ELEVRA LITHIUM LIMITED — Capital/Financing Update 2023

May 25, 2023

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Not for release to US wire services or distribution in the United States

26 May 2023

A$200M PLACEMENT TO SPEED QUÉBEC LITHIUM PRODUCTION

Highlights

• Sayona announces the launch of a A$200 million underwritten placement at A$0.18 per share in a vote of confidence for Sayona’s expansion strategy

• Funds to bolster Sayona’s Québec lithium resources, speeding development of northern lithium hub and Abitibi lithium hub and including investment in downstream processing

• Sayona rapidly advancing North America’s leading hard rock lithium resource base, with production ramp‐up at North American Lithium (NAL) operation on track and drilling underway at Moblan Lithium Project.

North American lithium producer Sayona Mining Limited (ASX:SYA; OTCQB:SYAXF) has secured additional funding to speed development of its Québec lithium resources, with the launch of a fully underwritten A$200 million two tranche placement ( Placement ) at A$0.18 per share ( Offer Price ) to professional and sophisticated investors.

The Placement bookbuild will be conducted today, closing at 5pm (Sydney time) for the Southern Hemisphere and 9am (Sydney time) tomorrow for the Northern Hemisphere. Refer to the investor presentation lodged today with the ASX for further information.

Petra Capital is acting as sole lead manager, sole bookrunner and sole underwriter to the Placement. Desjardins Capital Markets acted as Co‐Managers to the Placement.

The Placement funding will expedite the development of Sayona’s emerging northern Québec lithium hub, centred on its Moblan Lithium Project, where a 60,000m drilling campaign is currently underway. A resource upgrade is anticipated following completion of the drilling, with feasibility studies continuing on a new mining operation located near established infrastructure and with potential for downstream processing.

SAYONA MINING LIMITED P +61 7 3369 7058 E info@sayonamining.com.au A Level 28, 10 Eagle Street, Brisbane QLD, 4000

sayonamining.com.au

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Sayona’s flagship NAL operation is continuing its production ramp‐up, with the new funding to support expedited mine development studies, assessment of downstream options including lithium carbonate production, and associated infrastructure planning. Additional spending is also anticipated on project infrastructure, with NAL forming the centre of Sayona’s Abitibi lithium hub.

Additional funding will be allocated towards drilling and assessment of the Company’s lithium and gold exploration portfolio in Western Australia’s highly prospective Pilbara region, including maiden drilling at the Mt Dove Gold Project, the closest Sayona lease to the Hemi discovery, and at the Tabba Tabba Lithium Project. The remaining funds will be used for working capital purposes, including corporate development and transaction costs.

Sayona’s Managing Director, Brett Lynch commented: “This funding will bolster Sayona’s balance sheet strength and accelerate the development of already North America’s leading hard rock lithium resource base, currently its only significant source of spodumene (lithium) production.

“The focus of the investment will be on fast‐tracking feasibility work to commence spodumene (lithium) production at our Moblan Lithium Project in 2027, also targeting the establishment of integrated downstream production facilities in Québec.

“The funding will also accelerate the ramp‐up of production and capacity at NAL, with further investment into planned lithium carbonate production, supporting Québec’s ambitions to become an integrated producer of battery materials.

“Our Western Australian gold and lithium assets also have great potential and we look forward to the results of exploration activity in 2023.

“Long‐term industry investors are clearly confident to support our growth strategy and I thank them for their support. This capital raise is designed at maximising speed of bringing tonnes to market over the coming years, critical to securing our position as North America’s leading lithium supplier.”

Placement Details

A fully underwritten two tranche Placement, to professional or sophisticated investors, of approximately 1,111 million shares, at A$0.18 per share, to raise A$200 million. The Offer Price of A$0.18 per share represents:

• 14.3 % discount to the last closing price (at 25 May 2023) of A$0.21.

• 18.8% discount to the 5 trading day volume weighted average trading price to 25 May 2023 of A$0.222; and

• 16.2% discount to the 15 trading day volume weighted average trading price to 25 May 2023 of A$0.215.

Under the Placement, Sayona will issue 940,384,891 shares, raising approximately A$169 million, under its remaining placement capacity under ASX Listing Rule 7.1. In addition, 170,726,221 shares will be issued, raising a further A$31 million, subject to shareholder approval at a general meeting of the Company to be held on or around 14 July 2023.

SAYONA MINING LIMITED P +61 7 3369 7058 E info@sayonamining.com.au A Level 28, 10 Eagle Street, Brisbane QLD, 4000

sayonamining.com.au

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The settlement date of tranche one of the Placement is 5 June 2023, with tranche one Placement shares expected to be allotted on 6 June 2023. Tranche two placement shares are expected to settle on 19 July 2023 and allot on 20 July 2023, subject to shareholder approval.

Use of Proceeds

Proceeds from the placement will be applied toward the following:

Proceeds from the placement will be applied toward the following:
	A$M
**Abitibi Hub1 **– capital expenditure on project infrastructure, assessment of
downstream lithium chemical production options at NAL, Authier Lithium Project	65
development and integration studies
**Northern Hub –**expedited mine development studies, downstream lithium chemicalassessment and infrastructure planning	40
**Western Australia –**drilling and assessment of Western Australia project areas	5
**Working capital2 –**production ramp‐up working capital (if required), corporate costsand development funds as required and transaction costs	90
Total Use of Funds	200

1 Includes a portion of additional expenditure on NAL infrastructure due to cost increases, primarily at the NAL crushed ore storage dome and NAL tailings storage facility.

[2] Initially a portion may be applied to NAL production ramp‐up working capital, if required. In addition, this will be applied to ongoing development initiatives for the Company’s projects. Once working capital has normalised, released working capital is also intended to be applied to similar development initiatives. Includes a portion of NAL restart capital including mining civil works, tailings site and infrastructure development and addition of back‐up electrical infrastructure.

Sayona also advises Paul Crawford intends to retire as CFO and Executive Director, effective 30 June 2023. Mr Crawford will continue serving as Company Secretary for a transitional period.

The Company is in the process of recruiting potential new Board members.

Issued on behalf of the Board.

For more information, please contact:

Brett Lynch Managing Director Email: info@sayonamining.com.au

For investor/media queries, contact:

Anthony Fensom, Republic PR Ph: +61 (0)407 112 623 Email: anthony@republicpr.com.au

SAYONA MINING LIMITED P +61 7 3369 7058 E info@sayonamining.com.au A Level 28, 10 Eagle Street, Brisbane QLD, 4000

sayonamining.com.au

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About Sayona Mining

Sayona Mining Limited is a North American lithium producer (ASX:SYA; OTCQB:SYAXF), with projects in Québec, Canada and Western Australia.

In Québec, Sayona’s assets comprise North American Lithium together with the Authier Lithium Project and its emerging Tansim Lithium Project, supported by a strategic partnership with American lithium developer Piedmont Lithium Inc. (Nasdaq:PLL; ASX:PLL). Sayona also holds a 60% stake in the Moblan Lithium Project in northern Québec.

In Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium. Sayona is exploring for Hemi‐style gold targets in the world‐class Pilbara region, while its lithium projects are subject to an earn‐in agreement with Morella Corporation (ASX:1MC).

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

Not an offer in the United States

This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws.

SAYONA MINING LIMITED P +61 7 3369 7058 E info@sayonamining.com.au A Level 28, 10 Eagle Street, Brisbane QLD, 4000

sayonamining.com.au