Nemaska Releases Initial NI 43-101 Resource Calculation for its Lithium/Beryillium Whabouchi Deposit

31 May 2010

QUEBEC CITY, QUEBEC--(Marketwire - May 31, 2010) - Nemaska Exploration Inc. («Nemaska» or the« Corporation») (TSX VENTURE:NMX) is pleased to announce a Canadian National Instrument (NI) 43-101 mineral resource estimate for the Whabouchi Property, located in James Bay Region of Quebec. The resource estimation has been prepared by Andre Laferriere, M. Sc. P. Geo of SGS Canada Inc. (Geostat) of Blainville, Quebec.

Highlights

  • 9.8 million tonnes grading at 1.63% LI2O in the measured and indicated category
  • 15.4 tonnes grading at 1.57% LI2O in the inferred category
  • Resource remains open to depth and along strike to the East
  • Calculation is based on over 12,745 m of drilling in 67 holes and 37 channels covering 1,285 m to an average depth of 265 m for the Western portion of the deposit and 215 m for the Eastern portion.

"We are obviously very pleased with the results of this report which places our hard rock spodumene deposit as one of the largest* in the world," commented Mr. Guy Bourassa, President and CEO. "The report confirms that the lithium mineralization is wide, continuous and high grade. This report does not take into account the last hole of the campaign (results pending) that intersected the main mineralized zone at a depth of 430 m. The results of this drill hole should positively impact the resource calculation given the continuity of the mineralized zone covered in this resource estimate." He added, "Looking forward, we are continuing to progress the project toward development at a rapid pace. We have already begun the metallurgical tests which will lead to a scoping study that we expect to complete this year."

*Greenbushes lithium operations in Australia is the largest spodumene producer in the world with resources of 22.5 MT (M+I) grading 3.7% Li2O (386,700 tonnes Li metal).

Canada Lithium Inc.'s Quebec Lithium project has resources of 31.6 MT (M+I) grading 1.11% (161,500 tonnes Li metal).

Nemaska Exploration Inc.'s Whabouchi project has 9.8 MT grading 1.63% Li2O (74,000 tonnes Li metal)

Galaxy Resources Mt Catlin deposit in Australia has reserves of 11.4 MT (M+I) grading 1.05% Li2O (55,600 tonnes Li metal)

Mineral Resources Estimates - Whabouchi Project
Cut-off Grade Li2O (%) Resources Categories Tonnes* Li2O Grade (%) BeO Grade (ppm) Li Metal** (tonne) Be Metal** (tonne)
0.5% Measured 1,885,000 1.60 458 14,000 300
Indicated 7,889,000 1.64 446 59,900 1,300
Measured + Indicated 9,774,000 1.63 449 74,000 1,600
Inferred 15,396,000 1.57 420 112,100 2,300
1.0%
Measured 1,857,000 1.61 459 13,900 300
Indicated 7,775,000 1.65 448 59,500 1,300
Measured + Indicated 9,632,000 1.64 450 73,400 1,600
Inferred 14,888,000 1.59 424 110,100 2,300
Inferred mineral resources are exclusive of the measured and indicated resources. Bulk density of 2.68t/m3 used. Effective date May 28, 2010.
* Rounded to the nearest thousand. **Rounded to the nearest hundred.

The mineral resources estimates were calculated based on the following geological and resource modeling parameters:

  • Mineral resources were evaluated from the recent diamond drill holes and channels analytical results completed during the fall of 2009 and winter of 2010. Historical drill holes and channels were not used for the current mineral resources estimates. A total of 67 drill holes and 37 channels were used for the mineral resources model.
  • The mineral resources estimate was done using a 3-D Modeling and Block Model Interpolation Methodology with Inverse Distance Square. The block model was defined by block size of 10 m long by 2 m wide by 5 m thick and covers a strike length of 1,285 m to an average depth of 265 m below surface for the Western portion of the deposit (West of section 775E) and to an average depth of 215 m below surface for the Eastern portion of the deposit (East of section 775E).
  • The interpolation was conducted on composite assays of 1.5 m in length. The mineral resources were modeled and estimated using the software SectCad version 5.4.300.
  • The resources model was interpreted from transverse section ranging between 25 to 50 m for the west portion of the deposit and 100 m for the eastern portion.
  • No capping was applied to the assays. Results are presented undiluted and in-situ. A bulk density of 2.68 t/m3 was used to calculate tonnages from the volumetric estimates of the resources block model. The bulk density used is an average of 34 specific gravity measurements taken from core samples.
  • Conversion factors used: Li2O = Li * 2.153; BeO = Be * 2.775.

Based on the Memorandum received from Geostat, dated May 28, 2010. The complete report will be filed by SGS on SEDAR within the next 45 days. The technical sections of this press release have been prepared by Andre Laferriere, M. Sc. P. Geo Qualified Persons as defined in National instrument 43-101.

Plan view of the deposit with grades available at the following address: http://media3.marketwire.com/docs/nemaska_mapENG.pdf

About Nemaska Exploration

Nemaska Exploration Inc. is a mineral exploration company involved in the James Bay region of Quebec. Its main assets are the Whabouchi (about 2,240 hectares), Lac Levac (about 7,212 hectares), Lac Arques (about 35,270 hectares), and Lac des Montagnes (about 16,695 hectares) properties, all 100 % owned. These properties are contiguous and cover about 70 km of the Lac des Montagnes green belt polymetallic formation. They are easily accessible year round by either the Route du Nord from Chibougamau (280 km) or the Route de la Baie James from Matagami (380 km) and are located near the Cree community of Nemaska and the Némiscau airport.

The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the Company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.