nil

F�rmer �ire�t�rshi�s in the last 3 years Nil

�ther �ire�t�rshi�s Nil

F�rmer �ire�t�rshi�s in the last 3 years Nil

Sayona | Annual Report 2023 47

Executive Leadership Team

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Mr James Brown

Executive Director and Interim Chief Executive Officer

A�e 60

L��ati�n Sin�a��re

�ualifi�ati�ns

Mr Br�wn h�l�s a �ra�uate �i�l�ma in Minin� fr�m University �f Ballarat an� is a �ra�uate �f the Australian Institute �f ��m�any �ire�t�rs.

Ex�erien�e

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Mr Paul Crawford

Executive Director and Chief Financial Officer

A�e 66

L��ati�n Australia

�ualifi�ati�ns

Ex�erien�e

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Mr Guy Belleau

Chief Executive Officer, Sayona Canada

A�e

L��ati�n �ana�a

�ualifi�ati�ns

Mr Belleau h�l�s a Ba�hel�r �f En�ineerin� fr�m Laval University.

Ex�erien�e

Mr Belleau was a��inte� t� the r�le �f �hief Exe�utive �ffi�er, Say�na �ana�a in January 2023, assumin� res��nsi�ility f�r all ��erati�nal an� ex�l�rati�n a�tivities in �ana�a.

Mr Belleau is a seni�r exe�utive with �ver 30 years' ex�erien�e in the minin� in�ustry, �re��minantly in s�me �f the lar�est minin� ��m�anies in �ué�e� an� �ana�a. Pri�r t� j�inin� Say�na, Mr Belleau hel� the ��siti�ns �f ��erati�ns Mana�er f�r Ar�el�rMittal Mines �ana�a, �eneral Mana�er �f Minin� f�r Fal�� Res�ur�es an� �eneral Mana�er �f Minin� f�r ��l��r�'s Élé�n�re mine, where he �versaw every sta�e �f mine ��nstru�ti�n an� ��erati�n.

Mr Belleau als� hel� the ��siti�n �f �hair �f the Nati�nal Minin� Institute �f �ué�e� (INM�) fr�m 2018 t� 2022.

Financial Additional Report Information

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Operating
and Financial
Review Governance
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Directors’ Report

Your Directors present their report on Sayona Mining Limited ("the Company") and its controlled entities (the "Consolidated Group" or "Group") for the year ended 30 June 2023.

The report is prepared in accordance with the requirements of the Corporations Act, with the following information forming part of this report:

Operating and Financial Review on pages 8 to 43;
Biographical Information on pages 46 to 48;
Remuneration Report on pages 53 to 60;
Auditor’s Independence Declaration on page 61;

of mineral exploration assets in Australia and Canada, predominantly focusing on lithium.

During the year, the Group completed the refurbishment, upgrade and restart of operations at NAL in conjunction with its strategic partner, Piedmont Lithium Québec Holdings Inc.

The restart of operations was completed on time, culminating in first spodumene concentrate production in March 2023 as part of the commissioning process. The first shipment of 19,200 dry metric tonnes of concentrate took place in August 2023.

Financial Report on pages 62 to 102; and
Additional Information on pages 104 to 141.

activities during the year.

Directors

Limited during the financial year and up to the date of this report, unless otherwise stated:

Mr James Brown[(1)] Appointed 12 August 2013

Mr Allan Buckler Appointed 5 August 2013

Mr Paul Crawford Appointed 10 March 2000

Mr Philip Lucas Appointed 27 August 2023

Mr Brett Lynch[(2)] Appointed 1 July 2019; resigned 27 August 2023

(1) Mr Brown served as a Non-Executive Director until 26 August 2023. He was appointed as Executive Director and Interim Chief Executive Officer on 27 August 2023.

(2) Mr Lynch resigned as Managing Director and Chief Executive Officer on 27 August 2023.

other directorships are set out in this report on pages 46 to 47.

Meetings of Directors

During the year, there were a total of 14 meetings of the full Board of Directors. The number of meetings attended by each Director were:

Director	Board Meetings
	Eligible (1) Attended (2)
J Brown	14 14
A Buckler	14 14
P Crawford	14 14
P Lucas (3)	- -
B Lynch	14 14

(1) Number of meetings held during the year while the Director was a member of the Board.

(2) Number of meetings attended during the year while the Director was a member of the Board.

(3) Mr Lucas was appointed as a Non-Executive Director on 27 August 2023.

The Group did not have an audit committee in place at the date of this report. At present, the Non-Executive Directors have assumed the responsibilities of the audit committee. The Board is currently reviewing its corporate governance practices and will establish key governance committees as part of this process.

Principal Activities

The principal activities of the Group during the year were lithium mining and processing at North American Lithium (NAL) and

On 5 August 2022, the Group announced an agreement with Acuity Capital to increase the At-the-Market Subscription Agreement (ATM) facility limit from $50 million to $200 million and extend the expiry date to 31 July 2025. The remaining standby equity capital available under the ATM is $193.6 million. Under the agreement, Sayona issued a further 155 million shares in November 2022 as collateral against the facility, bringing the total security held by Acuity Capital to 250 million shares. These shares were issued at no cost and are similar to treasury shares.

On 2 September 2022, the S&P Dow Jones Indices announced the September 2022 quarterly rebalance of the S&P/ASX indices, resulting in Sayona Mining Limited being included in the S&P/ASX 200 Index prior to the market opening on 19 September 2022.

On 14 November 2022, the Group announced an agreement with Consolidated Lithium Metals Inc. (CLM) for NAL to acquire a 9.99% interest in CLM for C$1.5 million. As part of the agreement, NAL acquired 20 claims adjacent to the NAL operation with a further 28 claims part of the Vallée Lithium Project, subject to an earn-in agreement.

On 17 November 2022, the Group announced an agreement with Troilus Gold Corporation to acquire 1,824 claims located near the Moblan Lithium Project for a purchase consideration of $44.5 million. Pursuant to this agreement, the Group issued 184,331,797 fully paid ordinary shares to Troilus Gold Corporation to settle the transaction. The Group also acquired a 9.26% interest in Troilus Gold Corporation.

On 7 March 2023, the Group entered into a subscription agreement with PearTree Securities Inc. for the issuance of 174,459,177 fully paid ordinary shares at an issue price of $0.315 per share for aggregate gross proceeds of $54.9 million using the flow-throughshare (FTS) provisions under Canadian tax law. The funds from the placement will be used primarily to accelerate exploration efforts at NAL and Moblan.

On 5 June 2023, the Group completed the first tranche of a $200 million placement to institutional, professional and sophisticated investors, resulting in the issuance of 940,384,891 fully paid ordinary shares at an issue price of $0.18 per share for aggregate gross proceeds of $169.3 million. The second tranche totalling $30.7 million was completed on 19 July 2023.

affairs during the year.

OPERATING AND FINANCIAL REVIEW

Operating Review

The Group’s operations during the year ended 30 June 2023 have been focused on the development of its lithium assets in Québec and working to realise value from its lithium and gold tenements in Western Australia. The Operating and Financial Review includes,

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Directors’ Report

where possible, likely developments and expected results from the Group’s operations in future financial years.

QUÉBEC, CANADA

North American Lithium (NAL)

During the year, Sayona’s primary focus was the restart of spodumene concentrate production at NAL. The restart commenced on time in Q3 FY23 and culminated in the first spodumene concentrate production in March 2023 as part of the commissioning process. The first shipment of 19,200 dry metric tonnes of concentrate took place in August 2023, subsequent to period end.

average spodumene concentrate grade achieved was in line with targeted grades, with all key spodumene concentrate parameters in line with offtake specifications. For the full financial year, NAL recorded 33,120 tonnes of spodumene concentrate production.

The current Life of Mine (LOM) has been estimated at 20 years, however Sayona is advancing a 50,000 metre drilling program for NAL and the adjacent Vallée Lithium Project to identify additional resources. The program commenced in Q4 FY23. At 30 June 2023, 31 holes (8,572 metres) had been drilled as part of Phase 1 of the program.

NAL Preliminary Carbonate Technical Study

Sayona and Piedmont will work with technical advisers to undertake a further trade-off study of lithium carbonate versus lithium hydroxide production at NAL, with a definitive technical study to follow for release in 2024.

Authier Lithium Project

In November 2022, Sayona submitted the Authier project for environmental impact assessment and review under the Québec Government’s ‘BAPE’ (Bureau d’audiences publiques sur l’environnement) process, demonstrating the Group’s commitment to transparency and stakeholder engagement. The request was accepted by the Québec Government in February 2023. A revised Environmental and Social Impact Assessment for the project will be produced by December 2023.

Tansim Lithium Project

Sayona is focused on ensuring the project generates maximum benefits for all local stakeholders, including First Nations people, together with minimising any environmental impacts. No work was carried out at Tansim during the period as activities focused on NAL and Moblan.

Vallée Lithium Project

In November 2022, Sayona announced a strategic acquisition and earn‐in between NAL and Consolidated Lithium Metals Inc. at CLM’s Vallée Lithium Project. The acquisition and earn-in by NAL comprised 48 claims spanning approximately 1,997 hectares, located adjacent to the NAL operation.

Key aspects of the transaction include the acquisition of 20 claims outright and the right to earn up to a 51% stake in an additional 28 claims, based on spending and funding milestones. The 20 claims acquired outright span 755 hectares, providing an immediate extension to the NAL operating area and allowing for potential future infrastructure expansion at the NAL mine and its processing facility. Pegmatite targets are located close to and along strike from the NAL ore body.

The Group also acquired a 9.99% interest in CLM for approximately C$1.5 million.

In May 2023, a drilling program commenced over the Vallée Lithium Project and adjacent NAL claims. Of the 50,000 metres of planned drilling, approximately 15,000 metres relates to the Vallée Lithium Project claims.

Moblan Lithium Project

for the Moblan Lithium Project with an initial JORC Mineral Resource estimate, including a maiden resource for the South Pegmatite discovery.

Sayona now estimates a total JORC Measured, Indicated and Inferred Resource of 70.9 million tonnes at 1.15% Li2O (0.25% Li2O cut‐off grade in the sensitivity analysis), representing one of North America’s single largest lithium resources. This estimate includes higher grade tonnage opportunities with a Measured, Indicated and Inferred Resource of 51.4 million tonnes at 1.31% Li2O (0.55% Li2O cut-off grade in the sensitivity analysis).

Sayona aims to further enhance the size and grade of this resource through additional drilling, with a total of 60,000 metres of drilling planned in what is likely to be one of the largest single drilling programs in Québec for 2023.

At 30 June 2023, a total of 163 holes totalling 33,757 metres had been drilled. Following the announcement of initial high grade drilling results at Moblan in July 2023, subsequent to period end, Sayona will proceed directly to a DFS, expected to be released by the end of 2023. The study will examine the development of a mine and concentrator north of Chibougamau, near the Route du Nord in Cree Mistissini territory, with the Moblan Lithium Project serving as the centre of the Eeyou Istchee James Bay Hub, including the Lac Albert Lithium Project.

Lac Albert Lithium Project

In January 2022, Sayona announced the acquisition of 121 new claims in the vicinity of Moblan known as the Lac Albert Lithium Project. Located 3.5km west of the Moblan Lithium Project, in the same proven lithium mining province, the new claims span 6,592 hectares and will be assessed for lithium pegmatite occurrences.

These claims are separate to the Moblan Lithium Project. No activities were undertaken at the Lac Albert Lithium Project during the period.

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Directors’ Report

Troilus Claims

In November 2022, Sayona announced the acquisition of a 100% interest in 1,824 claims from Troilus Gold Corporation for approximately $44.5 million. These claims were acquired through an issue of 184,331,797 fully paid ordinary shares in Sayona Mining Limited.

The Group also acquired a 9.26% equity interest in Troilus Gold Corporation by subscribing for 20.4 million shares at C$0.49 per share. These claims are separate to the Moblan Lithium Project. No activities were undertaken during the period.

WESTERN AUSTRALIA, AUSTRALIA

comprises total assets of $1,009.6 million (2022: $661.2 million), total liabilities of $124.8 million (2022: $100.5 million) and net assets of $884.8 million (2022: $560.6 million). The Group reported cash and cash equivalents of $211.1 million (2022: $184.6 million) as at 30 June 2023.

The Group has various funding options available including the $200 million ATM facility with Acuity Capital. The Group is also constantly exploring alternative funding options including, but not limited to, production offtake arrangements, debt facilities, equity placements, joint arrangements with external partners, farm-out of interests in exploration tenements or the sale of mineral exploration assets where value has been created through exploration activity.

LITHIUM EXPLORATION

Morella Lithium Joint Venture Project (Morella 51% / Sayona 49%)

Morella Corporation Limited (ASX: 1MC) earned a 51% stake in the joint venture, having satisfied its requirements under the Earn-in Agreement by incurring expenditure of $1.5 million on exploration within three years.

The Directors have reasonable grounds to believe the Group is in a strong financial position to grow its current operations.

Dividends

During the period, a 35-hole drilling program for 2,200 metres was undertaken at the Mallina tenement over the Discovery, Area C and Eastern Pegmatite No. 2 and 3 prospect areas.

Subsequent to the end of FY23, Morella announced that drilling results had identified new areas of mineralisation and extensions to existing mineralised zones.

Mallina project suggests the strong possibility of additional lithium discoveries beyond the currently explored area. Planned future work includes additional drilling to further develop the identified mineralisation, as well as additional geochemical and geophysical surface techniques.

Tabba Tabba Project

Field work and heritage surveying has advanced drill planning over targets in the south of the lease and southern strike extension to the Tabba Tantalum Mine pegmatite corridor. Drilling is planned to test for potential spodumene rich zonation to the south of the mined tantalum rich pegmatite system.

GOLD EXPLORATION

Mt Dove Project

A heritage survey was completed during the year over areas where a 3,500 metre air-core / reverse circulation drill program has been planned to test magnetic features and structural targets for bedrock gold anomalism.

delivered. The Mt Dove Project is proximal to De Grey Mining’s Hemi discovery.

On 19 July 2023, the Group completed the second tranche of a $200 million placement to institutional, professional and sophisticated investors, resulting in the issuance of 170,726,221 fully paid ordinary shares at an issue price of $0.18 per share for aggregate gross proceeds of $30.7 million.

On 28 August 2023, the Group announced changes to the Board of Directors following the resignation of Mr Brett Lynch as Managing Director and Chief Executive Officer. To enable a smooth transition to new leadership, Mr James Brown was appointed as Executive Director and Interim Chief Executive Officer, effective 27 August 2023.

In addition, Mr Philip Lucas was appointed as a Non-Executive Director, effective 27 August 2023. Mr Lucas is an experienced corporate lawyer with a particular focus on equity capital markets, mergers and acquisitions, corporate governance and Australian Securities Exchange regulations and compliance. Mr Lucas is currently Partner and Chair at boutique corporate and resources law firm, Allion Partners and serves as Chair of Chilwa Minerals Limited.

On 6 September 2023, the Group announced the receipt of cash proceeds from the inaugural shipment of spodumene concentrate from its North American Lithium operation in Québec, Canada. The initial cash payment marked an important milestone in Sayona’s evolution from a developer into a leading North American lithium producer.

No other matters or circumstances have arisen since the end of the financial year that have significantly affected or may significantly affect the operations, results of operations or state of affairs of the Group in subsequent financial years.

External Factors and Risks Affecting the Group’s Results

Deep Well Project

results in the T5 area of the tenement. Further work is planned to allow targeting for follow up air-core drilling of the geochemical anomalies, as well as further drill testing of magnetic targets within the greater Deep Well lease.

Sayona holds 100% of the lithium rights within Deep Well and exploration is proceeding with an awareness of the lithium potential of the project area.

Financial Review

The Group’s consolidated loss after income tax for the year ended 30 June 2023 was $12.9 million (2022: $73.8 million profit). The operating result for the year ended 30 June 2022 included a gain on acquisition of North American Lithium of $101.7 million.

The Group has robust risk management processes and internal compliance and control systems in place to address material business risks.

Notwithstanding, the following risks may affect the Group’s ability to achieve its objectives:

global economic uncertainty and liquidity negatively impacting the market for lithium;
negative commodity price variations and volatility;
– heightened political, social and economic expectations in respect of climate change and the transition to a lowcarbon economy;
political risks and actions by governments and authorities including changes in legislation, regulation and policy;
– major external events or natural disasters;

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Directors’ Report

delays or refusal of relevant approvals to conduct proposed operations;
inability to deliver safe, stable and predictable operational performance;
inability to secure supply of logistics chains and critical goods and services;
exploration and evaluation activity not achieving the expected or desired results;
impacts and foreign exchange rate
fluctuations; and
inability to raise additional funds in the future.

Directors Interest in Shares and Equity Rights

At the date of this report, the interests of the Directors in the ordinary shares and equity rights of the Company are as follows:

	Ordinary	Equity
Director	shares	rights (1)
J Brown	10,757,094	-
A Buckler	112,589,051	-
P Crawford (2)	171,341,303	10,000,000
P Lucas	-	-

(1) Equity rights relate to equity awards or options which have been granted.

(2) Equity rights for Mr Crawford have vested due to performance conditions being achieved and, subject to being exercised, will convert into ordinary shares.

No equity rights over the ordinary shares of the Company are held by Non-Executive Directors at the date of this report.

The total number of equity rights over the ordinary shares of the Company as at 30 June 2023 is set out in Note 29 to the financial statements.

At the date of this report, the total number of equity rights over the ordinary shares of the Company are as follows:

	Number		Expiry /
	of equity	Exercise	vesting
	rights	price	date
Equity awards
Performance rights (1)	13,454,794	N/A	Various
Options
Equity-settled services (2)	2,234,482	$0.1825	28-Nov-25
Performance rights (3)	10,000,000	$0.1500	17-Jul-24

(1) Performance rights relate to equity awards granted to employees for nil consideration, subject to performance conditions being met. Refer to Note 29 to the financial statements for further detail on the outstanding equity awards.

(2) Equity-settled services relate to options granted to Jett Capital Advisors, LLC in respect of corporate advisory services undertaken for the Group.

(3) Performance rights relate to options granted to Mr Paul Crawford, as approved by shareholders at the Extraordinary General Meeting on 17 July 2023. All rights have vested due to performance conditions being achieved and, subject to being exercised, will convert into ordinary shares.

Equity right holders do not have any right to participate in any issue of shares or other interests of the Group or any other entity.

Company Secretary

Mr Paul Crawford was appointed to the position of Company Secretary on 22 August 2012. Further information on Mr Crawford’s qualifications and experience is set out on page 47.

During the year, the Group paid insurance premiums to indemnify each of the Directors against liabilities incurred in defending any legal proceedings arising as a result of work performed in their capacity as Director of the Group, other than conduct involving a

wilful breach of duty in relation to the Group. The contracts include a prohibition on disclosure of the premium paid and nature of the liabilities covered under the policy.

The Group has not given an indemnity or entered into any agreement to indemnify, or paid or agreed to pay insurance premiums in respect of any person who is or has been an auditor of the Group or a related body corporate during the year and up to the date of this report.

Corporate Governance

The Group’s Corporate Governance Statement is available at https://sayonamining.com.au/corporate-governance/.

Auditor Independence

The Group’s auditor has provided an independence declaration in accordance with the Corporations Act, which is set out on page 61 and forms part of this report.

Non-Audit Services

The Group’s auditor did not undertake any non-audit services during the current or previous financial year.

Proceedings on behalf of Sayona Mining Limited

No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those proceedings.

The Group was not a party to any such proceedings during the year.

Environmental Regulation and Performance

Sayona seeks to be compliant with all applicable environmental laws and regulations relevant to its operations.

The Group’s operations are subject to environmental regulation under the law in Australia and Canada. The Directors monitor the Group’s compliance with environmental regulation under law in relation to its exploration, mining, and processing activities. In addition, the Group is presently developing comprehensive ESG policies and guidelines to ensure that environmental sustainability is a key factor in managing its operations.

The Group holds all necessary approvals to undertake mining, processing and construction activities at its North American Lithium operation. Technical studies prepared in relation to the restart of operations at NAL and development of Moblan provide Directors with information and technical details in relation to the environmental regulations as they apply to mining and manufacturing operations.

In addition, the Authier Lithium Project is subject to review procedures under the BAPE (Bureau d'audiences publiques sur l'environnement) as the Group seeks permitting approval to develop and operate a new mine. The Moblan Lithium Project will be evaluated by the Environmental and Social Impact Review Committee (COMEX) as the Group seeks to obtain environmental permits required to develop a new mine.

The Directors are aware of non-compliance currently under investigation in Canada. The outcome is unknown up to the date of this report.

Rounding of Amounts

Sayona Mining Limited is an entity to which Australian Securities and Investments Commission Corporations (Rounding in Financial /Directors’ Reports) Instrument 2016/191 (ASIC Instrument 2016/191) applies. Amounts in this Directors’ Report and financial statements have been rounded to the nearest thousand dollars in accordance with ASIC Instrument 2016/191, unless otherwise stated.

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Remuneration Report

The Board is pleased to present the Remuneration Report for the year ended 30 June 2023 (FY23).

Our Performance

Sayona enjoyed a transformative year in FY23, with the commencement of spodumene (lithium) concentrate production at the North American Lithium (NAL) operation marking an important milestone in the Group’s evolution from a developer into a producer.

2023, subsequent to period end. Consequently, Sayona is well positioned to generate additional cash flow as NAL ramps up production.

A Definitive Feasibility Study (DFS) for the combined NAL and Authier Lithium Project was also completed during the year, confirming a pre-tax net present value (NPV) of $2.2 billion for the project, representing a significant increase from the pre-tax NPV of $1 billion disclosed in the pre-feasibility study. A preliminary technical study for lithium carbonate production at NAL showed an estimated standalone pre-tax NPV of $3.2 billion, with the combined NAL pre-tax NPV of fully integrated downstream operations estimated to exceed $5 billion.

In the Eeyou Istchee James Bay Hub, Sayona’s Moblan Lithium Project saw a significant increase in its estimated mineral resource following extensive drilling. The JORC Measured, Indicated and Inferred Resource of 51.4 million tonnes @ 1.31% Li2O (0.55% Li2O in the sensitivity analysis) represents one of North America’s single largest lithium resources.

No long-term incentives (LTI) or other equity grants were made to Executive Directors in FY23. The final tranche of the equity grant to the CEO, which was approved by shareholders in November 2019 and contingent on share price growth targets over three years, was issued and vested in November 2022. On 17 July 2023, shareholders approved equity grants to the CEO and CFO in respect of past performance. As performance related to current and prior service periods, the value of these equity grants has been disclosed in the remuneration tables in this report.

Non-Executive Director Remuneration

Board fees were reviewed and benchmarked against industry and ASX peer data, taking into consideration the change in size and complexity of the business. In FY23, the Board approved a 74% increase in Non-Executive Director fees. This increase was necessary to position fees closer to market median levels, particularly as the Group seeks to recruit additional independent Non-Executive Directors.

