Nemaska Lithium Corporate Presentation Jan 04 2016 FINAL

Nemaska Lithium (NMX.V)Corporate Presentation

How to profit from the booming lithium markets

January 2016TSX-V NMX and OTCQX – NMKEFConstituent of the S&P/TSX Venture Select

Forward-looking Statements

During the course of this presentation, Nemaska Lithium Inc. willmake a number of statements with regard to the Company’sprojects, business strategy and plan, which could be construed asforward-looking.

Such forward-looking statements are subject to risks anduncertainties that could cause results to be materially differentthan expectations. It is uncertain if further work will in fact leadto production of a mineral resource and of lithium compounds.

Nemaska has filed on SEDAR a NI-43-101 compliant feasibilitystudy as of May 13, 2014 and all technical information should bereviewed according to this feasibility study.

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Lithium Supply and Demand

100,000t of new lithium

carbonate equivalent

(LCE) needed by 2021

Lithium Demand Expected to Outstrip Supply

4

Lithium Demand and Production by Source

5

Lithium Demand by End-Use 2007 to 2020 Forecast

6

Megafactories Pushing on Demand for Lithium

7

• Total new capacity of 87 GWh should require an additional 70,000t to 100,000t of LCE by 2021, this supply currently does not exist

4major

producers of lithium globally

Lithium Production is Limited

88

New Production From Existing Brines Unlikely

• Chile– Producers - SQM &

Albemarle

– Moratorium on new production permits for past 4 years

– Govt. declared lithium a strategic metal

• Argentina– Producer - FMC

– Challenging jurisdiction -Revenues to be converted to Argentine currency prior to being distributed

– Pressure to use local suppliers, special taxes, etc.

99

New Production From Existing Hard Rock Unlikely

• Australia/China– Producer – Talison and

Chinese Transformers

– Talison jointly owned by Tianqi Lithium (51%) and Albemarle (49%)

– Tianqi currently at maximum transformation capacity

– Mine output capacity increase unlikely for a few years

1010

4Lithium projects

permitted globally today

Lithium New Comers to Meet New Demand

Nemaska Lithium

(Canada)

Orocobre(Argentina)

Western Lithium

(Argentina)

Neometal(Australia)

1111

Project Infrastructure, Reserves & Resources and

Proprietary Process

Nemaska Lithium Overview

• Advanced hard rock lithium company with high-grade mining assets

• CDN patent notice of allowance granted for processes to produce high purity lithium

hydroxide and carbonate, additional patents filed in multiple jurisdictions

• Key asset: Whabouchi – a world class lithium deposit

– Federal and Provincial permits granted, ready to build

– North America’s richest hard rock NI 43-101 Compliant Proven and Probable lithium deposit - average grade 1.53% Li2O

– 2nd richest and largest deposit in the world with 27.3 MT Proven and Probable Reserves for an initial 26 years mine life with large potential for increase

• Production costs for lithium hydroxide and carbonate competitive to peers (brines and hard rock) as per Feasibility Study

• Strong economics based on Feasibility Study: NPV $924M, IRR 25.2% Pre-tax

• Constituent of the S&P/TSX Venture Select

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Quebec, Very Good Location and Jurisdiction• Mine and concentrator

located in Eeyou Istchee James Bay territory, Northern Quebec

• Concentrate trucked to Chibougamau, transferred to rail to Shawinigan for processing

• Top ranked mining jurisdiction

• Established infrastructure in place at mine site

• Available, reliable and affordable hydro electricity power

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Shawinigan

Excellent Infrastructure at Mine Site

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Grade is KING + Low levels of Mica, Sodium and Potassium

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Reserves Resources

Category Tonnage (Mt)* Li2O (%) Category Tonnage (Mt)* Li2O (%)

Open pit

Proven 11.7 1.58 Measured 12.998 1.60

Probable 8.3 1.46 Indicated 14.993 1.54

Proven and probable 20.0 1.53 M + I 27.991 1.57

Underground Inferred 4.686 1.51

Proven 1.6 1.27

Probable 5.7 1.29

Proven and probable 7.3 1.28

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Hydromet Plants existing buildings in Shawinigan, Quebec

