Sayona Mining Ltd: Phase 3 Drill Results Demonstrate the Potential to Increase the Authier JORC Resource and Reserve

Brisbane - Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) ("Sayona" or the "Company") is pleased to announce the assay results from the Phase 3 drilling program at the Authier lithium project, Quebec.

Highlights

- High-grade spodumene mineralisation intersected at mid and deep levels in the Authier pegmatite

- New drilling expands high-grade zones of spodumene mineralisation, including 25 metres @ 1.48% Li2O

- Drilling program has demonstrated the potential to expand the size of the JORC Resource and Ore Reserve. The Ore Reserve will be upgraded as part of the Definitive Feasibility Study

A number of diamond drill holes have intercepted high-grade spodumene mineralisation with best drilling intercepts, including:

- Hole 18-09 - 25 metres @ 1.48 % Li2O from 79 metres including, 6 metres @ 1.77 % Li2O from 80 metres and 6 metres @ 1.78 % Li2O from 94 metres;

- Hole 18-10 - 6 metres @ 1.26 % Li2O from 97.4 metres including, 4 metres @ 1.52 % Li2O from 98.4 metres;

- Hole 18-16 - 37 metres @ 1.03 % Li2O from 255 metres including, 11 m @ 1.24 % Li2O from 266 metres and 3 metres @ 1.67 % Li2O from 281 metres; and

- Hole 18-17 - 33 metres @ 1.18 % Li2O from 160 metres including, 10 metres @ 1.25% Li2O from 166 metres and 3 metres @ 1.75 % Li2O from 190 metres.

Drilling has successfully demonstrated depth extensions of the mineralisation at the main Authier pegmatite. Infill drilling successfully targeted areas of low drilling density with the objective of upgrading the resource categories. A number of holes testing the eastern extensions of the main Authier pegmatite at shallow levels were stopped due to the presence of a fault zone but warrant further testing in a future drilling program.

A potential third deep pegmatite dyke was intercepted at a depth of 300 metres and returned low grade mineralisation due the replacement of spodumene by phengite. Further drilling will be required to test the potential of this system, especially at shallower levels.

Drilling has successfully extended the mineralisation at the Authier North pegmatite from 300 metres to 500 metres in strike length, and at depth. The system remains open in all directions.

The Company believes the new drilling has the potential to expand the size of the existing Mineral Resource and Ore Reserve, and the mineralisation remains open in all directions.

Phase 3 Diamond Drilling Program

The Phase 3 diamond drilling program at Authier has been completed including 19 NQ diameter holes for 2,170 metres and meeting the objectives of the program, including:

- Converting the Inferred Mineral Resources to Measured and Indicated, and upgrading Ore Reserves for the Definitive Feasibility Study which is underway;

- Exploring for extensions to the existing mineral resources and other potential mineralisation within the tenement package; and

- Collecting geotechnical data for incorporation into the Authier Feasibility Study and five tonnes of core for pilot metallurgical testing.

The lithium mineralisation at the Authier project is related to multiple pulses of spodumene bearing quartz-feldspar pegmatite. Higher lithium grades are related with high concentrations of mid to coarse spodumene crystals (up to 4 cm long axis) in a mid to coarse grained pegmatite facies.

Summary of the Drilling Program

Main Authier Pegmatite

The following summarises the key outcomes of the drilling program:

- Holes 18-01 and 18-02 were stopped before hitting the target due to a fault zone;

- Holes 18-03, 18-04, 18-05, 18-06 and 18-07 tested the eastern extension of the main Authier pegmatite at shallow levels, intercepting narrow zones of weak lithium mineralisation;

- Holes 18-08 and 18-09 (see Fig. 4 in link below) filled the gaps within the East zone of the main Authier pegmatite resource from 40 to 70 metres vertical depth. Hole 18-09 - 25 metres @ 1.48 % Li2O from 79 metres including, 6 metres @ 1.77 % Li2O from 80 metres and 6 metres @ 1.78 % Li2O from 94 metres;

- Hole 18-10 intercepted a narrow lithium mineralised zone that filled the gap of the main Authier pegmatite Resource in the Central Part including 6 metres @ 1.26 % Li2O from 97.4 metres including, 4 metres @ 1.52 % Li2O from 98.4 metres;

- Hole 18-12, drilled within a NNE fault zone intercepted narrow and weak lithium anomalies in the west zone;

- Hole 18-16, at the deep west zone of the main Authier pegmatite, intercepted a wide deep extension of the pegmatite at a vertical depth of 235 metres to 270 metres, 75 metres step back of hole 16-15 (20 metres @ 1.32 5 Li2O from 242 metres, see ASX release of Nov 16, 2016) and Figure 2 (see link below). A potential third pegmatite dyke was intercepted at a vertical depth of 300 metres, 25 metres downhole width, which returned no significant spodumene mineralisation due the replacement of spodumene by phengite. Additionally, hole 18-16 intercepted the north pegmatite with lithium mineralisation at shallow levels; and

- Hole 18-17, an infill hole at the East zone of the main Authier pegmatite intercepted a wide mineralised pegmatite zone of 33 metres @ 1.18 % Li2O from 160 metres including, 10 metres @ 1.25% Li2O from 166 metres and 3 metres @ 1.75 % Li2O from 190 metres (See Figure 3 in link below).

The Company believes the Main Authier pegmatite is still open in all directions. The geometry of the mineralised pegmatite at shallow levels in both, east and west extensions, seems affected by post-mineral faulting, and further drilling should be conducted at midto- deep levels to test the along strike extension of the main pegmatite. The deep extensions of the main pegmatite are demonstrating excellent grades and widths.

Authier North Pegmatite

Holes 18-13, 18-14 and 18-16 successfully extended the mineralisation from 250 to 500 metres in strike extension. Holes 18-13, 18-18 and 18-19 were infill holes. The North pegmatite is narrow, gently dipping to the north, and is still open along strike.

A new JORC Resource incorporating all the new assay results is being prepared and will be incorporated into the Definitive Feasibility Study which is underway.

To view Drill Holes and Assay Results and figures, please visit:
http://abnnewswire.net/lnk/978Z5930

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