Ann: PFS Launched for NAL Lithium Carbonate Production, page-239

For info guys...


This has been brought up before, but to refresh your memories...

For those of you that think Piedmont cannot agree to refining at NAL

From the original take over conditions set by IQ-


Under the original Assignment agreement and Governance agreement,
SAYONA AND PIEDMONT HAVE ALREADY AGREED TO REFINING NAL's
SPODUMENE INTO CARBONATE OR HYDROXIDE FROM 2025-2029.

If these obligations are not achieved, NAL is obligated to redeem a certain
portion of IQ's preferred shares at a price equal to their initial value plus
interest at a minimal rate of 5% per annum. Sayona Quebec may periodically
redeem a certain portion of IQ's preferred shares, upon meeting various Quebec
Content Undertakings, for an aggregate amount of CA$1.

The financial implication of the above paragraph, are not huge, and certainly have been weighed up
by PLL. However, there are OTHER guarantees mentioned in the Assignment and in the Governance agreement,
which have NOT BEEN MADE PUBLIC and remain sealed.

Piedmont Lithium and Sayona have agreed to guarantee the obligations of Sayona
Quebec under the Assignment Agreement and the Share Purchase Agreement and the Governance Agreement.

In addition, Sayona Quebec will guarantee the obligations of NAL in respect of
the Quebec Content Undertakings described above.

And more specifically,
before June 11, 2026.

From the original court ruling- June 11 2021-

Page 11




Signed by-



So, we have now established June 11 2026 is the maximum date that -
SYA and PLL are committed to carry out secondary processing of lithium in
Québec within the next five years, which will be supplied with lithium
spodumene concentrate produced from the integrated NAL, Authier and
Tansim projects;

Forget about 2027, 2028, 2029 and beyond....June 2026 is specified in the Superior court documents between the Canadian Attorney General, the Deputy Minister of Energy and natural resources and IQ, amongst others..


The timeline proposed by Sayona was FIRST REFINED PRODUCT Q2 2024.

NOT commercial shipments, first refined product. A product which will have to be qualified and tested by labs and prospective buyers.

So , if this is to happen by mid 2024, then I would say that by early- mid 2025, commercial production is achievable.
Qualify the product, shake down the refinery, fine tune the production...That gives SYAQ a buffer of 12 months to ensure the can make this deadline, even if there is any unforseeable delays.

I see a mid 2025 target as realistic and achievable.

And, due process must be followed.

SYAQ already know what they have, at a STUDY level.
DFS/BFS is the level you need to be at for institutions to take you seriously, particularly for finance.
To get to DFS/BFS level, you need to carry out a PFS, which is exactly what they are doing...following due process.

May I also add, that they know what the conclusion is, now they just need to prove it to the world.
Which includes future investors and partners....and particularly for their current partner PLL, who can present this to their shareholders as a win win.
PLL could make $US$100-200M/pa more if SYAQ convert all their spod to LCE/LiOH.
Keith has publicly stated that on his journeys, prospective customers are asking for hydroxide, hydroxide, hydroxide......
If the metrics are as good as I know they can be, then PLL can take this to their shareholders, without fear of backlash.
They make more money from a more valuable, more attractive product...and they don't have to lift a finger to do it.
No need to on sell. No need to provide logistcs, or carry out auctions, or seek out buyers for sc6. It is all handelled by SYAQ, and they just get their 25% share...Easy as....and more money....

This PFS then, could be so much more than what people are thinking.
No doubt, it will set out to improve the bones of the carbonate plant, update the old tech, improve the bottlenecks,
uprate the throughput, increase the recovery rate and hence the output........AND...add a hydroxide circuit.

There is no reason they couldn't produce 30ktLCE and 10-30KT LIOH....and this may be the reason they continually, and I mean continually mention BOTH carbonate and hydroxide. Plenty of refiners do...
And both PLL and SYA's aspirations are- To be the leading suppliers of lithium in Nth America...

Today's announcement-

Emerging lithium producer Sayona Mining Limited (ASX:SYA; OTCQB:SYAXF) is fast‐tracking plans to
move downstream in Québec, with the launch of a pre‐feasibility study by Sayona Québec (SYA 75%;
Piedmont Lithium Inc 25%), to consider the potential for lithium carbonate production at the North
American Lithium (NAL) operation.
Sayona is examining the options for lithium carbonate or hydroxide production in Québec, working
closely with its partner Piedmont Lithium
AND
Sayona Managing Director, Brett Lynch said the study would provide valuable intelligence on future
planned downstream processing in Québec.
“Moving downstream has always been the plan for Sayona in Québec to enable a significant increase in
profitability, whether through lithium carbonate or hydroxide production,” Mr Lynch said.


So, I see this as a good announcement.
Necessary, as part of our DD as a company, to progress from producer to refiner.
A a long term holder, this is the way......
To me this is a forgone conclusion...it is inevitable.

Do I want it done yesterday?? ....of course I do.

But I take solace in the fact that we haven't even started producing SC6, yet we are already initiating the next step to refining....

I am happy to hold to 2027 and beyond, and watch this all unfold....
All IMHO......

Good luck everyone....