ELEVRA LITHIUM LIMITED — Investor Presentation 2017

Dec 11, 2017

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December 2017 ASX: SYA

Disclaimer

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Forward Looking Statements

This presentation 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 Limited’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. Sayona Limited undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation (subject to securities exchange disclosure requirements).The information in this presentation does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this presentation constitutes investment, legal, tax or other advice.

Reference To Previous ASX Releases

This presentation refers to the following previous ASX releases:

• Authier JORC Resource Expanded , 11 December 2017

• Authier Maiden JORC Ore Reserve, 11 December 2017

• Authier PFS, 11 December 2017

• Authier Downstream Concept Study Demonstrates Positive Economics, 30 August 2017

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and all material assumptions and technical parameters continue to apply and have not materially changed. The Company 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.

Downstream Concept Study

The Concept Study referred to in this announcement has been undertaken to determine the potential viability of downstream processing Authier concentrates into lithium carbonate and/or hydroxide. It is based on a low level technical and economic assessment and was based on the AACE International Recommended Practice No. 18R-97, as a Class 4 estimate. The study has not been used as the basis for the estimation of Ore Reserves. Further technical and economic assessment including, metallurgical testing, Feasibility Study and permitting will be required to provide any assurance or certainty of an economic development case.

The Concept Study is based on the mine and concentrator assumptions (includes Ore Reserves) outlined in the February 2017 Authier Pre-Feasibility Study, Authier Updated JORC Resource report (14 June 2017), a report prepared by Wave International on the downstream capital and operating costs, Appendix – Project Design Criteria, and other material assumptions outlined elsewhere in this document. Whilst the Company considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the outcomes indicated in the Concept Study will be achieved.

To achieve the potential downstream process plant development outcomes indicated in this Concept Study, additional funding will be required. Funding will be required to complete metallurgical testing ($100,000), feasibility studies and permitting (approximately $1,000,000) and development (approximately $223 to $240 million depending on whether it is a lithium carbonate or lithium hydroxide plant). Investors should note that there is no certainty that the Company will be able to raise the funding when needed. It is also possible that such funding may only be available at terms that may be too dilutive to or otherwise affect the value of Sayona shares. It is also possible that Sayona could pursue other ‘value realisation strategies such as sale, partial sale or joint venture of the project. If it does, this could materially reduce Sayona’s proportionate ownership of the project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Concept Study.

The Company has concluded it has reasonable basis for providing forward looking statements included in this announcement and believes that it has a reasonable basis to expect it will be able to continue funding the feasibility activities for the project.

Sayona Mining Limited, ASX: SYA

Sa ona - At a Glance y

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• Australian-based, ASX listed lithium exploration and development company

• Primary objective is to fasttrack development of the advanced Authier Lithium Project

• Targeting first production at Authier in late 2019

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Lithium development
Lithium exploration
Graphite exploration
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• Significant portfolio of lithium and graphite exploration properties in Australia

Sayona Mining Limited, ASX: SYA

Corporate Summary

Trading Exchange ASX: SYA Shares 1,462,229,614 19% Directors Shareholders 44% Top 20

Research Coverage

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Capitalisation Price As at 11 Dec 2017 4.3¢ Market cap AUD$64m Cash As at 10 Nov 2017 AUD$5.0m

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Sayona Mining Limited, ASX: SYA

Board

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James Brown

• 35 year’s experience including, 22 years with New Hope Corporation. Extensive mine development & operational experience

• Managing Director of Altura Mining - >$600m market cap

• 40 year’s experience building mining operations in Australia and Indonesia. Former Director and Chief Operations Officer for New

• Allan Buckler Hope Corporation

• Director of Altura Mining

• Geologist with 35 year’s experience in technical and corporate

• Dan O’Neill roles

• Foundin director of Orocobre Ltd. Director of Altura Minin g g

• CPA with 35 years public company experience

• Paul Crawford • Previously Company Secretary of companies including, Orocobre Ltd (founding director), Elementos and ActivEx

Sayona Mining Limited, ASX: SYA

Management

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Buildin in-house ca abilit across all technical disci lines g p y p

Corey Nolan CEO

• 24 years experience in exploration, development, operations and corporate finance

• Started and managed a number of resource companies with projects in a range of commodities and countries

Jonathon Gagne Canada Manager

• Mining Engineer with MBA and more than 10 years experience in operations and mine planning

