Sayona Mining Ltd.: Phase 2 Drilling Expands Mineralised Zone at Authier Project

Brisbane - Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) ("Sayona" or the "Company") is pleased to announce the assay results from the remaining twenty six diamond drill holes completed in the Phase 2 drilling program at the Authier lithium project in Canada.

Highlights

- New zones of mineralisation drilled in the eastern, western and at depth in the main Authier pegmatite

- New results demonstrate extensions of the main pegmatite orebody up to 150 metres to the east and 300 metres to the west

- Main pegmatite is now 1,100 metres in strike length and remains open in all directions

- Updated Mineral Resource estimate being prepared

Significant intersections from the final twenty six diamond drill holes, include:

- Hole 17-13 (Eastern zone): 26m @ 1.26% Li2O from 163m, including: 15 m @ 1.42 % Li2O from169m;

- Hole 17-22 (Gap zone deep): 29m @ 0.92 % Li2O from 227m, including 13 m @ 1.10 % Li2O from 232m and 4 m @ 1.46 % Li2O from 248m;

- Hole 17-30 (Eastern zone shallow): 10m @ 1.04 % Li2O from 30m; and

- Hole 17-08 (Western zone): 8 m @ 1.07 % Li2O from 165 m; and

- Hole 17-11(Northern pegmatite): 6 m @ 1.32 % Li2O from 23m, including 3m @ 1.76 % Li2O from 24m.

The new holes drilled east, west and within the gap zone of the main Authier pegmatite orebody have successfully demonstrated potential extensions of the mineralisation at opencut mineable depths. Mineralisation within the main pegmatite orebody has been extended 150 metres to the east, up to 300 metres to the west within the deeper levels and 200 metres west at shallower levels, and at depth in the gap zone. The main pegmatite is now over 1,100 metres in total strike length. The mineralisation remains open in all directions and further drilling will be required to test the full extent of deposit. Additionally, new holes in the northern pegmatite have delineated a narrow and gently dipping tabular body with the potential for shallow, open-cut mineable tonnage.

A revised Mineral Resource estimate is currently being prepared to incorporate into the planned updated Pre-Feasibility Study following completion of the metallurgical and geotechnical work programs.

Phase 2 Diamond Drilling Program

The Phase 2 drilling program comprised thirty-one diamond drill holes totaling 4,104 metres aiming to test extensions of the mineralisation and expand the current JORC Mineral Resource.

To expand the size of the JORC Resource, a drilling program was planned with the following objectives:

- Defining the mineralised boundaries and lifting the resource categories in zones in the western sector that were drilled during the 2016 drill program. The 2016 drilling program in the west zone highlighted a number of new high-grade intersections between 120 to 220 metres vertical depth such as hole 16-11 which returned 46m @ 1.26% Li2O from 135 metres including, 24m @ 1.62% Li2O from 137 metres;

- Testing for mineralisation in the eastern strike extension at both shallow and deeper levels at similar vertical level to hole 16-14 which intercepted 45 metres @ 1.08 % Li2O from 148 metres including, 8 metres @ 1.36 % Li2O from 149 metres and 18 metres @ 1.34 % Li2O from 171 metres;

- Testing for a vertical extension of the mineralisation in the gap zone to follow up hole 16-16 which intersected 28 metres @ 1.20 % Li2O from 158 metres including, 18 metres @ 1.32 % Li2O from 149 metres; and

- Assessing the resource potential of the new northern pegmatite which intersected 7m @ 1.36% Li20 from 15 metres in the Phase 1 drilling program.

Drilling Summary

The Authier project mineralisation is now very well defined through nearly 22,000 metres of diamond drilling in 172 holes.

Since the Company reported the 2016 JORC Mineral Resource statement, drilling at Authier has extended the mineralisation within the main pegmatite orebody by 150 metres to the east, up to 300 metres to the west within the deeper levels, and 200 metres to the west at shallower levels, and at depth in the gap zone. The east-west strike length of the main deposit has now been extended from 850 metres to 1,100 metres, with an average thickness of 25 metres, ranging from 4 metres to 55 metres, dipping at 40 degrees to the north. The orebody remains open in the east, west and at depth.

The northern pegmatite has 670 metres of drilling completed in 13 holes. The northern pegmatite has a narrow and gently dipping geometry between 10 and 25 metres vertical depth, not visible from surface, and down-hole intersections typically averaging 5 to 8 metres in width. The pegmatite remains open in all directions. The Company aims to delineate a resource at shallow levels that would be amenable to open-cut mining at a low stripping ratio.

Mineralisation at the Authier project is hosted in spodumene-bearing pegmatite intrusions.

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

Drill Hole Results by Sector

Western Zone Shallow

Drilling in the western zone at shallow levels has demonstrated an extension of the mineralisation 200 metres west, including:

- Hole 17-08 intersected 8 metres @ 1.07 % Li2O from 165 metres including, 3 metres @ 1.31% Li2O from 167 metres; and

- Hole 17-05 intersected 19 metres @ 1.26% Li2O from 224 metres including 9metres @ 1.69% Li20.

Holes 17-01, 17-06 and 17-07 have intercepted narrow zones of low-grade to barren pegmatite which has been affected by a large north-south fault cross cutting the mineralisation in the Beaver Dam area (Section 707560 m East). The pegmatite pinches within the fault zone but shows no significant evidence of post-mineral displacement.

The Company believes the western sector remains highly prospective for further mineralisation west of Holes 17-05, 17-07 and 17-08. Figure 4 shows the main Authier pegmatite in relation to the local magnetic geophysical image. The main orebody is strongly correlated to a deep magnetic low which extends to the western tenement boundary. Additional drilling will be required to extend the mineralisation further west.

