Nemaska Lithium Inc.

TSX VENTURE : NMX
OTCQX : NMKEF


Nemaska Lithium Inc.

March 13, 2014 13:28 ET

Nemaska Lithium Announces the Filing of a Third Prospectus Supplement for a Minimum Offering of $3,500,000 and a Maximum Offering of $5,000,000

QUÉBEC CITY, QUÉBEC--(Marketwired - March 13, 2014) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. WIRE NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Nemaska Lithium Inc. ("Nemaska" or the "Corporation") (TSX VENTURE:NMX) (OTCQX:NMKEF) has filed a Third Prospectus Supplement (the "Third Prospectus Supplement") to the Base Shelf Prospectus dated March 4, 2013 with the securities regulatory authorities in each of the Provinces of Québec, Ontario, Alberta and British Columbia, in relation to a brokered offering (the "Offering") of a minimum of 20,000,000 units of the Corporation (the "Units") for an aggregate gross proceeds of $3,500,000 (the "Minimum Offering") and a maximum of 28,571,429 Units for an aggregate gross proceeds of $5,000,000 (the "Maximum Offering"), at a price of $0.175 per Unit (the "Offering Price"). Each Unit consists of one common share of the share capital of Nemaska (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles its holder to purchase one Common Share, at a price of $0.30 per Common Share, on the date that is 12 months following the closing date of the Offering (the "Warrant Expiry Date"). The Corporation may accelerate the Warrant Expiry Date if, before the Warrant Expiry Date and at any time commencing the 20th trading day following the closing date of the Offering, the trading price of the Common Shares listed on the TSX Venture Exchange is equal to or above $0.50 for a period of 20 consecutive trading days. The Offering is expected to close on or around March 21, 2014.

The Offering is being conducted by Secutor Capital Management Corporation acting as agent (the "Agent") on a reasonable best efforts basis.

In consideration for the services rendered by the Agent in connection with the Offering, the Corporation has agreed to pay the Agent a cash commission equal to 8% of the gross proceeds of the Offering from Canadian subscriptions representing $280,000 in the event of the Minimum Offering being completed and $400 000 in the event of the Maximum Offering being completed. Such Commission will also be paid on the gross proceeds from the sale on any additional securities acquired upon exercise of the Over-Allotment Option (as defined herein).

In order to cover any over-allotments and for market stabilization purposes, the Corporation has also granted the Agent an over-allotment option (the "Over-allotment option"), exercisable no later than 30 days after the closing date of the Offering, to purchase additional Units (the "Over-Allotment Units") at the Offering Price. The maximum number of Over-Allotment Units shall be equal to 15 % of the total number of Units sold in the Offering (being up to 4,285,714 Over-Allotment Units).

The Corporation plans to use the proceeds of the Offering and other available funds for (i) to continue the permitting process for the mine and concentrator on the Whabouchi property, (ii) to complete the feasibility study for the Whabouchi Project and the hydrometallurgical plant in Salaberry-de-Valleyfield, (iii) to pay the sums due related to the acquisition of the Whabouchi property upon the release of the feasibility study and (iv) for general administrative expenses and other working capital needs.

A copy of the Third Prospectus Supplement may be obtained on request without charge from the President, Chief Executive Officer and Secretary of Nemaska by emailing info@nemaskalithium.com or directing a request to Nemaska Lithium Inc. at 450, rue de la Gare-du-Palais, 1st Floor, Québec, Québec, G1K 3X2, telephone: (418) 704-6038, Attn: President, Chief Executive Officer and Secretary, and are also available electronically at www.sedar.com.

The securities have not been registered under the United States Securities Act of 1933 (the "Act") or any state securities laws and may not be offered or sold absent registration under the Act and applicable state securities laws or an applicable exemption from the registration requirements thereof. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or an exemption there from.

About Nemaska

Nemaska intends to become a lithium hydroxide/carbonate producer based in Quebec and has filed patent applications for its proprietary production methods. In tandem, the Corporation is developing one of the richest spodumene lithium hard rock deposit in the world, both in volume and grade. Spodumene concentrate produced at Nemaska's Whabouchi mine and from other global sources will be shipped to the Corporation's lithium hydroxide/carbonate processing plant to be built in Salaberry-de-Valleyfield, Quebec. This plant will transform spodumene concentrate into high purity lithium hydroxide and lithium carbonate mainly for the growing lithium battery market. The Nemaska's Whabouchi deposit, located in the James Bay Region in the Province of Quebec, Canada, near the Cree community of Nemaska, should have an initial mine life of 18 years.

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.

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