Nemaska Lithium Provides Update on Whabouchi Project

Press Release

• Efforts to complete an optimized project financing structure continue
• Project investment at both sites totals $392 million as at September 30, 2019
• Temporary shutdown of activities will be completed shortly at the Whabouchi mine
• Phase 1 plant to fulfill last orders before beginning of the shutdown

QUEBEC CITY, Nov. 15, 2019  — Nemaska Lithium (Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX: NMX) (OTCQX: NMKEF) (Frankfurt: N0T) today provides an update on its Whabouchi Project and the status of its ongoing efforts to complete the project financing. This update follows the filing, on November 14, of the financial statements and Management Discussion and Analysis (MD&A) for the first quarter, ended September 30, 2019, of its financial year. Nemaska Lithium also takes this opportunity to provide details on the activities at the mine site and the Phase 1 plant.

“We continue working with Pallinghurst and our other strategic partners on completing an optimized project financing structure to be submitted to the shareholders’ approval as soon as possible,” said Guy Bourassa, President and CEO of Nemaska Lithium. “Over the past month, our teams have worked diligently to prepare the sites for temporary shutdown, in anticipation of an orderly resumption of activities that will minimize delays once financing has been secured and the construction schedule is confirmed.”

Annual General Meeting of Shareholders

As a result of the ongoing discussions with The Pallinghurst Group (“Pallinghurst”), Nemaska ​​Lithium has requested and obtained approval from the capital markets authorities to hold its shareholders Annual General Meeting (“AGM”) in early 2020. If appropriate, the Corporation may elect to combine the AGM with the Special Meeting regarding Pallinghurst’s potential investment under a court approved plan of arrangement under the Canada Business Corporations Act (“CBCA”). Details about the AGM and/or Special Meeting will be communicated to shareholders when available.

Discharge of the security which secured the Bonds

As regards the Corporation’s application filed on September 16, 2019 with the Superior Court of Québec, in connection with its arrangement proceedings under the CBCA, which seeks the discharge of the security which secured the $350 million US senior secured bonds (the “Bonds”), the hearing of such application is set for January 2020, in Montréal. It is the Corporation’s view that the Bonds were discharged. The Trustee considers that the Bonds were not discharged, and that the Corporation owes penalties to the holders of the Bonds. Readers may refer to the press releases of Nemaska Lithium dated September 17 and 25, 2019 for further information.

Financial Highlights

On November 14, 2019, Nemaska Lithium filed its first quarter financial statements as well as Management discussion and analysis (MD&A) on SEDAR. As at September 30, 2019, the Corporation had on hand approximately $77 million in unrestricted cash and cash equivalents to finance its current activities, plus cash and cash equivalents of $40 million that Nemaska Lithium has agreed, for the moment, to maintain in a cost overrun account, even if the Bonds were discharged. As at September 30, 2019, cumulative incurred capital investment totalled $392 million on a total Whabouchi Project budget of $1.269 billion, including contingency. Moving forward the Corporation has taken a number of additional proactive steps to preserve cash while it completes its project financing.

Construction Report Selected Information on Expenditures All amounts are in Canadian dollars (in millions, including contingency)
Incurred and Remaining CAPEX as at September 30, 2019, per NI 43–101 Technical Report estimate, July 2019		Total	Incurred as at September 30, 2019	Remaining as at September 30, 2019
	Whabouchi:	448	261	187
	Plant:	821	131	690
	Total:	1,2691	392	877

¹The Total CAPEX includes amounts for corporate owners’ costs, which are ≈$42 million for Whabouchi and ≈$29 million for the Plant.

Project Standby Readiness

Equipment deliveries to the Whabouchi site have been completed. In the coming weeks, the Whabouchi site winterization and orderly demobilization will be completed. A small crew will conduct care and maintenance activities as well as ensuring site security. Detailed engineering will be pursued, at an adapted pace, to continue the development of project until financing is secured for both the Whabouchi mine and the Shawinigan plant.

The shutdown of the Phase 1 plant will begin in a few weeks, with a view to ceasing operations by December 31, 2019. The team is also working to fulfill the last orders as well as preparing samples of lithium hydroxide to continue product qualification trials with potential end users. In operation since February 2017, this demonstration plant enabled the Corporation to showcase the reliability of its patented process and the exceptional quality of its product intended for the lithium battery market.

Nemaska ​​Lithium has taken the necessary steps to ensure the preservation of its assets and to comply with regulatory, safety and environmental obligations at both sites for the duration of the project standby phase.

About Nemaska Lithium

Nemaska Lithium Inc. is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide. This lithium salt is mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide. With its products and processes, the Corporation intends to facilitate access to green energy, for the benefit of humanity.

The Corporation will be operating the Whabouchi mine in Québec, Canada, one of the richest lithium spodumene deposits in the world, both in volume and grade. The spodumene concentrate produced at the Whabouchi mine will be processed at the Shawinigan plant using a unique membrane electrolysis process for which the Corporation holds several patents.

The Corporation is a member of the S&P/TSX SmallCap Index, S&P/TSX Global Mining Index, S&P/TSX Global Base Metals Index, S&P/TSX Equal Weight Global Base Metals Index, and the MSCI Canada SmallCap Index. For more information, visit www.nemaskalithium.com.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Victor Cantore
Investor Relations
514 831-3809
victor.cantore@nemaskalithium.com

Wanda Cutler
Investor Relations
416 303-6460
wanda.cutler@nemaskalithium.com

Gabrielle Tellier
Media Relations
514 348-0466
gabrielle.tellier@nemaskalithium.com

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