September 2018 Corporate Presentation
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September 2018
Corporate Presentation
Forward-
looking
statement
• During the course of this presentation, Nemaska
Lithium Inc. will make a number of statements with regard
to the Company’s projects, business strategy and plan,
which could be construed as forward-looking.
• Such forward-looking statements are subject to risks and
uncertainties that could cause results to be materially
different than expectations. It is uncertain if further work
will in fact lead to production of mineral resources and of
lithium compounds.
• Nemaska Lithium filed a NI-43-101 compliant feasibility
study report on SEDAR on February 23, 2018, concerning
its Whabouchi project. All technical information should be
reviewed according to this 2018 feasibility study.
• All figures are in Canadian Dollars unless otherwise
specified. Exchange Rate is CAD 1.00 = USD 0.77
2
Overview
3
Fully Funded Project
under construction• Nemaska is fully funded for project construction plus one year of working capital following the
closing of CAD 1.1 B.
Vertically integrated
lithium project
• Nemaska Lithium’s Whabouchi project in Québec is a vertically integrated lithium project from the
raw material at Whabouchi mine to the Electrochemical Plant in Shawinigan where it is transformed
into high-purity lithium hydroxide and lithium carbonate.
Lowest cost producer
of lithium hydroxide
• With a vertically integrated operation, proprietary process, and access to affordable hydroelectric
power in Québec, the Whabouchi project is being forecast to become the lowest cost producer of
lithium hydroxide globally.
Near-term cash flow• Whabouchi Mine and concentrator are expected to start production with sales of spodumene
concentrate in Q3 2019. An offtake agreement for the whole production has been signed for
approximately 2 years while the electrochemical plant is ramping up.
World-class
counterparties
• Nemaska Lithium has secured offtake agreements with FMC and Johnson Matthey and signed an
agreement in principle with Northvolt. The various groups have given the project key endorsements
through offtake contracts, product qualification and financial support.
Strong support from
key stakeholder
• Nemaska Lithium has strong support from both the Government of Québec and the federalgovernment. The Québec government holds about 12.5% of the Corporation. Additionally, Softbankholds 9.9% of Nemaska and the Cree Nation of Nemaska is a shareholder.
Producing Phase 1
Plant since Feb. 2017
• Nemaska Lithium is currently producing lithium hydroxide from Whabouchi spodumene concentratedemonstrating its ability to produce high purity lithium hydroxide but also enabling the qualificationof product with off-takers and potential customers.
Corporate Overview
4
Nemaska Lithium | Company Overview
1
3
Large bulk sample
producing ~1,100
tonnes spodumene
concentrate
@ 6.25% (Li2O)
Phase 1 Plant
successfully built,
transforming
spodumene concentrate
to high purity lithium
hydroxide
4
Produced ~50 tonnes of
lithium hydroxide of
battery grade quality to
Johnson Matthey,
satisfying their product
specification
Construction and development of
commercial operations targeting(1)
✓ Start commercial production of spodumeneconcentrate in Q3 2019.
✓ Start commercial production of lithium hydroxide and carbonate in Q3 2020.
✓ Spodumene concentrate production on average of approx. 213,000 tonnes per year @ 6.25% (Li2O).
✓ Lithium hydroxide production on average of approx. 23,000 tonnes per year.
✓ Lithium carbonate production on average of approx. 11,000 tonnes per year.
Nemaska Lithium's Accomplishments to Date Next Steps
(1) Production figures are based on average yearly figures for life of mine and Shawinigan Electrochemical Plant.Source: Nemaska Lithium Feasibility Study Issue Date 21st of February 2018
5
2 Feasibility Study and Permitting
Logistics | From Deposit to Customer
Concentrator Truck Train Plant
• Producing 6.25% (Li2O)
spodumene concentrate
from the mine and
processing plant at mine
site in Nemaska.
• Mine is in close proximity
to road connecting to
Chibougamau.
• About 600 tonnes of
concentrate will be
transported ~300 km
daily from Whabouchi to
Chibougamau by truck
on the all season gravel
road, Route du Nord.
• Concentrate is loaded
onto the rail cars at
Chibougamau.
• It is expected that
deliveries with up to 18-
100 tonnes per railcar will
be shipped every two to
three days to the plant in
Shawinigan about 555km
on the CN railway.
• Lithium carbonate and
hydroxide to be sold FCA
Shawinigan and can be
shipped by rail, road or
sea.
