Sayona - JUNE 2022 QUARTERLY ACTIVITIES REPORT

Emerging lithium producer Sayona Mining Limited (ASX:SYA; OTCQB:SYAXF) is pleased to report on its Quarterly Activities and Cashflow for the June quarter 2022, highlighted by significant advances towards the recommencement of spodumene (lithium) production at the Company's North American Lithium (NAL) operation in Quebec, Canada.

Restart plans formally approved for NAL

In June 2022, a formal agreement was announced by Sayona Quebec Inc (SYA 75%; Piedmont Lithium (ASX:PLL) 25%) to restart spodumene concentrate production at NAL. The restart will feature significant operational upgrades totalling approximately CAD$98 million (~AUD$110 million) to improve product quality and plant utilisation.

Sayona has made significant steps to expedite the restart, having recruited key personnel, secured critical long lead equipment items, progressed detailed engineering design work and obtained nearly all of the required regulatory approvals. The NAL concentrator commissioning is projected for late Q3/early Q4 2022 with first production due in Q1, 2023. The restart of NAL operations will signal the start of revenue generation for Sayona, another step on its journey to becoming a leading North American lithium producer. Combined with the company's emerging northern lithium hub, NAL will ensure Quebec is at the centre of lithium carbonate production, becoming an axis on which a successful battery ecosystem can be built. As per the Company's agreement with the Quebec Government, Sayona is committed to the development of a downstream processing capability in Quebec, comprising lithium carbonate and/or lithium hydroxide production. Upon restart of operations, an offtake agreement with Piedmont will come into effect, whereby Piedmont is entitled to purchase the greater of 113,000 metric tons per year of spodumene concentrate or 50% of production from NAL.

Prior to the NAL restart, the agreement provided for offtake of 60,000 tonnes or 50% of concentrate produced from ore mined at Sayona's nearby Authier Lithium Project. This offtake agreement will remain in place until the commencement of operation of a lithium conversion plant in Quebec. At this point, spodumene concentrate produced from NAL will be preferentially delivered to that chemical plant upon the start of production. Any remaining concentrate not required by the conversion plant will be delivered to Piedmont.

Authier?NAL combined feasibility study

In May 2022, Sayona announced a positive pre?feasibility study (PFS) confirming NAL's technical and financial viability. Forming the key part of Sayona's Abitibi lithium hub comprising NAL, the nearby Authier Lithium Project and Tansim Lithium Project, the restored NAL operation and the Authier deposit, together with the Company's emerging northern Quebec hub, form North America's largest lithium (spodumene) resource base. This will allow Sayona to launch production ahead of other North American projects, generating sustainable cash flows and putting the Company on a fast track to go downstream into value?added lithium hydroxide or carbonate production.

Quebec is rapidly emerging as a leader in the battery sector, benefitting from its clean and sustainable hydropower, world?class infrastructure and proximity to market. At NAL, the overriding development objective is for the restart of production, with the benefit of supplementary ore feed from Sayona Quebec's (SYQ) wholly owned Authier project, located just 30 km from the NAL site. Initially, NAL will produce a lithium concentrate for general market conversion, however NAL will become a primary feed source for SYQ's integrated downstream refined lithium products. 3 Based on a substantially increased Mineral Resource Estimate, Sayona mandated BBA, an experienced Canadian engineering firm, to develop the PFS and Ore Reserves estimate for the NAL project and its integration with the Authier project. Key outcomes of the PFS included an estimated pre?tax NPV of C$952 million) (8% discount rate), a pre?tax IRR of 140% and capital payback period within two years. The life of mine has been extended to 27 years, based on an estimated JORC Proved and Probable Ore Reserves of 29.2 Mt @ 0.96% Li2O (Proved Reserve 1.2Mt @ 0.92% Li2O and Probable Reserve 28.0Mt @ 0.96% Li2O). This includes conservative allowances for non (or low) mineralised diluted material from the upper and lower contact of the pegmatite/mining horizon.

Sayona will implement a ROM (run?of?mine) ore stockpile management system whereby diluted material, lower grade ore and higher?grade feed will be segregated and managed via a stockpile management plan to ensure consistent feed to the plant. This will allow for production campaigns of similar material, providing the concentrate plant sufficient feed stock to maximise product recovery and grade.

The PFS has assessed strategic options for development, determined an economic open pit mine operation, production schedule and site layout for the preferred option. All works completed to date form the basis for progressing to a Definitive Feasibility Study (DFS), with a further refined overall accuracy of +/? 15%. Sayona plans to further tighten the overall accuracy via completion of the DFS, expected later in 2022. Following the acquisition of the NAL mine and concentrator, the Authier Lithium Project's operating strategy was revised to include only mining operations and waste and water management on?site. The Authier mine will serve as a supplementary or secondary mine and will deliver ore to NAL for processing. A memorandum of understanding (MOU) has been reached between the Authier operation and NAL, in which NAL agrees to buy 100% of the Authier ore material at a selling price of C$105/t, delivered to the NAL ore pad area.

The run?of?mine ore from Authier will be transported to the NAL site, where it will be blended with the NAL ore material and fed to the primary crusher. A project revision process was initiated upon completion of the NAL acquisition and the provision of historical geological, mining and process data. The data reviewed allowed for the update of the Ore Reserves Estimate and increased concentrator mill throughput, from 3,800 tonnes per day (tpd) to 4,200 tpd to produce a 6% Li2O spodumene concentrate.