Phase 1 plant

Commercial plant

Nemaska Added Value : Produce Directly LiOH•H2O

Lithium Sulfate

Solution

Primary Impurity Removal

Secondary Impurity Removal

Ion Exchange

Membrane Electrolysis

Lithium Hydroxide Solution

Lithium Hydroxide

Monohydrate

Lithium Carbonate

Remove Fe, Al, Si,

Cu

Remove Ca, Mg

Remove impurities

to ppb levels

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• Proprietary process to produce directly LiOH•H2O :– without using soda ash (Na2CO3) or caustic soda (NaOH)– without producing any salt cake by-product (Na2SO4)– producing lithium carbonate using CO2

– CDN Patent Notice of Allowance Received

* Exchange rate as per Feasibility Study $1.00 CAD = $0.90 US

C$3,450/t*US$ 3,105/t

C$4,190/t*US$ 3,771/t

Feasibility Study Highlights, Sensitivity Analysis, Financing

Options – Plan Nord

Feasibility Study Highlights and ComparablesExpected Mine Life and pay back period 26 years with 3.7 years pay back period

Life of Mine Revenue $6.9 Billion (average of $267M/yr for 26 yrs)

Cash Flow $3.4 Billion net of CAPEX (average of $151M/yr before initial CAPEX)

Pre-Tax After tax

NPV $924M 8% Discount

$680M 10% Discount

$580M 8% Discount

$412M 10% Discount

Internal Rate of Return (IRR) 25.2% 21%

Total Initial Capital Costs of $521 Million C$448M in CAPEX + (C$52M in Contingency and C$21M in Working Capital)

Average Cost Per Tonne Spodumene ConcentrateHighly to the advantage of NMX

Nemaska

C$189/t (US$170/t) FOB

Whabouchi Mine

C$239/t (US$215/t) CIF

Valleyfield

Hard rock (Chinese converters)

US$200/t FOB Greenbushes

Mine

US$475/t CIF Chinese plant

(average)

Brines South America average

N/A

Average Cost Per Tonne Lithium HydroxideHighly to the advantage of NMX C$3,450/t (US$3,105/t) US$6,000/t FOB US$5,000/t FOB

Average Cost Per Tonne Lithium CarbonateClear advantage over the Chinese producers C$4,190/t ($US3,771/t) US$5,500/t FOB US$4,000/t FOB

Yearly average production ≈213,000 tonnes of concentrate (6%) Mine site

≈28,000 tonnes of lithium hydroxide Hydromet plant in Valleyfield

≈3,250 tonnes of lithium carbonate Hydromet plant in Valleyfield

Exchange Rate $C to $US 1 : 0.9

Sales Prices FOB Valleyfield Lithium Hydroxide US$8,000/t, Lithium Carbonate US$5,000/t

(All calculations assume a 6% Li2O spodumene concentrate) (All figures are quoted in $CDN, unless otherwise specified)

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Feasibility Study and Sensitivity Analysis

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(All figures are rounded in CAD$, unless otherwise stated)

Feasibility StudyBase case

Realistic scenario*

Optimistic scenario*

CAPEX (including contingency 500 M 500 M 500 M

Revenue USD / tonne LiOH-H2O $8,000 US $9,000 US $11,000 US

Yearly average production(LCE) 28,000 28,000 28,000

LOM Revenue 6.9 B 8.7 B 10.5 B

LOM Before Tax Cash Flow 3.4 B 4.9 B 6.7 B

Pre-Tax IRR % 25.2% 51.5% 67.3%

Pre-Tax NPV @ 8% 924 M 1.51 B 2.14 B

Pre-Tax NPV @ 10% 680 M 1.18 B 1.69 B

Debt / Equity ratio 0% / 100% 60% / 40% 60% / 40%

Payback period (years) 3.7 years 1.9 years 1.4 years

FX rate USD to CAD 0.90 : 1.00 0.80 : 1.00 0.80 : 1.00

*Internal Analysis Not NI43-101 Compliant

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Supportive Quebec Government

• Investor in Nemaska since its inception through various exploration and development funds

• “Plan Nord” program to support the development of resources in Northern Quebec (North of 49th parallel)

• Special fund of $1B to take direct equity positions (up to 20%) in companies

• Nemaska project qualifies

• Special tax incentives for value added resource transformation projects could represent up to $40M in tax reductions

• Nemaska project qualifies

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Business Plan and Market Penetration Strategy

Nemaska Lithium Business Plan• Achieve Market Penetration While Building Commercial Plant

– Build and operate a Phase 1 Production Plant to:

• Engage customers with product in advance of commercial production

• Customer evaluation can take up to 12 to 18 months, Phase 1 Production Plant willproduce enough commercial samples to enable customers to qualify the product

• Total budget of $38M ($13M in grant from SDTC secured, MOU with JohnsonMatthey Battery Materials (JMBM) for $12M upfront payment to be repaid withlithium products, in discussions for balance of budget)

• Sign Commercial Off-Take Agreements

• MOU with JMBM contemplates off-take agreement from commercial plant

• Start Commercially Producing Lithium Hydroxide and Lithium Carbonate

– Attract a strategic partner to participate in the financing of commercial production

– Put financing in place in Q1/Q2-2016; Begin construction of mine, concentrator and hydromet plant in Q3-2016; and start Commercial production in Q1-2018

– Total budget of $521M (see May 2014 Feasibility study for more details)

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Phase 1 Production Plant – Why?

• Designed to produce ~500 t/y of lithium compounds using commercial size equipment

• Purpose

• Supply on a continuous basis commercial samples to end users around the world

• Allow potential customers to visit and sample the product as it is produced

• Confirm homogeneity of the product on a continuous basis

• Secure multiple off-take agreements with customers

• Fulfill the supply agreement with Johnson Matthey Battery Materials Ltd., a LFP cathode material producer in Candiac, Quebec, Canada

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De-risk and Shorten Time to Nameplate Production

Benefits of Phase 1 plant:

• Shorten ramp-up time of commercial plant to nameplate production

− Important savings

• De-risk the technology for investors and strategic partners

− Given recent industry failure to produce adequate products, investors and customers are requesting guarantees

− Meet that requirement without full Capex investment

• Allows for important savings on ramp-up and qualification delays

− Usually expect 12 to 24 months to qualify products by customers, resulting in high costs

− Phase 1 Plant should allow to significantly reduce that period

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Conclusion, Capital Structure, Management and Board of

Directors

Conclusion – Why Nemaska Lithium

• Given the forthcoming shortage in lithium hydroxide supply, Nemaska Lithium is perfectly timed to enter the chain of supply

• Phase 1 production plant is a sound decision, significantly reduces funds required and de-risk start up of commercial production

• Permitted 2nd richest and largest lithium hard rock mine in the world with at least 26 years reserves

• State of the art processes of producing lithium hydroxide and lithium carbonate - leading advantage over peers

• Ready to start project financing and construction

• Supportive Quebec Government

• MOU with JMBM a large credible end user, upfront payment for product and future off-take

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Capital Structure (December 31, 2015)

Shares outstanding 206,615,385

Options (average exercise price $0.27)

Warrants (average exercise price $0.23)

9,720,575

19,235,150

Fully Diluted 235,571,110

Distribution on a fully diluted basis

Management

Tianqi

Retail, Institutional and Funds

≈11 %

≈8 %

≈81 %

Guy Bourassa, President and CEOMr. Bourassa is President and CEO since Nemaska’s inception in 2008. He brings more than 30 years of experiencein the mining industry to this role. Among other things he was instrumental in identifying and negotiating theacquisition of the Whabouchi lithium property and securing over $35 million through financings in the capitalmarkets to develop this project. Through his leadership, the Company brought an historical lithium showing to aworld class deposit and has developed new innovative processes of producing high purity lithium hydroxide andlithium carbonate, which should allow Nemaska to become a world leader in these lithium compound markets. Mr.Bourassa is a recognized leader in the lithium industry having spoken at several international lithium and miningconferences and events. Mr. Bourassa holds a law degree from Université Laval.

Michel Baril, Chairman of the Board and President of the Audit CommitteeMechanical engineer, with over 30 years of experience in management. Mr. Baril was an executive withBombardier Inc. Presently he acts as director of numerous public and private companies.

Steve Nadeau, Chief Financial OfficerMr. Nadeau is a CPA since October 1998 and is the Chief Financial Officer of Nemaska since it’s inception in 2008.Mr. Nadeau brings more than 20 years of experiences and knowhow in management, accounting and finance. Priorto joining Nemaska, he held several senior financial positions for companies which were either extracting ormanufacturing products related to the granite industry, electronics and automotive field. Since June 2011, Mr.Nadeau is also Chief Financial Officer of Monarques Gold Corporation, a junior mining company now focusing ingold exploration projects in the province of Quebec.

