JORC Resource Overview JULY 2016 Disc Disclaimer laimer - - PowerPoint PPT Presentation

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JORC Resource Overview JULY 2016 Disc Disclaimer laimer - - PowerPoint PPT Presentation

Sourcing the raw materials of the future ASX: SYA Authier Lithium Project JORC Resource Overview JULY 2016 Disc Disclaimer laimer COMPETENT PERSON STATEMENTS Authier - The information in this report that relates to Exploration Results is


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JULY 2016

ASX: SYA

Sourcing the raw materials

  • f the future

Authier Lithium Project JORC Resource Overview

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Disc Disclaimer laimer

COMPETENT PERSON STATEMENTS Authier - The information in this report that relates to Exploration Results is based on information compiled by Dr Gustavo Delendatti, a member of the Australian Institute of Geoscientists. Dr Delendatti is an independent consultant, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which it is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition) of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.‟ Dr Delendatti was responsible for the review and audit of the historical exploration activities, supervised the preparation of the technical information in this release and has relevant experience and competence of the subject matter. Dr Delendatti, as competent person for this announcement, has consented to the inclusion of the information in the form and context in which it appears herein. FORWARD LOOKING STATEMENTS This presentation may contain certain forward looking statements. Such statements are only predictions, based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond Sayona Limited’s control. Actual events or results may differ materially from the events or results expected or implied in any forward looking statement. The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward looking statements will be or are likely to be fulfilled. Sayona Limited undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation (subject to securities exchange disclosure requirements).The information in this presentation does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this presentation constitutes investment, legal, tax or other advice. Reference to Previous ASX Releases This presentation refers to the following previous ASX releases:

  • “Proposal to Acquire Advanced Lithium Project in Canada”, 3 May 2016
  • “Authier Term Sheet Extension”, 24 June 2016
  • “Authier JORC Resource”, 7 July 2016

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and all material assumptions and technical parameters continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

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Pr Prop

  • pos
  • sed

ed Aut uthier hier Lith Lithium ium Pr Projec

  • ject

t Acq Acquisition uisition

SYA has binding agreement to purchase Authier for CAD$4million*

Legal and technical due diligence nearing completion Glen Eagle shareholders approval for sale completed Financing discussions advanced

* See ASX Release, “Proposal to Acquire Advanced Lithium Project in Canada”, 3 May 2016 and “Authier Term Sheet Extension”, 24 June 2016

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Aut uthier hier Acq Acquisition uisition Ra Ration tionale ale

Large sunk cost in exploration, drilling, metallurgy and studies Value proposition - low purchase price and large value uplift potential Positive outlook for lithium prices Near term development and cash flow potential

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Que Quebe bec, c, Can Canad ada

A globally significant region for lithium deposits

Quebec has a well developed mining industry Host to a number of large high-grade Lithium deposits

TOP rated mining jurisdiction by Fraser Institute

(no. 6 in world)

Strong Government Support for Mining

Resource – 37.2Mt @ 0.94% Li20 Resource – 22Mt @ 01.29% Li20 Resource – 32.6Mt @ 1.56% Li20 Resource – 47Mt @ 1.19% Li20 Resource – 14.25Mt @ 1.41% Li20

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Pr Propos

  • posed

ed Acqu Acquisi isition tion of

  • f Aut

uthier hier

Well established development infrastructure

Excellent Infrastructure

Excellent Infrastructure

Low cost hydro power

Road and rail access

Experienced local

mining workforce

653 ha

tenement package

Located in a major mining district

50km by road to Quebec Lithium Plant

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Aut uthie hier JOR JORC C Miner Mineral al Reso esour urce ce

Large resource of contained lithium

Authier JORC Mineral Resource Estimate*

Category Tonnes (Mt) Grades (Li20) Contained (Li20) Measured 2.08 0.95% 19,730 Indicated 5.16 0.97% 50,092 Inferred 1.88 0.93% 17,480 Total 9.12 0.96% 87,302

  • 0.5% Li20 cut-off grade*
  • Cautionary Note - Mineral Resources are not Mineral Reserves and do not have demonstrated economic
  • viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into

Mineral Reserves estimate

  • The resource has been estimated and reported in accordance with the guidelines of the Australasian Code for

the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012).