Looking Forward

During FY23, Sayona progressed plans to undertake a review of its corporate governance practices, with efforts underway to recruit an independent Chairman and additional independent Non-Executive Directors based in Australia and North America. The Board also engaged an independent remuneration adviser to review the remuneration practices and performance-based structures of the Board and executive leadership team. Consequently, Sayona will be seeking shareholder approval for FY24 equity grants for Executive Directors and an increase in the maximum aggregate fee pool for Non-Executive Directors.

Meanwhile, in Western Australia, exploration activity progressed over tenements prospective for gold and lithium in the Pilbara region, including the joint venture project with Morella Corporation Limited.

Executive Remuneration

From its origins as a mineral explorer, Sayona’s executive remuneration has been cash conservative and low relative to peers. In FY23, as cash-generating projects neared completion and the business continued its progress towards becoming a leading North American lithium producer, the Group expanded its executive leadership team and increased executive salaries to ensure better internal and external equity.

Salaries for the Managing Director and Chief Executive Officer (CEO) and Chief Financial Officer (CFO) were increased by 109% and 22% respectively, although their salaries are still below market median levels. Recent executive appointments, including Mr Guy Belleau as Chief Executive Officer, Sayona Canada (CEO, Canada) on 1 January 2023, have more market competitive remuneration packages in place.

Short-term incentives (STI) have been designed to reward executives and employees for achievement of performance goals that are aligned to the Group’s near-term objectives. In FY23, STI outcomes were determined by reference to four measures deemed critical in transitioning Sayona to the next phase of growth. These performance measures were based on delivery of safe and reliable operations, achievement of key project milestones and completion of key strategic initiatives.

In FY23, all STI performance targets were met or exceeded, resulting in a maximum STI of 100% being awarded to executives. Given the need to transition to a more market competitive remuneration framework, the Board approved to pay the STI in cash. No discretion was warranted as formulaic STI results were consistent with market expectations and disclosures, and Total Shareholder Return (TSR) increased by 17% over the performance period despite a decline in lithium prices from the start of the financial year.

Sayona | Annual Report 2023

Remuneration Report

Remuneration Report (Audited)

The Remuneration Report forms part of the Directors’ Report for the year ended 30 June 2023 and has been prepared in accordance with section 300A of the Corporations Act 2001.

1. Summary of Key Elements

The following table summarises the key elements of the Remuneration Report:

Element	Summary		Reference
FY23 Salary Adjustments	Base salary changes: • Managing Director and Chief Executive Ofcer’s (CEO) base salary was increased by 109%		Section 4.1
		from $322,500 to $672,500.
	•	Executive Director and Chief Financial Ofcer’s (CFO) base salary was increased by 22% from
		$285,741 to $347,500.

Historically, Sayona’s executive remuneration has been low relative to peers in order to conserve cash used to fund project development and operations. As cash-generating projects neared completion, salary increases were necessary to ensure reasonable internal equity with non-KMP executives, and to bring executive remuneration closer to market median levels.

Securities Exchange (ASX) listed mining companies, including lithium producers. The CEO and CFO remuneration remain below median levels.

		Maximum remuneration
	Base salary (n=21)	Fixed (n=21) STI (n=19)	Fixed and STI (n=20)	Market capitalisation
	$	$ $	$	$M
Average 25thPercentile 50thPercentile 75thPercentile	935,166 585,900 822,500 1,256,100	978,091 916,205 614,807 369,000 850,000 510,000 1,256,100 1,428,050	1,828,504 1,025,181 1,270,079 2,672,925	4,034 619 1,932 6,180
B Lynch Percentile Rank	672,500 37	700,000 280,000 36 9	980,000 20	1,813 43

Percentiles are calculated independently.

The Chief Executive Officer, Sayona Canada’s (CEO, Canada) base salary did not change since his appointment as Executive KMP in January 2023.

Board member fees were increased by 74% from $72,000 to $125,000.

FY23 Board Board member fees were increased by 74% from $72,000 to $125,000. Member Fee Adjustments The fee increase was necessary as the Group seeks to recruit additional independent Non-Executive Directors, and to bring Board member fees closer to market median levels.

FY23 STI Four performance measures were set for Executive KMP based on delivery of safe and reliable Outcomes operations, achievement of key project milestones and completion of key strategic initiatives. The measures were critical in transforming Sayona into a leading North American lithium producer whilst also positioning the Group for broader geographic supply and market diversity. The performance measures were:

Section 6

Section 5.2

Total Recordable Injury Frequency Rate (TRIFR) of 5.0 (or less) for the year ended 30 June 2023;
Concentrator at NAL to be operating at a feed rate of 3,800 tonnes per day by 30 June 2023;
NAL refurbishment and restart to be completed on time and within budget (including any variances approved by the Board);
Announcement of JORC compliant Mineral Resource / Ore Reserve estimate for the Moblan Lithium Project to the Australian Securities Exchange (ASX).

All performance measures were successfully achieved, resulting in a FY23 STI award of 100%. The Board approved to pay the STI in cash.

Why wasn’t STI Executive base salaries and other statutory entitlements have been cash conservative and low relative Section 4.1 partly deferred to peers. The FY23 STI award is paid in cash to compensate executives for the absence of cash salary and 4.2 into equity? relative to peers. Discretion Formulaic STI results associated with testing and achievement of milestones (when referenced to Section 4.2 disclosures and market expectations, lithium prices and growth in TSR) indicated that no discretion and 5.2 regarding STI payments was necessary.

Operating and Financial Financial Additional Review Governance Report Information

Remuneration Report

Element	Summary		Reference
Why wasn’t LTI	To attract	and retain executives and focus executives on longer term value accretive strategies, an LTI	Section 3 and
granted in FY23	should have been granted. In common with other mineral exploration companies, Sayona’s equity grant		4.3
to Executive	practices	have been irregular and sometimes retrospective. The Group acknowledges that these past
Directors?	practices	have not kept pace with our rapid maturation from a mineral explorer to a mid-tier developer
	and producer. The Board is currently reviewing the remuneration framework with the aim of approving a
	framework which is aligned with shareholder expectations.
Planned	During FY23, the Board engaged an independent remuneration advisor to review the remuneration		Section 8
Remuneration	practices	and performance-based structures of the Board and executive leadership team.
Framework
Changes	Some of the planned remuneration framework changes include:
	• •	partial deferral of short-term incentive awards to equity for Executive KMP; annual grant of long-term incentive awards to Executive KMP, subject to specifc performance
		conditions and a minimum performance period of three years;
	•	introduction of malus and clawback provisions;
	•	increase in maximum aggregate fee pool for Non-Executive Directors in anticipation of
		additional Non-Executive Director appointments;
	•	introduction of minimum shareholding requirements.

2. Key Management Personnel

Key Management Personnel (KMP) comprise those persons that have responsibility, authority and accountability for planning, directing and controlling the activities of the Company, directly or indirectly, including any director of the Company.

Name	Position	Date appointed
Executive KMP
B Lynch (1)	ManagingDirector and Chief Executive Ofcer(CEO)	1 July2019
P Crawford	Executive Director and Chief Financial Ofcer(CFO)	10 March 2000
G Belleau	Chief Executive Ofcer,Sayona Canada(CEO,Canada)	1 January2023
Non-Executive Directors
J Brown (2)	Non-Executive Director	12 August 2013
A Buckler	Non-Executive Director	5 August 2013

(1) Mr Lynch resigned as Managing Director and Chief Executive Officer on 27 August 2023.

(2) Mr Brown appointed as Executive Director and Interim Chief Executive Officer on 27 August 2023.

In this report, a reference to “Executive” or “Executives” is a reference to Executive KMP.

3. Remuneration Strategy

Over the last twelve months, Sayona has evolved from a developer into a leading North American lithium producer. Historically, Sayona’s executive remuneration philosophy has been focused on conserving cash to fund project exploration, development and operations. Executive base salaries and other statutory entitlements have been cash conservative and low relative to peers, and equity grant practices have been irregular and sometimes retrospective. The Group acknowledges that these past practices are no longer appropriate, and is taking steps to implement a more traditional, fit-for-purpose, and steady state remuneration structure from FY24.

4. FY23 Executive Remuneration Framework

4.1 Base Salary

The following table summarises the base salary received by Executive KMP:

Element	Description
Base Salary Levels	The base salary for	each Executive KMP is:			Increase % 109% 22% -
				Base salary (1)
	Executive KMP	Position	FY22 $	FY23 $	Increase %
	B Lynch P Crawford	Managing Director and Chief Executive Ofcer Executive Director and Chief Financial Ofcer	322,500 285,741	672,500	109% 22% -
				347,500
	G Belleau (2)	Chief Executive Ofcer, Sayona Canada	-	610,145

(1) Base salary reflects a full year as Executive KMP.

(2) Amounts reported for Mr Belleau have been converted to Australian dollars using an exchange rate of A$1.00:C$0.9014.

Sayona | Annual Report 2023

Remuneration Report

Element	Description
	As discussed above, a market review of executive remuneration packages was undertaken which indicated remuneration was positioned signifcantly below the market median. Whilst executive salaries have been increased, there remains a gap to market median levels. The extent of the difference to market median levels refects past conservatism and changes in
	the size and complexity of the business. As Sayona evolves, further reviews will be required to ensure executive remuneration is sufcient to attract and retain the skills and experience necessaryto create value for shareholders.
Reviews	Salaryis determined on appointment and reviewed annually.

4.2 Short-Term Incentive

The key elements of the FY23 STI award are as follows:

Element	Description	Description	Description
Purpose	Focus participants on delivery of key objectives set by the Board over a twelve month period and ensure participants exhibit leadership attributes expected of Executive KMP.
Opportunity	The maximum STI opportunity for each Executive KMP is:
			Maximum STI opportunity (1)
	Executive KMP	Position	% $
	B Lynch P Crawford	Managing Director and Chief Executive Ofcer Executive Director and Chief Financial Ofcer Chief Executive Ofcer, Sayona Canada	40% 280,000 40% 150,000 100% 610,145
	G Belleau (2)
Performance Period	Performance is assessed over the period from 1 July 2022 to 30 June 2023.
Payment Vehicle	The FY23 STI award is paid in cash.
Performance Measures	The FY23 STI award is determined by reference to the following performance measures and weightings: Performance measures Weighting % Total Recordable Injury Frequency Rate (TRIFR) of 5.0 (or less) for the year ended 30 June 2023 25% Concentrator at NAL to be operating at a feed rate of 3,800 tonnes per day by 30 June 2023 25% NAL refurbishment and restart to be completed on time and within budget (including any variances approved by the Board) 25% Announcement of JORC compliant Mineral Resource / Ore Reserve estimate for the Moblan Lithium Project to the Australian Securities Exchange (ASX) 25% These performance measures were selected due to their alignment with key project milestones and delivery of safe and reliable operations. They were also critical in transforming Sayona from a mineral explorer into a leading North American lithium producer.
Board Discretion	The Board retains the discretion to amend, vary, terminate, or suspend the STIplan at anytime.

4.3 Long-Term Incentive

The LTI awards granted to KMP in FY23 are detailed in section 5.3.

5. FY23 Performance and Executive Remuneration Outcomes

5.1 Operating and Financial Performance

A key focus for the Board is to align executive remuneration to the creation of shareholder value and achievement of objectives of the Group. The table below summarises the Group’s financial performance over the last five years as required by the Corporations Act 2001:

Key metrics	FY23	FY22	FY21	FY20	FY19
Spodumene concentrateproduced(dmt)	33,120	-	-	-	-
Proft/(loss)after income tax($M)	(12.9)	73.8	(4.4)	(5.4)	(2.2)
Basic earningsper share(cents)	(0.16)	0.76	(0.13)	(0.26)	(0.13)
Dividendspaid(centsper share)	-	-	-	-	-
Closingshareprice at 30 June($)	0.175	0.15	0.087	0.0068	0.008
Market capitalisation($M)	1,757	1,238	468	17	14
Annual total shareholder return(%)	17	72	1,179	(15)	(80)

Operating and Financial Financial Additional Review Governance Report Information

Remuneration Report

Although no LTI awards were granted to Executive Directors in FY23, the vesting and exercise of various equity grants from prior years coupled with personal investments by the CEO and CFO provided alignment with shareholders over the course of the year. This included the vesting and exercise of the final tranche of the equity grant to the CEO which was approved by shareholders at the 2019 Annual General Meeting and contingent on share price growth targets over a three year period.

5.2 FY23 Short-Term Incentive Outcomes

The STI plan rewards executives for achievement of weighted performance measures set by the Board at the beginning of the year. The FY23 performance measures reflect the necessary steps required to transform Sayona into a sustainable lithium producer.

The following table summarises the STI performance measures and outcomes for the year ended 30 June 2023:

			Business
	Weighting	Achievement	outcome
Performance measures	%	%	%
Total Recordable Injury Frequency Rate (TRIFR) of 5.0 (or less) for the year ended 30 June 2023	25%	100%	25%
Concentrator at NAL to be operating at a feed rate of 3,800 tonnes per day by 30 June 2023	25%	100%	25%
NAL refurbishment and restart to be completed on time and within budget	25%	100%	25%
(including anyvariances approved bythe Board)
Announcement of JORC compliant Mineral Resource / Ore Reserve estimate for	25%	100%	25%
the Moblan Lithium Project to the Australian Securities Exchange(ASX)
	100%		100%

The FY23 STI award for Executive KMP is summarised below:

Executive KMP Maximum STI % Maximum STI $ Business outcome % Individual outcome % STI awarded $	Percentage of maximum STI
	Awarded % Forfeited %
B Lynch 40% 280,000 100% 100% 280,000	100% 0%
P Crawford 40% 150,000 100% 100% 150,000	100% 0%
G Belleau (1) 100% 302,565 100% 100% 302,565	100% 0%

(1) Remuneration reported for Mr Belleau reflects service as Executive KMP from 1 January 2023. The amounts reported have been converted to Australian dollars using an exchange rate of A$1.00:C$0.9014.

No discretion was warranted as formulaic STI results were consistent with market expectations and disclosures, and TSR increased by 17% over the performance period despite a decline in lithium prices from the start of the financial year.

5.3 FY23 Long-Term Incentive Outcomes and Equity Grants On Foot

Equity Awards

The following equity awards were granted to KMP in FY23:

			Number	Market
		Grant	of rights	price on date	Face value	Anticipated
KMP	Award	date	granted	of grant	$	vesting date
Executive
G Belleau (1)	FY23 Performance Rights	01-Jan-23	8,559,808	$0.19	1,626,364	30-Jun-27

(1) Equity awards granted to Mr Belleau in FY23, subject to the achievement of specific performance measures over the period from 1 January 2023 to 30 June 2027.

The following table summarises the movement and balance of equity rights held by KMP over ordinary shares:

		Equity rights	Granted	Vested		Lapsed		Equity rights
		at beginning	during	during		during		at end
KMP	Award	of the year	the year	the year		the year		of the year
Executive
G Belleau	FY23 Performance Rights	-	8,559,808		-		-	8,559,808

Sayona | Annual Report 2023

Remuneration Report

In July 2023, shareholders approved equity grants to the CEO and CFO in respect of past performance. As performance related to current and prior service periods, the value of these equity grants has been disclosed in the remuneration table in section 7.1.

Options

The following table summarises the movement and balance of options held by KMP:

KMP	Grant date Expiry date Exercise price Opening balance as at 1 July 2022 Issued in FY23 (1) Exercised in FY23 Lapsed in FY23 Closing balance as at 30 June 2023
Executive
B Lynch	29-Nov-19 29-Nov-22 $0.04 2,000,000 - (2,000,000) - -
	29-Nov-19 29-Nov-22 $0.07 - 4,000,000 (4,000,000) - -
P Crawford	28-Jan-22 28-Jul-23 $0.15 20,000,000 - - - 20,000,000
Non-Executive
J Brown 28-Jan-22 28-Jul-23 $0.15 10,000,000 - - - 10,000,000
A Buckler 28-Jan-22 28-Jul-23 $0.15 10,000,000 - - - 10,000,000

(1) Options issued to Mr Lynch in FY23 were approved by shareholders at the 2019 Annual General Meeting. Options were granted subject to the achievement of specific performance measures. Mr Lynch achieved the maximum performance hurdle by increasing the share price to $0.15 by 30 June 2022 (Maximum LTI Target: $0.12).

6. Non-Executive Director Remuneration

The maximum aggregate fee pool for Non-Executive Directors is US$500,000 which was approved by shareholders at the Annual General Meeting on 28 January 2022.

During FY23, Board fees were increased to assist with attraction and retention of independent Non-Executive Directors, and to bring Board fees closer to market median levels.

Fee Position FY22 $	FY23 $ Increase %
Board Fees Non-Executive Director 72,000	125,000 74%

7. Statutory Disclosures

7.1 Statutory Remuneration

The following table details the statutory remuneration disclosures prepared in accordance with Corporations Regulations disclosure requirements:

KMP	Year	Short-term benefts Cash salary and fees Cash incentive Other benefts (1) Super- annuation Other long-term benefts (2) Equity rights (3) Total remuner- ation Perfor- mance related $ $ $ $ $ $ $ %
Executive
B Lynch (4)	FY23	672,500 280,000 114,983 27,500 - 1,610,000 2,704,983 70%
	FY22	322,500 - 30,694 27,500 - 2,058,000 2,438,694 84%
P Crawford	FY23	347,500 150,000 - 36,922 - 300,000 834,422 54%
	FY22	285,741 - - 14,259 - 726,500 1,026,500 71%
G Belleau (5)	FY23	305,073 302,565 45,985 24,406 - 310,686 988,715 51%
	FY22	- - - - - - - -
Non-Executive
J Brown	FY23	125,000 - - - - - 125,000 0%
	FY22	72,000 - - - - 400,000 472,000 0%
A Buckler	FY23	125,000 - - - - - 125,000 0%
	FY22	72,000 - - - - 400,000 472,000 0%
Total (4)	FY23	1,575,073 732,565 160,968 88,828 - 2,220,686 4,778,120
	FY22	752,241 - 30,694 41,759 - 3,584,500 4,409,194

(1) Other benefits include life insurance, motor vehicle allowances, private health insurance and benefits, and net movements in annual leave entitlements. The amount reported for Mr Lynch for the year ended 30 June 2023 includes a non-recurring encashment of annual leave entitlements.

(2) Other long-term benefits include net movements in long service leave entitlements.

Operating and Financial Financial Additional Review Governance Report Information

Remuneration Report

(3) Equity rights are calculated in accordance with Australian Accounting Standards and reflect the value of equity and equity-related instruments that have been expensed during the year. The amount reported for Mr Belleau for the year ended 30 June 2023 includes a non-recurring grant of $110,935 in ordinary shares to compensate for benefits forgone from a previous employer.
(4) Amounts reported for the year ended 30 June 2022 have been restated due to calculation errors.
(5) Remuneration reported for Mr Belleau reflects service as Executive KMP from 1 January 2023. The amounts reported have been converted to Australian dollars using an exchange rate of A$1.00:C$0.9014.

No termination payments were made to KMP in FY23 or FY22.

7.2 Options Held by KMP

The following table details the number of options held by KMP and their related parties, including unvested options awarded under incentive plans that are subject to service conditions and vested options that have not yet been exercised and converted into ordinary shares:

	Opening		Exercised and			Closing
	balance as at		converted to	Other net		balance as at
	1 July 2022	Issued	ordinary shares	changes		30 June 2023
Executive KMP
B Lynch	47,159,884	4,000,000	(51,159,884)		-	-
P Crawford	20,000,000	-	-		-	20,000,000
Non-Executive Directors
J Brown	10,000,000	-	-		-	10,000,000
A Buckler	10,000,000	-	-		-	10,000,000
Total	87,159,884	4,000,000	(51,159,884)		-	40,000,000

All options held as at 30 June 2023 are unlisted.

7.3 Ordinary Shares Held by KMP

The following table details the number of ordinary shares held by KMP and their related parties:

	Opening			Received		Closing
	balance as at	Received as		from exercise	Other net	balance as at
	1 July 2022	remuneration		of options	changes (1)	30 June 2023
Executive KMP
B Lynch	118,109,108		-	51,159,884	(6,236,476)	163,032,516
P Crawford	159,585,689		-	-	550,000	160,135,689
Non-Executive Directors
J Brown	757,094		-	-	-	757,094
A Buckler	109,589,051		-	-	(7,000,000)	102,589,051
Total	388,040,942		-	51,159,884	(12,686,476)	426,514,350

(1) Other net changes include purchases and sales of ordinary shares and participation in equity issues (in capacity as shareholders).

8. Planned Remuneration Framework Changes

During FY23, the Board engaged an independent remuneration advisor to review the remuneration practices and performance-based structures of the Board and executive leadership team.

Some of the planned remuneration framework changes include:

partial deferral of short-term incentive awards to equity for Executive KMP;
period of three years;
introduction of malus and clawback provisions;
increase in maximum aggregate fee pool for Non-Executive Directors in anticipation of additional Non-Executive Director appointments;
introduction of minimum shareholding requirements.

Sayona | Annual Report 2023

Remuneration Report

9. Remuneration Governance

9.1

The table below summarises the employment agreements in place with Executive KMP as at 30 June 2023:

Executive KMP Position Notice period by either party	Termination beneft STI treatment on termination
B Lynch ManagingDirector and Chief Executive Ofcer 3 months	3 months Not specifed
P Crawford Executive Director and Chief Financial Ofcer Not specifed	Not specifed Not specifed
G Belleau Chief Executive Ofcer, Sayona Canada 12 months	12 months 100%

9.2 Remuneration Consultants

The Board may commission and receive independent advice. No remuneration recommendations as defined under Division 1, Part 1.2, 9B (1) of the Corporations Act 2001 were received.

9.3 Other Transactions with KMP and Related Parties

There were no other transactions between the Group and KMP or their related parties, other than those disclosed above and elsewhere in the financial report, that were conducted other than in accordance with normal employee, customer, or supplier relationships on terms no more favourable than those reasonably expected under arm’s length dealings with unrelated persons.

9.4 Prohibition of Hedging

KMP or closely related parties of KMP are prohibited from entering hedge arrangements that would have the effect of limiting the risk exposure relating to their remuneration.

In addition, the Board’s remuneration policy prohibits KMP from using Sayona’s shares as collateral in any financial transactions, including margin loan arrangements.

The Directors’ Report, incorporating the Remuneration Report, is approved in accordance with a resolution of the Board.

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James Brown

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Paul Crawford Executive Director and Chief Financial Officer

Date: 29 September 2023

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Auditor’s Independence Declaration

Under Section 307C of the Corporations Act 2001

To the Directors of Sayona Mining Limited

As the lead auditor for the audit of the financial report of Sayona Mining Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.