Whabouchi Chibougamau Shawinigan
~300 km from Whabouchi to Chibougamau ~555 km from Chibougamau to Shawinigan
Source: Nemaska Lithium Feasibility Study Issue Date 21st of February 2018
6
Project Financing of CAD 1.1B
• A 94M private placement from world-leader SoftBank Group Corp. SoftBank also
has a right of first offer to purchase up to 20% of lithium salts produced from
Shawinigan.
• A 80M private placement with Ressources Québec
• A 280M public offering through a bought deal
Signed a streaming facility agreement with Orion Resources Partners (UK) LLP under
which Nemaska Lithium and Orion will share 14.5% of future production of all lithium
products. Net effect is Orion receives 8.7% of total revenue. The agreement is capped at
5,000 t of product per year.
The Bonds have a five year term and bears an 11.25% interest rate per annum
Equity CAD 454M
Debt USD 350M Senior Secured Bond Offering
Streaming USD 150M
7
Project financing CAD 801M
Interest payments CAD 128M
Working capital CAD 87M
Cost over run account CAD 40M
Transactions costs CAD 48M
Use of Proceeds
Capital Structure | September 04, 2018
Shares outstanding 846,059,338
Options (average exercise price $0.92) – August 2018 to May 2023
Warrants (average exercise price $1.49) – July 2019
34,437,734
30,825,635
Fully Diluted 911,322,707
Distribution (estimated)
Management and employees ≈ 6%
Ressources Québec ≈ 12%
SoftBank Group ≈ 9%
Institutional ≈ 48%
Others ≈ 25%
8
Project Economics Key Figures
Average Cost Per Tonne | Spodumene Concentrate
(USD 257/t) CIF Shawinigan (open pit)
Average Cost Per Tonne | Lithium Hydroxide
Sales Prices FOB Shawinigan lithium hydroxide USD14,000/t, lithium carbonate USD 9,500/t for first 5 years and USD 12,000t thereafter
All calculations assume a 6.25% (Li2O) spodumene concentrate
Exchange rate CAD/USD: 0.77
*Only equity as per the Feasibility Study* * Using the CAD 1.1B Project financing closed
Yearly Average Production
CAD 3,655/t
Average Cost Per Tonne | Lithium Carbonate 99.99%
CAD 4,424/t
Whabouchi Mine
≈ 213,000 tonnes of concentrate (6.25% Li2O)
Shawinigan Electrochemical Plant
≈ 23,000 tonnes of lithium hydroxide
≈ 11,000 tonnes of lithium carbonate
33 yearswith 2.9 year (2 year**) payback period (after-tax)
Expected Mine Life and Payback Period
NPV
8% Discount (pre-tax)
CAD 2.4B * (USD 1.8B)
CAD 2.2B** (USD 1.7B)
Internal Rate of Return (IRR)
34.4%* (pre-tax)
60.5%** (pre-tax)
30.5%* (after tax)
56.0%** (after tax)
Total Initial Capital Costs
CAD 801M
Source: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018
(USD 616M) in CAPEX including contingency
(USD 3,403/t) FOB Shawinigan
(USD 2,811/t) FOB Shawinigan
CAD 334/t
CAD 3.3B* (USD 2.5B)
CAD 3.0B ** (USD 2.3B)
8% Discount (after tax)
9
The
Market
10
Rechargeable battery
42%
Ceramics 12%
Glass-ceramics 12%
Greases 7%
Polymer 5%
Glass 5%
Metallurgical powders
4%
Primary battery 2%
Air treatment 2%
Other 9%
Uses of Lithium in 2016 Uses of Lithium in 2026E
Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018
Lithium Uses 2016 and 2026E
Total demand
~197,000 tonnesLithium Carbonate
Equivalent
Rechargeable battery
86%
Ceramics 3%
Glass-ceramics 3%
Greases 2%
Polymer 1%
Glass 1% Primary
battery …
Air treatment 0%
Other 2%
Expected total
demand
~1,008,000 tonnesLithium Carbonate
Equivalent
11
17
167
183
34
34
12
1527
4 45 5
34 34
1
37 38
29.5
325
GWh in 2016 Additional capacity being built or expected to be built GWh in 2021E
GW
h p
er y
ear
USA Sweden Poland Japan Korea Germany China Total
Assumed 0.8 tonne LCE per GWhSource: Nemaska Lithium company presentation 9th of March, Benchmark Intelligence Network
tonnes battery grade
LCE consumption
per year in 2016
tonnes battery grade
LCE consumption
per year expected in 2021
Gigafactories Driving Demand for Lithium
10x in Expected Lithium Demand from Gigafactories between 2016 – 2021E
24 000 260 000
12
Lithium Demand Per Product 2016 - 2031
Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 201813
Pricing Outlook
Nominal Price Forecasts for Spodumene Concentrate, Lithium Carbonate and Lithium Hydroxide
9,510
13,183
13,900
14,750
15,700
16,700
17,800
19,000
20,200
7,585
12,500
11,020
12,750
14,100
15,500
17,050
18,800
560
790
850
700
600
550
500510
520530
540550
570590
610630
300
400
500
600
700
800
900
5,000
7,000
9,000
11,000
13,000
15,000
17,000
19,000
21,000
2016 2017 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e 2031e
USD
per
to
nn
e
USD
per
to
nn
e
Lithium Hydroxide (Left axis) Lithium Carbonate (Left axis) Spodumene Concentrate (Right axis)
Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 201814
A World-Class
Project
15
Nemaska Lithium Project Overview
Québec
Saguenay
Rouyn-Noranda Val-d’Or
Matagami
Nemaska
Chibougamau
Shawinigan
Montréal
• One of North America’s largest spodumene
deposits located in the Eeyou Istchee James
Bay region, Canada
• 33 years initial mine life.