* See ASX Release, “Authier JORC Resource ”, 6 July 2016

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Aut uthie hier Lithium Lithium Dep Deposit

  • sit

15,000m

drilled Well studied

NI43-101 completed in 2013 Commercial and technical viability confirmed

Extensively drilled, simple deposit

2,143

lithium assays

Spodumene Bearing Pegmatite

200m deep and still open

Authier Deposit

825m long 25m average width

123 holes

N

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Aut uthie hier Lithium Lithium Dep Deposit

  • sit

Block model and pit contour

Li2O % Grade

0.5% Li20 cut-off grade. Looking north-east

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Aut uthie hier Dep Deposit

  • sit Reso

esour urce ce Distribu Distribution tion

High proportion of measured and indicated resources MEASURED

23%

INFERRED

20%

N

Cut-off Li2O 0.5% and Optimised Pit Contour

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Aut uthie hier Lithium Lithium Dep Deposit

  • sit Cr

Cross

  • ss Sec

Section tion

Amenable to low-cost, open-cut mining techniques

200m deep and still open

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Aut uthie hier Lithium Lithium Dep Deposit

  • sit Exp

Expans ansion ion Pote

  • tential

ntial

Drilling planned to target mineralised extensions

Potential E

  • tential Extens

xtensions ions of

  • f

the M the Miner ineralis alisation tion

N

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Aut uthie hier Lithium Lithium Dep Deposit

  • sit

Spodumene exposed in a 40 tonne bulk sample pit used for metallurgical testing

200m deep and still open

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Aut uthie hier Dep Deposit

  • sit

200m deep and still open

Well preserved core library and drill core used for validating historical grades

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Aut uthie hier Ne Next xt Ste Steps ps

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Aut uthie hier Meta Metall llur urgy

Extensive metallurgical testing completed

Flowsheet Design

85% recovery

Optimisation Options

Dense Media Separation Downstream processing into intermediate products

5-6% Li20 concentrate

Conventional Processing Route

Significant upside to 2013 NI-43101

Concentrate Pricing

Galaxy selling at US$600/t

No mica pre-float

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Aut uthier hier Pr Projec

  • ject

t Pos

  • sitiv

itives es

More than 15,000 metres

  • f drilling in 123 holes –

established resource Deposit amendable to simple, open-cut mining techniques Extensive metallurgical testing - flowsheet designed to produce 5-6% Li20 concentrate Well studied – proven technical and economic viability – fast track to production Located in top-tier mining jurisdiction with stable taxes and royalties Well established mining district with excellent infrastructure

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Enterprise Value Per Tonne of Contained Li20 ($/tonne) 100 200 300 400 500 900 800 700 600

Market Cap $23M before Authier Acquisition*

$627 $615 $1457

Aut uthie hier Ac Acqu quisition isition At Attr trac activ tivel ely y Pr Price iced

SYA A pay paying A ing AUD$47/t D$47/t of

  • f contained Li

contained Li20 a 0 at C$4 t C$4 million million pur purchas hase price e price 1,000

Proposed Authier Acquisition – CAD$4m

No value yet attributed in SYA market cap for proposed Authier acquisition Existing SYA Assets

Developer Developer Producer

Developer

?

EV @ $500/t = $45m

* Before ASX Release, “Proposal to Acquire Advanced Lithium Project in Canada”, 3 May 2016. ^ Contained Li20

EV @ $700/t = $62m

Potential Authier Valuation Upside

$47/t for 88,860t^

Market Cap $19M Today

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Aut uthie hier Valu alue e Up-lif lift t Pot

  • ten

entia tial

Exploration Appraisal Development Production

$19M*

$23M $220M $726M $254M $648M $997M

5

$61M $20M $33M

*Authier project

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www.sayonamining.com.au

ACN 091 951 978 Suite 68, 283 Given Terrace Paddington, Queensland, 4064 Brisbane, Australia Ph: +61 7 3369 7058 info@sayonamining.com.au