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Nemaska Provides Update on Previously Announced Drilling Campaign at Whabouchi Lithium Project in Quebec

Nemaska Lithium Inc. ("Nemaska Lithium" or the "Corporation") is pleased to provide an update on the previously announced definition drilling campaign for its Whabouchi lithium project. The drill program was expanded from 44 drill holes over 13,700 m to 50 holes over 17,000 m after the company encountered a new lithium bearing zone in the southwestern end of the planned pit area (Figure1). The initial discovery was made on holes WHA-16-190; that intersected a new mineralized zone over 29.1m along core at 150 m vertical depth, WHA-16-184 over 81.7 m along core at 245 m vertical and WHA-16-189 over 44.8 m at 500 m vertical on the same section (3+50). Five (5) holes to confirm the lateral extensions of this new lithium zone up to 100m East and West of section 03+50 along strike are currently being drilled and are expected to be completed in early September 2016.

Currently a total of twelve (12) holes have intercepted the new mineralized zone, named Doris, and have reported the following intersections:

Section Hole Name From (m) To (m) Core length (m) True width* (m)
01+75 WHA-16-145 15.03 43.8 28.8 14.4
01+75 WHA-16-169 126.35 152.6 26.3 13.1
02+00 WHA-16-146 53.9 140.8 87.0 43.5
02+00 WHA-16-170 171.7 188.62 16.9 8.5
02+50 WHA-16-148 66.62 105.88 39.3 19.6
02+75 WHA-16-149 62.52 79.2 16.7 8.3
02+75 WHA-16-149 81.27 102.03 20.8 10.4
03+25 WHA-16-175 80.95 116 35.1 17.5
03+50 WHA-16-184 299.3 381.0 81.7 40.9
03+50 WHA-16-190 185.29 214.38 29.1 14.5
04+00 WHA-16-151 91.3 107.1 15.8 7.9
04+25 WHA-16-152 48.88 69 20.1 10.1
05+00 WHA-16-153 22.82 34.63 11.8 5.9
* True width estimated for drill holes with a dip of 50° and a general dip of 75° to the NW for the mineralized structure

Additional details of this new lithium zone will be released as the Corporation receives assay results.

"Drilling has gone even better than expected and I am obviously very pleased with this new lithium discovery" commented Guy Bourassa, President and CEO of Nemaska Lithium. "What we know now is that the new zone is quite a thick dyke and we are seeing true widths similar to the main zone at Whabouchi. I am excited to see what impact this new discovery will have on our world class Whabouchi lithium project," commented Guy Bourassa, President and CEO of Nemaska Lithium.

The feasibility study titled: NI 43-101 Technical Report Feasibility Study Update on the Whabouchi Lithium Deposit and Hydromet Plant (Revised), dated as of April 4th, 2016, covers mineral resources totalling 27.9 Mt with an average grade of 1.57% Li2O in the measured and indicated categories and 4.69 Mt with an average grade of 1.51% Li2O of inferred resources in an optimized pit with a 0.43% Li2O cut-off grade.

The three main objectives of the drilling campaign are to: 1) potentially convert the 4.69 Mt of inferred resources, inside the pit design, to indicated resources; 2) increase the level of confidence of mineral resources between 0 m and 200 m vertical from the surface and 3) confirm the continuity of the longitudinal zone of mineral resources down to 500 m vertical depth, below surface. So far, given the mineralized pegmatite interval an available assay results (table below):

  1. The infill drilling program Nemaska Lithium generally encountered mineralization where expected, further increasing the confidence in the existing block model which has fundamentally held intact since its initial inception.
  2. Drilling confirmed that the known dykes are mineralized and present down to at least the 200 m level.
  3. Mineralization has been confirmed in some of the drill holes down to the 500 m level, around the existing extension. Assay results are expected around the end of September.

Assays for the following holes have been received up to now and are presented as weighted average interval of the pegmatite dykes intercepts:

Section Hole Name From (m) To (m) Core length
(m)
True width* (m) LiO2(%)
10+75 WHA-16-159 28.9 45.0 16.1 11.4 0.97
10+75 WHA-16-159 106.4 115.3 8.8 6.2 1.91
10+75 WHA-16-159 158.8 169.1 10.3 7.3 1.28
11+50 WHA-16-160 13.5 18.3 4.8 3.4 1.84
11+50 WHA-16-160 188.0 191.0 3.0 2.1 2.46
11+50 WHA-16-160 240.5 245.9 5.4 3.8 1.29
11+50 WHA-16-160 248.9 254.9 6.0 4.3 1.09
12+50 WHA-16-162 26.0 29.0 3.0 2.1 1.43
12+50 WHA-16-162 81.6 89.5 7.9 5.6 0.89
12+50 WHA-16-162 158.5 163.8 5.3 3.8 1.68
12+50 WHA-16-162 171.7 184.5 12.9 9.1 1.64
12+75 WHA-16-163 1.1 12.1 11.0 7.8 1.59
12+75 WHA-16-163 54.8 66.0 11.2 7.9 1.69
13+00 WHA-16-178 34.8 41.4 6.6 4.7 2.00
13+00 WHA-16-178 34.8 41.4 6.6 4.7 2.00
13+00 WHA-16-178 126.9 137.2 10.3 7.3 1.92
13+00 WHA-16-178 151.0 163.2 12.2 8.6 1.61
13+00 WHA-16-178 229.3 238.1 8.8 6.2 1.40
14+00 WHA-16-165 2.6 17.9 15.2 10.8 1.43
14+00 WHA-16-165 98.3 102.8 4.5 3.2 1.02
14+00 WHA-16-179 18.9 24.0 5.1 3.6 1.69
* True width estimated for drill holes with a dip of 50° and a general dip of 85° to the SE for the mineralized structure

"The assays that we have received from the 0m to 200m level are very good with grades that are consistent with the overall deposit, which is globally recognised as one of the richest lithium hard rock deposits in the world. I am very pleased by how well our block model continues to hold up as we define the deposit in greater detail. We consistently hit our dykes where expected and this combined with our initial assay results only bodes well for increasing our resource estimate followed by reserve estimate," Bourassa continued.

The drilling campaign is planned and supervised by Jean-Philippe Paiement, M.Sc. P. Geo, at SGS Canada Inc. Samples are prepared by the SGS Canada Inc. laboratory in Quebec City and are analyzed by the SGS Canada Inc. accredited laboratory in Lakefield.

A QAQC program involving blank samples (3% of the sampling stream), standard samples (3% of the sampling stream) and field duplicates (3% of the sampling stream) has been established during sampling. 10% of the mineralized samples will also be sent to ALS for pulp duplicates once the campaign is over. The work is carried out in accordance with CIM's mining exploration guidelines.

The technical parts of this press release were prepared by Jean-Philippe Paiement, M.Sc. P. Geo, at SGS Canada Inc., qualified person under Regulation NI 43-101.

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