Nemaska Lithium Signs an Off-Take and Collaboration Agreement With Phostech Lithium for Production of Lithium Hydroxide

04 October 2012

QUEBEC CITY, QUEBEC, CANADA--(Marketwire - Oct. 4, 2012) - Nemaska Lithium Inc. ("Nemaska" or the "Corporation") (TSX VENTURE:NMX)(OTCQX:NMKEF) is pleased to announce that it has signed an off-take and collaboration agreement ("Agreement") with Phostech Lithium Inc. ("Phostech"), a Clariant AG group company. (Swiss Exchange: CLN) Per the Agreement, Phostech agrees to evaluate and purchase from Nemaska the output of the lithium hydroxide monohydrate to be produced by Nemaska's Phase I plant. Nemaska and Phostech also agree to collaborate in order to determinate the economic and technical feasibility of tailoring the lithium hydroxide fabrication process according to Phostech's specifications. Pending financing and budgetary considerations, Nemaska Lithium intends to build a Phase I, 500 tonnes a year lithium hydroxide plant using its proprietary chemical transformation process.

"This is our first agreement with an end user and we are delighted to be working with Phostech, a division of Clariant, a large established multinational organization that focuses on speciality chemicals including battery cathode material manufacturing," commented Guy Bourassa, President and CEO of Nemaska Lithium. "This agreement will accelerate our decision to build a Phase I lithium hydroxide plant which will also be used as a marketing tool to discuss with other potential customers."

"High-quality raw materials are a key element for cathode materials to be used in long-lasting lithium ion batteries," commented Denis Geoffroy, General Manager, Phostech Lithium. "We are eager to evaluate a new source of lithium hydroxide and explore a long-term relationship with Nemaska Lithium."

Phostech recently opened its facility in Quebec that produces the Life Power® P2 C-LiFePO4, a safe, high-power cathode material for rechargeable lithium-ion batteries used in hybrid and electric vehicles, solar and wind energy storage and power tools.

About Phostech

Phostech Lithium is a Clariant group company and integral part of Clariant Battery Materials, the leading supplier of high quality C-LiFePO4 cathode material. Clariant Battery Materials markets different Life Power® grades manufactured in its plants in Canada and Germany. Clariant Battery Materials controls and develops several synthesis processes to fulfill needs of present & future customers and markets.

About Clariant

Clariant is an internationally active specialty chemical company, based in Muttenz near Basel. The group owns over 100 companies worldwide and employed 22 149 employees on December 31, 2011. In the financial year 2011, Clariant produced a turnover of CHF 7.4 billion. Clariant is divided into eleven business units: Additives; Catalysis & Energy; Emulsions, Detergents & Intermediates; Functional Materials; Industrial & Consumer Specialties; Leather Services; Masterbatches; Oil & Mining Services; Paper Specialties; Pigments; Textile Chemicals. Clariant focuses on creating value by investing in future profitable and sustainable growth, which is based on four strategic pillars: Improving profitability, innovation as well as research and development, dynamic growth in emerging markets, and optimizing the portfolio through complementary acquisitions or divestments.

About Nemaska

Nemaska Lithium is an exploration and development company with its Whabouchi and Sirmac lithium deposits located in the James Bay Region in the Province of Quebec. Both projects are easily accessible year round by the Route du Nord from Chibougamau. The Whabouchi lithium deposit is located near the Cree community of Nemaska and the Némiscau airport. Nemaska plans to become a lithium hydroxide/carbonate producer based in Quebec and has filed patent applications for its proprietary method to produce lithium hydroxide and lithium carbonate. The Corporation's lithium hydroxide/carbonate processing plant will be located in Valleyfield, Quebec. Nemaska is also an important shareholder of Monarques Resources Inc. (TSX VENTURE:MQR).

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nemaska to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.