Sayona Mining Ltd.: Option to Acquire Tansim Lithium Project and Expand Lithium Footprint in Quebec

Brisbane - Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) ("Sayona" or the "Company") is pleased to announce the staged acquisition of the Tansim lithium exploration project in Quebec, Canada.

Highlights:

- Option to acquire 12,000 hectares of lithium prospective tenements in Quebec

- Pegmatites mapped over 9 kilometres with channel sampling intersecting up to 18.95 metres @ 0.94% Li20 and selective rock chips of between 2.04% and 2.87% Li20

Tansim is situated 82 kilometres south-west of the Authier lithium project in Quebec. The project comprises 65 mineral claims of 12,000 hectares, and is prospective for lithium, tantalum, and beryllium. Historical exploration on the property has included mapping, sampling, geophysics and preparation of a Canadian NI43-101.

Geologically, a large east-west-oriented structural trend (9 kilometres x 700 metres) with discrete outcrops of an assemblage of sub-parallel lithium, beryllium, and tantalum-bearing, granitic pegmatite dykes hosted by meta sedimentary and meta volcanic rocks. The east-west structure is coincident with a strong geophysical anomaly. The pegmatites contain spodumene, colombite-tantalite, lepidolite and beryl. Three main rare metal showings, Vézina, Viau, and Viau-Dallaire, have been discovered.

Future exploration activities will include reinterpretation of historic geophysical data, mapping and sampling of the pegmatites to define drilling targets. Priority targets include:

- Viau Dallaire - a 300 metre long dyke, dipping 40 degrees north, and 12-20 metres in thickness. Three channel samples include 10.3 metres @ 1.40% Li20, 11.15 metres @ 0.84% Li20 & 18.95 metres @ 0.94% Li20 (including 7.3 metres at 1.77% Li20); and

- Viau - pegmatites have been mapped up to 200 metres long and 30 metres wide. Two separate channel samples returned grades of up to 2.77% Li20 and 1.37% Li20 over 3.2 metres, respectively.

The property is being acquired through an acquisition agreement with Matamec Explorations Inc ("Matamec"). The acquisition includes the staged payments of cash and exploration commitments, and net smelter royalty payable to Matamec should Sayona achieve 100% ownership.

Corey Nolan, Chief Executive Officer, commented "The Company is excited to have another exciting lithium project in close proximity to the Authier project. The Company will draw on its significant experience and expertise in lithium geology in the region, developed through more than 20,000 metres of drilling and exploration at Authier. Tansim demonstrates stand-alone potential but could be developed as a complimentary satellite operation to Authier, where the Company is currently completing a Definitive Feasibility Study".

Tansim Project Overview

Location and History

Tansim is situated within the Temiscamingue region of Quebec, 82 kilometres southwest of the Company's flagship Authier lithium project. Access is via a well maintained gravel road from Cadillac (20 kilometres south-west of Authier) to the Rapid-Sept hydro-electric dam on the Decelles Reservoir, then by a series of bush and logging roads. A Hydro Québec 750 kv power line crosses the forest one kilometre north of the property.

The project comprises 65 mineral claims of 12,000 hectares, and is prospective for lithium, tantalum, and beryllium.

The earliest discoveries in the district were made during the late 1950s early 1960s at the Dallaire, Viau-Dallaire and Viau showings where zoned granitic pegmatite dykes containing spodumene, beryl, colombo-tantalite were found. In 1977, the discovery of tantalum and uranium-rich granitic pegmatite samples from the Ile du Refuge site (5.8 wt.% Ta2O5 and 83 wt. % U3O8), sparked new interest from Noranda and particularly SOQUEM, the latter conducting geophysical surveys, mapping campaigns and litho-geochemical sampling during the early 1980s.

In 2003, Matamec acquired a large package of land (the Tansim property) located north of Lake Simard and encompassing most of the previously investigated rare metal showings.

Matamec has conducted exploration on the property including mapping, sampling, geophysics and the preparation of a Canadian NI43-101.

Regional and Local Geology

Mineralisation is hosted within spodumene-bearing pegmatite intrusions striking eastwest, dipping to the north and hosted by metasedimentary - metavolcanic rocks of the Pontiac sub-province. The Pontiac sub-province is a Late Archean metasedimentary-metavolcanic-granitoid-gneiss terrane situated along the southeastern margin of the Superior Province of Quebec. The Pontiac sub-province comprises schist, para-gneiss and migmatite derived from terrigeneous sedimentary rocks (Card et Ciesielski, 1986) with a substantial portion composed, however, of granitoid rocks.