==> picture [296 x 49] intentionally omitted <==

Nexia Brisbane Audit Pty Ltd

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Ann-Maree Robertson

Director

Date: 29 September 2023

==> picture [473 x 78] intentionally omitted <==

Sayona | Annual Report 2023 61

5062

Financial Report

Consolidated Statement of Proft or Loss	64
Consolidated Statement of Comprehensive Income	64
Consolidated Statement of Financial Position	65
Consolidated Statement of Changes in Equity	66
Consolidated Statement of Cash Flows	67
Notes to the Financial Statements	68
Directors’ Declaration	98
Independent Auditor’s Report	99

for the year ended 30 June 2023

Consolidated Statement of Proft or Loss for the year ended 30 June 2023
		2023	2022
		$’000	$’000
	Note		Restated *
Revenue	5	-	-
Other income	5	1,695	102,103
Expenses	6	(25,794)	(22,150)
Proft/(loss) from operations		(24,099)	79,953

Financial income	20	16,327	111
Financial expenses	20	(1,506)	(3,037)
Net fnancial income/(expense)	20	14,821	(2,926)

Proft/(loss) before income tax		(9,278)	77,027
Income tax expense	7	(3,649)	(3,207)
Proft/(loss) after income tax		(12,927)	73,820

Attributable to:
Equityholders of Sayona MiningLimited		(13,626)	51,459
Non-controllinginterests		699	22,361

Earnings per share
Basic earningsper share(cents)	8	(0.16)	0.76
Diluted earningsper share(cents)	8	(0.16)	0.71

Refer to Note 33 for details on restatement of prior period comparatives.

Consolidated Statement of Comprehensive Income for the year ended 30 June 2023

Consolidated Statement of Comprehensive Income for the year ended 30 June 2023
		2023	2022
		$’000	$’000
	Note		Restated *
Proft/(loss) after income tax		(12,927)	73,820
Other comprehensive income/(loss)
Items that may be reclassifed to the Consolidated Statement of Proft or Loss:
Foreign exchange rate differences on translation of foreign operations		(4,408)	13,797
Total items that may be reclassifed to the Consolidated Statement of Proft or Loss		(4,408)	13,797
Items that will not be reclassifed to the Consolidated Statement of Proft or Loss:
Fair value losses on fnancial assets at fair value through other comprehensive income, net of tax	24	(1,544)	-
Total items that will not be reclassifed to the Consolidated Statement of Proft or Loss		(1,544)	-
Total other comprehensive income/(loss)		(5,952)	13,797
Total comprehensive income/(loss)		(18,879)	87,617

Attributable to:
Equityholders of Sayona MiningLimited		(18,632)	63,008
Non-controllinginterests		(247)	24,609

Refer to Note 33 for details on restatement of prior period comparatives.

Operating and Financial Financial Additional Review Governance Report Information

Consolidated Statement of Financial Position as at 30 June 2023

Consolidated Statement of Financial Position as at 30 June 2023
		2023	2022
		$’000	$’000
	Note		Restated *
ASSETS
Current assets
Cash and cash equivalents	17	211,119	184,559
Trade and other receivables	9	19,298	9,681
Inventories	10	48,664	-
Current tax assets		1,557	-
Other assets	11	33,919	13,700
Total current assets		314,557	207,940
Non-current assets
Other fnancial assets	21	12,943	-
Property, plant and equipment	12	682,073	453,036
Intangible assets	13	-	185
Total non-current assets		695,016	453,221
Total assets		1,009,573	661,161
LIABILITIES
Current liabilities
Trade and otherpayables	14	29,497	23,981
Interest bearingliabilities	18	1,944	10
Provisions	16	846	324
Total current liabilities		32,287	24,315
Non-current liabilities
Interest bearingliabilities	18	29,270	23,462
Other liabilities	15	13,956	11,504
Deferred tax liabilities	7	13,983	10,174
Provisions	16	35,254	31,085
Total non-current liabilities		92,463	76,225
Total liabilities		124,750	100,540
Net assets		884,823	560,621
EQUITY
Share capital	23	770,700	504,255
Reserves	24	12,773	13,551
Accumulated losses		(27,316)	(13,782)
Total equity attributable to equity holders of Sayona Mining Limited		756,157	504,024
Non-controllinginterests		128,666	56,597
Total equity		884,823	560,621

Refer to Note 33 for details on restatement of prior period comparatives.

Sayona | Annual Report 2023 65

Consolidated Statement of Changes in Equity for the year ended 30 June 2023

Balance as at 1 July 2022	504,255 13,551 (13,782) 504,024 56,597 560,621
Proft/(loss)after income tax	- - (13,626) (13,626) 699 (12,927)
Other comprehensive loss	- (5,006) - (5,006) (946) (5,952)
Total comprehensive loss	- (5,006) (13,626) (18,632) (247) (18,879)
Transactions with owners:
Shares issued 23	276,404 - - 276,404 72,316 348,720
Transaction costs 23	(9,959) - - (9,959) - (9,959)
Share basedpayments	- 4,320 - 4,320 - 4,320
Transfers and other movements 24	- (92) 92 - - -
Balance as at 30 June 2023	770,700 12,773 (27,316) 756,157 128,666 884,823
Restated *
Balance as at 1 July 2021	128,728 304 (67,643) 61,389 6,497 67,886
Proft/(loss)after income tax	- - 51,459 51,459 22,361 73,820
Other comprehensive income	- 11,549 - 11,549 2,248 13,797
Total comprehensive income	- 11,549 51,459 63,008 24,609 87,617
Transactions with owners:
Shares issued 23	392,475 - - 392,475 26,551 419,026
Transaction costs 23	(16,948) - - (16,948) - (16,948)
Share basedpayments	- 3,040 - 3,040 - 3,040
Transfers and other movements 24	- (1,342) 2,402 1,060 (1,060) -
Balance as at 30 June 2022	504,255 13,551 (13,782) 504,024 56,597 560,621

Refer to Note 33 for details on restatement of prior period comparatives.

Operating and Financial Financial Additional Review Governance Report Information

Consolidated Statement of Cash Flows for the year ended 30 June 2023

Consolidated Statement of Cash Flows for the year ended 30 June 2023
		2023	2022
	Note	$’000	$’000
Operating activities
Proft/(loss)before income tax		(9,278)	77,027
Adjustments for:
Depreciation and amortisation expense		6,162	50
Gain on acquisition of North American Lithium		-	(101,716)
Net fnancial income and expenses		(14,830)	2,926
Share basedpayments		4,281	5,919
Changes in assets and liabilities:
Trade and other receivables		(12,287)	732
Inventories		(47,603)	-
Other assets		(19,626)	(13,656)
Trade and otherpayables		4,466	3,256
Provisions and other liabilities		19,747	11,711
Cashgenerated from operations		(68,968)	(13,751)
Interest received		2,817	111
Interestpaid		(329)	(1)
Net cash fows from operating activities		(66,480)	(13,641)
Investing activities
Acquisition of subsidiaries andjoint operations,net of cash acquired		-	(221,926)
Exploration expenditure		(66,274)	(10,160)
Purchases ofproperty, plant and equipment		(127,088)	(21,865)
Investments in fnancial assets		(14,431)	-
Cash outfows from investingactivities		(207,793)	(253,951)
Proceeds from sale ofproperty,plant and equipment		63	-
Net cash fows from investing activities		(207,730)	(253,951)
Financing activities
Proceeds from associated entities		77,806	16,511
Proceeds from interest bearingliabilities		110	-
Repayment of interest bearingliabilities		(776)	(43)
Proceeds from issue of shares and exercise of options		231,870	423,876
Transaction costs associated with share issues		(9,959)	(15,578)
Net cash fows from fnancing activities		299,051	424,766

Net increase in cash and cash equivalents		24,841	157,174
Cash and cash equivalents at the beginning of the fnancialyear		184,559	35,503
Foreign exchange rate differences on cash and cash equivalents		1,719	(8,118)
Cash and cash equivalents at the end of the fnancialyear	17	211,119	184,559

Sayona | Annual Report 2023 67

Notes to the Financial Statements

of Sayona Mining Limited ("the Company") and its controlled entities (the “Consolidated Group” or “Group”). Where an accounting policy, critical accounting estimate, assumption or judgement is specific to a note, these are described within the note to which they relate. These policies have been consistently applied to all periods presented, except as described in Note 3.

ended 30 June 2023 were authorised for issue in accordance with a resolution of the Directors on 29 September 2023.

1. Reporting Entity

incorporated and domiciled in Australia with a primary listing on the Australian Securities Exchange (ASX) and a secondary listing on the OTCQB Venture Market in the United States (OTCQB).

The nature of the operations and principal activities of the Group are described in the Directors’ Report.

Mining Limited, have been presented in Note 32 of this financial report as required by the Corporations Act 2001 .

2. Basis of Preparation

statements which have been prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB), International Financial Reporting Standards (IFRS) and other authoritative pronouncements of the International Accounting Standards Board (IASB).

basis as management has assessed that the Group will be able to meet its obligations as and when they fall due and there is no significant uncertainty over the Group’s ability to continue as a going concern for the twelve months from the date of this report.

historical cost basis, except for certain financial assets and liabilities (including derivative financial instruments) which are required to be measured at fair value.

All amounts are presented in Australian dollars, with values rounded to the nearest thousand in accordance with ASIC Corporations Instrument 2016/191 , unless otherwise stated.

been reclassified for consistency with changes in presentation for the current financial year.

(a) Principles of consolidation

statements of the Group. A list of controlled entities (subsidiaries) at year end is provided in Note 25.

Intercompany transactions, balances and unrealised gains or losses on transactions between Group entities are fully eliminated on consolidation. Subsidiaries are consolidated from the date on which control is obtained to the date on which control is ceased.

(b) Critical accounting estimates and judgements

management to apply accounting policies and methodologies based on complex and subjective judgements and estimates. Estimates assume a reasonable expectation of future events and are based on historical experience and assumptions as well as current trends and economic data, obtained both externally and within the Group.

The use of these estimates, assumptions and judgements affects the amounts reported in the consolidated financial statements. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the financial statements, are disclosed in the following notes:

Note
5	Revenue and Other Income
7	Tax
10	Inventories
12	Property,Plant and Equipment
16	Provisions

(c) Foreign currency translation

Australian dollars, which has been assessed by management as the functional currency of the Group. Management will reassess the Group’s functional currency if there are any changes which impact the primary economic environment of the Group.

Transactions denominated in foreign currencies are initially translated into Australian dollars using the exchange rate on the date of the underlying transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate at the end of the reporting period.

Exchange gains or losses on settlement or translation of monetary items are included in the Consolidated Statement of Profit or Loss, except for foreign exchange differences resulting from translation of foreign operations, which are initially recognised in the Consolidated Statement of Other Comprehensive Income and subsequently transferred to the Consolidated Statement of Profit or Loss on disposal of the foreign operation.

Non-monetary items measured on a historical cost basis in a foreign currency are translated into Australian dollars using the exchange rate on the date of the underlying transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate on the date when the fair value is determined. Exchange gains or losses on translation of non-monetary items measured at fair value are recognised in the same manner as gains or losses on change in fair value of the non-monetary item.

(d) Goods and Services Tax (GST) and Québec Sales Tax (QST)

Revenues, expenses and assets are recognised net of the amount of GST/QST, except where the amount of GST/QST incurred is not recoverable from the taxation authority.

Receivables and payables are stated inclusive of the amount of GST/QST receivable or payable. The net amount of GST/QST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Consolidated Statement of Financial Position.

components of cash flows arising from investing or financing activities are presented as operating cash flows.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

3. New Standards and Interpretations

(a) New accounting standards and interpretations effective from 1 July 2022

The following new accounting standards and interpretations have been published and are effective for the year ended 30 June 2023:

AASB 2020-3: Annual Improvements to IFRS Standards 2018– 2020 and Other Amendments

c) AASB 108, to clarify how entities should distinguish changes in accounting policies and changes in accounting estimates;
d) AASB 134, to identify material accounting policy information as a component of a complete set of financial statements; and
e) AASB Practice Statement 2, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.

This standard amends:

a) the application of AASB 1 by a subsidiary that becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences;
b) AASB 3 to update references to the Conceptual Framework for Financial Reporting;
c) AASB 9 to clarify when the terms of a new or modified financial liability are substantially different from the terms of the original financial liability;
d) AASB 116 to require an entity to recognise the sales proceeds from selling items produced while preparing property, plant and equipment for its intended use and the related cost in profit or loss, instead of deducting the amounts received from the cost of the asset;

AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The amendment narrowed the scope of the recognition exemption in paragraphs 15 and 24 of AASB 112 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendment applies to transactions that occur on or after the beginning of the earliest comparative period presented.

The Group has reviewed these amendments and improvements and does not expect them to have a material impact on the Group.

The Group does not intend to early adopt any of the new standards or interpretations. It is expected that where applicable, these standards and interpretations will be adopted on each respective effective date.

e) AASB 137 to specify the costs that an entity includes when assessing whether a contract will be loss-making; and
f) the fair value measurement requirements in AASB 141 to align with those in other Australian Accounting Standards.

The Group has reviewed these amendments and concluded that none of these changes are likely to have a material impact on the Group.

(b) New accounting standards and interpretations issued but not yet effective

The following new accounting standards and interpretations have been published but are not yet effective for the year ended 30 June 2023 and have not been early adopted by the Group:

AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-Current

current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (for example, the receipt of a waiver, a breach of covenant, or settlement of a liability).

AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates

This Standard amends:

a) AASB 7, to clarify that information about measurement bases for financial instruments is expected to be material to an entity’s financial statements;
b) AASB 101, to require entities to disclose their material accounting policy information rather than their significant accounting policies;

Sayona | Annual Report 2023 69

Notes to the Financial Statements

Financial Performance

4. Segment Reporting

(a)

The Group is an emerging lithium producer with operations in Australia and Canada. The principal activities of the Group during the year were lithium mining and processing at North American Lithium and ongoing identification, evaluation and development of its portfolio of mineral exploration assets in Australia and Canada, predominantly focusing on lithium.

Management has determined the operating segments based on the reports that are used by the Board to make strategic decisions. Due to the geographically disparate nature of the operations, management examines the Group’s financial performance and activity from a geographical perspective. During the year, the reportable segments for the Group were segregated between Australian operations, Canadian operations and Corporate activities.

The principal activities of each reportable segment are summarised as follows:

Reportable segment	Principal activities
Australian operations	Operations located in Western Australia, Australia
Graphiteprojects	Exploration site forgraphite in the East Kimberleyregion
Lithium andgoldprojects	Exploration of lithium andgold tenements in the Pilbara and Yilgarn regions
Canadian operations	Operations located in Québec, Canada
Abitibi-Témiscamingue Hub
North American Lithium(NAL)	Lithium miningandprocessing
Authier Lithium Project	Hard rock lithium deposit
Tansim Lithium Project	Exploration site for lithium, tantalum and beryllium
Vallée Lithium Project	Earn-in claims located adjacent to NAL
Eeyou Istchee James Bay Hub
Lac Albert Lithium Project	Exploration site for lithiumpegmatite occurrences
Moblan Lithium Project	Drillingdeposit host to high-grade spodumene mineralisation
Troilus Claims	Wholly-owned claims located adjacent to the Moblan Lithium Project
Corporate	Corporate activities not directlyrelated to operations

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

4. Segment Reporting (continued)

(b) Segment results

adjustment items including impairments. EBITDA is EBIT before depreciation and amortisation expense.

Year ended 30 June 2023	Australian operations $’000	Canadian operations $’000	Corporate $’000	Group eliminations $’000	Total $’000
Revenue	-	-	-	-	-
Other income	-	1,695	-	-	1,695
Total revenue and other income	-	1,695	-	-	1,695

EBITDA	(247)	(9,076)	(8,614)	-	(17,937)
Depreciation and amortisation expense	-	(6,097)	(65)	-	(6,162)
EBIT	(247)	(15,173)	(8,679)	-	(24,099)
Net fnancial income/(expense)	-	(946)	15,767	-	14,821
Proft/(loss) before income tax	(247)	(16,119)	7,088	-	(9,278)
Income tax expense	-	(3,649)	-	-	(3,649)
Proft/(loss) after income tax	(247)	(19,768)	7,088	-	(12,927)

Exploration expenditure	593	91,773	-	-	92,366
Capital expenditure (1)	5	152,989	40	-	153,034
Total assets	3,750	839,539	805,945	(639,661)	1,009,573
Total liabilities	17	112,706	9,804	2,223	124,750
(1) Capital expenditure excludes capitalised exploration expenditure.

Year ended 30 June 2022 Restated *	Australian operations $’000 Canadian operations $’000 Corporate $’000 Group eliminations $’000 Total $’000
Revenue	- - - - -
Other income	- 102,061 42 - 102,103
Total revenue and other income	- 102,061 42 - 102,103

EBITDA	(142) 88,523 (8,378) - 80,003
Depreciation and amortisation expense	- (9) (41) - (50)
EBIT	(142) 88,514 (8,419) - 79,953
Net fnancial income/(expense)	- (1,283) (1,643) - (2,926)
Proft/(loss) before income tax	(142) 87,231 (10,062) - 77,027
Income tax expense	- (3,207) - - (3,207)
Proft/(loss) after income tax	(142) 84,024 (10,062) - 73,820

Exploration expenditure	1,039 9,276 - - 10,315
Capital expenditure (1)	- 22,248 - - 22,248
Total assets	3,153 486,836 431,982 (260,810) 661,161
Total liabilities	28 148,070 1,487 (49,045) 100,540

Refer to Note 33 for details on restatement of prior period comparatives. (1) Capital expenditure excludes capitalised exploration expenditure.

Inter-segment transactions

statements. There were no transfers between segments reflected in the revenues, expenses or results above.

Segment assets

Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of the economic value from the asset. In most instances, segment assets are clearly identifiable on the basis of their nature and physical location.

Segment liabilities

Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment.

Sayona | Annual Report 2023 71

Notes to the Financial Statements

5. Revenue and Other Income

	2023	2022
	$’000	$’000
		Restated *
Revenue
Revenue from contracts with customers	-	-
Total revenue	-	-
Other income
Gain on acquisition of North American Lithium	-	101,716
Governmentgrants and incentives	598	42
Other income	1,097	345
Total other income	1,695	102,103
Total revenue and other income	1,695	102,103

Refer to Note 33 for details on restatement of prior period comparatives.

Recognition and measurement

Revenue is recognised on an accrual basis and is measured at the fair value of the consideration received or receivable. The Group recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the Group.

All revenue is stated net of the amount of goods and services tax and sales tax.

Government grants and incentives

Government grants and incentives are recognised at fair value where there is reasonable assurance that the grants and incentives will be received and the Group will comply with all relevant conditions.

Key judgements and estimates

Gain on acquisition of North American Lithium

On 27 August 2021, the Group acquired 100% of the issued capital of North American Lithium Inc. (NAL), a known lithium reserve and former producer of spodumene concentrate, for a purchase consideration of $128.6 million. The acquisition was part of the Group’s strategy to integrate NAL’s assets with its nearby Authier Lithium Project and expand its lithium reserves and processing operations in the AbitibiTémiscamingue region.

subject to judgements and estimates.

of future production and commodity prices, operating costs, and forecast capital expenditures using the life-of-mine plan at the date of acquisition. A replacement-cost approach was used to determine the fair value of other property, plant and equipment.

Market uncertainties, historical transactions and future economic expectations were assessed by management and factored into the cash flow model. Estimates of significant expenditure required to restore operations to full commercial production stage were included.

6. Expenses

	2023	2022
	$’000	$’000
Acquisition and transaction costs	-	1,489
Administration and corporate overheads	8,040	3,533
Changes in inventories of fnishedgoods and work inprogress	(41,408)	-
Depreciation and amortisation expense	6,162	50
Employee benefts expense	18,928	9,885
External services	21,970	3,417
Raw materials and consumables used	5,060	857
Royaltiespaid andpayable	-	20
All other operatingexpenses	7,042	2,899
Total expenses	25,794	22,150

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

7. Tax

(a) Income tax expense

that it relates to items recognised directly in the Consolidated Statement of Comprehensive Income.

	2023	2022
	$’000	$’000
		Restated *
Current income tax expense	-	-
Deferred income tax expense	3,649	3,207
Total income tax expense	3,649	3,207

Refer to Note 33 for details on restatement of prior period comparatives.

rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax expense is calculated using the tax rates enacted or substantively enacted at the end of the reporting period and includes any adjustment to tax payable in respect of previous years. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

(b) Reconciliation of prima facie tax expense to income tax expense

2023 $’000	2022 $’000 Restated *
Proft/(loss) before income tax (9,278)	77,027
Income tax onproft/(loss)before income tax calculated at 30%(2022: 25%) (2,783)	19,257
Adjust for tax effect of:
Gain on acquisition of North American Lithium -	(25,429)
Miningtax 1,650	2,048
Non-deductible expenses 4,366	3,702
Other non-assessable income (4,820)	(10)
Tax losses and temporarydifferences not brought to account 5,236	3,639
Total income tax expense 3,649	3,207

Refer to Note 33 for details on restatement of prior period comparatives.

(c) Deferred tax balances

	2023	2022
	$’000	$’000
		Restated *
At the beginningof the fnancialyear	10,174	-
Additions through business combinations	-	6,659
Charged toproft or loss	3,649	3,207
Charged to equity	160	308
At the end of the fnancialyear	13,983	10,174

Refer to Note 33 for details on restatement of prior period comparatives.

Deferred tax is provided using the balance sheet liability method, providing for the tax effect of temporary differences between the tax bases of assets and liabilities and their carrying values in the consolidated financial statements. The tax effect of certain temporary differences is not recognised, principally with respect to:

temporary differences arising on the initial recognition of assets or liabilities (other than those arising in a business combination or manner that initially impacted accounting or taxable profit); and
initial recognition of goodwill.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profits will be available against which the benefit of the deferred tax assets can be utilised. Deferred tax assets are reviewed at each balance sheet date and amended to the extent that it is no longer probable that the related tax benefit will be realised. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same tax authority and the Group has both the right and the intention to settle its current tax assets and liabilities on a net or simultaneous basis.

Sayona | Annual Report 2023 73

Notes to the Financial Statements

7. Tax (continued)

(d) Movement in deferred tax balances

The composition of the Group’s net deferred tax assets and liabilities recognised in the Consolidated Statement of Financial Position and deferred tax expense charged/(credited) to the Consolidated Statement of Profit or Loss is as follows:

	Deferred tax assets Deferred tax liabilities Net charge/(credit)
	2023 $’000 2022 $’000 Restated 2023 $’000 2022 $’000 Restated 2023 $’000 2022 $’000 Restated *
Temporary differences
Deferred income	1,896 1,881 - - (15) (1,881)
Property, plant and equipment	7,331 7,737 91,119 66,232 25,293 58,495
Provisions	13,321 13,238 - - (83) (13,238)
Tax losses	52,856 31,198 - - (21,658) (31,198)
Other	3,279 2,521 1,547 517 272 (2,004)
Total	78,683 56,575 92,666 66,749 3,809 10,174
Set off temporarydifferences	(78,683) (56,575) (78,683) (56,575) - -
Total	- - 13,983 10,174 3,809 10,174

Refer to Note 33 for details on restatement of prior period comparatives.

(e) Unrecognised deferred tax assets and liabilities

The composition of the Group’s unrecognised deferred tax assets and liabilities is as follows:

	2023	2022
	$’000	$’000
		Restated *
Tax losses – capital	6,736	5,614
Tax losses – revenue	22,472	17,101
Temporarydifferences	-	909
Total unrecognised deferred tax assets	29,208	23,624

Refer to Note 33 for details on restatement of prior period comparatives.

