Nemaska Files Lithium Hydroxide and Carbonate Patent Applications: One Step Closer to a Lithium Hydroxide Plant in Quebec

05 June 2012

QUÉBEC CITY, QUÉBEC, CANADA--(Marketwire - June 5, 2012) - Nemaska Lithium Inc. ("Nemaska" or the "Corporation") (TSX VENTURE:NMX)(OTCQX:NMKEF) is pleased to announce that the Corporation has filed two US provisional patent applications pertaining to its unique process to produce lithium hydroxide and lithium carbonate. On April 23, 2012, the Corporation filed US patent application 61/636,869 in order to protect Nemaska's processes for preparing high purity lithium hydroxide and high purity lithium sulphate in a low cost, environmentally friendly manner. Subsequently, on May 30, 2012, US patent application 61/653,035, was filed in order to protect Nemaska's processes for preparing lithium carbonate from lithium hydroxide. This proprietary method uses an environmentally friendly approach to prepare high-yield, high purity lithium carbonate, while keeping production costs to a minimum.

"Our lithium hydroxide production process uses electrolysis and eliminates the use of large quantities of soda ash, a major input used in the traditional conversion process," commented Guy Bourassa, President and CEO of Nemaska Lithium Inc. "The price of soda ash is constantly fluctuating, is unpredictable, and has significantly increased over the past few years. By eliminating this input and through the use of electrolysis, we are in a position to enter into long-term electricity contract in Quebec, which will reduce overall costs and improve margins over a defined period. The availability of electricity in Quebec allows for a second value added transformation process, which will maximize value for our shareholders as well as Quebec-based communities".

These promising protected technologies should position Nemaska as a world leader in the production of low cost lithium hydroxide and lithium carbonate. The Corporation views its intellectual property as a key competitive advantage. Nemaska, in conjunction with its patent agents, is currently contemplating the filing of additional patent applications.

Market for Lithium Hydroxide

As confirmed in a recent market study commissioned by Nemaska, the market for lithium hydroxide is forecast to double every five years for the next 15 years. Currently four companies are meeting demand, but have limited capacity to support the projected increase in demand. Nemaska intends to produce lithium hydroxide by 2014, in time to meet the predicted ramp up in demand for lithium hydroxide. Furthermore, lithium hydroxide currently sells at a premium of at least 25% compared to lithium carbonate.

About Nemaska

Nemaska is an exploration and development corporation that is currently involved in the development of its Whabouchi lithium deposit located in the James Bay region, Province of Quebec. Nemaska has also developed innovative processes to transform lithium minerals into valued added lithium hydroxide and lithium carbonate. Nemaska also owns 100% of the Sirmac lithium project, located about 125 km south of the Whabouchi deposit. 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 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.