• Expected to produce 213,000 tonnes/y of 6.25% (Li2O)
spodumene concentrate
• Shawinigan Electrochemical Plant to convert
spodumene concentrate to lithium hydroxide
and lithium carbonate with a 33,000 tonnes LCE
annual capacity
Source: Nemaska Lithium Feasibility Study Issue Date 21st of February 2018
Fully-Integrated Lithium Producer
in Quebec
Reserve Overview
Category Tonnage (Mt) Li2O
Open pit
Proven and probable 24 1.53%
Underground
Proven and probable 13 1.16%
Combined
Proven and probable 37 1.40%
16
Source: Nemaska Lithium, Google Maps
Whabouchi Mine | Infrastructure around mine site
Cree
community
of Nemaska
To Route de
la Baie-
James2km
Nemiscau
Airport
Nemiscau
SubstationRelais routier
km 291
Whabouchi
deposit
Albanel
Substation
Route du Nord
to Chibougamau
Powerlines
Roads
Whabouchi Property
• The Whabouchi Mine in Nemaska is hooked to the grid from the Nemiscau substation located 13 km to the West
• Whabouchi Mine property crossed by Route du Nord, which connects Chibougamau and James Bay Road.
• The Nemiscau Airport is located 17 km West of the Whabouchi mine site.
• The Cree community of Nemaska is about 30 km West of the Whabouchi Mine site.
Mine Overview
17
Electrochemical Plant | Existing Buildings in Shawinigan
18
Phase 1 Plant
Commissioned in Q1-2017
and in production
Hydroelectric Power Plant
Electrochemical Plant
Anticipated commissioning Q3-2020
18
A Unique Process | Whabouchi Mine & Electrochemical Plant
19
Nemaska Purity Hydroxide Compares Well
Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium
Lithium Hydroxide Grade Comparison
54.8%
56.5%
56.5%
56.5%
56.5%
56.5%
57.5%
Sichuan State Lithium Materials
Sichuan Tianqi Lithium Industries
Sichuan Ni & Co Guorun New
Chengdu Chemphys
Albemarle
FMC Corporation
Nemaska Lithium
LiOH grade
Purity Comparison
ProductMarket
specifications(1)
NMX
Specifications
LiOH, wt% 54.8 - 56.5 57.5
Ca, mg/kg 10 – 100 < 1
Na, mg/kg 20 – 500 < 20
K, mg/kg 10 – 250 < 10
Mg, mg/kg 10 < 1
Fe, mg/kg 5 – 21 < 5
Al, mg/kg 10 < 1
CO2, wt% 0.035 - 0.35 < 0.2
Cl, mg/kg 15 – 100 < 10
SO4, mg/kg 50 – 300 < 150
Cr, mg/kg 5 – 100 < 1
Cu, mg/kg 1 – 5 < 1
Ni, mg/kg 1 – 10 < 1
Si, mg/kg 20 - 30 < 10
Zn, mg/kg 10 < 1
Sol. Acid,
mg/kg40 – 1000 < 50
(1) Based on the companies to the left’s specifications Source: Nemaska Lithium press release 8th of January, 2018
20
Nemaska to Become a Low Cost Producer
USD per tonne
lithium hydroxide
Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska LithiumTechnical and battery grades; SQM, Albemarle and FMC costs assume lithium carbonate procured internally at cost; China and Australia conversion plant costs assume USD 500/t spodumene concentrate cost; FMC assumes USD 9,500/t carbonate feedstock cost; Nemaska shown at capacity;
21
Lithium Hydroxide Cost Curve 2021E
Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium Note: Battery and technical grades: Includes direct carbonate production from raw materials (brine and minerals); SQM & Albermarle costs assume potash cost share methodology; China mineral conversion assumes USD 500/t CIF spodumene price; Nemaska shown at 2021 carbonate output; North American Lithium (NAL) assumes 50% increase in feasibility –level costs; LAC/SQM & NAL output shown at 50% of capacity
Nemaska to Become a Low Cost Producer
USD per tonne
lithium carbonate
22
Lithium Carbonate Cost Curve 2021E
Our Team
23
Board of Directors
• Over 30 years as a mechanical
engineer and senior executive.
