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ELEVRA LITHIUM LIMITED Capital/Financing Update 2020

Aug 5, 2020

64838_rns_2020-08-05_b23857ad-3b67-4737-8764-f0cab86be7da.pdf

Capital/Financing Update

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6 August 2020

SAYONA EXPANDS TANSIM PROJECT AMID QUÉBEC LITHIUM DRIVE

Highlights

  • Sayona expands Tansim Lithium Project, Québec to 15,998 hectares with addition of 39 claims spanning 2,234 hectares of prospective lithium acreage

  • Move strengthens Sayona’s plans for development of new lithium hub in Abitibi, encompassing Authier Lithium Project, Tansim and North American Lithium (subject to successful bid)

  • Québec lithium sector picking up speed, with analysts pointing to economic, strategic and environmental benefits of province as key supply source for North American battery market

Emerging lithium miner Sayona Mining Limited (ASX:SYA; OTC:DMNXF) announced today the expansion of its emerging Tansim Lithium Project, with the Company acquiring an additional 39 claims spanning 2,234 ha amid the resurgence of Québec’s lithium sector.

The Tansim project now comprises 282 mineral claims encompassing 15,998 ha of prospective lithium acreage (including claims 100% owned and some under option agreements – refer appendix), with the project located around 80 kilometres south‐west of Sayona’s flagship Authier project.

Previous exploration by Sayona since 2018 has highlighted the project’s potential to host a valuable new lithium deposit. Drilling conducted last year resulted in an Exploration Target (refer note below) for the Viau‐Dallaire prospect of between 5 million and 25 million tonnes, at an estimated grade of 1.2 – 1.3% Li2O (refer ASX release 19 November 2019).

A recent surface reconnaissance survey has highlighted a potential eastern extension of the mineralised pegmatite trend within the new mineral claims, marked by outcropping pegmatites with potential lithium mineralisation.

Note: The potential quantity and grade of the Exploration Target is conceptual in nature and is therefore an approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

SAYONA MINING LIMITED P +61 7 3369 7058 E [email protected] A Suite 68, 283 Given Tce, Paddington QLD

sayonamining.com.au

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Following its recent successful fund‐raising (refer ASX announcement 22 July 2020), Sayona plans to undertake further exploration work at Tansim, including reconnaissance sampling at the new mine tenure area and Phase 2 drilling at the Viau‐Dallaire prospect, where a 2,000m drilling program will test the Exploration Target defined after Phase 1 drilling.

Sayona’s Managing Director, Brett Lynch said the project could form part of the Company’s planned strategic lithium hub for Abitibi, including the Authier project and potentially North American Lithium (NAL) (subject to a successful bid by the Company).

“While Tansim is still at an early stage, initial results have been promising and we look forward to exploring the project’s potential further,” he said.

“Tansim’s geographical proximity to Authier and NAL would allow it to form part of a lithium hub of three spodumene mines supplying a central concentrator, enabling Sayona to become a world‐scale spodumene producer supplying the North American battery sector.”

The expanded acreage at Tansim also follows research showing Québec’s advantages as the economic, strategic and environmental supplier of choice for the North American battery market. Research by EY‐ Parthenon has shown that Québec can deliver lithium hydroxide to Cleveland, USA at least 20% cheaper than alternative overseas suppliers, while on a CO2 emissions basis Québec projects are by far the ‘greenest’ and most efficient source of lithium supply.

Strategically, Canada is already a key supplier of critical minerals to the United States, with the growing production of electric vehicles and accompanying battery production providing increasing markets for lithium hydroxide. North America requires an additional 10 x 20 kilotonne (Kt) hydroxide processing “trains” and 12 x 150Kt spodumene mines by 2030 just to satisfy its EV demand, according to the analysis.

Québec’s competitive advantages also include access to economical and environmentally sustainable hydropower, together with world‐class infrastructure and skilled mining labour in a transparent regulatory environment.

The current transformation of the province’s lithium industry, including the court‐ordered restructuring of Nemaska Lithium together with NAL, should further enhance its long‐term sustainability and profitability.

“Sayona is confident that Québec’s advantages will make it a winner in this key industry of the 21[st] century,” Mr Lynch said.

“Our expansion plans both in Canada and Australia will ensure our Company emerges from this revival with some outstanding assets and we look forward to unlocking their potential for the benefit of all stakeholders.”

This announcement is authorised by Sayona’s Board of Directors.

‐END‐

SAYONA MINING LIMITED P +61 7 3369 7058 E [email protected] A Suite 68, 283 Given Tce, Paddington QLD

sayonamining.com.au

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Figure 1: Sayona’s Tansim project, including active claims and those under option

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Figure 2: Pegmatite outcrop with potential lithium mineralisation in one of the new claims

SAYONA MINING LIMITED P +61 7 3369 7058 E [email protected] A Suite 68, 283 Given Tce, Paddington QLD

sayonamining.com.au

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Figure 3: Hand samples of coarse grain pegmatite with potential lithium mineralisation within new claims

For more information, please contact:

Brett Lynch, Managing Director

Phone: +61 (7) 3369 7058 Email: [email protected]

For media queries, please contact:

Anthony Fensom, Republic PR [email protected]; +61 (0)407 112 623

About Sayona Mining

Sayona Mining Limited is an emerging lithium miner (ASX:SYA), with projects in Québec, Canada and Western Australia. In Québec, Sayona is progressing a bid for the North American Lithium mine with the backing of a world‐class support team, while advancing its flagship Authier Lithium Project and its emerging Tansim project.

