QUÉBEC MINES 2016

ADVANTAGES OF THE NEMASKA’S ELECTROMEMBRANE PROCESS FOR THE DIRECT PRODUCTION OF HIGH PURITY

LITHIUM HYDROXIDE

Jean-Francois Magnan – Technical Manager

November 23, 2016TSX - NMX and OTCQX – NMKEF

Forward-looking Statements

During the course of this presentation, Nemaska LithiumInc. will make a number of statements with regard to theCompany’s projects, business strategy and plan, whichcould be construed as forward-looking.

Such forward-looking statements are subject to risks anduncertainties that could cause results to be materiallydifferent than expectations. It is uncertain if further workwill in fact lead to production of a mineral resource and oflithium compounds.

Nemaska has filed on SEDAR a NI-43-101 compliant revisedupdated feasibility study published dated June 8, 2016. Alltechnical information should be reviewed according to thisfeasibility study.

2

Megafactories Pushing on Demand for Lithium

3

• These factories will require an additional 100,000t to 120,000t of LCE by 2021, this supply currently does not exist.

Lithium Hydroxide Prices Upward Trend Expected

4

Current term selling price for LiOH-H2O

Nemaska Lithium 2016 Updated Feasibility Study selling price for LiOH-H2O

Lithium Carbonate Prices Upward

5

Nemaska Lithium 2016 Updated Feasibility Study selling price for Li2CO3

Current term selling price for Li2CO3

Quebec, Very Good Location and Jurisdiction

6

Shawinigan

• Mine and concentrator located in Eeyou Istchee James Bay region, 300km North of Chibougamau • 1.1MT/y ore • 213kt/y 6% Li2O concentrate• 171 employees

• Transport by road and rail (CN) Chibougamau • 18 rail cars/3days

• Hydromet Plant in Shawinigan (855km away from mine) • 27.6kt/y LiOH-H2O • 3.26 kt/y Li2CO3

• 86 employees

Positioned to Become a

Fully-Integrated Lithium Producer

Excellent Infrastructure at Mine Site

7

Grade is KING + Low levels of Impurities

8

Reserves Resources

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

Open pitProven 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 1.27Probable 5.7 1.29Proven and probable 7.3 1.28

9

Hydromet Plants Existing Buildings in Shawinigan, Quebec

Artist rendition to modify existing site and buildings

Phase 1 Plant

Commercial Plant

The two key advantages of Nemaska Lithium

• Mining advantages : Nemaska Lithium has a World Class Lithium Asset: Whabouchi Spodumene Mine

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

– Homogenous ore with average grade 1.53% Li2O. Very low stripping ratio 2:1 and very wide dykes allows low dilution (<10%). Low micas ore, low sodium and potassium concentrate.

– 6.0% Li2O grade concentrate mainly produced by gravimetric technique, i.e. dense media separation (DMS)

• Transformation advantages : Proprietary electromembraneprocess to directly produce preferred high-purity lithium compound for batteries – lithium hydroxide monohydrate

– Cleanest Lithium Production Process

10

Mining advantages

11

• High average grade : 1.53% Li2O (coarse spodumene crystals)

• Very low stripping ratio (very narrow open pit design)

• Low dilution (wide spodumene pegmatite dykes)

The geological characteristics and the process allows the production of high grade spodumene concentrate with high recovery and low cost by using mainly gravimetric concentration technique (DMS)

Nemaska electrochemical process advantages

• Nemaska Lithium has developed an electromembrane process to directly produce lithium hydroxide using low cost hydro-electric power.

• This electromembrane process convert lithium sulfate extracted from spodumene concentrate into lithium hydroxide and sulfuric acid. In comparison with the conventional process which produces lithium carbonate using soda ash and produces salt cake as by-product.

• The Nemaska process has significant advantages. The quality of the product is higher, the operational cost is lower and the benefits for the environment are huge.

12

Conventional versus Nemaska electrolytic process

• Both processes extract lithium from hard-rock spodumene using H2SO4 to produce the intermediate compound Li2SO4(aq)

• Conventional process (1954) is a chemical process: Use of Na2CO3 to precipitate Li2CO3 from Li2SO4 aqueous solution;

Na2CO3(aq) + Li2SO4(aq) = Li2CO3 + Na2SO4(aq)

• Nemaska process is an electrochemical process: Use of hydroelectric power to split Li2SO4 into LiOH and H2SO4 with reaction at the electrodes;

Cathodic reactions; Anodic reactions;

2H2O + 2e → H2 + 2OH- 2H2O → O2 + 4H+ + 4e

Li+ + OH- → LiOH(aq) 2H+ + SO42- → H2SO4(aq)