• Joined Sayona from Glencore Zinc’s open-cut mine planning division

Authier Processing Engineer

• Appointment to be announced soon

Authier Project Manager

• Appointment to be announced soon

Sayona Mining Limited, ASX: SYA

Hard Rock Lithium Peer Universe

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- EV / Measured & Indicated Resources

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2500
2250
EV/Resource value is low 2000
1750
1500
1250
1000
750
500
250
$378 $ 475 $ 648 $ 665 $ 853 $ 1223 $ 1364 $ 1754 $ 1842 $ 2089 $ 2941 0
Enterprise Value Per tonne of Measured and Indicated Li20 Resource ($A million)
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Sayona Mining Limited, ASX: SYA

Sa ona Si nificantl Undervalued y g y

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		$529M	$846M	$647M	$1195M
	$358M		$89M $256M	$1524M $1381M
			$128M	$217M
	$205M		$64M $106M
		$84M
$83M	$41M
Exploration			Appraisal	Development	Production

Sayona Mining Limited, ASX: SYA

Authier Lithium Project

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• Located 45km from Val d’Or in Quebec, Montreal

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• Hard-rock, spodumene lithium deposit

• 100% owned

• 26,000m of drilling

• Base-line environmental completed

• Well studied – PEA 2012, PFS 2017, 4-phases of metallurgy

Sayona Mining Limited, ASX: SYA

Authier First Phase Develo ment p

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Simple, low-cost, truck and shovel, open-cut mining operation Conventional concentrator producing 96kt/yr of 6% Li20 concentrate Definitive Feasibility Study commenced. Targeting completion 2Q2018 Permitting and environmental to be completed early 2018 Base case mine life 17-years

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Low capital hurdle and competitive operating cost

First Phase Development based on a Fast Track Permitting Regime

Sayona Mining Limited, ASX: SYA

Authier Growth and Ex ansion O tions p p

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1. Increase Production Capacity &/or Resource Size

• Increase plant capacity to sell more concentrates and shorten minelife to maximise NPV

• Further drilling to expand resource base (Phase 3 underway)

2. Integrated Refinery Model

• Convert Authier concentrates into lithium hydroxide or carbonate

• Scoping study completed – attractive economics

• Leverages world-class infrastructure and low energy costs in Quebec

• PFS and metallurgical test work to commence next quarter

• Site selection process underway

Growth O tions Funded from Phase 1 Concentrate Sales p

Sayona Mining Limited, ASX: SYA

2017 Pre-Feasibility Study Outcomes

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AUD $ million 65

US $327 /t

Pre-Tax NPV (8% real) AUD$ 227 m Pre-Tax IRR 56 % Capital Payback 2.5 years Ave Annual EBITDA AUD$ 38 m Ave Operating Margin US$ 287 /t Price Forecast US$ 614 /t

Sayona Mining Limited, ASX: SYA

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Maiden JORC Ore Reserve

Tonnes Grades Contained (Mt) (Li20) (Li20) PROVEN 4.9 0.97% 47,821

PROBABLE 5.3 1.06% 55,904

TOTAL 11.6 1.02 % 102,725

The Ore Reserve has been estimated and reported in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012) at a 0.45% Li20 cut-off grade

Sayona Mining Limited, ASX: SYA

Sim le O en-Cut Minin O eration p , p g p

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        - Simple Mining Method

        - **Truck and shovel** operation

     - Competitive Mining Costs A$ **3.23/tonne** average LOM

  - Low Capex

  - Mining Fleet **Leased**

• Conservative geotechnical °

• assumptions – 55 pit slope

• Life-of-Mine - 17 years

• Large, thick tabular body

• LOM waste to ore ratio 6.95:1

Sayona Mining Limited, ASX: SYA

Conventional Process Flow-Sheet

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•  - Conventional process flow-sheet - **crush, grind and flotation**
  

  • Cash Operating Costs

  • A$19.40/t ore life-of-mine

  • 82% recovery to a

  • 6.00% Li2O concentrate

• 700,000 tpa processing capacity

• 96 Kt/yr Li2O concentrate

• Dry Tailings simplifies approvals

Sayona Mining Limited, ASX: SYA

Authier Project Site Layout

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Sayona Mining Limited, ASX: SYA

