Nemaska Lithium Receives Independent Audit Report From BBA

Press Release

• BBA validates Nemaska ​​Lithium’s cost-to-complete estimate.
• The Corporation’s proactive approach to project management echoes the report’s recommendations.

QUEBEC CITY, April 29, 2019 — Nemaska ​​Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX: NMX) (OTCQX: NMKEF) (Frankfurt: N0T) is pleased to announce that an external and independent audit conducted, at the request and under the supervision of the Board of Directors’ Special Committee, by multidisciplinary Canadian engineering firm BBA, has validated Nemaska Lithium’s internal cost-to-complete construction assessment as of February 13, 2019, based on the information that was then available to the Corporation. Following the February 13, 2019 project update, the Corporation retained BBA as Owner’s Engineer to perform an independent audit of the quantitative estimate of the expected project CAPEX and a validation of the estimate class as of that date. This audit also comprises a qualitative assessment of the Project Execution Plan (PEP) and recommendations for potential improvements.

BBA’s independent cost assessment is slightly lower than the Corporation’s prior cost-to-complete internal estimate as of February 13, 2019 and therefore validates the Corporation’s conclusion that additional net funds of approximately $375 million are required to meet the cost to complete drawdown conditions provided in the streaming agreement with Orion Mine Finance and the senior secured bonds. BBA also confirms that the Corporation has acted diligently to implement the necessary internal changes and assigned the appropriate supplementary resources in order to strengthen control over construction activities and optimize its existing resources pending the completion of the required additional financing or any other available strategic alternative.

“The decision to appoint a third-party to review our internal reassessment was the first of many actions that were undertaken for a more prudent approach to conducting our project construction. We are pleased to confirm that the Corporation has already proactively implemented a number of BBA’s recommendations while others are in the process of being implemented. We are resolutely looking towards the future to achieve our goal of completing construction and entering into commercial production as soon as possible. Meanwhile, the quality of our spodumene concentrate and lithium hydroxide product continues to be noticed and recognized globally.” said Guy Bourassa, President and CEO of Nemaska ​​Lithium.

A series of measures implemented to improve control over construction activities

In addition to bringing in new, seasoned experts to the construction project team, the Corporation has streamlined and improved its project control processes. It has fully internalized the entire project contract and procurement management function and is currently evaluating agreements with suppliers to ensure that contracting strategies are adapted to the current reduced pace of construction. Previously, a portion of these responsibilities were contracted to an external firm.

In-house expertise has also been enhanced with the appointment of specialist engineers in key positions for project delivery in Whabouchi and detailed engineering oversight in Shawinigan. Finally, a new risk assessment exercise for the completion of the project was launched in collaboration with external peers to identify, anticipate and limit potential consequences of any unforeseen events on project execution.

“We believe our revised construction and project execution plan, which factors the current reduced construction pace, allows us to advance our detailed engineering work and improve our planning and cost control, in order to be ready when the funds will be available. We are proud to see all our team members and partners join forces to advance the project. We are working diligently to meet the objectives set forth in our plan,” added Robert Beaulieu, Vice President, Operations & Construction of Nemaska Lithium.

Next Steps
As previously announced on March 25, 2019, Clarksons Platou Securities and National Bank Financial have been mandated by the Corporation to lead a dual-track financing action plan – equity raise and/or consider M&A opportunities – to carry the project through the production stage at the mine and the electrochemical plant. The independent BBA Audit Report is an important data point and key validation of Nemaska Lithium’s financial requirements and internal controls to complete the project. The financing/strategic process is ongoing and various parties are currently involved at different stages. The Management Team is actively working with the qualified persons in charge of updating the NI 43-101 Technical Report – Feasibility Study on the Whabouchi Lithium Mine and Shawinigan Electrochemical Plant, which is expected to be filed during the month of June 2019.

Nemaska Lithium intends to hold its quarterly construction update call in the second half of the month of May 2019, in line with the filing of its quarterly financial statements.

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 and lithium carbonate. These lithium salts are 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 Small Cap Index. For more information, visit www.nemaskalithium.com or twitter.com/Nemaska Lithium.

About BBA

BBA has been providing a wide range of consulting engineering services for nearly 40 years. Its engineering, environmental and commissioning experts team up to quickly and accurately pinpoint the needs of industrial and institutional clients. The firm’s expertise is recognized in the fields of energy, mining and metals, biofuels and oil and gas. With 12 offices across Canada to provide clients with local support and field presence, BBA is recognized for providing some of the industry’s most innovative, sustainable and reliable solutions. www.bba.ca.

Further information regarding Nemaska Lithium is available in the SEDAR database (www.sedar.com) and on the Corporation’s website at: www.nemaskalithium.com.

OR 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

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

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