The Group has carry forward revenue losses of $287,902,521 (2022: $185,272,561) and capital losses of $22,454,683 (2022: $22,454,683).

(f) Tax consolidation

Sayona Mining Limited and its wholly owned Australian resident subsidiaries formed a tax consolidated group with effect from 1 July 2015 and is therefore taxed as a single entity from that date. Sayona Mining Limited is the head entity of the tax consolidated group. Income tax expense and deferred tax assets and liabilities arising from temporary differences of the members of the tax consolidated group are recognised in the separate financial statements of the members of the tax-consolidated group using the “separate taxpayer within group” approach by reference to the carrying values in the separate financial statements of each entity and the relevant tax values under tax consolidation. Current tax assets and liabilities and deferred tax assets arising from unused tax losses and relevant tax credits of the members of the tax-consolidated group are recognised by the Company (as head entity of the tax consolidated group). Tax funding arrangements are currently in place between entities in the tax consolidated group.

Key judgements and estimates

Deferred tax

Judgement is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised in the Consolidated Statement of Financial Position. Deferred tax assets are recognised only where it is considered more likely than not that they will be recovered, which is dependent on the generation of sufficient future taxable profits.

estimates of future production and sales volumes, commodity prices, reserves, operating costs, closure and rehabilitation costs, capital expenditure and other capital management transactions.

Uncertain tax matters – Unused tax losses on acquisition

subsequently if new information about facts and circumstances arises. The adjustment is treated as a reduction to goodwill if it has occurred during the measurement period. If it occurs outside the recognition period, the adjustment is recognised in the Consolidated Statement of Profit or Loss.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

8. Earnings per Share

	2023	2022
		Restated *
Proft/(loss) attributable to equity holders of Sayona Mining Limited($’000)	(13,626)	51,459
Weighted average number of ordinary shares(‘000)
Basic earningsper share denominator	8,695,396	6,794,836
Ordinaryshares contingentlyissuable (1)	-	407,180
Diluted earningsper share denominator	8,695,396	7,202,016
Earnings per share(cents)
Basic	(0.16)	0.76
Diluted	(0.16)	0.71

Refer to Note 33 for details on restatement of prior period comparatives. (1) The weighted average number of options contingently issuable into ordinary shares as at 30 June 2023 is 241.8 million. The inclusion of these contingently issuable ordinary shares would have the effect of reducing the loss per share. Accordingly, these potential ordinary shares have not been included in the determination of diluted earnings per share.

Basic earnings per share

average number of ordinary shares outstanding during the year.

Diluted earnings per share

average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares.

Sayona | Annual Report 2023 75

Notes to the Financial Statements

Operating Assets and Liabilities

This section details the assets used and liabilities incurred to generate the Group’s trading performance. Assets and liabilities relating to the Group’s financing activities are addressed in the Capital Structure and Financial Management section on pages 83 to 91.

9. Trade and Other Receivables

	2023	2022
	$’000	$’000
Trade receivables	174	577
GST/QST receivable from taxation authorities	18,410	5,934
Other receivables from associated entities (1)	-	3,156
Other receivables	714	14
Total trade and other receivables	19,298	9,681
Comprising:
Current	19,298	9,681
Non-current	-	-

(1) Amount relates to outstanding cash calls from Piedmont Lithium Québec Holdings Inc.

Recognition and measurement

Trade receivables are generally due within 30 days. Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for expected credit losses.

The collectability of trade and other receivables is assessed continuously. Individual receivables which are deemed to be unrecoverable are written off by reducing the carrying value directly. At the reporting date, specific allowances are made for any expected credit losses based on a review of all outstanding amounts.

10. Inventories

	2023	2022
	$’000	$’000
Raw materials and consumables	6,333	-
Work inprogress	5,166	-
Finishedgoods	37,165	-
Total inventories	48,664	-
Comprising:
Current	48,664	-
Non-current	-	-

Recognition and measurement

Inventories are valued at the lower of cost and net realisable value. Cost is determined primarily on the basis of average cost. For processed inventories, cost is derived on an absorption costing basis. Cost comprises the cost of purchasing raw materials and the cost of production, including attributable overheads. Net realisable value is calculated as the estimated proceeds of sale, less an estimate of all further costs required to the stage of completion and all applicable marketing, selling and distribution costs to be incurred.

Raw materials and consumables

Raw materials and consumables represent spares, consumables and other supplies yet to be utilised in the production process, except where the raw materials purchased are equivalent products to those that the Group produces and would otherwise classify as work in progress.

Key judgements and estimates

Carrying value of inventories

The Group reviews the carrying value of inventories regularly to ensure that their cost does not exceed net realisable value. In determining net realisable value, various factors are taken into account including estimated future sales prices based on prevailing commodity prices at the reporting date, less estimated costs to complete production and bring the product to sale.

Stockpiles are measured by estimating the movement in quantities at each stocking point, the amount of contained metal, and the estimated recovery percentage based on the expected processing method. Physical quantities are assessed primarily through surveys and assays.

Estimates are periodically reassessed by the Group, taking into account technical analysis and historical performance.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

11. Other Assets

	2023	2022
	$’000	$’000
Deposits	31,993	13,120
Prepayments	1,926	580
Total other assets	33,919	13,700
Comprising:
Current	33,919	13,700
Non-current	-	-

funds held as security in favour of Ministere de I'Energie et des Ressources Naturelles (MERN) for mine closure and rehabilitation of North American Lithium.

12. Property, Plant and Equipment

				Capital	Exploration
	Land and	Plant and	Mine	works in	and
	buildings	equipment	properties	progress	evaluation	Total
Year ended 30 June 2023	$’000	$’000	$’000	$’000	$’000	$’000
Cost
At the beginningof the fnancialyear	149	236,126	152,234	27,385	37,325	453,219
Additions	1,522	9,901	-	141,611	92,366	245,400
Disposals	(124)	(13,369)	-	-	-	(13,493)
Transfers and other movements	4,668	89,535	77,892	(168,838)	267	3,524
At the end of the fnancialyear	6,215	322,193	230,126	158	129,958	688,650
Accumulated depreciation
At the beginningof the fnancialyear	(114)	(69)	-	-	-	(183)
Depreciation charge for theyear	(408)	(4,860)	(894)	-	-	(6,162)
Disposals	124	32	-	-	-	156
Transfers and other movements	(8)	(108)	(272)	-	-	(388)
At the end of the fnancialyear	(406)	(5,005)	(1,166)	-	-	(6,577)
Net book value as at 30 June 2023	5,809	317,188	228,960	158	129,958	682,073

				Capital	Exploration
	Land and	Plant and	Mine	works in	and
	buildings	equipment	properties	progress	evaluation	Total
Year ended 30 June 2022	$’000	$’000	$’000	$’000	$’000	$’000
Cost
At the beginningof the fnancialyear	149	35	-	-	25,553	25,737
Acquisition of subsidiaries (1)	-	203,387	59,889	-	116,561	379,837
Additions	-	1,021	-	21,227	10,315	32,563
Transfers and other movements	-	31,683	92,345	6,158	(115,104)	15,082
At the end of the fnancialyear	149	236,126	152,234	27,385	37,325	453,219
Accumulated depreciation
At the beginningof the fnancialyear	(12)	(11)	-	-	-	(23)
Depreciation charge for theyear	(39)	(11)	-	-	-	(50)
Transfers and other movements	(63)	(47)	-	-	-	(110)
At the end of the fnancialyear	(114)	(69)	-	-	-	(183)
Net book value as at 30 June 2022	35	236,057	152,234	27,385	37,325	453,036

(1) On 27 August 2021, the Group acquired 100% of the issued capital of North American Lithium Inc. (NAL). The amounts reported reflect the fair value of identifiable assets at the date of acquisition.

changes to Group accounting policies in the current reporting period. This reclassification has been applied retrospectively to prior period comparatives.

Sayona | Annual Report 2023 77

Notes to the Financial Statements

12. Property, Plant and Equipment (continued)

Recognition and measurement

Property, plant and equipment is recorded at cost less accumulated depreciation and impairment charges. Cost is the fair value of consideration given to acquire the asset at the time of its acquisition or construction, and includes the direct cost of bringing the asset to the location and condition necessary for operation.

Subsequent costs are included in the asset’s carrying value or recognised as a separate asset, as appropriate, only when it is probable that the future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.

benefits are expected. Any gain or loss arising on derecognition of the asset is included in the Consolidated Statement of Profit or Loss when the asset is derecognised.

(a) Mine properties

Mine properties include:

capitalised development and production stripping costs;
mineral rights acquired.

The initial cost of mine properties includes the purchase price or construction cost, any costs directly attributable to bringing the asset into operation, and borrowing costs (where relevant for qualifying assets). The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset.

Mine properties also consist of the fair value attributable to mineral reserves and the portion of mineral resources considered to be probable of economic extraction at the date of acquisition. When a mine construction project moves into the production phase, the capitalisation of certain mine construction costs ceases, and costs are either regarded as part of the cost of inventory or expensed, except for costs which qualify for capitalisation.

(i) Capitalised development and production stripping costs

The process of removing overburden and other waste materials to access mineral deposits is known as stripping. Stripping is necessary to obtain access to mineral deposits and occurs throughout the life of an open-pit mine. Stripping is classified as either development stripping or production stripping. Development and production stripping costs are recognised as part of mine properties in property, plant and equipment.

Development stripping costs are initial overburden removal costs incurred to obtain access to mineral deposits that will be commercially produced. These costs are capitalised when it is probable that future economic benefits in the form of access to mineral ores will flow to the Group and costs can be measured reliably. Stripping costs incurred during the development phase of a mine are usually capitalised as part of the depreciable cost of building, developing and constructing the mine.

Production stripping costs are post initial overburden removal costs incurred during the normal course of production, which are usually incurred after the first saleable minerals have been extracted from the component of the ore body. Costs are capitalised where production stripping activity results in improved access to future ore and the following criteria are met:

arising from the improved access to future ore production will be realised;
costs associated with that component can be measured reliably.

Production stripping costs are allocated between the inventory produced and the production stripping asset using a life-of-component waste-toore (or mineral contained) strip ratio. When the current strip ratio is greater than the estimated life-of-component ratio, a portion of the stripping costs are capitalised to the production stripping asset.

(b) Capital works in progress

Capital works in progress are measured at cost inclusive of associated on-costs and charges. Costs are only capitalised when it is probable that future economic benefits will flow to the Group and costs can be measured reliably.

and ready for use in the manner intended.

(c) Right-of-use assets

Right-of-use assets are presented within the respective categories of property, plant and equipment according to the nature of the underlying asset leased. Refer to Note 19 for details on the Group’s right-of-use assets and corresponding lease liabilities.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

12. Property, Plant and Equipment (continued)

(d) Exploration and evaluation expenditure

Exploration and evaluation expenditure is capitalised where it is considered likely to be recoverable or where the activities have not reached a stage that permits a reasonable assessment of the existence of reserves.

topographical, geological, geochemical and geophysical studies and exploratory drilling, trenching and sampling.

the evaluation phase include determination of the volume, grade and quality of the deposit, examination and testing of extraction methods and metallurgical or treatment processes, surveys of transportation and infrastructure requirements, and market and finance studies.

Recoverability of the carrying value of exploration assets is dependent on the successful exploration and development of projects, or alternatively, through the sale of the areas of interest.

Exploration and evaluation expenditure incurred prior to the establishment of a commercially viable mineral deposit is expensed as incurred, except for initial payments for the right to explore (including lease acquisition costs). Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which the decision to abandon the area is made.

(e) Impairment of assets

At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include consideration of external and internal sources of information. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is recognised immediately in profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating unit to which the asset belongs.

(f) Depreciation and amortisation

The carrying values of property, plant and equipment are depreciated to their estimated residual values over the estimated useful lives of the specific assets concerned. Estimates of residual values and useful lives are reassessed annually and any change in estimate is considered in the determination of remaining depreciation charges. Depreciation commences on the date of commissioning.

The major categories of property, plant and equipment are depreciated on a units of production or straight-line basis using the estimated lives indicated below. Where assets are dedicated to a mine or lease and are not readily transferable, the useful life of the asset is subject to the lesser of the asset’s useful life and the life of the mine or lease.

Asset category	Depreciation method
Buildings	2 to 20years straight-line
Land	Not applicable
Mineproperties(includingmineral rights)	Based on ore reserves on a units ofproduction basis
Plant and equipment	2 to 20years straight-line
Right-of-use assets	Based on the shorter of the asset’s useful life or term of the lease(straight-line)

Key judgements and estimates

Judgement applied in determining ore reserves and mineral resources

The Group estimates its ore reserves and mineral resources based on information compiled by Competent Persons in accordance with the Joint Ore Reserves Committee (JORC) code. Estimation requires assumptions about future commodity prices and demand, exchange rates, production costs, transport costs, mine closure and rehabilitation costs, recovery rates, discount rates and, in some instances, the renewal of mining licences. There are many uncertainties in the estimation process and assumptions that are valid at the time of estimation may change significantly when new information becomes available. New geological or economic data, or unforeseen operational issues, may change estimates of ore reserves and mineral resources. The Group uses judgment as to when to include mineral resources in accounting estimates.

Useful economic lives of assets

The determination of useful lives, residual values and depreciation methods is reviewed at each reporting period and involves estimates and assumptions. Any changes to useful lives or any other estimates or assumptions may impact prospective depreciation rates and asset carrying values. The Group applies judgement in determining the useful economic lives of assets and whether any indicators of impairment are present based on internal and external sources of information available. The table above summarises the depreciation methods and rates applied to major categories of property, plant and equipment.

Sayona | Annual Report 2023 79

Notes to the Financial Statements

13. Intangible Assets

	2023	2022
	$’000	$’000
Cost
At the beginningof the fnancialyear	186	186
Disposals	(185)	-
At the end of the fnancialyear	1	186
Accumulated amortisation
At the beginningof the fnancialyear	(1)	(1)
At the end of the fnancialyear	(1)	(1)
Net book value at the end of the fnancialyear	-	185

Recognition and measurement

flow to the Group and the cost of the asset can be measured reliably. Intangible assets held by the Group are stated at acquisition cost, net of any related accumulated amortisation and impairment charges.

(a) Goodwill

acquired, the difference is treated as purchased goodwill. Where the fair value of the Group’s share of the identifiable net assets acquired exceeds the fair value of consideration paid, the difference is recognised in the Consolidated Statement of Profit or Loss. Goodwill is not amortised; however, its carrying value is assessed annually against its recoverable amount.

(b) Other intangible assets

paid and are recorded at cost less accumulated amortisation and impairment charges. Identifiable intangible assets with a finite life are amortised on a straight-line basis over their expected useful life from when the asset is ready for use.

14. Trade and Other Payables

	2023	2022
	$’000	$’000
Tradepayables	18,682	5,146
Otherpayables to associated entities (1)	681	17,059
Otherpayables	10,134	1,776
Total trade and otherpayables	29,497	23,981
Comprising:
Current	29,497	23,981
Non-current	-	-

(1) At 30 June 2022, Piedmont Lithium Québec Holdings Inc. had agreed to joint funding advances in relation to refurbishment activities at NAL. The outstanding amount has been treated as an equity loan, and represents Piedmont’s proportionate share of contributed cash advances to the joint venture. The prior year balance has been reclassified to share capital during the year.

Recognition and measurement

Trade and other payables represent the liabilities for goods and services received by the Group that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with amounts normally paid within 30 days of recognition of the liability. Amounts are initially recognised at fair value, and subsequently measured at amortised cost. The carrying value of these trade and other payables is considered to approximate fair value due to the short-term nature of the payables.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

15. Other Liabilities

	2023	2022
	$’000	$’000
Deferred income (1)	13,956	11,504
Total other liabilities	13,956	11,504
Comprising:
Current	-	-
Non-current	13,956	11,504

(1) As part of the Group’s acquisition of Moblan, a royalty agreement was entered into with Lithium Royalty Corp. (LRC). Under the terms of the agreement, royalties are payable to LRC based on tonnages produced from properties acquired as part of the Moblan Lithium Project. Royalties are based on either Gross Overriding Revenue (GOR) or Net Smelter Return (NSR), depending on the property. The Group amortises royalty advances based on tonnages produced and the contractual obligations set out in the agreement.

16. Provisions

	2023	2022
	$’000	$’000
Employee entitlements	846	324
Mine closure and rehabilitation	35,254	31,085
Totalprovisions	36,100	31,409
Comprising:
Current	846	324
Non-current	35,254	31,085

The movement in provisions during the year is as follows:

		Mine
	Employee	closure and
	entitlements	rehabilitation	Total
Year ended 30 June 2023	$’000	$’000	$’000
At the beginningof the fnancialyear	324	31,085	31,409
Charge/(credit)for theyear to the Consolidated Statement of Proft or Loss:
Underlyingcharge for theyear	1,354	3,925	5,279
Released duringtheyear	(849)	-	(849)
Foreign exchange rate differences	17	244	261
At the end of the fnancialyear	846	35,254	36,100

		Mine
	Employee	closure and
	entitlements	rehabilitation	Total
Year ended 30 June 2022	$’000	$’000	$’000
At the beginningof the fnancialyear	117	-	117
Acquisition of subsidiaries (1)	-	30,133	30,133
Charge/(credit)for theyear to the Consolidated Statement of Proft or Loss:
Underlyingcharge for theyear	266	-	266
Released duringtheyear	(59)	-	(59)
Foreign exchange rate differences	-	952	952
At the end of the fnancialyear	324	31,085	31,409

(1) On 27 August 2021, the Group acquired 100% of the issued capital of North American Lithium Inc. (NAL). The amount reported reflects the fair value of the provision for mine closure and rehabilitation at the date of acquisition.

Sayona | Annual Report 2023 81

Notes to the Financial Statements

16. Provisions (continued)

Recognition and measurement

result, and that outflow can be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(a) Employee entitlements

and wages, including non-monetary benefits, and annual leave are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

The non-current provision for employee entitlements is recognised for employees’ annual leave and long service leave entitlements not expected to be settled wholly within twelve months after the end of the reporting period in which the employees render the related service. Other non-current employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates determined by reference to market yields at the end of the reporting period that have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations for other non-current employee benefits are recognised in profit or loss in the period in which the changes occur.

(b) Mine closure and rehabilitation

The mining and processing activities of the Group normally give rise to obligations for site closure or rehabilitation. Closure and rehabilitation works can include facility decommissioning and dismantling, removal or treatment of waste materials, and site and land rehabilitation in accordance with local laws and regulations and clauses of the permits.

Closure and rehabilitation provisions are recognised at the time that environmental disturbance occurs. When the extent of disturbance increases over the life of an operation, the provision is increased accordingly. Costs included in the provision encompass all closure and rehabilitation activity expected to occur progressively over the life of the operation and at, or after, the time of closure, for disturbance existing at the reporting date. Routine operating costs that may impact the ultimate closure and rehabilitation activities, such as waste material handling conducted as an integral part of a mining or production process, are not included in the provision. Costs arising from unforeseen circumstances, such as the contamination caused by unplanned discharges, are recognised as an expense and liability when the event gives rise to an obligation which is probable and capable of reliable estimation.

according to the probability of alternative estimates of cash flows occurring for each operation.

When provisions for mine closure and rehabilitation are initially recognised, the corresponding cost is capitalised as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The capitalised cost of closure and rehabilitation activities is recognised in property, plant and equipment and depreciated accordingly.

Closure and rehabilitation provisions are also adjusted for changes in costs and estimates. Any adjustments are made prospectively and are accounted for as a change in the corresponding capitalised asset, except where a reduction in the provision is greater than the depreciated capitalised cost of the related assets, in which case the carrying value is reduced to nil and the remaining adjustment is recognised first against other items in property, plant and equipment, and subsequently to the Consolidated Statement of Profit or Loss. Adjustments to the estimated amount and timing of future closure and rehabilitation cash flows are a normal occurrence in light of the significant judgements and estimates involved.

Key judgements and estimates

Mine closure and rehabilitation provision on acquisition of North American Lithium

The provision recognised at the date of acquisition represents the net present value of mine closure and rehabilitation costs that are expected to be incurred up to the time when the producing mine ceases operations. The provision is based on the Group’s internal estimates and modified by the Ministere de I'Energie et des Ressources Naturelles (MERN). A discount rate of 10% has been applied to reflect the inherent risk in the mining operation.

Assumptions have been made based on the current economic environment, which management believe are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. Actual rehabilitation costs will ultimately depend on market conditions at the relevant time. The timing of closure and rehabilitation will most likely depend on when the mine ceases to produce at economically viable rates.

Mine restoration costs are uncertain, and cost estimates can vary in response to many factors including estimates of the extent of rehabilitation activities, technological changes, regulatory changes, cost increases including inflationary impacts and changes in discount rates. The provision at reporting date represents management’s best estimate of the present value of future rehabilitation costs.

Operating and Financial Review Governance

Financial Additional Report Information

Notes to the Financial Statements

Capital Structure and Financial Management

17. Cash and Cash Equivalents

	2023	2022
	$’000	$’000
Cash	106,458	184,509
Short-term deposits	104,661	50
Total cash and cash equivalents (1)	211,119	184,559

(1) Cash and cash equivalents include $54.7 million (2022: Nil) which is restricted by legal or contractual arrangements.

Cash and cash equivalents include cash on hand, deposits available on demand with banks and other short term highly liquid investments with original maturities of three months or less.

18. Interest Bearing Liabilities

	2023	2022
	$’000	$’000
Lease liabilities (1)	6,253	10
Non-convertible redeemable cumulativepreference shares	24,849	23,462
Other interest bearingliabilities	112	-
Total interest bearing liabilities	31,214	23,472
Comprising:
Current	1,944	10
Non-current	29,270	23,462

(1) Refer to Note 19 for further details on the Group’s leases.

Recognition and measurement

All borrowings are initially recognised at their fair value net of directly attributable transaction costs. Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost using the effective interest method. Gains and losses are recognised in the Consolidated Statement of Profit or Loss when the liabilities are derecognised. Interest bearing liabilities are classified as current liabilities, except when the Group has an unconditional right to defer settlement for at least twelve months after the reporting date, in which case the liabilities are classified as non-current.

in Note 22 (f).

(a) Non-convertible redeemable cumulative preference shares

On 27 August 2021, as part of the acquisition of North American Lithium, the Group exchanged Investissement Québec’s (IQ) second ranking debt of C$63 million for twenty million non-convertible redeemable cumulative preference shares held by NAL at a par value of C$1.00 per share. The shares may be redeemed at the option of NAL or at the option of IQ, subject to satisfaction of various performance hurdles.

The terms of the preference shares are detailed below:

interest is accrued or paid at 5% per annum;
the shares cannot be converted to equity at any time;
preference shareholders are not entitled to dividends or to vote at shareholder meetings;
redemption commences in accordance with the NAL Constitution and Governance Agreement once the mine is in commercial operation and the redemption term is up to ten years after the first anniversary of the issue of these shares; and
in the event of default, liquidation, or receivership, IQ rank before the ordinary shareholders in priority.

