Sayona Mining Ltd.

Sayona Mining Ltd. is a junior lithium producer headquartered in Brisbane, Australia, operating primarily in Canada. The company's portfolio consists of 3 projects, comprising 1 operating mine and 2 development projects, in addition to several early-stage exploration prospects. Key assets include NAL (North American Lithium) and Moblan. The company's business model centers on an integrated operational approach, emphasizing selective mining techniques to minimize dilution and enhance the quality of ore delivered to its processing facilities. Operational stability and throughput are supported by key infrastructure projects, including a crushed ore dome and an upgraded tailings storage facility, which have improved plant utilization and flotation circuit stability. Management focuses on achieving further efficiencies and cost reductions through initiatives in waste rock haulage, mining costs, and optimized plant maintenance planning. The organization also employs strategic logistics management, such as pooling shipments to secure lower unit freight costs for larger cargoes. This operational framework is designed to transform development potential into production by executing complex projects and continuously improving process plant performance. The enterprise has also negotiated improved offtake and contract terms with new customers, including options to reduce quotational period adjustments that have previously impacted realized selling prices.

The organization's strategy is built upon 5 key pillars designed to support long-term growth and value creation. A primary focus is on optimizing operations to maximize returns and cash flow through sustainable practices and continuous improvement. The strategy also prioritizes the expansion of the known mineral resource base via value-accretive exploration programs. A third pillar involves the rapid development of upstream assets while actively pursuing growth options that enhance portfolio value. The enterprise is also evaluating partnering and joint venture opportunities to facilitate downstream integration, aiming to create an integrated processing facility. Finally, the development of strategic partnerships is crucial for locking in demand, providing access to end markets, and accelerating the development of its asset portfolio. This multi-faceted approach is supported by prudent financial management to ensure capital is available for ongoing and future projects, laying a foundation for long-term stability.

Executive leadership was significantly restructured with the appointment of a new Managing Director and Chief Executive Officer on 3 July 2024, a mining engineer with extensive operational experience. The Board of Directors was strengthened with the appointment of 2 independent Non-Executive Directors in August 2023 and February 2024, as part of an ongoing board renewal process. In response to shareholder feedback from the 2023 Annual General Meeting, the board established an Audit and Risk Committee and a Nomination and Remuneration Committee, both chaired by an independent director and composed solely of Non-Executive Directors. A comprehensive review of remuneration practices resulted in a new framework featuring partial deferral of short-term incentives, malus and clawback provisions, and minimum shareholding requirements for Executive Key Management Personnel. This governance overhaul demonstrates a commitment to aligning management incentives with shareholder interests and enhancing transparency.

Environmental stewardship is demonstrated through specific, innovative programs and certifications. The company is pursuing the UL ECOLOGO standard for its exploration activities, a unique Canadian certification covering environment, community relations, and governance. A key initiative involves a technological showcase using 20,000 willows for water treatment through evapotranspiration, a nature-based approach that also produces biomass for progressive site restoration. The organization is also developing a biodiversity index to guide mitigation measures and support the restoration of local biodiversity post-closure. Community engagement is structured through a formal monitoring committee that meets quarterly with stakeholders, including First Nations, to discuss operations and environmental monitoring. In response to community feedback, a comprehensive noise monitoring program, a new complaint submission tool, and a Good Neighbourhood Committee have been established. Safety is managed through a comprehensive Health and Safety Management System and the 'ici' program, which focuses on building a strong risk management culture around 13 identified critical risks.

The corporate structure is characterized by several key joint ventures for operational and development purposes. The North American Lithium operation is held in a joint venture where the company owns 75% and Piedmont Lithium holds 25%. The Moblan Lithium Project was acquired in October 2021 through a joint venture with Investissement Québec, with Sayona holding a 60% interest. In exploration, the company maintains a 49% interest in the Morella Lithium Joint Venture, managed by partner Morella Corporation Limited. Additionally, its subsidiary North American Lithium earned a 25% interest in the Vallée Joint Venture with Consolidated Lithium Metals Inc. in December 2023 after meeting exploration expenditure milestones. The company's acquisition of North American Lithium Inc. was completed in August 2021. As of June 2024, JPMorgan Chase & Co. and its affiliates were listed as a substantial shareholder, holding a 5.02% interest in the company.