Management and Board of Directors

Jean-François Magnan, Eng. M.Sc. Technical Manager.Mr. Magnan is a professional engineer with more than 20 years of experience in the metallurgical industry. Duringhis career, he held several positions within the lithium industry including: R&D Advisor, R&D Project Manager,Consultant and Quality Control Metallurgist. He also acted as Project Manager for Phostech Lithium Inc. in 2000and 2001. Mr. Magnan is the author/inventor of several patents in the lithium rechargeable batteries field. He holdsa Master's Degree in Materials Engineering from Laval University.

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Management and Board of Directors (continued)

François Biron, DirectorMr. François Biron is a senior professional mining engineer with 40 years of experience in the mining industry. Hisextensive experience in mining operations has been developed through acting in several senior site-basedpositions with well-known international mining companies, and recently he has acquired experience in theexecutive management of a Canadian industrial minerals company. Mr. Biron has an entrepreneurial visionoriented towards business development and a perspective of industry growth with respect to the environment.He participate in the management of major open pit mines with the best operating standards to achieve goals andcorporate objectives. Mr. Biron elaborate recently a new mining project in introducing the social acceptabilityconcept and public consultations in the local communities where the project will be implement, based on thelatest automation mining technologies and to improve the mining process.

Vivian Wu, DirectorMs. Vivian Wu is General Manager of Sichuan Tianqi Lithium Industries Inc., a lithium chemical producer that convertsspodumene concentrate in different lithium compounds, since December 2012. From May 2009 to December 2012,Ms. Wu acted as Vice President (Corporate Development) of Chengdu Tianqi Industry Group Co., Ltd., an integratedcorporation group involved in three main business areas: lithium compounds, minerals and agricultural machinery.

Gordon Gao, DirectorMr. Gordon Gao is Vice President of TQC Equipment Inc. (TQCE), the Canadian subsidiary of Chengdu TianqiIndustry Group Co., Ltd.. Before joining TQCE in 2009, he worked as an international business manager ofChengdu Enwei Group Co., Ltd. from 2002, which is specialized in medicine and health products. Mr. Gordon Gaoholds a Bachelor degree of Economics of East China Normal University, Shanghai, China (2000).

Paul-Henri Couture, DirectorMr. Paul-Henri Couture has over 35 years of experience as a financial management and investment professional. Hehas held senior positions at the Caisse de dépôt and placement du Québec and at Sentient Asset ManagementCanada. During his tenure at the Caisse, Mr. Couture led a team responsible for a $3 billion investment portfoliowith a focus on financial institutions and natural resources sectors. While at the Caisse, Mr. Couture also launchedtwo innovative mining funds: Groupe Sodémex Inc. and MinQuest Capital. He built and developed a $3-billionportfolio in turnarounds and corporate restructurings. Mr. Couture is President of Minvest Capital, a businessproviding management and investing consulting services.

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Management and Board of Directors (continued)

Judy Baker, DirectorMs. Baker holds an Honours B. Sc. Geological Engineering in mineral resources exploration and a MBA and hasmore than 20 years of experience in the mining and mineral exploration sector. She most recently was the ChiefExecutive Officer, a director and founder of Superior Copper Corporation (previously Cenit Corporation), a copperexploration company. Previously to this, Ms. Baker was instrumental in either restructuring or acquiring projectsrelated to the lithium industry.

René Lessard, DirectorMr. Lessard was the Sales Manager of Campagna Motors Inc. from September 2008 to October 2009. FromOctober 2004 to October 2007, he was a sales manager of T-Rex Vehicles Inc. From February 2001 to July 2004, hewas the Sales Manager of Distribution GLR inc. in Québec City. From March 1997 to October 2000, he was a salesrepresentative of Ray-Flammes Inc. of Quebec City.

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Appendix RB Energy Comparison

Main Differences Between Whabouchi Mine and Quebec Lithium Project (according to respective FS)

Ore Grade 55% higher at Whabouchi : Whabouchi 1.46% Li2OQLI 0.94% Li2O

Stripping ratio 2.5 time lower at Whabouchi: Whabouchi 2.2/1QLI 5.5/1

Dilution far greater at QLI: QLI has over 50 narrow veins compared to one main thick dyke at Whabouchi making it a lot easier to control grade and dilution to feed the concentrator

Ore mined versus LCE output: NMX to make 40% more LCE final products by mining 30% less ore.

Concentrate grade: The required grade of the spodumene concentrate to produce lithium carbonate and hydroxide is 6% Li2O. Whabouchi ore steadily reached that grade. QLI was targeting 5% Li2O.