The preference shares are recorded at issue price plus accrued interest. Given the nature and conditions impacting on potential redemption terms, the fair value assigned to the preference shares is their face value.

Sayona | Annual Report 2023 83

Notes to the Financial Statements

19. Leases

The nature of the Group’s leases predominantly relates to assets and equipment supporting the operations in line with the Group’s principal activities, as well as real estate in the form of office premises. Lease terms range from three to five years. Lease contracts are negotiated on an individual basis and contain a wide range of terms and conditions.

(a) Amounts recognised in the Consolidated Statement of Financial Position

The Consolidated Statement of Financial Position includes the following amounts relating to leases:

	2023	2022
	$’000	$’000
Right-of-use assets recognised inproperty, plant and equipment
Land and buildings
Cost	1,522	124
Accumulated depreciation	(369)	(114)
Net book value	1,153	10
Plant and equipment
Cost	5,387	-
Accumulated depreciation	(449)	-
Net book value	4,938	-
Total right-of-use assets	6,091	10
Lease liabilities
Land and buildings – current	349	10
Land and buildings – non-current	892	-
Plant and equipment – current	1,595	-
Plant and equipment – non-current	3,417	-
Total lease liabilities	6,253	10

Right-of-use asset additions during the year were $6.9 million (2022: Nil).

Lease liabilities have been measured at the present value of the remaining lease payments over the term of the lease. The present value has been determined using discount rates ranging between 4.50% and 10% (2022: 4.50%).

(b)

	2023	2022
	$’000	$’000
Depreciation of right-of-use assets	811	38
Interest on lease liabilities	148	1

Recognition and measurement

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. All contracts that are classified as short-term leases (leases with a remaining lease term of twelve months or less) and leases of low value assets are recognised as an operating expense on a straight-line basis over the term of the lease.

Right-of-use assets

If a lease is present, a right-of-use asset and corresponding lease liability is recognised at the commencement date of the lease. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and estimated future restoration costs, less any lease incentives received. The right-ofuse asset is subsequently measured at cost less accumulated depreciation, impairment charges and any adjustments for remeasurement of the lease liability.

Right-of-use assets are depreciated over the term of the lease or useful life of the underlying asset, whichever is the shortest. Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset indicates the Group is likely to exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset.

Right-of-use assets are recognised in property, plant and equipment in the Consolidated Statement of Financial Position.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

19. Leases (continued)

Lease liabilities

Lease liabilities are recognised within interest bearing liabilities in the Consolidated Statement of Financial Position. The lease liability is initially measured at the present value of the lease payments still to be paid at commencement date.

Lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the lessee’s incremental borrowing rate. The lessee’s incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment and with similar terms, conditions and security.

The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in rate or index, if there is a change in the Group’s estimate of the amount expected to be payable under a residual guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the carrying value of the right-of-use asset, or is recorded in the Consolidated Statement of Profit or Loss if the carrying value of the right-of-use asset has been reduced to nil.

20. Financial Income and Expenses

	2023	2022
	$’000	$’000
Financial income
Interest on bank accounts	2,817	111
Net foreign exchangegains	13,510	-
Total fnancial income	16,327	111
Financial expenses
Interest on lease liabilities	148	1
Interest onpreference shares	1,177	927
Net foreign exchange losses	-	2,109
Other fnancial expenses	181	-
Total fnancial expenses	1,506	3,037
Net fnancial income/(expense)	14,821	(2,926)

21. Other Financial Assets

	2023	2022
	$’000	$’000
Investments in listed entities
Consolidated Lithium Metals Inc. (1)	2,296	-
Troilus Gold Corporation (2)	10,647	-
Total other fnancial assets	12,943	-
Comprising:
Current	-	-
Non-current	12,943	-

(1) On 14 November 2022, the Group acquired a 9.99% shareholding in Consolidated Lithium Metals Inc. (TSXV: CLM) for C$1.5 million through a private placement. The shares were acquired as part of the Group’s agreement with Consolidated Lithium Metals Inc. to acquire claims in the Vallée Lithium Project.

(2) On 17 November 2022, the Group completed the acquisition of a 9.26% shareholding in Troilus Gold Corporation (TSXV: TLG) for C$10 million. The acquisition was completed in two tranches totalling 20.4 million shares at C$0.49 per share. The shares were acquired as part of the Group’s agreement with Troilus Gold Corporation to acquire claims near the Moblan Lithium Project.

Recognition and measurement

(FVOCI). The equity securities are not held for trading and are strategic investments for which the Group considers this classification to be more appropriate.

Changes in fair value are accumulated in a separate reserve within equity. The cumulative amount is transferred to the Consolidated Statement of Profit or Loss on disposal of the relevant equity securities.

on the fair value hierarchy as detailed in Note 22 (e).

Sayona | Annual Report 2023 85

Notes to the Financial Statements

22. Financial Instruments and Risk Management

financial assets, other assets and liabilities, payables and interest bearing liabilities. The main purpose of these financial instruments is to fund the principal activities of the Group.

The Board of the Company meets on a regular basis to analyse exposure and evaluate treasury management strategies in the context of the most recent economic conditions and forecasts. The Board has overall responsibility for the establishment and oversight of the Group's risk management framework. Management is responsible for developing and monitoring the risk management policies.

(a) Market risk

risk comprises interest rate risk, foreign currency risk and other price risk, such as equity price risk and commodity price risk. The objective of market risk management is to manage market risk exposures to protect profitability and return on assets.

(i) Interest rate risk

The Group is exposed to interest rate risk on its cash and cash equivalents, other assets and interest bearing liabilities from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments.

The Group’s net exposure to interest rate risk at the reporting date is as follows:

	2023	2022
	$’000	$’000
Financial assets
Cash and cash equivalents	211,119	184,559
Other assets	31,993	13,120
Net exposure	243,112	197,679

Sensitivity analysis

The following table demonstrates the sensitivity to a 100 basis point change in interest rates, with all other variables remaining constant:

	Effect	Effect
	on proft	on proft
	after tax	after tax
	2023	2022
	$’000	$’000
+100 basispoint change in interest rates	1,702	1,483
-100 basispoint change in interest rates	(1,702)	(149)

(ii) Foreign currency risk

The Group operates internationally and is exposed to foreign currency risk arising from currency movements, primarily in respect of transactions and instruments in Canadian and United States (US) dollars. No derivative financial instruments are employed to mitigate the exposed risks.

The Group's net exposure to foreign currency risk (in Australian dollars) at the reporting date is as follows:

	Canadian	Canadian	US dollar	US dollar
	dollar risk	dollar risk	risk	risk
	exposure	exposure	exposure	exposure
	2023	2022	2023	2022
	$’000	$’000	$’000	$’000
Financial assets
Cash and cash equivalents	106,120	25,271	975	1,094
Trade and other receivables	19,927	10,530	-	-
Other assets	33,740	11,660	-	-
Financial liabilities
Trade and otherpayables	(24,147)	(5,385)	(2,300)	-
Interest bearingliabilities	(30,923)	(23,462)	-	-
Other liabilities	(1,946)	(28,563)	(12,009)	-
Net exposure	102,771	(9,949)	(13,334)	1,094

Operating and Financial Review Governance

Financial Additional Report Information

Notes to the Financial Statements

22. Financial Instruments and Risk Management (continued)

Sensitivity analysis

in the table below, with all other variables held constant, would have the following effect on the Group’s profit or loss after tax:

	Effect	Effect
	on proft	on proft
	after tax	after tax
	2023	2022
	$’000	$’000
5% movement in Canadian dollar	3,597	(373)
5% movement in United States dollar	467	41

(b) Liquidity risk

Liquidity risk is the risk that the Group may not be able to settle or meet its obligations as they fall due. This risk is managed by ensuring, to the extent possible, that there is sufficient liquidity in place, without incurring unacceptable losses or risking damage to the Group's reputation. The Board manages liquidity risk by sourcing long-term funding, primarily through equity sources.

expectations with respect to realisation of financial assets and financial liabilities and timing of termination:

	Weighted
	average	1 year		More than
	interest rate	or less	1 to 5 years	5 years	Total
Year ended 30 June 2023	%	$’000	$’000	$’000	$’000
Financial assets
Cash and cash equivalents	2.68%	211,119	-	-	211,119
Trade and other receivables	-	19,298	-	-	19,298
Other fnancial assets	-	-	-	12,943	12,943
Other assets	2.69%	31,993	-	-	31,993
Total fnancial assets		262,410	-	12,943	275,353
Financial liabilities
Trade and otherpayables	-	29,497	-	-	29,497
Interest bearingliabilities	5.00%	-	112	24,849	24,961
Lease liabilities	9.74%	1,944	4,309	-	6,253
Other liabilities	-	-	-	13,956	13,956
Total fnancial liabilities		31,441	4,421	38,805	74,667
Net fnancial instruments		230,969	(4,421)	(25,862)	200,686
	Weighted
	average	1 year		More than
	interest rate	or less	1 to 5 years	5 years	Total
Year ended 30 June 2022	%	$’000	$’000	$’000	$’000
Financial assets
Cash and cash equivalents	0.06%	184,559	-	-	184,559
Trade and other receivables	-	9,681	-	-	9,681
Other assets	0.67%	13,120	-	-	13,120
Total fnancial assets		207,360	-	-	207,360
Financial liabilities
Trade and otherpayables	-	23,981	-	-	23,981
Interest bearingliabilities	5.00%	-	-	23,462	23,462
Lease liabilities	4.50%	10	-	-	10
Other liabilities	-	-	-	11,504	11,504
Total fnancial liabilities		23,991	-	34,966	58,957
Net fnancial instruments		183,369	-	(34,966)	148,403

Sayona | Annual Report 2023 87

Notes to the Financial Statements

22. Financial Instruments and Risk Management (continued)

(c) Credit risk

from exposures to deposits with financial institutions, trade and other receivables and deposits. Management monitors credit risk by actively assessing the rating quality and liquidity of counterparties.

The Group's maximum exposure to credit risk at reporting date is $10.9 million (2022: $3.7 million).

(d) Recognition and measurement

Initial recognition and measurement

financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

profit or loss, in which case transaction costs are expensed to profit or loss immediately.

Subsequent measurement

(i)

Financial assets are subsequently measured at amortised cost. Measurement is based on two primary criteria:

amount outstanding on specified dates.

(ii)

Financial liabilities are subsequently measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a debt instrument and allocating interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the financial asset or liability. That is, the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying value at initial recognition.

Derecognition

Position.

(i)

risks and rewards of ownership are substantially transferred.

all risk and rewards of ownership of the asset have been substantially transferred; and
the Group no longer controls the asset (i.e. the Group has no practical ability to make a unilateral decision to sell the asset to a third party).

consideration received and receivable is recognised in profit or loss.

(ii)

A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged, cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition of a new financial liability.

assets transferred or liabilities assumed, is recognised in profit or loss.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

22. Financial Instruments and Risk Management (continued)

Impairment

lifetime expected credit loss at all times.

(e) Fair values

The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis after initial recognition, depending on the requirements of the applicable Accounting Standard.

short-term maturity.

Fair value is the price the Group would receive to sell an asset or would pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

Fair values are materially in line with carrying values.

Fair value measurement

are observable for these financial assets or liabilities, either directly (i.e. as unquoted prices) or indirectly (i.e. derived from prices). Where no price information is available from a quoted market source, alternative market mechanisms or recent comparable transactions, fair value is estimated based on the Group’s views on relevant future prices, net of valuation allowances to accommodate liquidity, modelling and other risks implicit in such estimates.

Fair value hierarchy	Valuation inputs
Level 1	Based on unadjustedquotedprices in active markets for identical fnancial assets and liabilities.
Level 2	Based on inputs other than quoted prices included within Level 1 that are observable for the fnancial asset or liability,either directly (i.e. as unquotedprices)or indirectly (i.e. derived fromprices).
Level 3	Based on inputs not observable in the market using appropriate valuation models, including discounted cash fow modelling.

in the hierarchy as follows:

	Level 1	Level 2	Level 3	Total
At 30 June 2023	$’000	$’000	$’000	$’000
Financial assets at FVOCI	12,943	-	-	12,943
Total	12,943	-	-	12,943

between levels of the hierarchy during the year.

(f)

	Interest
	bearing	Preference	Lease
	liabilities	shares	liabilities	Total
Year ended 30 June 2023	$’000	$’000	$’000	$’000
At the beginningof the fnancialyear	-	23,462	10	23,472
Cash movements	110	-	(776)	(666)
Non-cash movements	2	1,387	7,019	8,408
At the end of the fnancialyear	112	24,849	6,253	31,214
Year ended 30 June 2022
At the beginningof the fnancialyear	-	-	53	53
Cash movements	-	-	(43)	(43)
Non-cash movements	-	23,462	-	23,462
At the end of the fnancialyear	-	23,462	10	23,472

Sayona | Annual Report 2023 89

Notes to the Financial Statements

23. Share Capital

Ordinary shares

Ordinary shares are classified as equity. Transaction costs (net of tax, where the deduction can be utilised) arising on the issue of ordinary shares are recognised in equity as a reduction of the share proceeds received.

Where share application monies have been received but the shares have not been issued, these monies are shown as a payable in the Consolidated Statement of Financial Position.

The movement in fully paid ordinary shares during the year is as follows:

	2023	2022	2023	2022
	No. shares	No. shares	$’000	$’000
At the beginningof the fnancialyear	8,246,752,670	5,153,695,375	504,255	128,728
Shares issued	1,792,385,354	3,093,057,295	276,404	392,475
Transaction costs associated with share issues	-	-	(9,959)	(16,948)
At the end of the fnancialyear	10,039,138,024	8,246,752,670	770,700	504,255

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held. At shareholders' meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

The Company does not have authorised capital or par value in respect of its issued shares.

(a)

On 24 November 2022, the Group issued 155 million shares to Acuity Capital to be held as collateral against the At-the-Market (ATM) facility, bringing the total security held by Acuity Capital to 250 million shares. Shares were issued following an agreement to increase the facility limit from $50 million to $200 million. These shares were issued at no cost and are similar to treasury shares.

On 7 March 2023, the Group entered into a subscription agreement with PearTree Securities Inc. for the issuance of 174,459,177 fully paid ordinary shares at an issue price of $0.315 per share for aggregate gross proceeds of $54.9 million using the flow-through-share (FTS) provisions under Canadian tax law. The gross proceeds received by the Group will be used by 31 December 2024 to incur Canadian exploration expenses (CEE) that qualify as flow through critical mineral mining expenditures as defined in the Income Tax Act (Canada).

Options

Options are classified as equity and issue proceeds are taken up in the share based payments reserve. Transaction costs (net of tax, where the deduction can be utilised) arising on the issue of options are recognised in equity as a reduction of the option proceeds received.

The movement in options during the year is as follows:

	Listed options Unlisted options
	2023 No. options 2022 No. options 2023 No. options 2022 No. options
At the beginningof the fnancialyear	308,290,518 474,857,645 42,000,000 8,000,000
Granted duringtheyear	- - 6,234,482 53,200,000
Exercised duringtheyear	(304,196,342) (166,567,127) (6,000,000) (19,200,000)
Lapsed duringtheyear	(4,094,176) - - -
At the end of the fnancialyear	- 308,290,518 42,234,482 42,000,000

Capital management policy

The Group has been funded predominantly by equity up to the date of this report. Management controls the capital of the Group with the aim of generating long-term shareholder value and ensuring the Group can fund its operations and continue as a going concern. The Group’s capital is managed by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and market conditions.

None of the Group’s entities are currently subject to externally imposed capital requirements. In addition, there were no changes in the Group’s approach to capital management during the year.

Operating and Financial Review Governance

Financial Additional Report Information

Notes to the Financial Statements

24. Reserves

		Foreign	Share
	Financial	currency	based
	asset	translation	payments
	reserve	reserve	reserve	Total
Year ended 30 June 2023	$’000	$’000	$’000	$’000
At the beginningof the fnancialyear	-	11,789	1,762	13,551
Financial assets at fair value through other comprehensive income	(1,544)	-	-	(1,544)
Foreign exchange differences on translation of foreign operations	-	(3,462)	-	(3,462)
Share basedpayments	-	-	4,320	4,320
Transfers within equityto retained earnings	-	-	(92)	(92)
At the end of the fnancialyear	(1,544)	8,327	5,990	12,773
Year ended 30 June 2022
Restated *
At the beginningof the fnancialyear	-	195	109	304
Foreign exchange differences on translation of foreign operations	-	11,549	-	11,549
Share basedpayments	-	-	3,040	3,040
Transfers and other movements	-	45	(1,387)	(1,342)
At the end of the fnancialyear	-	11,789	1,762	13,551

Refer to Note 33 for details on restatement of prior period comparatives.

Financial asset reserve

The financial asset reserve represents the revaluation of financial assets recognised at fair value through other comprehensive income (FVOCI). The Group transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

Foreign currency translation reserve

Exchange differences arising on translation of foreign operations are recognised in Consolidated Statement of Other Comprehensive Income and accumulated in a separate reserve within equity. The cumulative amount is transferred to the Consolidated Statement of Profit or Loss on disposal of the foreign operation.

Share based payments reserve

The share based payments reserve represents the fair value of share based payments provided to both employees and non-employees. Refer to Note 29 for details on share based payments.

Sayona | Annual Report 2023 91

Notes to the Financial Statements

Group and Related Party Information

the Group.

25. Subsidiaries

Subsidiaries are entities controlled by the Company. Control exists where the Company is exposed or has rights to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. The Company has power over the subsidiary when it has existing rights to direct the relevant activities of the subsidiary which are those which significantly affect the subsidiary’s returns. The financial statements of subsidiaries are included in the consolidated financial statements for the period they are controlled.

The subsidiaries of the Group at the reporting date are as follows:

Subsidiaries Country of incorporation Principal activity	Ownership interest
	2023 % 2022 %
9474-9454 Québec Inc. Canada Exploration	100 -
North American Lithium Inc. (1) Canada Lithium miningandprocessing	75 75
Sayona East KimberleyPtyLtd Australia Exploration	100 100
Sayona Inc. (2) Canada Administrative, management and support services	100 100
Sayona International PtyLtd Australia Investment holdingcompany	100 100
Sayona Lithium PtyLtd Australia Exploration	100 100
Sayona North Inc. Canada Exploration	100 100
Sayona Québec Inc. (1) Canada Investment holdingcompany	75 75

(1) Non-controlling ownership interest of 25% is held by Piedmont Lithium Québec Holdings Inc.

(2) Subsidiary was previously named 9451-6705 Québec Inc.

26. Interests in Joint Arrangements

rights and obligations of each investor, rather than the legal structure of the joint arrangement.

Joint arrangements represent the contractual sharing of control between two or more parties in a business venture where decisions about the relevant activities of the arrangement (those that significantly affect the returns of the business venture) require the unanimous consent of the parties sharing control.

The Group has interests in the following joint arrangements at reporting date:

Project Country Counterparty	Ownership interest
	2023 % 2022 %
Moblan Lithium Project Canada SOQUEM Inc.	60 60
Morella Lithium Joint Venture Project Australia Morella Corporation Limited	49 100

The above interests represent arrangements in which the parties maintain direct interests in each asset, and obligations for the liabilities, relating to the arrangement. Accordingly, the Group has accounted for the above arrangements as joint operations. The Group's interest in the assets and liabilities, revenue and expenses of joint operations are included in the respective line items of the consolidated financial statements.

Further details on the arrangements are as follows:

(a) Moblan Lithium Project

On 15 October 2021, the Group acquired a 60% interest in the Moblan Lithium Project, a drilling deposit host to high-grade spodumene mineralisation. The project is 40% owned by SOQUEM Inc., a wholly-owned subsidiary of Investissement Québec.

(b) Morella Lithium Joint Venture Project

with lithium rights located in the Pilgangoora district in Western Australia, Australia. Under the agreement, Morella Corporation Limited was required to spend $1.5 million on exploration within three years in order to earn a 51% interest in the project.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

27. Related Party Transactions

(a) Parent entity

The ultimate parent entity of the Group is Sayona Mining Limited, which is incorporated and domiciled in Australia.

(b) Subsidiaries, joint ventures and associates

The Group’s interests in subsidiaries, joint ventures and associates are disclosed in Note 25.

(c) Key management personnel compensation

	2023	2022
	$’000	$’000
		Restated *
Short-term employee benefts	2,468	783
Post-employment benefts	89	42
Share basedpayments	2,221	3,584
Total key managementpersonnel compensation	4,778	4,409

Refer to Note 33 for details on restatement of prior period comparatives.

Further information is provided in the Remuneration Report on pages 53 to 60.

(d) Transactions with related parties

	2023	2022
	$’000	$’000
Transactions with relatedparties
Sales ofgoods and services	18,956	94
Purchases ofgoods and services	156	121
Interest expense	1,177	927
Net increase(decrease)in other amounts owingwith relatedparties	(11,835)	37,365
Net increase(decrease)in loans with relatedparties	87	-
Proceeds from relatedparties	77,806	13,492
Outstanding balances with relatedparties
Trade and sundryamounts owingto relatedparties	34	20
Trade and sundryamounts owingfrom relatedparties	44	11
Other amounts owingto relatedparties	25,530	40,521
Other amounts owingfrom relatedparties	-	3,156
Loan amounts owingfrom relatedparties	87	-

Transactions between related parties are at market prices or on normal commercial terms, no more favourable to the Group than those arranged with third parties.

capacity to bring an independent judgement to bear on issues before the Board and to act in the best interests of the Group as a whole, rather than in the interests of an individual security holder or other party.

Sayona | Annual Report 2023 93

Notes to the Financial Statements

Other Disclosures

This section contains other information that must be disclosed to comply with accounting standards and other pronouncements, but is not considered critical in understanding the financial performance or position of the Group.

28. Auditor’s Remuneration

The Group’s auditor is Nexia Brisbane Audit Pty Ltd.

	2023	2022
	$’000	$’000
Feespaid andpayable to the Group’s auditor for assurance services
Audit and review of fnancial statements	326	211
Total auditor’s remuneration	326	211

29. Share Based Payments

The Group uses shares and options to settle liabilities. Share based payments to employees are measured at the fair value of the instruments issued and amortised over the vesting periods. Share based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued if the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received.

(a) Ordinary shares

Reconciliation of outstanding equity awards

		Equity rights	Granted	Vested	Forfeited	Lapsed	Equity rights
		at beginning	during	during	during	during	at end
		of the year	the year	the year	the year	the year	of the year
FY22	Performance Rights (1)	4,894,986	-	-	-	-	4,894,986
FY23	Performance Rights (2)	-	8,559,808	-	-	-	8,559,808
Total	awards	4,894,986	8,559,808	-	-	-	13,454,794

(1) FY22 Performance Rights relate to equity awards granted to employees on 27 January 2022, subject to the achievement of specific performance measures. All rights are expected to vest in FY24.

(2) FY23 Performance Rights relate to equity awards granted to Mr Guy Belleau on 1 January 2023, subject to the achievement of specific performance measures over the period from 1 January 2023 to 30 June 2027.