SAYONA MINING LIMITED P +61 7 3369 7058 E [email protected] A Suite 68, 283 Given Tce, Paddington QLD

sayonamining.com.au

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In Western Australia, the Company has an earn‐in agreement with leading lithium producer Altura Mining concerning its lithium and gold exploration portfolio in the Pilbara.

For more information, please visit us at www.sayonamining.com.au

COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results is based on information compiled by Dr Gustavo Delendatti, a member of the Australian Institute of Geoscientists. Dr Delendatti is an independent consultant, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which it is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition) of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.‟

Dr Delendatti was responsible for the design and conduct of this exploration drilling campaign, supervised the preparation of the technical information in this release and has relevant experience and competence of the subject matter. Dr Delendatti, as competent person for this announcement, has consented to the inclusion of the information in the form and context in which it appears herein.

SAYONA MINING LIMITED P +61 7 3369 7058 E [email protected] A Suite 68, 283 Given Tce, Paddington QLD

sayonamining.com.au

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APPENDIX

TANSIM PROJECT – TENEMENT SCHEDULE

Tenement Id Interest Tenement Id Interest Tenement Id Interest Tenement Id Interest
1133877 50% 2440851 50% 2440935 50% 2519275 100%
2415443 50% 2440852 50% 2440936 50% 2519276 100%
2415444 50% 2440853 50% 2440991 100% 2519277 100%
2436732 50% 2440854 50% 2440992 100% 2519278 100%
2436733 50% 2440855 50% 2440993 50% 2519279 100%
2436734 50% 2440856 50% 2440994 50% 2519280 100%
2438472 50% 2440857 50% 2450758 50% 2519281 100%
2438473 50% 2440858 50% 2519251 100% 2519282 100%
2438474 50% 2440859 50% 2519252 100% 2519283 100%
2438475 50% 2440860 50% 2519253 100% 2519284 100%
2438476 50% 2440890 50% 2519254 100% 2519285 100%
2438477 50% 2440891 50% 2519255 100% 2519286 100%
2438478 50% 2440892 50% 2519256 100% 2519287 100%
2438723 50% 2440893 50% 2519257 100% 2519288 100%
2440836 50% 2440894 50% 2519258 100% 2519289 100%
2440837 50% 2440895 50% 2519259 100% 2519290 100%
2440838 50% 2440896 50% 2519260 100% 2519291 100%
2440839 50% 2440897 50% 2519261 100% 2519292 100%
2440840 50% 2440898 50% 2519262 100% 2519293 100%
2440841 50% 2440899 50% 2519263 100% 2519294 100%
2440842 50% 2440900 50% 2519264 100% 2519295 100%
2440843 50% 2440901 50% 2519265 100% 2519296 100%
2440844 50% 2440902 50% 2519266 100% 2519297 100%
2440845 50% 2440903 50% 2519267 100% 2519298 100%

SAYONA MINING LIMITED P +61 7 3369 7058 E [email protected] A Suite 68, 283 Given Tce, Paddington QLD

sayonamining.com.au

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Tenement Id Interest Tenement Id Interest Tenement Id Interest Tenement Id Interest
2440846 50% 2440907 50% 2519268 100% 2519299 100%
2440847 50% 2440908 50% 2519269 100% 2519300 100%
2440848 50% 2440909 50% 2519270 100% 2519301 100%
2440849 50% 2440919 50% 2519271 100% 2519302 100%
2440850 50% 2440920 50% 2519272 100% 2519303 100%
2519306 100% 2519321 100% 2572680 100% 2572699 100%
2519307 100% 2519322 100% 2572681 100% 2572700 100%
2519308 100% 2519323 100% 2572682 100% 2572701 100%
2519309 100% 2519324 100% 2572683 100% 2572702 100%
2519310 100% 2572665 100% 2572684 100% 2572703 100%
2519311 100% 2572666 100% 2572685 100%
2519312 100% 2572667 100% 2572686 100%
2519313 100% 2572668 100% 2572687 100%
2519314 100% 2572669 100% 2572688 100%
2519315 100% 2572670 100% 2572689 100%
2519316 100% 2572671 100% 2572690 100%
2519317 100% 2572672 100% 2572691 100%
2519318 100% 2572673 100% 2572692 100%
2519319 100% 2572674 100% 2572693 100%
2519320 100% 2572675 100% 2572694 100%
2519321 100% 2572676 100% 2572695 100%
2519322 100% 2572677 100% 2572696 100%
2519323 100% 2572678 100% 2572697 100%
2519324 100% 2572679 100% 2572698 100%

SAYONA MINING LIMITED P +61 7 3369 7058 E [email protected] A Suite 68, 283 Given Tce, Paddington QLD

sayonamining.com.au