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Whabouchi Deposit: Surface resources classification in plan view

Sources:Met-Chem Canada, 2014Feasibility Study on the Whabouchi Lithium Depositand Hydromet Plant NI 43-101, June 2014Nemaska Lithium Website:www.nemaskalithium.com

Category Tonnes Li2O Grade

Proven 6,605,000 0.92%Probable 10,459,000 0.95%Total 17,064,000 0.94%Cut-off Grade

Whabouchi Mineral Reserves

0.6%

Location Abitibi, Quebec, canada100% owned YESLife of mine 14.9 yearsStripping Ratio 5.5 : 1Li-Hydroxide producer YES

Whabouchi Deposit informations

Sources:Technology Management Group, 2012, FeasibilityStudy Updated, NI 43-101 Technical ReportQuebec Lithium Project, La Corne TownshipQuebec, OctoberCanada Lithium Corp. Website:www.canadalithium.com


Proven 13,300,000 1.54%

Probable 14,000,000 1.39%

Total 27,300,000 1.46%

Cut-off Grade


0.43%


Proven 6,605,000 0.92%

Probable 10,459,000 0.95%

Total 17,064,000 0.94%

Cut-off Grade 0.6%

Quebec Lithium Mineral ReservesLocation Abitibi , Quebec, Canada

100% owned YES

Li fe of mine 14.9 years

Stripping Ratio 5.5 : 1

Li -Hydroxide producer NO

Li-Carbonate producer YES

Quebec Lithium Deposit Informations

Location James Bay, Quebec, Canada

100% owned YES

Li fe of mine 26 years


Li -Hydroxide producer YES

Li -Carbonate producer YES

Whabouchi Deposit Informations

Nemaska Lithium and RB Energy (CLQ) Same Scale Comparison

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Whabouchi Deposit: Vertical Section with Block model Grades

Sources:Met-Chem Canada, 2014Feasibility Study on the Whabouchi Lithium Depositand Hydromet Plant NI 43-101, June 2014Nemaska Lithium Website:www.nemaskalithium.com

Elev 300 m

Elev 200 m

Elev 100 m

Elev 0 m

Elev -100 m

Sources:Technology Management Group, 2012, FeasibilityStudy Updated, NI 43-101 Technical ReportQuebec Lithium Project, La Corne TownshipQuebec, OctoberCanada Lithium Corp. Website:www.canadalithium.com

0m 100m 200m 300m 400m


Proven 13,300,000 1.54%

Probable 14,000,000 1.39%

Total 27,300,000 1.46%

Cut-off Grade


0.43%


Proven 6,605,000 0.92%

Probable 10,459,000 0.95%

Total 17,064,000 0.94%

Cut-off Grade 0.6%

Quebec Lithium Mineral ReservesLocation Abitibi , Quebec, Canada

100% owned YES

Li fe of mine 14.9 years


Li -Hydroxide producer NO

Li-Carbonate producer YES

Quebec Lithium Deposit Informations

Location James Bay, Quebec, Canada

100% owned YES

Li fe of mine 26 years


Li -Hydroxide producer YES

Li -Carbonate producer YES

Whabouchi Deposit Informations

Nemaska Lithium and RB Energy (CLQ) Same Scale Comparison

36

Appendix Supply/Demand

38

Market Share by Main Players in the Lithium Field

Lithium Supply by Sources – 2005 to 2014

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Why Lithium Hydroxide over Lithium Carbonate

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Cathode material Lithium raw material supply

LCO (small portable device) Lithium carbonate required

NCA (such as Tesla S, Toyota Prius) Lithium hydroxide required

NMC (such as GM Volt, Nissan Leaf) Lithium hydroxide required since high nickel content

LFP (such as for ESS (Electric Storage Systems), Electric buses)

Lithium hydroxide is used by the top quality producers (currently ≈50% of world production is using lithium hydroxide)

LMO Lithium carbonate required

• Lithium hydroxide has many technical advantages over lithium carbonate depending on the chemistry of the cathode material and the process to synthetize the cathode material

• The cathodes materials with the highest potential to increase in demand are the ones to be used in the automotive industry and electric storage systems …which will mainly require lithium hydroxide

• Cathodes materials vs raw lithium supply:

Nemaska Lithium Corporate Presentation Jan 04 2016 FINAL

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