Moblan Lithium Project (Moblan)

In April 2022, Sayona announced the discovery of a significant new southern lithium pegmatite zone, the Moblan South Discovery, following a 35 hole, 4,683m diamond drilling program. The lithium mineralisation was at a shallow, 60m vertical depth, open in all directions and just 200m south of the main Moblan deposit. The highlights included 5m @ 1.85% Li2O from 3.5m and 35m @ 1.62% Li2O from 27.6m in hole DDH135, together with 6.6m @ 1.69% Li2O from 2.1m and 27.2m @ 1.53% Li2O from 22m in hole DDH136. In June, Sayona announced the discovery of multiple new mineralised lithium pegmatites at Moblan South, South East Extension, Moleon and extensions to the Main Moblan lithium deposit. The drilling has shown that spodumene pegmatites are more significantly developed at depth than can be recognised at surface, indicating the potential for the discovery of multiple pegmatite clusters.

Highlights included 23.4m @ 1.69% Li2O from 17.6m and 27.1m @ 1.5% Li2O from 53.1m in drill hole DDH 134 (Moblan South); 32.1m @ 2% Li2O from 94.1m (Main Moblan dyke); and 23m @ 1.79% Li2O from 34.7m (Moblan East). Drill hole locations and selected intercepts are displayed in Figure 2. Extensional drilling on the main Moblan dyke has successfully extended the known mineralisation, including high?grade mineralisation such as 32.1m @ 2.00% Li2O from 94.1m in DDH152. The drill results demonstrate the continuity and the potential for the extension of the Main Dyke down dip. Currently, the Main Dyke has a strike extent of over 1500m, averaging 30?40m in thickness to a vertical depth of approximately 150m. Mineralisation remains open at depth and to the east. The Moleon prospect is located approximately 1km east of the Moblan deposit. Two main dykes, oriented north?south were intercepted in DDH 150B with results including 14m @ 1.93% Li2O from 63.3m and 25.6m @ 1.84% Li2O from 85.2m downhole. Results from all of the holes at the Moleon sector have been encouraging, identifying more substantial mineralisation at depth than recognised at surface. The large number of pegmatite occurrences at surface which remain untested indicate the high potential for further discoveries as well as the benefit from drilling out the newly identified mineralisation. Drilling at the South East Extension zone returned multiple spodumene pegmatite dykes, with intersections in DDH?22?153 and 1331?22?154 varying between 3.0m and 18.5m in width and with grades up to 1.67% Li2O. Only two drill holes were completed at the South East prospect during the 2022 winter program, but the very encouraging grade and thickness of the mineralised dykes indicates the area remains largely underexplored. The area will require more drilling to better understand the geometry and the relationship between the different mineralised spodumene pegmatites dykes, as well as assessing to determine if the system links up with the South Discovery area to the west. Following the positive June drilling results, Sayona launched a new 20,000m drilling program to enable an updated and a new resource calculation on the Moblan deposit, the new Moblan South discovery and Moleon areas. More than 215 new drill sites have been permitted by the Quebec resources ministry (MERN), with the objective of exploring and defining new lithium resources at Moblan. Results are pending. During the quarter, Sayona took another step towards the creation of a lithium hub in Eeyou Istchee Baie? James by establishing an office in Chibougamau.

The announcement was made within the framework of the Secretariat to the Cree Nation Abitibi-Temiscamingue Economic Alliance(SCNATEA).

In addition, within the framework of this agreement, Sayona has highlighted its approach towards local communities and more particularly with the First Nations community. Sayona created the position of liaison officer to ensure close communication with the Cree community of Mistissini. Moblan is located in the Eeyou?Istchee James Bay region of northern Quebec, a proven lithium mining province which hosts established, world?class lithium resources including Nemaska Lithium's Whabouchi mine. It is well serviced by key infrastructure and transport and has access to low?cost, environmentally friendly hydropower.

Pilbara gold exploration (Sayona 100%)

Sayona's Pilbara gold leases are prospective for intrusion?related gold mineralisation, similar in style to that identified at 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. At Hemi, part of the mineralisation identified to date is coincident with a magnetic feature and Sayona's initial exploration includes the use of airborne magnetics to identify similar targets. Sayona's tenement portfolio remains effectively untested for its gold potential, with large areas masked by surficial cover. A A$2.7 million budget and work program has been approved for calendar year 2022.

Deep Well Project

The Deep Well Project, E47/3829 covers Mallina Basin sediments which have been intruded by the Portree Suite, a range of tonalite, granodiorite and other intrusive rocks which are of the same age as those associated with the Hemi deposit. Much of the tenement area is obscured by surficial cover and airborne magnetic surveying has been used to identify Hemi?style magnetic gold targets. Early in the quarter, tracks and drill pads were completed for a 60?hole air?core drilling program which was carried out in May 2022, with a total of 60 drill holes for 1,677 metres completed. A total of 588 samples have been submitted for gold, lithium and multi?element analysis. Assay results are pending. Drilling targeted magnetic features that display similarities to the Hemi style of intrusion?related gold mineralisation. The T1, T2, T3, T7, T12a and T12b targets were tested.

Holes ranged from 6m to 55m in depth, with an average of 28m depth. This is less than anticipated, due to a shallower veneer of transported surficial cover being present. The transported cover sequence ranged from 3m to 15m in downhole depth. Once drill assay results are received further drilling can be planned.

Contact:

Brett Lynch

Republic PR

T: [phone]

E: [e-mail]

Anthony Fensom

Managing Director

E: [e-mail]

About Sayona Mining

Sayona Mining Limited is an emerging lithium producer (ASX:SYA; OTCQB:SYAXF), with projects in Quebec, Canada and Western Australia. In Quebec, 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). The Company also holds a 60% stake in the Moblan Lithium Project. 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, while its lithium projects are subject to an earn? in agreement with Morella Corporation (ASX:1MC).

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