Nemaska Confirms High Grade Spodumene Concentrate can be produced from Whabouchi

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Quebec, September 07, 2010. Nemaska Exploration Inc. (“Nemaska” or the “Company”) (TSXV-NMX) is pleased to announce the results of metallurgical testing of a mini-bulk sample taken from its Whabouchi Lithium/Beryllium project. Approximately a one tonne sample, obtained by core drilling across the pegmatite body, was submitted for metallurgical testing in late July to SGS Minerals Services (SGS Canada Inc.) at Lakefield, Ontario. Spodumene concentrates containing from 3.26% to 3.37% Li or 7.02% Li2O to 7.25% Li2O were produced and are composed of 88-91% spodumene grains respectively. Optimization of the process to maximize liberation of spodumene is expected to improve concentrate grade and recovery. The concentrate has been roasted and leached and 95% of the lithium in the concentrate was extracted into solution. The solution is now undergoing hydrometallurgical processing for test production of lithium carbonate.

In addition, using the rougher concentrates only, without subsequent cleaner stages, the best two tests combined averaged 2.81% Li (6.05% Li2O) with average recovery of 79%.  Spodumene concentrate grades as low as 2.8% Li (6.0% Li2O) with recoveries over 80% of contained Li are satisfactory for production of battery grade lithium carbonate (Li2CO3) and lithium hydroxide monohydrate (LiOH-H2O). This would indicate that the usual subsequent cleaner stages will be unnecessary in concentrating Nemaska ore for battery applications resulting in lower costs processing.

Gary Pearse, principal of Equapolar Consultants Limited, an independent firm hired by Nemaska to oversee the metallurgical work and conduct a scoping study at Whabouchi commented, “These very preliminary tests on Nemaska spodumene pegmatite material yielded uncommonly good concentrate grades and recoveries and the lithium carbonate bench production tests are underway.  The high extraction rate of lithium from the concentrate is most encouraging and at this stage there would appear to be no problem in producing 99+% lithium carbonate using standard technology.”

Mr. Guy Bourassa, President and CEO of Nemaska added, “I am very pleased with results to date. I look forward to seeing more results from the metallurgical work and to getting the results from our scoping study which will examine the preliminary costs of putting this deposit into production. Our next steps will be to look for strategic partners to assist us in getting this product to market. Everything we have seen to date from this project suggests that we have the makings of Canada’s next lithium mine.”

The technical sections of this press release have been prepared by Gary Pearse, BSc., MSc., P. Eng., Geo., qualified persons as defined in National Instrument 43-101.