Sayona Mining Ltd: Quarterly Activities Report, December Quarter 2016

Brisbane - Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) ("Sayona" or the "Company") is pleased to announce the activities report for the quarter, including completion of the Authier Phase 1 drilling program, JORC Resource update, commencement of a metallurgical testing program and Pre-Feasibility Study ("PFS") for the Authier lithium project, Canada. In Australia, the Company completed an Option-to-Purchase contract to acquire projects from Great Sandy Pty Ltd, which includes newly discovered spodumene pegmatite and 871 km2 of exploration ground prospective for spodumene mineralisation.

Highlights

- Authier Phase 1 drilling expands high-grade zones of spodumene mineralisation throughout the deposit including a drill intersection of, 23 metres @ 1.77% Li2O

- Significant expansion of the Authier JORC Resource

- Metallurgical testing and Pre-Feasibility Study commenced at Authier

- Enhanced portfolio in Pilgangoora lithium district with Option to acquire Great Sandy Pty Ltd tenure with newly discovered spodumene-bearing pegmatites at Mallina, grades up to 2.13% Li20

- WA lithium tenement coverage increases to 1,987 km2

Authier, Canada

During the quarter, the Company's primary focus was on the development of the Authier project. The Company's activities included, a diamond drilling program, expanding the JORC Resource base, and commencement of a PFS.

Authier Work Programs

The Company's primary strategy is to focus on completing the studies required to commence the development of the project. Authier is a near-term development project and cash-flow generation opportunity. The Company believes it will create significant share value-uplift potential for shareholders as the project is advanced towards development.

Authier Pre-Feasibility Study

During the quarter, the Company commenced a PFS to assess the development potential of a simple, low strip ratio, open-cut mining operation and processing facility producing spodumene concentrate.

The PFS will be prepared by SGS Canada and Bumigeme who together have significant experience and expertise in all aspects of lithium resource definition, mining, processing and infrastructure requirements in Quebec. The PFS will assess the technical and economic viability of developing the Authier project, and expands on the Authier NI43-101 Technical Report, Preliminary Economic Assessment, completed in 2013.

The PFS is due for completion in early 2017.

Authier Metallurgical Testing Program

Metallurgical testing using 410 kilograms of drill core from a previous diamond drilling program commenced at SGS Lakefield in Canada. SGS Lakefield have over 70-years' experience in metallurgical testing and design, and considerable experience in the lithium industry.

Authier has been the subject of several metallurgical test work programs that have successfully demonstrated the ability to produce high grade concentrates using conventional flotation technology. The primary focus of this metallurgical program is to demonstrate whether Authier spodumene ore is amenable to concentration using Dense Media Separation.

In addition to the DMS testing program, the metallurgical testing program will include mineralogical analysis using QEMSCAN, further grindability testing, and batch and locked cycle flotation testing. Following completion of the metallurgical testing program, Bumigeme Inc will prepare an updated flow sheet, and capital and operating cost estimates for incorporation into the PFS.

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About Sayona Mining Ltd:

Sayona Mining Ltd. (ASX:SYA) is a company focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors. Please visit us as at www.sayonamining.com.au



Contact:

Sayona Mining Ltd.
Corey Nolan Chief Executive Officer
Phone: +61-7-3369-7058
Email: info@sayonamining.com.au
www.sayonamining.com.au