Equity awards are issued for nil consideration and take the form of rights to receive one ordinary share in Sayona Mining Limited for each right granted, subject to performance and/or service conditions being met. Awards do not confer any dividend or voting rights until they convert into ordinary shares at vesting. In addition, awards do not confer any rights to participate in a share issue.

(b) Options

Reconciliation of outstanding option awards

	Equity rights	Granted	Exercised	Forfeited	Lapsed	Equity rights
	at beginning	during	during	during	during	at end
	of theyear	theyear	theyear	theyear	theyear	of theyear
Non-recurring awards
Equity-settled services (1)	42,426,423	2,234,482	-	-	(42,426,423)	2,234,482
Option awards
FY20 Performance Rights	2,000,000	4,000,000	(6,000,000)	-	-	-
FY22 Performance Rights (2)	40,000,000	-	-	-	-	40,000,000
Total awards	84,426,423	6,234,482	(6,000,000)	-	(42,426,423)	42,234,482

(1) Outstanding equity-settled services relate to options granted to Jett Capital Advisors, LLC in respect of corporate advisory services undertaken for the Group. Options were granted on 28 November 2022 at an exercise price of $0.1825, expiring on 28 November 2025.

(2) Outstanding performance rights relate to options granted to KMP. Options were granted on 28 January 2022 at an exercise price of $0.15, expiring on 28 July 2023. All options were exercised in July 2023, resulting in cash proceeds of $6 million.

Option awards do not confer any dividend or voting rights until they convert into ordinary shares. Each option is entitled to be converted into one ordinary share in Sayona Mining Limited. The fair value of options is determined using the Black Scholes valuation model which incorporates all market vesting conditions.

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

30. Commitments

The following commitments exist at balance date but have not been brought to account:

	2023	2022
	$’000	$’000
Capital expenditure commitments	79,438	110,000
Exploration expenditure commitments	904	3,812
Other contractual commitments	8,300	-
Total commitments	88,642	113,812

Exploration expenditure commitments

The Group must meet minimum expenditure commitments on granted exploration tenements to maintain those tenements in good standing. If the relevant tenement is relinquished, the expenditure commitment also ceases.

31. Contingent Assets and Liabilities

There were no material contingent assets or liabilities at the end of the reporting period (2022: Nil).

32. Parent Entity Information

(a)

	2023	2022
	$’000	$’000
Result ofparent entity
Proft/(loss)after income tax	106,071	(10,062)
Total comprehensive income/(loss)	106,071	(10,062)

Financialposition ofparent entity atyear end
Current assets	157,096	171,161
Non-current assets	662,981	266,903
Total assets	820,077	438,064
Current liabilities	5,584	1,487
Non-current liabilities	4,220	-
Total liabilities	9,804	1,487
Net assets	810,273	436,577
Total equity ofparent entity
Share capital	770,700	504,255
Reserves	2,850	1,762
Retained earnings/(accumulated losses)	36,723	(69,440)
Total equity	810,273	436,577

(b) Parent entity guarantees

The parent entity has not entered into any guarantees in the current or previous reporting period.

(c) Commitments

The parent entity had no contractual or other commitments at the reporting date (2022: Nil).

Sayona | Annual Report 2023 95

Notes to the Financial Statements

33. Restatement of Comparative Information

(a) Recognition of deferred tax liabilities

Deferred tax liabilities of $10.2 million have been recognised as at 30 June 2022 following an external review of the Group’s deferred tax position. The adjustment is comprised of $9.0 million in deferred mining taxes and $1.2 million in deferred income taxes.

The deferred mining tax is primarily attributable to the book value of the capitalised exploration expenditure as at 30 June 2022, which does not have a tax basis for the purposes of the Québec mining tax return. Accordingly, a deferred tax liability has been recognised in respect of capitalised exploration expenditure.

The gain on acquisition of NAL recognised in FY22 has been restated for deferred mining tax purposes.

recognition of the deferred tax liability is set out as follows:

Year ended 30 June 2022 Reported balance $’000	Adjustment $’000 Restated balance $’000
Consolidated statement ofproft or loss
Other income 108,375	(6,659) 101,716
Proft/(loss) before income tax 83,686	(6,659) 77,027
Income tax expense -	(3,207) (3,207)
Proft/(loss) after income tax 83,686	(9,866) 73,820

Consolidated statement of fnancialposition
Deferred tax liabilities -	10,174 10,174
Total liabilities 90,366	10,174 100,540
Net assets 570,795	(10,174) 560,621
Reserves 14,385	(834) 13,551
Accumulated losses (7,361)	(6,421) (13,782)
Total equity attributable to equity holders of Sayona Mining Limited 511,279	(7,255) 504,024
Non-controllinginterests 59,516	(2,919) 56,597
Total equity 570,795	(10,174) 560,621

(b) Restatement of earnings per share

Earnings per share have been recalculated based on the restated earnings attributable to equity holders of the Company in accordance with the adjustment to deferred tax liabilities as detailed above. In addition, an error was identified in the denominator used to calculate earnings per share in FY22. A summary of the adjustments is as follows:

Year ended 30 June 2022 Reported balance	Adjustment Restated balance
Earnings per share
Basic earningsper share(cents) 1.23	(0.47) 0.76
Diluted earningsper share(cents) 1.16	(0.45) 0.71

(c) Restatement of key management personnel compensation

a calculation error. A summary of the adjustments is as follows:

Year ended 30 June 2022 Reported balance $’000	Adjustment $’000 Restated balance $’000
Short-term employee benefts 1,247	(464) 783
Post-employment benefts 42	- 42
Share basedpayments 3,584	- 3,584
Total key managementpersonnel compensation 4,873	(464) 4,409

Operating and Financial Financial Additional Review Governance Report Information

Notes to the Financial Statements

34. Subsequent Events

Equity Placement

Board and Leadership Changes

Inaugural shipment of spodumene concentrate from North American Lithium

operations, results of operations or state of affairs of the Group in subsequent financial years.

Sayona | Annual Report 2023 97

Directors’ Declaration

In accordance with a resolution of the Directors of the Company, we declare that:

In the opinion of the Directors:
(a) The consolidated financial statements and notes that are set out on pages 62 to 97 of the Financial Report are in accordance with the Corporations Act, including:
- (i) complying with Australian Accounting Standards applicable to the Group which, as stated in Note 1 to the financial statements, constitutes compliance with International Financial Reporting Standards (IFRS); and
- (ii) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the year ended on that date.
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Chief Financial Officer for the financial year ended 30 June 2023.

This declaration is made in accordance with a resolution of the Board of Directors.

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James Brown

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Paul Crawford Executive Director and Chief Financial Officer

Date: 29 September 2023

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Independent Auditor’s Report to the Members of Sayona Mining Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Sayona Mining Limited (the Company and its subsidiaries (the Group)), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters

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Sayona | Annual Report 2023 99

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Key audit matter

How our audit addressed the key audit
matter

Accounting for mine development costs to
plant and equipment and mine properties
Refer to Note 12
At 30 June 2023, the carrying value of plant and
equipment amounts to $317.2 million and mine
properties amounts to $229.0 million.
Accounting for mine properties requires management
to exercise significant judgement in determining the
appropriate estimates to be applied in the application
of the Group’s accounting policy, including:
•
The allocation of mining costs between
operating and capital expenditure; and
•
Determination of the units of production
used to amortise mine properties.
In addition, the mine was in development phase up
to 1 May 2023 after which it reached production
phase. The accounting and treatment of capitalised
development and production stripping costs is
affected, depending on which phase the mine is in.
Once production phase has been reached, the key
driver of the allocation of costs between operating
and capital expenditure is the physical mining data
associated with mining activities.
Life-of-mine strip ratios need to be determined and
continuously reviewed as production progresses.
Costs are capitalised to the extent they relate to
expenditures incurred in creating future access to
ore rather than current period inventory.
In commissioning mine properties and mine plant
and equipment, judgement is also required to
allocate capitalised works in progress to either mine
properties or plant and equipment when the
underlying asset is in the location and condition
necessary for it to be capable of operating in the
manner intended by management.
Amortisation is applied to mine properties on a units
of production basis.~~Pl~~ant and equipment is
depreciated based on the lesser of the asset’s useful
life and life of mine. The rates of amortisation and
depreciation will therefore be revised and updated in
accordance with changes in life of mine estimates
and levels of production.

For the allocation and capitalisation of mining and
development costs, our procedures included, but were
not limited to:
•
assessing management’s criteria with their
determination of whether the mine was in
development phase or whether production phase
had been reached;
•
obtaining an understanding and testing of the key
controls management has in place in relation to
capitalisation of mining expenditure;
•
assessment of the appropriateness of the allocation
of costs between operating and capital
expenditure, based on the nature of the underlying
activity and consideration of whether the mine was
in development or production phase;
•
Performed physical verification procedures to
ascertain the completeness and existence of mine
plant and equipment and mine properties recorded
in the asset register;
•
testing a representative sample of additions in the
year to determine whether the capitalisation was
appropriate by considering the nature of
capitalised works in progress including the value,
timing and classification thereof; and
•
assessment of transfers from capitalised works in
progress to plant and equipment and mine
properties, considering whether the underlying
assets had been brought into use on that date.
For the Group’s amortisation and depreciation
calculations, our procedures included, but were not
limited to:
•
obtaining an understanding of the key controls that
management has in place in relation to the
calculation of the unit of production amortisation
rate and the depreciation rates applicable to plant
and equipment;
•
assessing the appropriateness of production
amortisation rates and depreciation rates for
reasonableness and determination of the useful life
of mine plant and equipment and mine properties
is in line with accounting policies; and
•
testing of the mathematical accuracy of the
application of production amortisation rates and
depreciation rates applied to individual items of
plant and equipment and mine properties.
We also assessed the adequacy of the disclosures in
Note 12 to the financial statements including the
critical accounting estimates and judgements in the
accounting policy notes using our understanding
obtained from our testing, ensuring the disclosures
were consistent with the applied practices and the
requirements of the accounting standards.

100

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Other Information

The directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 30 June 2023, but does not include the financial report and the auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of the other information we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors’ for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Sayona | Annual Report 2023 101

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Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Group financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 53 to 60 of the Directors’ Report for the year ended 30 June 2023.

In our opinion, the Remuneration Report of Sayona Mining Limited for the year ended 30 June 2023 complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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Nexia Brisbane Audit Pty Ltd

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Ann-Maree Robertson Director

Brisbane

Dated: 29 September 2023

102

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Operating
and Financial Financial
Review Governance
Report
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Additional
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Sayona | Annual Report 2023
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103

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104

Operating and Financial Financial Additional Review Governance Report Information

Additional Information

Mineral Resources and Ore Reserves	106
Tenement Schedule	109
Shareholder Information	133
Glossary	135
Corporate Directory	141

Sayona | Annual Report 2023

Mineral Resources and Ore Reserves

Overview

The Group reports Mineral Resources and Ore Reserves in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), as required by Chapter 5 of the Australian Securities Exchange (ASX) Listing Rules.

Mineral Resources and Ore Reserves are reported in 100 per cent terms and represent estimates as at 30 June 2023. Our Mineral Resource estimations include Measured and Indicated Mineral Resources which, after the application of all Modifying Factors and development of a mine plan, have been classified as Ore Reserves.

All quantities in this Mineral Resources and Ore Reserves section are reported in dry metric tonnes, unless otherwise stated.

It is important to note that Mineral Resources and Ore Reserves are estimations, not precise calculations. Tonnes and grade data may have been rounded to reflect the relative uncertainty of the estimate, which is why minor computational differences may be present in the totals.

Commodity price and exchange rate assumptions used to estimate the economic viability of Ore Reserves are based on internal studies and long-range forecasts. Our planning processes consider a range of impacts on Ore Reserves, including assessments of operating cost and the expectation of economically viable extraction.

Competent Persons

Information in this Mineral Resources and Ore Reserves section relating to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on, and fairly represents, information and supporting documentation compiled by the Competent Persons listed in the table below, which includes details on their respective professional association, relationship to Sayona, and the area for which each Competent Person is taking responsibility.

a minimum of five years’ experience working with the style of mineralisation or type of deposit under consideration and relevant to the activity being undertaken.

Each of our Competent Persons has given consent to the inclusion of the information in this Mineral Resources and Ore Reserves section in the form and context in which it appears.

Mineral Resource or Ore Reserve estimates are also compliant with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) reporting guidelines, as required by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101).

All Ore Reserves reported are within existing permitted mining tenements. Our mineral leases are of sufficient duration, or convey a legal right to renew the tenure, to enable Ore Reserves on the leased properties to be mined in accordance with forecasted production schedules. These Ore Reserves may include areas where additional approvals are required, and it is expected that such approvals will be obtained within the timeframe needed to meet the forecasted production schedule.

Competent Persons for JORC Code Reportable Estimates

Activity	Responsibility	Competent Person Professional Association Relationship
Exploration Results	Annual Report Disclosures	Simon Attwell Member of The Australasian Institute of Miningand Metallurgy Group Exploration Manager for Sayona MiningLimited
		Carl Corriveau Member of Ordre des Géologues duQuébec Vice President Exploration for Sayona Inc.
Mineral Resources	Authier	Maxime Dupéré Member of Ordre des Géologues duQuébec External consultant employed by SGS Canada Inc.
	Moblan	Simon Boudreau Member of Ordre des Ingénieurs duQuébec External consultant employed by InnovExplo Inc.
		Alain Carrier Member of Ordre des Géologues duQuébec External consultant employed by InnovExplo Inc.
		Ryan Cunningham Member of Ordre des Ingénieurs duQuébec External consultant employed by Primero GroupAmericas
		Vincent Nadeau-Benoit Member of Ordre des Géologues duQuébec External consultant employed by InnovExplo Inc.
	NAL	Pierre-Luc Richard Member of Ordre des Géologues duQuébec External consultant employed by PLR Ressources Inc.
Ore Reserves	Authier	Isabelle Leblanc Member of Ordre des Ingénieurs duQuébec External consultant employed by BBA Inc.
	NAL	Mélissa Jarry Member of Ordre des Ingénieurs duQuébec External consultant employed by BBA Inc.

106

Operating and Financial Review Governance

Financial Additional Report Information

Mineral Resources and Ore Reserves

Mineral Resources

Mineral Resources as at 30 June 2023

Project	Measured Mineral Resources Indicated Mineral Resources Inferred Mineral Resources Total Mineral Resources
	Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O
Authier (2)
Open Pit	6,042 0.98 59.2 8,098 1.03 83.4 2,996 1.00 30.0 17,136 1.01 172.6
Moblan (3)
Inter	5,601 0.89 7,209 0.81 12,810 0.85
Main	6,313 1.46 11,541 1.19 3,406 1.00 21,260 1.24
Moleon	2,932 1.52 1,430 1.42 4,362 1.49
South	23,499 1.17 8,939 1.12 32,438 1.16
NAL (4)
Open Pit	1,000 1.19 11.7 24,000 1.23 296.6 22,000 1.20 264.1 47,000 1.22 572.4
Underground	11,000 1.30 141.8 11,000 1.30 141.8

(1) Represents metal contained within mineral resources, expressed in thousand tonnes of lithium oxide.

(2) 75% ownership interest; cut-off grade of 0.55% Li2O.

(3) 60% ownership interest; cut-off grade of 0.25% Li2O.

(4) 75% ownership interest; cut-off grade of 0.60% Li2O.

Mineral Resources as at 30 June 2022

Project	Measured Mineral Resources Indicated Mineral Resources Inferred Mineral Resources Total Mineral Resources
	Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O
Authier (2)
Open Pit	6,042 0.98 59.2 8,098 1.03 83.4 2,996 1.00 30.0 17,136 1.01 172.6
NAL (3)
Open Pit (4)	1,471 0.99 14.6 52,806 1.01 533.6 13,874 0.96 133.2 68,151 1.00 681.4
Underground (5)	19,398 1.18 228.9 14,372 1.19 171.0 33,770 1.18 399.9

(1) Represents metal contained within mineral resources, expressed in thousand tonnes of lithium oxide.

(2) 75% ownership interest; cut-off grade of 0.55% Li2O.

(3) 75% ownership interest.

(4) Cut-off grade of 0.60% Li2O.

(5) Cut-off grade of 0.80% Li2O.

Annual Review of Mineral Resources

estimate has not materially changed since when it was last reported in accordance with the JORC Code and under NI 43-101.

All criteria used to classify and estimate the Mineral Resources for North American Lithium and all Modifying Factors applied to the estimate are still applicable.

A change to Mineral Resources due to mining depletion from a producing property is generally not considered to be a material change to the property as it should be reasonably predictable based on a company’s continuous disclosure record. The Competent Person has undertaken sufficient work to confirm the depletion that occurred up until 30 June 2023 is not material.

Sayona | Annual Report 2023 107

Mineral Resources and Ore Reserves

Ore Reserves

Ore Reserves as at 30 June 2023

	Proved Ore Reserves Probable Ore Reserves Total Ore Reserves
	Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O
Authier
Open Pit 75 0.55	6,200 0.93 57.6 5,100 1.00 50.7 11,300 0.96 108.3
NAL
Open Pit 75 0.60	700 1.24 8.7 21,000 1.08 226.8 21,700 1.08 235.5

(1) Represents metal contained within ore reserves, expressed in thousand tonnes of lithium oxide.

Ore Reserves as at 30 June 2022

	Proved Ore Reserves Probable Ore Reserves Total Ore Reserves
	Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O Tonnes kt Grade % Li2O Metal (1) kt Li2O
NAL
Open Pit 75 0.60	1,200 0.92 10.9 28,000 0.96 269.4 29,200 0.96 280.3

(1) Represents metal contained within ore reserves, expressed in thousand tonnes of lithium oxide.

Annual Review of Ore Reserves

not materially changed since when it was last reported in accordance with the JORC Code and under NI 43-101.

All criteria used to classify and estimate the Ore Reserves for North American Lithium and all Modifying Factors applied to the estimate are still applicable.

A change to Ore Reserves due to mining depletion from a producing property is generally not considered to be a material change to the property as it should be reasonably predictable based on a company’s continuous disclosure record. The Competent Person has undertaken sufficient work to confirm the depletion that occurred up until 30 June 2023 is not material.

material assumptions and technical parameters continue to apply and have not materially changed. The Group confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

108

Operating and Financial Financial Additional Review Governance Report Information

Tenement Schedule as at 30 September 2023

Australia

Project Location	Tenement Name Commodity Status Interest
WA Graphite Projects Western Australia, Australia	E80/4511 Western Iron Graphite Granted 100%
	E80/4949 Corkwood Graphite Granted 100%
WA Lithium and Gold Projects Western Australia, Australia	E45/2364 Tabba Tabba Lithium Granted 100%
	E45/4703 Tabba Tabba East Gold & Lithium Granted 49% (1,2)
	E45/4716 Red Rock Gold & Lithium Granted 100%
	E45/4726 West Wodgina Gold & Lithium Granted 49% (1,2)
	E45/5288 Strelley Gold & Lithium Granted 49% (1,2)
	E45/5289 StrelleyWest Gold & Lithium Granted 49% (1,2)
	E45/5817 Indee Gold & Lithium Application 100%
	E45/5904 Mac Well Gold & Lithium Granted 49% (1,2)
	E47/2983 Mallina Lithium Granted 49% (1)
	E47/3802 FriendlyCreek Gold & Lithium Granted 100%
	E47/3829 DeepWell Gold & Lithium Granted 100%
	E47/3950 Mt Dove Gold & Lithium Granted 100%
	E59/2055 Mt Edon West Lithium Granted 49% (1)
	E59/2092 Mt Edon Lithium Granted 39% (1)

(1) Tenement subject to Morella Lithium Joint Venture.

(2) Gold rights are 100% owned by Sayona.

109

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada

Canada
Project	Tenement Interest 2116146 100% 2116154 100% 2116155 100% 2116156 100% 2183454 100% 2183455 100% 2187651 100% 2187652 100% 2192470 100% 2192471 100% 2194819 100% 2195725 100% 2219206 100% 2219207 100% 2219208 100% 2219209 100% 2240226 100% 2240227 100% 2247100 100% 2247101 100% 2472424 100% 2472425 100% 2480180 100% 2507910 100% 1005 100% 2145325 100% 2145326 100% 2145327 100% 2145328 100% 2145329 100% 2145330 100% 2145331 100% 2145332 100% 2145333 100% 2145334 100% 2145335 100% 2145336 100% 2154987 100% 2154988 100% 2154989 100% 2154990 100% 2154991 100% 2154992 100% 2154993 100% 2569722 100% 2569723 100% 2638652 100% 2638653 100% 2638654 100% 2638655 100% 2638656 100% 2638657 100% 2638658 100% 2638659 100%	Project	Tenement Interest 2638660 100% 2638661 100% 2638662 100% 2638663 100% 2638664 100% 2638665 100% 2638666 100% 2638667 100% 2638668 100% 2638669 100% 2638670 100% 2638671 100% 2638672 100% 2638673 100% 2638674 100% 2638675 100% 2638676 100% 2638677 100% 2638678 100% 2638679 100% 2638680 100% 2638681 100% 2638682 100% 2638683 100% 2638684 100% 2638685 100% 2638686 100% 2638687 100% 2638688 100% 2638689 100% 2638690 100% 2638691 100% 2638692 100% 2638693 100% 2638694 100% 2638695 100% 2638696 100% 2638697 100% 2638698 100% 2638699 100% 2638700 100% 2638701 100% 2638702 100% 2638703 100% 2638704 100% 2638705 100% 2638706 100% 2638707 100% 2638708 100% 2638709 100% 2638710 100% 2638711 100% 2638712 100% 2638713 100%	Project	Tenement Interest
Authier Lithium Project Location Québec, Canada Commodity Lithium Total Claims 24		Pontiac Claims Québec, Canada (continued)		Pontiac Claims Québec, Canada (continued)	2638714 100%
					2638715 100%
					2638716 100%
					2638717 100%
					2638718 100%
					2638719 100%
					2638720 100%
					2638721 100%
					2638722 100%
					2638723 100%
					2638724 100%
					2638725 100%
					2638726 100%
					2638727 100%
					2638728 100%
					2638729 100%
					2638730 100%
					2638731 100%
					2638732 100%
					2638733 100%
					2638734 100%
					2638735 100%
					2638736 100%
					2638737 100%
North American Lithium Location Québec, Canada Commodity Lithium Total Claims 22					2638738 100%
					2638739 100%
					2638740 100%
					2638741 100%
					2638742 100%
					2638743 100%
					2638744 100%
					2638745 100%
					2638746 100%
					2638747 100%
					2638748 100%
					2638749 100%
					2638750 100%
					2638751 100%
					2638752 100%
					2638753 100%
					2638754 100%
					2638755 100%
					2638756 100%
					2638757 100%
					2638758 100%
					2638760 100%
Pontiac Claims Commodity Lithium Total Claims 1,284					2638761 100%
					2638762 100%
					2638763 100%
					2638764 100%
					2638765 100%
					2638766 100%
					2638767 100%
					2638768 100%