Western Zone Deep

Drilling has successfully defined a 300 metre western extension of the main Authier pegmatite at between 110 and 220 metres vertical depth, including:

- 17-02 - 32 metres @ 1.15% Li20 including 7 metres @ 1.44% Li2O; and

- 17-05 - 19 metres @ 1.26% Li20 including 9 metres @ 1.69% Li2O.

Hole 17-02 and 17-05 demonstrated similar widths and grades to those in the Phase 1 deeper holes which included:

- 16-13: 24 metres @ 1.25 % Li2O from 184 metres and 8 metres @ 0.91 % Li2O from 216 metres, and

- 16-15: 20 metres @ 1.32 % Li2O from 242 metres including 11 metres @ 1.61 % Li2O from 248 metres.

The results indicate a potential western plunge of the high-grade mineralisation at deeper levels within the western sector. The higher-grade mineralisation below the economic opencut pit depths could be amenable to future underground mining.

Gap Zone

Hole 17-22 intersected a thick zone of spodumene mineralisation in the gap zone (29 metres @ 0.92% Li2O), confirming an 85 metre down-dip extension of the exploratory Phase 1 drill hole 16-16 which intersected 28 metres @ 1.20 % Li2O from 158 metres including, 18 metres @ 1.39 % Li2O from 162 metres. Hole 17-22 has confirmed an extension of the resource down to approximately 200 metres in the gap zone.

Eastern Zone Deep

Holes 17-13 and 17-14 in the eastern deep zone have extended mineralisation 150 metres to the east. Hole 17-13 (26 metres @ 1.26% Li2O from 163 metres including 15 m @ 1.42 % Li20 from 169 metres), located 120 metres east of hole 16-14, intercepted mineralised pegmatite from a vertical depth of 120 metres and is expected to result in a 80 metre deepening of the current pit outline.

Hole 17-28, a 100 metre step forward of hole 17-13, intercepted low-grade pegmatite affected by a fault zone which caused a local pinching of the main Authier pegmatite.

Eastern Zone Shallow

Hole 17-16 intercepted a narrow zone of mineralised pegmatite (7 metres at 0.76% Li20) within a wider zone of low-grade to barren pegmatite at shallow levels. It is interpreted that the mineralisation has been pinched with respect to the wider pegmatite intercepted by holes:

- 17-30 - 10 metres @ 1.04 % Li2O from 30 metres including 3 metres @ 1.26 % Li2O from 30 metres; and

- 17-26 - 13 metres @ 0.73 % Li2O from 27 metres including 2 metres @ 1.33 % Li2O from 37 metres.

Hole 17-17 intercepted (1 metre @ 1.03% Li20) the narrow, lower portion of the eroded pegmatite immediately below 12 metres of overburden being collared 35 metres south (same section) of hole 17-30.

Holes 17-30 and 17-26 (separated 65 metres east-west) intercepted the main pegmatite slightly deeper than holes 17-15 and 17-17. The narrow mineralisation intercepted by hole 17- 15 was extended 165 metres down dip by hole 17-14 (20 metres @ 0.95 % Li2O from 169 metres including 10 metres @ 1.19 % Li2O from 170 metres) from a vertical depth of 135 metres and collared 185 metres north in the same section.

Holes 17-27 and 17-29 (eastern most) intercepted narrow barren pegmatite in fault zones. The geometry of the pegmatite at narrow levels pinch and swells, but it is considered open and further drilling is required to test the eastern most strike extent.

Northern Pegmatite

Drilling has started to define the geometry of the new northern pegmatite located 400 metres north of the main Authier pegmatite. During the Phase 1 drilling, Hole 16-10 intersected 7 metres at 1.36 % Li2O from 7 metres in depth in a step-back hole targeting deeper mineralisation in the main pegmatite. Drilling from the Phase 2 program has now defined additional mineralisation over 300 metres in strike length and the system remains open in all directions. Significant holes included:

- 17-11 - 6 metres @ 1.32 % Li2O from 23 metres including 3 metres @ 1.76 % Li2O from 24 metres;

- 17-12 - 5 metres @ 0.9 % Li2O from 27 metres including 1 metre @ 1.71 % Li2O from 30 metres.

- 17-19 - 8.27 metres @ 0.88 % Li2O from 10.7 metres including 4.27 metre @ 1.27 % Li2O from 10.7 metres.

- 17-23 - 8 metres @ 0.86 % Li2O from 16 metres including 3 metre @ 1.53 % Li2O from 21 metres.

Fifty metre step-back holes 17-10, 17-20, 17-21, 17-24 and 17-25 as well as scout hole 17-31 intercepted narrow and low-grade to barren pegmatite. Whilst the grades were lower than anticipated, the Company believes the system has good potential to host mineralisation.

Zones within the pegmatite occur as coarse grained, narrow, high-grade mineralisation, suggesting potential for a large feeder system at depth. Further drilling will be required to test the down dip extensions of the pegmatite which has only been drilled to shallow levels.

Next Steps

The Company's plan is to increase the size and confidence levels of the 2016 JORC Resource and 2017 Ore Reserve released as part of the February 2017 Pre-Feasibility Study. The new resource will be incorporated into an updated Pre-Feasibility Study following the completion of metallurgical and geotechnical programs, and allow an updated Ore Reserve estimate.

Corey Nolan, Chief Executive Officer, commented, "The 2017 drilling program has demonstrated the potential to expand the size of the 2016 Mineral Resource. An expanded resource will extend the mine life beyond the 13 years outlined in the February 2017 Pre- Feasibility Study based on the 2017 Ore Reserve. The Company is currently working on completing an updated Mineral Resource estimate and this will be announced during the coming weeks."

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