The Lake Simard area exposes a suite of granodiorite, biotite-muscovite monzogranites, aplites and granitic pegmatites. The aplites and granitic pegmatites occur at the margins of the Réservoir Decelles Batholith and within the enclosing volcanosedimentary and plutonic rocks.

The pegmatites display variable rare metal mineralization (lithium, beryllium, tantalum). Simple (muscovite-bearing) pegmatites are barren and oriented northsouth. Complex and zoned granitic pegmatites (spodumene bearing) are east-west-oriented. These pegmatites show white-pink to greenish spodumene, quartz almost black, albite and perthite, muscovite, garnet, epidote and colombo-tantalite.

Main Geological Targets

Viau-Dallaire

Viau-Dallaire is located in the north-west area of the tenement and comprises a 300 metres long dyke, dipping 40 degrees north, and 12-20 metres in thickness. Three channel samples across the pegmatite produced good widths and grades of lithium mineralisation, including:

- 10.30 metres @ 1.40% Li20;

- 11.15 metres @ 0.84% Li20; and

- 18.95 metres @ 0.94% Li20 (including 7.3 metres at 1.77% Li20).

Lithium mineralization at the Viau-Dallaire showing consists of spodumene crystals (20- 45 centimetres) oriented perpendicular to the wall rock contact within a complex, coarse-grained zoned granitic pegmatite dyke.

A small reconnaissance survey was performed in 2016 by Matamec on the Viau- Dallaire showing confirming the presence of coarse-grained granitic pegmatite dykes containing 10-30 % spodumene associated with albite, quartz and muscovite. Five grab rock samples within the spodumene-rich zone of the pegmatite dyke were collected near ancient rock channels. The rare metal assays of each sample highlighting high Li2O concentrations are demonstrated in Figure 4 (see link below), with the assay reflecting sampling in the Li-rich zone of the granitic pegmatite dykes and the small sample weight (average of 0.22 kg) relative to the size of the spodumene crystals.

Viau

Viau is located in the middle of the project area and comprises a large area of complex granitic zoned pegmatites that have been mapped up to 200 metres long and 30 metres wide. Selective samples have returned high grades of up to 2.77% Li20 and 1.37% Li20 over 3.2 metres, respectively.

Gauthier

Gauthier is located in the middle of the project area and is mapped as 30 metre large spodumene-rich granitic pegmatite outcrop that extends under cover. Further exploration will be required to assess the potential of the system.

Vezina

Vezina is located in the south-east of the project area and includes a number of outcropping zones of pegmatites in area covering 1,200 metres by 325 metres. Large crystals of typical pegmatite minerals including spodumene are present.

Next Steps

The short-term focus exploration activities will include reinterpretation of historic exploration and geophysical data until winter ends in April. Field activities will comprise mapping and sampling of the pegmatites to define drilling targets.

Property Acquisition Terms

The staged acquisition strategy enables Sayona to obtain an initial 50% interest in the property through the expenditure of CAD$105k for claim renewal costs of the property, as required by the Quebec department of natural energy and resources. This expenditure amount is reduced by the exploration amount (up to CAD$65k) completed on the property prior to 31 January 2018. Sayona can then earn 100% interest in the property by completing the milestones in the timeframes outlined below:

- Investing CAD$200k in exploration and pay CAD$100k in cash to Matamec within the first 12 months; and

- Investing CAD$350k in exploration and pay CAD$250k in cash to Matamec within 12 and 24 months of signing.

Sayona will be the operator of a joint venture to be signed between both parties to manage the property. Once Sayona earns 100%, Matamec receives a 2% Net Smelter Return Royalty ("NSR") from the payable metals extracted from the property. The NSR can be bought back for an amount of CAD$1.0M per royalty percentage. Sayona will have the choice to buy back 1.0% or 2.0% NSR for an amount of CAD$1.0M or CAD$2.0M, respectively.

If Sayona earns 50% but doesn't proceed any further with the purchase option, Matamec can buy the 50% back property interest for CAD$1 and Sayona will receive a 2% NSR.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/9LK4314K

About Sayona Mining Ltd:

Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) is an Australian-based, ASX-listed (SYA) 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. Sayona’s primary objective is developing the Authier lithium project in Quebec, Canada. Authier is an advanced, near term development project, construction forecast to commence in the second half of 2018 and first production in late 2019. 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