110

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Pontiac Claims Location Québec, Canada Commodity Lithium Total Claims 1,284	Pontiac Claims Québec, Canada (continued)	Pontiac Claims Québec, Canada (continued)	2638877 100%
			2638878 100%
			2638879 100%
			2638880 100%
			2638881 100%
			2638882 100%
			2638883 100%
			2638884 100%
			2638885 100%
			2638886 100%
			2638887 100%
			2638888 100%
			2638889 100%
			2638890 100%
			2638891 100%
			2638892 100%
			2638893 100%
			2638894 100%
			2639224 100%
			2639225 100%
			2639226 100%
			2639227 100%
			2639228 100%
			2639229 100%
			2639230 100%
			2639231 100%
			2639232 100%
			2639233 100%
			2639234 100%
			2639235 100%
			2639236 100%
			2639237 100%
			2639238 100%
			2639239 100%
			2639240 100%
			2639241 100%
			2639242 100%
			2639243 100%
			2639244 100%
			2639245 100%
			2639246 100%
			2639247 100%
			2639248 100%
			2639249 100%
			2639250 100%
			2639251 100%
			2639252 100%
			2639253 100%
			2639254 100%
			2639255 100%
			2639256 100%
			2639257 100%
			2639258 100%
			2639259 100%

111

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Pontiac Claims Location Québec, Canada Commodity Lithium Total Claims 1,284	Pontiac Claims Québec, Canada (continued)	Pontiac Claims Québec, Canada (continued)	2639368 100%
			2639369 100%
			2639370 100%
			2639371 100%
			2639372 100%
			2639373 100%
			2639374 100%
			2639375 100%
			2639376 100%
			2639377 100%
			2639378 100%
			2639379 100%
			2639380 100%
			2639381 100%
			2639382 100%
			2639383 100%
			2639384 100%
			2639385 100%
			2639386 100%
			2639387 100%
			2639388 100%
			2639389 100%
			2639390 100%
			2639391 100%
			2639392 100%
			2639393 100%
			2639394 100%
			2639395 100%
			2639396 100%
			2639397 100%
			2639398 100%
			2639399 100%
			2639400 100%
			2639401 100%
			2639402 100%
			2639403 100%
			2639404 100%
			2639405 100%
			2639406 100%
			2639407 100%
			2639408 100%
			2639409 100%
			2639410 100%
			2639411 100%
			2639412 100%
			2639413 100%
			2639414 100%
			2639415 100%
			2639416 100%
			2639417 100%
			2639418 100%
			2639419 100%
			2639420 100%
			2639421 100%

112

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Pontiac Claims Location Québec, Canada Commodity Lithium Total Claims 1,284	Pontiac Claims Québec, Canada (continued)	Pontiac Claims Québec, Canada (continued)	2639531 100%
			2639532 100%
			2639533 100%
			2639534 100%
			2639535 100%
			2639536 100%
			2639537 100%
			2639538 100%
			2639539 100%
			2639540 100%
			2639541 100%
			2639542 100%
			2639543 100%
			2639544 100%
			2639545 100%
			2639546 100%
			2639547 100%
			2639548 100%
			2639549 100%
			2639550 100%
			2639551 100%
			2639552 100%
			2639553 100%
			2639554 100%
			2639555 100%
			2639556 100%
			2639557 100%
			2639558 100%
			2639559 100%
			2639560 100%
			2639561 100%
			2639562 100%
			2639563 100%
			2639564 100%
			2639565 100%
			2639566 100%
			2639567 100%
			2639568 100%
			2639569 100%
			2639570 100%
			2639571 100%
			2639572 100%
			2639573 100%
			2639574 100%
			2639575 100%
			2639576 100%
			2639577 100%
			2639578 100%
			2639579 100%
			2639580 100%
			2639581 100%
			2639582 100%
			2639583 100%
			2639584 100%

113

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Pontiac Claims Location Québec, Canada Commodity Lithium Total Claims 1,284	Pontiac Claims Québec, Canada (continued)	Pontiac Claims Québec, Canada (continued)	2639822 100%
			2639823 100%
			2639824 100%
			2639825 100%
			2639826 100%
			2639827 100%
			2639828 100%
			2639829 100%
			2639830 100%
			2639831 100%
			2639832 100%
			2639833 100%
			2639834 100%
			2639835 100%
			2639836 100%
			2639837 100%
			2639838 100%
			2639839 100%
			2639840 100%
			2639841 100%
			2639842 100%
			2639843 100%
			2639844 100%
			2639845 100%
			2639846 100%
			2639847 100%
			2639848 100%
			2639849 100%
			2639850 100%
			2639851 100%
			2639852 100%
			2639853 100%
			2639854 100%
			2640010 100%
			2640026 100%
			2640027 100%
			2640028 100%
			2640029 100%
			2640030 100%
			2640031 100%
			2640032 100%
			2640033 100%
			2640034 100%
			2640035 100%
			2640036 100%
			2640037 100%
			2640038 100%
			2640039 100%
			2640040 100%
			2640041 100%
			2640042 100%
			2640043 100%
			2640044 100%
			2640045 100%

114

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Pontiac Claims Location Québec, Canada Commodity Lithium Total Claims 1,284	Pontiac Claims Québec, Canada (continued)	Pontiac Claims Québec, Canada (continued)	2640154 100%
			2640155 100%
			2640156 100%
			2640157 100%
			2640158 100%
			2640159 100%
			2640160 100%
			2640161 100%
			2640162 100%
			2640163 100%
			2640164 100%
			2640165 100%
			2640166 100%
			2640167 100%
			2640168 100%
			2640169 100%
			2640170 100%
			2640171 100%
			2640172 100%
			2640173 100%
			2640174 100%
			2640175 100%
			2640176 100%
			2640177 100%
			2640178 100%
			2640179 100%
			2640180 100%
			2640181 100%
			2640182 100%
			2640183 100%
			2640184 100%
			2640185 100%
			2640186 100%
			2640187 100%
			2640188 100%
			2640189 100%
			2640190 100%
			2640191 100%
			2640192 100%
			2640193 100%
			2640194 100%
			2640195 100%
			2640196 100%
			2640197 100%
			2640198 100%
			2640199 100%
			2640200 100%
			2640201 100%
			2640202 100%
			2640203 100%
			2640204 100%
			2640205 100%
			2640206 100%
			2640207 100%

115

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Pontiac Claims Location Québec, Canada Commodity Lithium Total Claims 1,284	Pontiac Claims Québec, Canada (continued)	Pontiac Claims Québec, Canada (continued)	2640731 100%
			2640732 100%
			2640733 100%
			2640734 100%
			2640735 100%
			2640736 100%
			2640737 100%
			2640738 100%
			2640739 100%
			2640740 100%
			2640741 100%
			2640742 100%
			2640743 100%
			2640744 100%
			2640745 100%
			2640746 100%
			2640747 100%
			2640748 100%
			2640749 100%
			2640750 100%
			2640751 100%
			2640752 100%
			2640753 100%
			2640754 100%
			2640755 100%
			2640756 100%
			2640757 100%
			2640758 100%
			2640759 100%
			2640760 100%
			2640761 100%
			2640762 100%
			2640763 100%
			2640764 100%
			2640765 100%
			2640766 100%
			2640767 100%
			2640768 100%
			2640769 100%
			2640770 100%
			2640771 100%
			2640772 100%
			2640773 100%
			2640774 100%
			2640775 100%
			2640776 100%
			2640777 100%
			2640778 100%
			2640779 100%
			2640780 100%
			2640781 100%
			2640782 100%
			2640783 100%
			2640784 100%

116

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Pontiac Claims Location Québec, Canada Commodity Lithium Total Claims 1,284	Pontiac Claims Québec, Canada (continued)	Pontiac Claims Québec, Canada (continued)	2641140 100%
			2641141 100%
			2641142 100%
			2641143 100%
			2641144 100%
			2641145 100%
			2641146 100%
			2641147 100%
			2641148 100%
			2641149 100%
			2641150 100%
			2641151 100%
			2641152 100%
			2641424 100%
			2641425 100%
			2643810 100%
			2643811 100%
			2643812 100%
			2643813 100%
			2643814 100%
			2643819 100%
			2643820 100%
			2643821 100%
			2643822 100%
			2643823 100%
			2643824 100%
			2643825 100%
			2643826 100%
			2643827 100%
			2643829 100%
			2643830 100%
			2643831 100%
			2643832 100%
			2643833 100%
			2643834 100%
			2643835 100%
			2643836 100%
			2643837 100%
			2643838 100%
			2643839 100%
			2643840 100%
			2643841 100%
			2643842 100%
			2644631 100%
			2644632 100%
			2644633 100%
			2644634 100%
			2644635 100%
			2644636 100%
			2644637 100%
			2644638 100%
			2644639 100%
			2644640 100%
			2644641 100%

117

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Pontiac Claims Location Québec, Canada Commodity Lithium Total Claims 1,284	Tansim Lithium Project Location Québec, Canada Commodity Lithium Total Claims 352	Tansim Lithium Project Québec, Canada (continued)	2519258 100%
			2519259 100%
			2519260 100%
			2519261 100%
			2519262 100%
			2519263 100%
			2519264 100%
			2519265 100%
			2519266 100%
			2519267 100%
			2519268 100%
			2519269 100%
			2519270 100%
			2519271 100%
			2519272 100%
			2519273 100%
			2519274 100%
			2519275 100%
			2519276 100%
			2519277 100%
			2519278 100%
			2519279 100%
			2519280 100%
			2519281 100%
			2519282 100%
			2519283 100%
			2519284 100%
			2519285 100%
			2519286 100%
			2519287 100%
			2519288 100%
			2519289 100%
			2519290 100%
			2519291 100%
Tansim Lithium Project Location Québec, Canada Commodity Lithium Total Claims 352			2519292 100%
			2519293 100%
			2519294 100%
			2519295 100%
			2519296 100%
			2519297 100%
			2519298 100%
			2519299 100%
			2519300 100%
			2519301 100%
			2519302 100%
			2519303 100%
			2519304 100%
			2519305 100%
			2519306 100%
			2519307 100%
			2519308 100%
			2519309 100%
			2519310 100%
			2519311 100%

118

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Tansim Lithium Project Location Québec, Canada Commodity Lithium Total Claims 352	Tansim Lithium Project Québec, Canada (continued)	Tansim Lithium Project Québec, Canada (continued)	2601814 100%
			2601815 100%
			2601816 100%
			2601817 100%
			2601818 100%
			2601819 100%
			2601820 100%
			2601821 100%
			2601822 100%
			2601823 100%
			2601824 100%
			2601825 100%
			2601826 100%
			2601827 100%
			2601828 100%
			2601829 100%
			2601830 100%
			2601831 100%
			2601832 100%
			2601833 100%
			2601834 100%
			2601835 100%
			2601836 100%
			2601837 100%
			2601838 100%
			2601839 100%
			2601840 100%
			2601841 100%
			2601862 100%
			2601863 100%
			2601864 100%
			2601865 100%
			2601866 100%
			2601867 100%
			2601868 100%
			2601869 100%
			2601870 100%
			2601871 100%
			2601872 100%
			2601918 100%
			2601922 100%
			2603761 100%
			2603762 100%
			2603763 100%
			2603764 100%
			2603765 100%
			2603766 100%
			2603767 100%
			2603768 100%
			2603769 100%
			2603770 100%
			2603771 100%
			2603772 100%
			2603773 100%

119

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Tansim Lithium Project Location Québec, Canada Commodity Lithium Total Claims 352	Tansim Lithium Project Québec, Canada (continued)	Lac Albert Lithium Project Québec, Canada (continued)	2630555 100%
			2630556 100%
			2630557 100%
			2630558 100%
			2630559 100%
			2630560 100%
			2630561 100%
			2630562 100%
	Vallée Lithium Project (NAL) Location Québec, Canada Commodity Lithium Total Claims 20		2630563 100%
			2630564 100%
			2630565 100%
			2630566 100%
			2630567 100%
			2630568 100%
			2630569 100%
			2630570 100%
			2630571 100%
			2630572 100%
			2630573 100%
			2630574 100%
			2630575 100%
			2630576 100%
			2630577 100%
			2630578 100%
			2630579 100%
			2630580 100%
			2630581 100%
			2630582 100%
	Lac Albert Lithium Project Location Québec, Canada Commodity Lithium Total Claims 121		2630583 100%
			2630584 100%
			2630585 100%
			2630586 100%
			2630587 100%
			2630588 100%
			2630589 100%
			2630590 100%
			2630591 100%
			2630592 100%
			2630593 100%
			2630594 100%
			2630595 100%
			2630596 100%
			2630597 100%
			2630598 100%
			2630599 100%
			2630600 100%
			2630601 100%
			2630602 100%
			2630603 100%
			2630604 100%
			2630605 100%
			2630606 100%
			2630607 100%
			2630608 100%

120

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Lac Albert Lithium Project Location Québec, Canada Commodity Lithium Total Claims 121	Moblan Lithium Project Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2253516 100%
			2253517 100%
			2253518 100%
			2253519 100%
			2253520 100%
			2253521 100%
			2253527 100%
	Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824		2253528 100%
			2253529 100%
			2253530 100%
			2253531 100%
			2253877 100%
			2253878 100%
			2253880 100%
			2262720 100%
			2264368 100%
			2264369 100%
			2264372 100%
			2264374 100%
			2264375 100%
			2264376 100%
			2264400 100%
			2283442 100%
			2283443 100%
			2283444 100%
			2283445 100%
			2323529 100%
			2323531 100%
			2323706 100%
			2323708 100%
			2323709 100%
			2323712 100%
			2323714 100%
			2323746 100%
			2323747 100%
			2323748 100%
			2323749 100%
			2342477 100%
			2369221 100%
			2371567 100%
			2371568 100%
Moblan Lithium Project Location Québec, Canada Commodity Lithium Total Claims 20			2371569 100%
			2371577 100%
			2371578 100%
			2371579 100%
			2371580 100%
			2371581 100%
			2371582 100%
			2371584 100%
			2372785 100%
			2372786 100%
			2372787 100%
			2372788 100%
			2372789 100%

121

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2443525 100%
			2443526 100%
			2443527 100%
			2443528 100%
			2443529 100%
			2443530 100%
			2443531 100%
			2443532 100%
			2447808 100%
			2447833 100%
			2447851 100%
			2447852 100%
			2447983 100%
			2447986 100%
			2447993 100%
			2447994 100%
			2447995 100%
			2447996 100%
			2447997 100%
			2453351 100%
			2453352 100%
			2453353 100%
			2453354 100%
			2453355 100%
			2453356 100%
			2453357 100%
			2453358 100%
			2453359 100%
			2453360 100%
			2453361 100%
			2453362 100%
			2453363 100%
			2453364 100%
			2453365 100%
			2453366 100%
			2453367 100%
			2453368 100%
			2453369 100%
			2453370 100%
			2453371 100%
			2453372 100%
			2453373 100%
			2453374 100%
			2453375 100%
			2453376 100%
			2453377 100%
			2453378 100%
			2453379 100%
			2453380 100%
			2453381 100%
			2453382 100%
			2453383 100%
			2453384 100%
			2453385 100%

122

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2510728 100%
			2510729 100%
			2510730 100%
			2510731 100%
			2515565 100%
			2515594 100%
			2515603 100%
			2517129 100%
			2517191 100%
			2517192 100%
			2517193 100%
			2517194 100%
			2517195 100%
			2517196 100%
			2517197 100%
			2517198 100%
			2517199 100%
			2517200 100%
			2517201 100%
			2517202 100%
			2517203 100%
			2517204 100%
			2517205 100%
			2517206 100%
			2517207 100%
			2517208 100%
			2517209 100%
			2517210 100%
			2517211 100%
			2517212 100%
			2517213 100%
			2517214 100%
			2517215 100%
			2517216 100%
			2517217 100%
			2517218 100%
			2517232 100%
			2517233 100%
			2517234 100%
			2517235 100%
			2517236 100%
			2517237 100%
			2517238 100%
			2517239 100%
			2517240 100%
			2517241 100%
			2517242 100%
			2517243 100%
			2517244 100%
			2517245 100%
			2517246 100%
			2517247 100%
			2517378 100%
			2517379 100%

123

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2517711 100%
			2517712 100%
			2517713 100%
			2517714 100%
			2517715 100%
			2517716 100%
			2517717 100%
			2517718 100%
			2517719 100%
			2517720 100%
			2517721 100%
			2517722 100%
			2517723 100%
			2517724 100%
			2517725 100%
			2517726 100%
			2517727 100%
			2517728 100%
			2517729 100%
			2517730 100%
			2517731 100%
			2517732 100%
			2517733 100%
			2517734 100%
			2517735 100%
			2517740 100%
			2517741 100%
			2517742 100%
			2517743 100%
			2517744 100%
			2518087 100%
			2518088 100%
			2518089 100%
			2518090 100%
			2518091 100%
			2518092 100%
			2518093 100%
			2518094 100%
			2518095 100%
			2518096 100%
			2518097 100%
			2518098 100%
			2518099 100%
			2518100 100%
			2518101 100%
			2518102 100%
			2518103 100%
			2518104 100%
			2518105 100%
			2518106 100%
			2518107 100%
			2518108 100%
			2518109 100%
			2518110 100%

124

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2543660 100%
			2543661 100%
			2543662 100%
			2543781 100%
			2543782 100%
			2543783 100%
			2543784 100%
			2543785 100%
			2543786 100%
			2543787 100%
			2543788 100%
			2543789 100%
			2544905 100%
			2544906 100%
			2544907 100%
			2544908 100%
			2544909 100%
			2544910 100%
			2544911 100%
			2544912 100%
			2544913 100%
			2544914 100%
			2544915 100%
			2544916 100%
			2544917 100%
			2544918 100%
			2544919 100%
			2544920 100%
			2544921 100%
			2544922 100%
			2555479 100%
			2555480 100%
			2555481 100%
			2555482 100%
			2555483 100%
			2555484 100%
			2555485 100%
			2555486 100%
			2555487 100%
			2555488 100%
			2555489 100%
			2555490 100%
			2555491 100%
			2555492 100%
			2555493 100%
			2555494 100%
			2555495 100%
			2555496 100%
			2555497 100%
			2555498 100%
			2555499 100%
			2555500 100%
			2555501 100%
			2555502 100%

125

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2555692 100%
			2555693 100%
			2555694 100%
			2555695 100%
			2555696 100%
			2555697 100%
			2555698 100%
			2555699 100%
			2555700 100%
			2555701 100%
			2555702 100%
			2555703 100%
			2555704 100%
			2555705 100%
			2555706 100%
			2555707 100%
			2555708 100%
			2555709 100%
			2555710 100%
			2555711 100%
			2555712 100%
			2555713 100%
			2555714 100%
			2555715 100%
			2555716 100%
			2555717 100%
			2555718 100%
			2555719 100%
			2555720 100%
			2555721 100%
			2555722 100%
			2555723 100%
			2555724 100%
			2555725 100%
			2555726 100%
			2555727 100%
			2555728 100%
			2555729 100%
			2555730 100%
			2555731 100%
			2555732 100%
			2555733 100%
			2555734 100%
			2555735 100%
			2555736 100%
			2555737 100%
			2555738 100%
			2555739 100%
			2555740 100%
			2555741 100%
			2555742 100%
			2555743 100%
			2555744 100%
			2555745 100%

126

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2555872 100%
			2555873 100%
			2555874 100%
			2555875 100%
			2555876 100%
			2555877 100%
			2555878 100%
			2555879 100%
			2555880 100%
			2555881 100%
			2555882 100%
			2555883 100%
			2555884 100%
			2555885 100%
			2555886 100%
			2555887 100%
			2555888 100%
			2555889 100%
			2555890 100%
			2555891 100%
			2555892 100%
			2555893 100%
			2555894 100%
			2555895 100%
			2555896 100%
			2555897 100%
			2555898 100%
			2555899 100%
			2555900 100%
			2555901 100%
			2555902 100%
			2555903 100%
			2555904 100%
			2555905 100%
			2555906 100%
			2555907 100%
			2555908 100%
			2555909 100%
			2555910 100%
			2555911 100%
			2555912 100%
			2555913 100%
			2555914 100%
			2555915 100%
			2555916 100%
			2555917 100%
			2555918 100%
			2555919 100%
			2555920 100%
			2555921 100%
			2555922 100%
			2555923 100%
			2555924 100%
			2555925 100%

127

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2556034 100%
			2556035 100%
			2556036 100%
			2556037 100%
			2556038 100%
			2556039 100%
			2556040 100%
			2556041 100%
			2556042 100%
			2556043 100%
			2556044 100%
			2556045 100%
			2556046 100%
			2556047 100%
			2556048 100%
			2556049 100%
			2556050 100%
			2556051 100%
			2556052 100%
			2556053 100%
			2556054 100%
			2556055 100%
			2556056 100%
			2556057 100%
			2556058 100%
			2556059 100%
			2556060 100%
			2556061 100%
			2556062 100%
			2556063 100%
			2556064 100%
			2556065 100%
			2556066 100%
			2556067 100%
			2556068 100%
			2556069 100%
			2556070 100%
			2556071 100%
			2556072 100%
			2556073 100%
			2556074 100%
			2556075 100%
			2556076 100%
			2556077 100%
			2556078 100%
			2556079 100%
			2556080 100%
			2556081 100%
			2556082 100%
			2556083 100%
			2556084 100%
			2556085 100%
			2556086 100%
			2556087 100%

128

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2563716 100%
			2563717 100%
			2563718 100%
			2563719 100%
			2564837 100%
			2565953 100%
			2565954 100%
			2565955 100%
			2565956 100%
			2565957 100%
			2565958 100%
			2566120 100%
			2566121 100%
			2566122 100%
			2566123 100%
			2566124 100%
			2566125 100%
			2566126 100%
			2566963 100%
			2566964 100%
			2566965 100%
			2566966 100%
			2566967 100%
			2566968 100%
			2566969 100%
			2566970 100%
			2566971 100%
			2566972 100%
			2566973 100%
			2566974 100%
			2566975 100%
			2566976 100%
			2566977 100%
			2566978 100%
			2567332 100%
			2567333 100%
			2567334 100%
			2567335 100%
			2567336 100%
			2567337 100%
			2567338 100%
			2567339 100%
			2567340 100%
			2567341 100%
			2567470 100%
			2567471 100%
			2567472 100%
			2567473 100%
			2567474 100%
			2567475 100%
			2567476 100%
			2567477 100%
			2567478 100%
			2567479 100%

129

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2571304 100%
			2571305 100%
			2571306 100%
			2571307 100%
			2571348 100%
			2571349 100%
			2571350 100%
			2571351 100%
			2571352 100%
			2571353 100%
			2571354 100%
			2571355 100%
			2571356 100%
			2571357 100%
			2571358 100%
			2571359 100%
			2571360 100%
			2571361 100%
			2571362 100%
			2571363 100%
			2571364 100%
			2571365 100%
			2571366 100%
			2571367 100%
			2571368 100%
			2571369 100%
			2571370 100%
			2571371 100%
			2571372 100%
			2571373 100%
			2571374 100%
			2571375 100%
			2571376 100%
			2571377 100%
			2571378 100%
			2571379 100%
			2571380 100%
			2571381 100%
			2571382 100%
			2571383 100%
			2571384 100%
			2571385 100%
			2571386 100%
			2571387 100%
			2571388 100%
			2571389 100%
			2571390 100%
			2571391 100%
			2571392 100%
			2571393 100%
			2571394 100%
			2571395 100%
			2571396 100%
			2571397 100%

130

Operating and Financial Review Governance

Financial Additional Report Information

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	Troilus Claims Québec, Canada (continued)	2571685 100%
			2571686 100%
			2571827 100%
			2571828 100%
			2571829 100%
			2571830 100%
			2571831 100%
			2571832 100%
			2571833 100%
			2571834 100%
			2571835 100%
			2571836 100%
			2571837 100%
			2571838 100%
			2571839 100%
			2571840 100%
			2571841 100%
			2571842 100%
			2571843 100%
			2571844 100%
			2571845 100%
			2571846 100%
			2571847 100%
			2571848 100%
			2571849 100%
			2571850 100%
			2571851 100%
			2571852 100%
			2571853 100%
			2571854 100%
			2571855 100%
			2571856 100%
			2571857 100%
			2571858 100%
			2571859 100%
			2571860 100%
			2571861 100%
			2571862 100%
			2571863 100%
			2571864 100%
			2571865 100%
			2571866 100%
			2571867 100%
			2571868 100%
			2571869 100%
			2571870 100%
			2571871 100%
			2571872 100%
			2571873 100%
			2571874 100%
			2571875 100%
			2571876 100%
			2571877 100%
			2571878 100%

131

Sayona | Annual Report 2023

Tenement Schedule as at 30 September 2023

Canada (continued)

Project	Project	Tenement Interest
Troilus Claims Location Québec, Canada Commodity Lithium Total Claims 1,824	Troilus Claims Québec, Canada (continued)	2575778 100%
		2576046 100%
		2576047 100%
		2576048 100%
		2576049 100%
		2576050 100%
		2576051 100%
		2576052 100%
		2576053 100%
		2576054 100%
		2576055 100%
		2576056 100%
		2576057 100%
		2576058 100%
		2576059 100%
		2576060 100%
		2576061 100%
		2576062 100%
		2576063 100%
		2576064 100%
		2576065 100%
		2576066 100%
		2576067 100%
		2576068 100%
		2576069 100%
		2576070 100%
		2576071 100%
		2576072 100%
		2576073 100%
		2576074 100%
		2576075 100%
		2576076 100%
		2576077 100%
		2576078 100%
		2576079 100%
		2576080 100%
		2576081 100%
		2576082 100%
		2576083 100%
		2576084 100%
		2576085 100%
		2576086 100%
		2576087 100%
		2576088 100%
		2576089 100%
		2576090 100%
		2576091 100%
		2576092 100%
		2582568 100%

132

Operating and Financial Financial Additional Review Governance Report Information

Shareholder Information

Securities Exchanges

As at 30 September 2023, Sayona Mining Limited has a primary listing on the Australian Securities Exchange (ASX Code: SYA) and a secondary listing on the OTCQB Venture Market in the United States (OTCQB Code: SYAXF).