• Former President & COO at
Bombardier’s Recreational Products
division and EVP of Bombardier
Transportation.
• Mining engineer with more than 40
years of mining experience.
• Formerly, General Manager at Inmet
Mining Corporation.
Paul-Henri Couture(1)
Director
• Over 35 years of experience as a
financial management and investment
professional specializing in mining.
• Held senior positions at the Caisse de
dépôt et placement du Québec and
Sentient Asset Management.René Lessard
Director
• Independent sales consultant in the
construction industry.
• Formerly, Sales Manager at Campagna
Motors and T-Rex Vehicles.
(1) Members of the Executive and Audit Committee
Patrick GodinDirector
Shigeki (Sean) MiwaDirector
• Chief Operating Officer and director at
Stornoway
• Prior to that, he was with G Services
Miniers Inc., Canadian Royalties and
Iamgold
• Holds several positions concurrently
within the SoftBank Group:
Representative Director & CEO of SB
Energy Corp., General Manager – CEO
Project Office at SoftBank Group Corp.,
Board Member of the Renewable
Energy Institute, Representative
Director & CEO of Bloom Energy Japan
Ltd. and Director of Clean Energy Asia
LLC.
Michel Baril(1)
Chairman
François Biron(1)
Director
24
Guy Bourassa(1)
President & CEO,
Director
• President & CEO of Nemaska since inception in 2008.
• Over 33 years of mining experience.
• Currently a director of Nouveau Monde Graphite and Monarques Gold
Corporation.
Steve NadeauChief Financial Officer
• CFO of Nemaska since inception in 2008.
• Over 20 years of accounting and finance experience in mining,
manufacturing, electronics and automotive fields.
• Previously acted as CFO of Monarques Gold Corporation.
• More than 25 years of experience in the mining and metallurgical industry,
both in Canada and internationally.
• Previously Vice President of Human Resources and Communications for
Koniambo Nickel, a large-scale, complex nickel operation in New Caledonia.
Chantal FrancoeurVP Human Resources
• More than 25 years of experience in the mining industry, both in North
America and internationally.
• Headed legal affairs for Graymont Limited and Cambior Inc. (now Iamgold
Corporation), as well as for the African Region of Kinross Gold Corporation.
Marc DagenaisVP Corporate Secretary
& Legal Affairs
Senior Management
(1) Also a member of the Nemaska Lithium Board of Directors
25
Technical Team
• Professional engineer with over 20 years of experience in the metallurgical
industry and the lithium battery industry.
• Author/inventor of several patents in the rechargeable lithium battery
industry.
Jean-François
MagnanTechnical Manager
• Professional chemical engineer with more than 30 years of experience.
• Worked in various manufacturing industries, mainly the industrial chemical
sector.
Bertin OuelletProcess Chemical
Engineer
• Masters degree in Electrochemical Engineering and Technologies.
• Played an active role in Nemaska’s pursuit of patents covering its innovative
technologies, of which he is a co-inventor.
Nicolas LarocheElectrochemical
Engineer
Simon ThibaultDirector,
Environmental and
Social Responsibility
• Specialized in environmental mining policies and permitting in Canada,
especially in the provinces of Québec, Ontario and Manitoba.
• Collaborated on Environmental Permitting of mining projects, Environmental
and Social Impact Assessments, Environmental Auditing and Environmental
Baseline Studies, Preliminary Economic Assessments, Pre-Feasibility
Studies and Feasibility Studies.
