Sayona Mining Limited: Share Purchase Plan

Brisbane - The board of Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) is writing to you today with an offer to participate in a Shareholder Share Purchase Plan (Plan) which entitles all shareholders to apply for parcels of new shares in Sayona valued between $500 and $15,000.

Registered holders (Shareholder) of fully paid ordinary shares as at 5.00pm (EST) on Wednesday 12 April 2017 (Record Date) with a registered address in Australia or New Zealand (Eligible Shareholder) will be eligible to participate in the Plan.

The issue price will be determined at the issue date of New Shares under the Plan based on a 20% discount to the volume weighted average price of Company shares traded on the ASX during the five trading days immediately prior to the Issue Date of the New Shares on which sales in Company Shares were recorded, rounded up to the nearest 0.1 cent (Issue Price).

Sayona Mining is pleased to confirm that Patersons Securities Limited (Patersons) has agreed to underwrite the Plan to the amount of $1,500,000, subject to standard terms and conditions. Patersons has also agreed to act as the lead manager to the Plan.

Funds raised under the Plan will be used to accelerate the development of the Authier project in Canada; to fund exploration activity on the Company's Australian lithium projects and working capital.

The proposed use of the funds raised under the SPP is as follows:

- to accelerate the development of the the Company's Authier lithium project in Canada;
- to fund exploration activity on the Company's Australian lithium projects;
- to provide general working capital; and
- for corporate costs and the costs of the issue.

Authier Work programs will be focused on enhancing the value of the project, including:

- Resource upgrade following the completion of the Phase 2 drilling program;
- Geotechnical and hydrogeological programs to improve the pit wall slopes and reduce the life-of-mine waste movement;
- Further metallurgical testing to optimise recoveries and concentrate grades;
- Updating the February 2017 Pre-Feasibility Study and Ore Reserve;
- Studying the potential for producing value-added lithium carbonate and/or hydroxide; and
- Continuation of the environmental and mining lease work programs.

In addition, the Company is progressing its Mallina project in the world-class Pilgangoora lithium district in Western Australia, where mapping and sampling programs have outlined a number of prospective lithium targets.

Further details of the Company's current activities are set out in the announcements made to ASX and are available from ASX, or our website at http://www.sayonamining.com.au

Details of how to participate in the Plan are set out in the terms and conditions of the Share Purchase Plan, enclosed with this letter (see the link below).

An Eligible Shareholder that does not wish to participate in the Plan is not required to do anything and may disregard this letter and the other Offer Documents. In this event, the number of Shares held by that Eligible Shareholder will not change but the percentage of their shareholding in the Company will be diluted.

Important dates
The important dates in relation to this Offer are summarised below:

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Event                                         Date 
Record Date                             5pm (EST) 12 April 2017
Announcement of Share Purchase Plan     13 April 2017
Despatch of Plan Offer Document         21 April 2017
Opening Date                            21 April 2017
Closing Date                            10 May 2017
Issue Date of new Shares and 
Dispatch of Holding Statements          15 May 2017
New Shares commence trading on ASX      16 May 2017 
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Subject to the Listing Rules, the dates in the table above are indicative only and subject to change. The Company reserves the right to vary these dates, including whether to close the Plan Offer early or accept late Applications, either generally or in particular cases, without notifying any recipient of the Offer Documents or any Applicants. Eligible Shareholders who wish to submit an Application are encouraged to do so as soon as practicable after the Plan Offer opens.

To view the terms and conditions of the Share Purchase Plan, please visit:
http://abnnewswire.net/lnk/2NWVBT02


About Sayona Mining Ltd:

Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) 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.
T: +61-7-3369-7058
E: info@sayonamining.com.au
www.sayonamining.com.au