World-Class Infrastructure

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km 5 Low cost hydro power & gas

km 5

Sealed road access

20 km

Rail access to export port

Experienced local mining workforce

Major new hub of lithium carbonate production Electricity 5 ¢ kWh Gas < $ 3 /GJ

Sayona Mining Limited, ASX: SYA

Off-take & Financing

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MOU signed with Huan Changuan Lico Co Ltd - a subsidiary of Fortune 500 company, Minmetals Group – a battery materials manufacturer Strategic alliance to explore marketing, technical, and financial development options for the Authier lithium project MOU contemplates Changuan purchasing all the Authier concentrate production and assessing potential for downstream processing

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Sayona Mining Limited, ASX: SYA

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Mineral Resource

Tonnes Grades Contained (Mt) (Li20) (Li20) MEASURED 5.86 1.01% 59,186

1.03% 104,957

10.19

INDICATED

0.99% 22,796 1.02 % 186,939

2.20

INFERRED

18.1

TOTAL

The resource has been estimated and reported in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012) at a 0.45% Li20 cut-off grade. Sayona Mining Limited, ASX: SYA

Phase 3 Drilling Targeting Resource Expansion

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3,000 – 4,000 metres Drilling Program Objectives

• Upgrading the Mineral Resources categories

• Expand the Northern pegmatite  Converting mineral resources to reserves

• Exploring for extensions to the mineralisation

• Collecting geotechnical data for Definitive Feasibility Study

• Metallurgical testing

Sayona Mining Limited, ASX: SYA

Integrated Refinery Model

Concentrate Sales Strategy

Sell lower-value concentrates to battery converters in Canada or China Concentrate sells at >US$ 750 /t

Why go downstream?

• Substantially higher margins than concentrate operations

• Much higher prices for value-added products

• Significantly higher NPV’s

• Opportunity to create significantly more shareholder value

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Integrated Refinery Strategy

Sell value-added lithium products to battery manufacturers

Lithium hydroxide sells for >US$18,000/t

Quebec location advantages

• Low-cost energy

• Skilled low-cost, workforce

• • Close to the US battery markets

• • Favourable taxation regime

• Reagents readily available

Sayona Mining Limited, ASX: SYA

Integrated Refinery Model

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Authier Downstream Processing Financial Highlights* (Approximate Values Derived from the Scoping Study)

Description	Unit	Lithium Carbonate	Lithium Hydroxide
Annual Production Capacity	Tonnes	13,000	14,000
Ave Cash operatingCosts*	C$per tonne	6,331	6,032
Ave Cash OperatingCosts*	US$per tonne	4,812	4,585
Price forecast	US$per tonne	10,200	12,000
Initial Capital#	C$ million	223	240
Total Capital#	C$ million	284	301
Pre-tax NPV@ 9%DR	C$ million	426	794
Pre-Tax IRR	%	31	44
Exchange rate	CAD$:US$	0.76	0.76

• Cash Operating Costs includes mining, processing, administration, royalties, transport, and downstream processing

• Capital expenditure includes all mine, concentrator and downstream process plant

• Please see Scoping Study disclaimer on page 2 and ASX release, “Downstream Study Demonstrates Positive Economics”, 30 August 2017

Sayona Mining Limited, ASX: SYA

Authier Development Timetable

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	Milestones	2017	2017		2018	2018	2018	2019	2019	2019	2019	2020	2020
		Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
	PFS Update
	Environmental
	Mining Lease
	Pilot Metallurgy
	Definitive Feasibility Study
	Engineering & Design
	Off-take
	Finance
	Construction
	Operation
	Downstream Concept study
	Downstream Testing
	Downstream Studies

Sayona Mining Limited, ASX: SYA

Investment Highlights

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Authier is an advanced, de-risked project. DFS underway

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Executing a plan to get into production and generate cash flow – low capital hurdle & competitive operating costs

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Located in a first world country with access to world-class, low-cost infrastructure

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Integrated refinery model provides an opportunity to value-add Authier concentrates and create significant shareholder value

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Base case pre-tax NPV of A$227 million and low enterprise value per tonne of resources compared to industry peers

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Board and management team have track record of delivering projects

Sayona Mining Limited, ASX: SYA

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ACN 091 951 978 Suite 68, 283 Given Terrace Paddington, Queensland, 4064 Brisbane, Australia Ph: +61 7 3369 7058 info@sayonamining.com.au