13

Conventional process for Li2CO3 using Na2CO3

14

Membrane electrolysis process principle

15

- Li2SO4(aq) + C A

Cathodic Process: Anodic Process:

2H2O+ 2e gH2 + 2OH-

2H2O + 4e g O2 + 4H+

Li+ + OH

- g LiOH(aq) 2H

+ + SO4

2- g H2SO4

LiOH H2O (Li2SO4) H2SO4

Li+

SO42-

H2O

H2

OH-

H2O

O2

H+

2H2O →02 +4H++2e

The advantages of the Nemaska LiOH electrosynthesis

The Nemaska Lithium proprietary process;

• directly produce high purity lithium hydroxide solution (LiOH), not technical grade Li2CO3 that needs to be repolished.

• does not use soda ash (Na2CO3) or caustic soda (NaOH)

• does not generate any salt cake by-product (Na2SO4∙10H2O)

• produces high purity lithium carbonate by bubbling carbon dioxide (CO2) into the electrochemically generated lithium hydroxide (LiOH) solution.

• drastically reduces the chemicals consumption. Can reuse the electrochemically generated sulfuric acid.

• drastically reduces the green house gases (GHG) related to the production of lithium raw material for the battery industry !

16

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

17

• 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 = $0.80 US

C$2,693/t *US$ 2,154/t

C$3,441/t *US$ 2,753/t

Calcination

Roast with sulphuric

acid

Concentrate

2016 Feasibility Study HighlightsExpected Mine Life and pay back period 26 years with 2.4 year pay back period

Life of Mine Revenue $9.2 Billion (US$7.4 B) (average of $354M/yr for 26 yrs)

Pre-Tax After tax

Undiscounted Cash Flow

(average of $260M/yr before initial CAPEX)

$6.2 Billion (US$4.9 B) $3.9 Billion (US$3.1 B)

NPV $1.9 B (US$1.5B) 8% Discount $1.2 B (US$928M) 8% Discount

Internal Rate of Return (IRR) 37.7% 30.3%

Total Initial Capital Costs C$549M (US$439M) in CAPEX including contingencyAverage Cost Per Tonne Spodumene Concentrate C$181/t (US$145/t) FOB Mine C$231/t (US$185/t) CIF Shawinigan

Average Cost Tonne Lithium Hydroxide C$2,693/t (US$2,154/t) FOB Shawinigan lowest cost producer

Average Cost Tonne Lithium Carbonate 99.99% C$3,441/t ($US2,753/t) FOB Shawinigan lowest cost producer

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

≈27,500 tonnes of lithium hydroxide Hydromet plant in Shawinigan

≈3,245 tonnes of lithium carbonate Hydromet plant in Shawinigan

Exchange Rate $C to $US 1 : 0.8

Sales Prices FOB Shawinigan Lithium Hydroxide US$9,500/t, Lithium Carbonate US$7,000/t

(All calculations assume a 6% Li2O spodumene concentrate) (All figures are quoted in $CDN, unless otherwise specified)18

Nemaska Lithium – LiOH.H2O Lowest Cost Producer

19

NMX cash CostLithium Hydroxide

What’s Next in 2016

On top of commissioning the Phase 1 Plant and working on project financing.

• Install and commission modular DMS concentrator

• Start a bulk sample to:

– feed Phase 1 plant

– Optimization work on concentrator and calcination

– Train local workforce

• New resources and reserves update following completion of 17,000m drilling program

• Build shell of concentrator building

20

Modular DMS concentrator at Whabouchi site

21

Progress at the Mine Site

22

Progress at the Phase 1 Plant Site

23

Conclusion – Nemaska Lithium is THE Li Project

• 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

• Commenced project financing and construction

• Supportive Quebec Government

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.

26

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

Category Tonnes Li2O Grade

Proven 13,300,000 1.54%

Probable 14,000,000 1.39%

Total 27,300,000 1.46%

Cut-off Grade

Whabouchi Mineral Reserves

0.43%

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 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

Stripping Ratio 2.2 : 1

Li -Hydroxide producer YES

Li -Carbonate producer YES

Whabouchi Deposit Informations

Nemaska Lithium and RB Energy (CLQ) Same Scale Comparison

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

Category Tonnes Li2O Grade

Proven 13,300,000 1.54%

Probable 14,000,000 1.39%

Total 27,300,000 1.46%

Cut-off Grade

Whabouchi Mineral Reserves

0.43%

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 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

Stripping Ratio 2.2 : 1

Li -Hydroxide producer YES

Li -Carbonate producer YES

Whabouchi Deposit Informations

Nemaska Lithium and RB Energy (CLQ) Same Scale Comparison