26
Construction and Operation Team
Yves PainchaudConstruction Project
Manager
• Senior mechanical engineer in the industrial field with over 30 years of
significant experience in major construction sites in Québec.
• Held various management positions over his career and has managed and
supervised his own engineering firm for more than 15 years.
Jean BéliveauProject Engineering
Director
• Professional mechanical engineer experienced in the fields of General
Management, operations and maintenance management as well as project
management.
• Was involved in the start-up of new manufacturing production units in
Canada and abroad.
27
André BouchardDirector of Operations,
Shawinigan Plant
• Professional with more than 30 years of experience in operations and
maintenance management for Rio Tinto’s titanium dioxide metallurgical and
chemical plants.
• Outstanding record in the implementation and administration of world-class
asset management processes, continuous improvement programs and
strategic asset planning.
Moving
Forward
28
Construction Schedule
Whabouchi Mine
Engineering(1)
Procurement(1)
Manufacturing(1)
Delivery
Construction(1)
Pre-operational verification
Shawinigan Electrochemical Plant
Ramp up and commercial
production
2018
Q4Q3Q2Q1
2019
Q4Q3Q2Q1
2020
Q4Q3Q2Q1
Engineering(1)
Procurement(1)
Manufacturing
Delivery
Infrastructure
Construction
Pre-operational verification
Ramp up & commercial
production
(1) Work streams initiated before Q1 2018Source: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018
29
Capex overview after project financing by quarter per Feasibility Study with cut off date 1st of December 2017. Note that an additional CAD 22 million has been invested in the project post this dateAssumed exchange rate of USD/CAD: 0.77Source: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018
Capital Expenditure Forecast by Project Quarter
12
40
55 53
29
16
3
4
46
81
66
51
60
53
33
14
17
86
136
118
8176
56
33
14
1
616
0
100
200
300
400
500
600
700
0
20
40
60
80
100
120
140
160
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Year 1 Year 2 Year 3
USD
mill
ion
USD
mill
ion
Whabouchi Mine
Electrochemical Plant
Cummulative Project
30
• FMC is a U.S. chemical manufacturing company based in Philadelphia, Pennsylvania, United States of America.
• FMC serves the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products.
• FMC employs approximately 6,000 people globally and operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition and FMC Lithium.
• FMC has paid a lump sum of USD 10 million to Nemaska Lithium.
For further information see section 4 of “Risk Factors and Other Considerations” in the Offering Memorandum and 10.2 of “Offtake and other sale agreements”Source: Nemaska Lithium FMC, Johnson Matthey
Quality Offtake Agreements Secured
• Johnson Matthey is a global specialty chemicals company.
• Johnson Matthey focuses on clean air, clean energy and low carbon technologies and is an expert in the application and recycling of precious metals.
• Johnson Matthey has operations in over 30 countries and employs around 13,000 people.
• Its products and services are sold across the world to a wide range of advanced technology industries.
• Johnson Matthey has made an up front payment of CAD 12 million for services and product from the Phase 1 Plant.
31
• Northvolt was founded in 2016 with the mission to build the world's greenest battery, with a minimal carbon footprint and the highest ambitions for recycling, to enable the European transition to renewable energy.
• Northvolt's team of experts is building the next generation battery factory focused on process innovation, scale and vertical integration.
• Once completed, it will be Europe's largest battery factory and will produce 32 GWh worth of battery capacity annually.
• Northvolt agreed to purchase, on a take-or-pay basis, up to 5,000 but not less than 3,500 metric tonnes per year of lithium hydroxide, for a 5-year period commencing upon the start of commercial production at both the Shawinigan Plant and Northvolt's projected Skellefteåfactory in Sweden.
Quality Offtake Agreements Secured
• With over 20 years’ experience of development and production of batteries, LG Chem has established itself as one of the world’s leading lithium-ion manufacturers. The company is a primary supplier of lithium batteries throughout the world for the mobile phone and hybrid/electric vehicle industries & Energy Storage System (ESS).
• Under this agreement, Nemaska Lithium agrees to supply LG, on a take-or-pay basis with 7,000 tonnes per year of lithium hydroxide produced for an initial 5-year period scheduled to start in October 2020.
32
Project Summary | Key investment takeaways
Proven
production
process
Near term
commercial
producer of
lithium
compounds
To become the
lowest cost
producer of
lithium
hydroxide
World-class
counterparties
Unique location
and process of
processing
lithium
1 2 3 4 5
Emerging Vertically Integrated Low-Cost Lithium Producer in a Premier Jurisdiction
33
34
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