Share Ownership

Voting Rights

Ordinary shares in Sayona Mining Limited carry voting rights of one vote per share. Options and rights to shares in Sayona Mining Limited do not carry voting rights until the options have been exercised or rights have vested and converted to ordinary shares, at which point they will carry voting rights of one vote per share.

Distribution of Shareholdings

The following table shows the distribution of Sayona Mining Limited shareholders by size of shareholding, number of shareholders and number of shares as at 30 September 2023:

	Number of	Number of	Percentage of
Size of holding	shareholders	shares	shares on issue
1 – 1,000	463	103,565	0.00
1,001 – 5,000	9,063	29,685,787	0.29
5,001 – 10,000	7,403	58,117,761	0.56
10,001 – 100,000	20,955	803,648,392	7.81
100,001 and over	7,974	9,401,740,509	91.34
Total	45,858	10,293,296,014	100.00

As at 30 September 2023, there were 9,928 shareholders holding less than a marketable parcel (A$500) of shares in Sayona Mining Limited based on the closing market price of A$0.093.

Distribution of Rights Holdings

The following table shows the distribution of rights holders in Sayona Mining Limited by size of rights holding, number of rights holders and number of rights as at 30 September 2023:

	Number of	Number of	Percentage of
Size of holding	rights holders	rights	rights on issue
1 – 1,000	-	-	-
1,001 – 5,000	-	-	-
5,001 – 10,000	-	-	-
10,001 – 100,000	-	-	-
100,001 and over	4	25,689,276	100.00
Total	4	25,689,276	100.00

Substantial Shareholders

As at 9 October 2023, Sayona Mining Limited had two substantial shareholders who, together with their associates, held 5% or more of the voting rights in Sayona Mining Limited, as notified to the Company under the Corporations Act:

	Date notice	Number of	Percentage of
Name	received	shares in notice	capital in notice
Piedmont Lithium	5 October 2023	1,249,806,231	12.14
State Street Corporation	9 October 2023	516,944,874	5.02

133

Sayona | Annual Report 2023

Shareholder Information

Share Ownership (continued)

Twenty Largest Shareholders in Sayona Mining Limited

The following table shows the twenty largest shareholders of ordinary shares in Sayona Mining Limited by number of shares and percentage of shares on issue as at 30 September 2023:

		Number of	Percentage of
Name		shares held	shares on issue
1.	Piedmont Lithium Limited	1,000,383,020	9.72
2.	HSBC CustodyNominees(Australia)Limited	739,867,626	7.19
3.	CiticorpNominees PtyLimited	679,187,381	6.60
4.	J P Morgan Nominees Australia PtyLimited	406,351,435	3.95
5.	AcuityCapital Investment Management PtyLtd	250,000,000	2.43
6.	Piedmont Lithium Inc	249,423,211	2.42
7.	BNP Paribas Noms PtyLtd	240,605,251	2.34
8.	BNP Paribas Nominees PtyLtd ACF Clearstream	193,728,747	1.88
9.	CropanlyPtyLtd	149,709,011	1.45
10.	Bond Street Custodians Limited	105,581,028	1.03
11.	TerryjoyPtyLtd	105,571,221	1.03
12.	Troilus Gold Corp	74,731,797	0.73
13.	BNP Paribas Nominees PtyLtd	72,019,157	0.70
14.	Bond Street Custodians Limited	68,007,044	0.66
15.	HSBC CustodyNominees(Australia)Limited – A/C 2	65,495,290	0.64
16.	P Point PtyLtd	61,262,616	0.60
17.	Mr Robert Veitch + Mrs Elaine Veitch	58,984,068	0.57
18.	National Nominees Limited	50,877,626	0.49
19.	Finclear PtyLtd	47,739,259	0.46
20.	Mr Allan Charles Buckler	41,326,435	0.40
Top 20 Holders of Ordinary Fully Paid Shares in Sayona Mining Limited		4,660,851,223	45.28
Total Remaining Holders Balance		5,632,444,791	54.72

Restricted Securities

As at 30 September 2023, Sayona Mining Limited does not have any restricted securities on issue.

Share Registry

Registers of securities are held at the following address:

Computershare Investor Services Pty Limited Level 1, 200 Mary Street Brisbane, Queensland 4000 Australia

Alternatively, shareholders can access their current holding details, view their transaction history, download statements and documents, change their address, update their communication preferences and banking details, and check their tax details online via Computershare’s Investor Centre at www.computershare.com.

Further information regarding our share registry is included in the Corporate Directory on the inside back cover.

Electronic Communications

Shareholders are encouraged to access all Sayona communications electronically. Shareholders that wish to receive electronic communications can update their preferences online or by telephoning the relevant Computershare Investor Centre.

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Glossary

Abbreviations and Terms

CLM

Consolidated Lithium Metals Inc.

AASB

Australian Accounting Standards Board.

Abitibi-Témiscamingue

Region in Québec, Canada comprising the North American Lithium (NAL) operation, Authier Lithium Project, Tansim Lithium Project, and Vallée Lithium Project.

AGM

Annual General Meeting.

Company

Sayona Mining Limited, unless otherwise stated.

Competent Person

A minerals industry professional who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy (AusIMM), or the Australian Institute of Geoscientists (AIG), or a ‘Recognised Professional Organisation’, as listed on the JORC and ASX websites. These organisations have enforceable disciplinary processes, including the powers to suspend or expel a member.

AIG

Australian Institute of Geoscientists.

ASIC (Australian Securities and Investments Commission)

Australian Government agency that enforces laws relating to companies, securities, financial services and credit in order to protect consumers, investors and creditors.

ASX (Australian Securities Exchange)

A multi-asset class, vertically integrated exchange group that functions as a market operator, clearing house and payments system facilitator. The ASX oversees compliance with its operating rules, promotes standards of corporate governance among Australia’s listed companies, and helps educate retail investors.

ASX Listing Rules

The rules governing the listing of an entity and the quotation of its securities on the ASX.

working with the style of mineralisation or type of deposit under consideration and relevant to the activity which that person is undertaking (JORC Code).

Consolidated Group

Sayona Mining Limited and its controlled entities, unless otherwise stated.

Contractor

An individual or company contracted by Sayona to do work on its behalf and under its control with respect to location, work practices and application of health and safety standards.

Corporations Act

Corporations Act 2001 (Cth).

COVID-19

AusIMM

The Australasian Institute of Mining and Metallurgy.

BAPE

Bureau d’audiences publiques sur l’environnement.

The process of physically separating ore from gangue to produce a mineral concentrate prior to subsequent processing.

Biodiversity

The variety of life on Earth – the different animals, plants and microorganisms, their genetic diversity, and the ecosystems of which they are a part.

An infectious disease caused by the SARS-CoV-2 virus.

Cut-off Grade

The lowest grade (or quality) of mineralised material that qualifies as economically mineable and available in a given deposit. It may be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification (JORC Code).

Decarbonisation

Avoiding or reducing the greenhouse gas emissions associated with an activity.

DFS

Board

The Board of Directors of Sayona Mining Limited.

EBIT

Earnings before interest and tax.

An exploration or development project located within an existing mineral province, which is able to share infrastructure and management with an existing operation.

CEO

CFO

CIF (Cost, Insurance and Freight)

cost and risk between buyer and seller, in which the buyer assumes all risks and costs for unloading the goods and clearing the goods for import. The seller is responsible for clearing the goods for export and bears the cost of freight and insurance to the port of destination. Risk passes from seller to buyer once the goods are on board the vessel at the port of shipment.

EBITDA

Earnings before interest, tax, depreciation and amortisation.

Eeyou Istchee James Bay

Region in Québec, Canada comprising the Lac Albert Lithium Project, Moblan Lithium Project and Troilus Claims.

Employee

Any person in full-time, part-time or casual employment, engaged by Sayona on a temporary or permanent basis pursuant to a contract of service.

EPS

Earnings per share.

ESG

Environmental, social and governance.

ESIA

Environmental and Social Impact Assessment.

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Glossary

Executive KMP

Key Management Personnel (KMP) comprising the Chief Executive Officer, Chief Financial Officer and Chief Executive Officer, Sayona Canada. Executive KMP does not include Non-Executive Directors.

Exploration Results

Data and information generated by mineral exploration programs that might be of use to investors but which do not form part of a declaration of Mineral Resources or Ore Reserves (JORC Code).

Flotation

using a froth created in water by specific reagents. In the flotation process, certain mineral particles are induced to float by becoming attached to bubbles of froth whilst the unwanted mineral particles sink.

Indicated Mineral Resource

That part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.

Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to assume geological and grade (or quality) continuity between points of observation where data and samples are gathered.

that applying to a Measured Mineral Resource and may only be converted to a Probable Ore Reserve (JORC Code).

FOB (Free On Board)

cost and risk between buyer and seller, in which the buyer assumes all risks and costs for goods once the goods are on board the vessel at the port of shipment, including the cost of freight and insurance. The seller is responsible for clearing the goods for export and loading them on board the vessel at the port of shipment.

FTS (Flow Through Share)

A type of common share that permits the original investor to claim a tax deduction equal to the amount invested.

the tax deductibility of eligible exploration and development activity conducted in Canada to investors.

Inferred Mineral Resource

That part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. (JORC Code).

FX

Foreign exchange.

ISSB

International Sustainability Standards Board.

GST

Goods and Services Tax.

Grade

Any physical or chemical measurement of the characteristics of the material of interest in samples or product (JORC Code).

An exploration or development project that refers to a new venture or operation, without any association or proximity to an existing operation.

JORC (Joint Ore Reserves Committee)

A committee comprising representatives of each of the three parent bodies – The Minerals Council of Australia (MCA), The Australasian Institute of Mining and Metallurgy (AusIMM), and the Australian Institute of Geoscientists (AIG), as well as representatives of the Australian Securities Exchange (ASX), the Financial Services Institute of Australasia (FinSIA) and the accounting profession, and an observer from the Association of Mining and Exploration Companies (AMEC).

JORC Code

GRI (Global Reporting Initiative)

An independent organisation that has established a global framework and standards for sustainability reporting.

Groundwater

Water beneath the earth’s surface, including beneath the seabed, which fills pores or cracks between porous media such as soil, rock and sand, often forming aquifers.

The 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves, prepared by the JORC.

KMP (Key Management Personnel)

People who have authority and responsibility for planning, directing and controlling the activities of Sayona, either directly or indirectly.

Li2CO3

Group

Sayona Mining Limited and its controlled entities, unless otherwise stated.

Lithium carbonate.

Li2O

Lithium oxide.

IASB

International Accounting Standards Board.

LiOH Lithium hydroxide.

IFC

International Finance Corporation.

IFRS (International Financial Reporting Standards)

Accounting standards as issued by the International Accounting Standards Board (IASB).

LOM (Life of Mine)

The period in which Total Ore Reserves are expected to be extracted through planned mining activities.

LTI

Long-term incentive.

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Glossary

MAC

Mining Association of Canada.

Measured Mineral Resource

That part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit.

Geological evidence is derived from detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to confirm geological and grade (or quality) continuity between points of observation where data and samples are gathered.

NPV

Net present value.

Open Pit

Surface mining activity in which the working area is kept open to the sky.

Ore Reserve

The economically mineable part of a Measured Mineral Resource or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified (JORC Code).

OTCQB

that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proved Ore Reserve or, under certain circumstances, a Probable Ore Reserve (JORC Code).

MERN

Ministere de I'Energie et des Ressources Naturelles.

Mineral Reserve

OTCQB Venture Market.

Probable Ore Reserve

The economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying to a Proved Ore Reserve (JORC Code).

Proved Ore Reserve

The economically mineable part of a Measured Mineral Resource. A Proved Ore Reserve implies a high degree of confidence in the Modifying Factors (JORC Code).

QST

Québec Sales Tax.

Recovery

Mineral Resource

A concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade (or quality) and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories (JORC Code).

The percentage of material of interest that is extracted during mining or processing; a measure of mining or processing efficiency.

Reserve Life

The period in which Total Ore Reserves are expected to be extracted through planned mining activities.

ROM (Run of Mine)

Product mined in the course of regular mining activities. Tonnes include allowances for diluting materials and for losses that occur when the material is mined.

Mineralisation

Any single mineral or combination of minerals occurring in a mass or deposit of economic interest. The term is intended to cover all forms in which mineralisation might occur, whether by class of deposit, mode of occurrence, genesis or composition (JORC Code).

Mining

All activities related to the extraction of metals, minerals and gemstones from the earth, whether surface or underground, and by any method.

S&P

Standard and Poor’s.

SASB (Sustainability Accounting Standards Board)

financial impacts of sustainability.

Sayona

Sayona Mining Limited and its controlled entities, unless otherwise stated.

Modifying Factors

Considerations used to convert Mineral Resources to Ore Reserves including, but not limited to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors (JORC Code).

NAL

North American Lithium.

NSR (Net Smelter Return)

Revenue derived from the sale of products and concentrates following the application of metallurgical recoveries, less any allowable deductions such as transport costs, treatment charges, refining charges, penalties, freight and royalties.

STI

Short-term incentive.

Stockpile

An accumulation of ore or mineral built up when demand slackens or when the treatment plant or beneficiation equipment is incomplete or temporarily unable to process the mine output; any heap of material formed to create a buffer for loading or other purposes, or material dug and piled for future use.

Surface Water

All water naturally open to the atmosphere including rivers, lakes, creeks and external water dams but excluding water from oceans, seas and estuaries (e.g. precipitation and runoff including snow and hail).

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Glossary

Sustainable Development

Activity that supports the needs of the present without compromising the ability of future generations to meet their own needs.

Tailings

The portions of washed or milled ore that are too poor to be treated further, or remain after the required metals and minerals have been extracted.

Units of Measure

%

percentage or per cent

AUD, A$ or $

Australian dollars

CAD or C$

Canadian dollars

TCFD

Task Force on Climate-Related Financial Disclosures.

TNFD

Task Force on Nature-Related Financial Disclosures.

dmt

dry metric tonnes

ha

hectare

Total Mineral Resources

The sum of Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources.

Total Ore Reserves

The sum of Proved Ore Reserves and Probable Ore Reserves.

TRIFR (Total Recordable Injury Frequency Rate)

The sum of recordable injuries multiplied by 1,000,000, divided by exposure hours for employees and contractors. TRIFR is stated in units per million hours worked.

km

kilometre

kt

thousand tonnes

ktpa

thousand tonnes per annum

kwmt

thousand wet metric tonnes

TSM (Towards Sustainable Mining)

A globally recognised performance system that helps mining companies evaluate and manage their environmental and social responsibilities.

m

metre

Mt

TSR (Total Shareholder Return)

The return delivered to shareholders over a certain period through the change in share price and any dividends paid.

million tonnes

t tonnes

TSX

Toronto Stock Exchange.

Underground

Underground mining activity in which the working area is below the surface of the earth.

Undue Barriers

A situation of cumulative and dynamic inequality resulting from workplace interactions, practices, decisions or behaviours, whether individual or institutional, that have adverse effects, intended or unintended, on members of groups covered by section 10 of the Charter of Rights and Freedoms.

tpa tonnes per annum

tpd tonnes per day

tph tonnes per hour

USD or US$ United States dollars

employment opportunities of racialised minorities or ethno-racial discrimination in hiring, such as the decision to reject a candidate based on origin, race or colour, whether consciously or not.

UNSDG (United Nations Sustainable Development Goals)

Sustainable development goals adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity.

Wet Metric Tonnes

Production is often quoted in terms of wet metric tonnes (wmt). To adjust from wet metric tonnes to dry metric tonnes (dmt), a factor is applied based on moisture content.

Yield

The percentage of material of interest that is extracted during mining or processing; a measure of mining or processing efficiency.

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Operating and Financial Review

Financial Additional Governance Report Information

Notes

Sayona | Annual Report 2023 139

Notes

140

Operating and Financial Review Governance

Financial Additional Report Information

Corporate Directory

��m�any

Say�na Minin� Limite�

ABN 26 091 951 978

The ��m�any is liste� �n the Australian Se�urities Ex�han�e (ASX) ASX ��e: SYA

The ��m�any is �u�te� �n the �T��B Venture Market (�T��B) �T��B ��e: SYAXF

�ire�t�rs

Mr James Br�wn

�ffi�e L��ati�ns

Bris�ane �ffi�e (Re�istere� �ffi�e)

Level 28, 10 Ea�le Street Bris�ane, �ueenslan� 4000 Australia

�P� B�x 1638 Bris�ane, �ueenslan� 4001 Australia

Tele�h�ne: +61 7 3369 7058 Email: inf�@say�naminin�.��m.au We�site: www.say�naminin�.��m.au

Exe�utive �ire�t�r an� Interim �hief Exe�utive �ffi�er

M�ntréal �ffi�e

Mr Allan Bu�kler

N�n-Exe�utive �ire�t�r

Mr Paul �rawf�r�

1100, ��ul. Rene-Léves�ue �uest Bureau 1230 M�ntréal, �ué�e� H3B 4N4 �ana�a

Exe�utive �ire�t�r an� �hief Finan�ial �ffi�er

We�site: www.say�na.�a

Mr Phili� Lu�as

N�n-Exe�utive �ire�t�r

Au�it�r

Exe�utive Lea�ershi� Team

Mr James Br�wn

Exe�utive �ire�t�r an� Interim �hief Exe�utive �ffi�er

Mr Paul �rawf�r�

Nexia Bris�ane Au�it Pty Lt�

Level 28, 10 Ea�le Street Bris�ane, �ueenslan� 4000 Australia

Tele�h�ne: +61 7 3229 2022

Exe�utive �ire�t�r an� �hief Finan�ial �ffi�er

Mr �uy Belleau

Lawyer

�hief Exe�utive �ffi�er, Say�na �ana�a

��m�any Se�retary

�RT Lawyers Level 27, 111 Ea�le Street Bris�ane, �ueenslan� 4000 Australia

Mr Paul �rawf�r�

Tele�h�ne: +61 7 3309 7000

Share Re�istry

��m�utershare Invest�r Servi�es Pty Limite� Level 1, 200 Mary Street Bris�ane, �ueenslan� 4000 Australia

Tele�h�ne: 1300 850 505 (within Australia) +61 3 9415 4000 (�utsi�e Australia) Fa�simile: +61 3 9473 2500 We�site: www.��m�utershare.��m

www.sayonamining.com.au

Sayona | Annual Report 2023 141

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say�naminin�.��m.au

AI assistant

ELEVRA LITHIUM LIMITED — Annual Report 2023

64838_rns_2023-10-30_d82f74b9-c403-41d7-9c5d-420ce31e63ea.pdf

About Sayona

About this Report

Forward-Looking Statements

Non-IFRS Measures

Acknowledgement

Contents

Overview

Operating and Financial Review

Governance

Financial Report

Additional Information

Portfolio development transforms outlook

Corporate

ASX/S&P 200 Index

17%

Strong balance sheet

Troilus acquisition

Operations

Production restart

33,120 dmt

Exploration

70.9 Mt

33,757 m

Project Development

NAL – $2.2B NPV

Carbonate – $3.2B NPV

A transformative year for Sayona

Successful NAL Restart

Lithium Carbonate Study

Expansion of Moblan Lithium Project

Investor Support

Growth Strategy

Operating and Financial Review

International portfolio of high quality lithium assets

Eeyou Istchee James Bay Hub

Abitibi-Témiscamingue Hub

Vallée Lithium Project

Pr��u�in� minerals �riti�al t� the

Our Purpose

Our Strategy

Optimise operations

Expand resource base

Develop assets

Strategic partnerships

Our Values

Integrity

Respect

Excellence

Our Guiding Principles

Strong balance sheet positions business for future growth

Highlights

Net Assets

Key Financial Metrics

North America’s leading hard rock lithium resource base

Abitibi-Témiscamingue Hub

North American Lithium

Operational Performance

33,120 dmt

58.0 Mt

226,000 wmt

Project Overview

Safety and Sustainability

Project Development

Exploration

FY24 Outlook

Authier Lithium Project

17.1 Mt

24

884 ha

Project Overview

Project Development

FY24 Outlook

Tansim Lithium Project

352

Project Overview

Project Development

FY24 Outlook

ELEVRA LITHIUM LIMITED Annual Report 2023