Nemaska Exploration Acquires Lac des Montagnes Lithium Showing

30 September 2009
QUEBEC CITY, QUEBEC--(Marketwire - Sept. 30, 2009) - Nemaska Exploration Inc. (Nemaska or the Corporation) is pleased to announce that it has acquired 100 % interest in a block of 16 claims covering the lithium showing known as "Lac des Montagnes" (approximately 860 hectares), located in the province of Quebec. These claims will form the Whabouchi property.

"We decided to purchase the Whabouchi property based on excellent historical diamond drilling results," commented Guy Bourassa, President and CEO of Nemaska. "Our assumption that this was a highly prospective showing was confirmed when our team went on site to further examine the area and identified the presence of spodumene bearing pegmatite bands. We've already commenced work on the project and we are very excited to add it to our suite of properties in the region."

The historic work reported on the Whabouchi property consist of five (5) diamond drill holes (463.2 m) done by Canico in 1962 and 1963 and by preliminary geology and sampling by SDBJ (Societe de developpement de la Baie James) in 1978. The main results of the diamond drilling report values of:


Hole Number                Li2O (%)           BeO (%)          Length (m)
14891                         2.34              0.13                6.37
14891                         2.63              0.16                 6.4
24042                         1.44               n/a                83.2
24041                         1.34               n/a                 3.0
24041                         1.69               n/a                 4.5
24041                         1.47               n/a                 5.5
24041                         1.40               n/a                 3.0
24041                         1.77               n/a                 5.0
24041                         1.66               n/a                 3.0


Hole 24042 is located about 825 m South-West of hole 14891. The hole 24041 is located about 487 m to the East of hole 24042 and 309 m West of hole 14891. Canico reports that the pegmatite zone may extend over more than 900 m long by 300 m wide. The lateral and in depth extensions are unknown and there may be other pegmatite zones on the Property.

In September 2009, Nemaska blasted several sites located over the 750 m extension of the pegmatite showing. Nine chosen samples (grab samples) of spodumene pegmatite were taken and sent to the assay lab. Results are pending.

Starting on October 5, 2009, prospecting, trenching and channel sampling will be conducted on the property. This work will allow Nemaska to better understand and establish the distribution of the pegmatite, check its lateral extensions and systematically sample it. A short diamond drilling campaign of about 600 m will be done in order to validate Canico historic data.

The property is characterized by the presence of spodumene bearing pegmatite bands. These pegmatites show similarities to those reported by Lithium One ( on the Cyr Lithium property in James Bay, Quebec (about 110 km Northwest of the Whabouchi property) and with those of the Quebec Lithium project owned by Canada Lithium Corp (

The Whabouchi property is well serviced by the existing infrastructure of the Relais Routier Nemiscau Camp (CCDC) which is located about 12 km to the West. In addition, the main Lac des Montagnes showing is located about 1 km South of the Route du Nord (permanent road), between Chibougamau and the Route de la Baie James. The Whabouchi property is entirely covered by main cell phone networks.

The property was purchased from a private individual dealing at arm's length, for $210,000 of which $10,000 was paid at the signing of the mining right transfers and the balance is due at the closing of the Corporation's IPO scheduled this fall. The vendor has also received 2,100,000 shares of Nemaska Exploration. The Corporation owns 100 % of the property.

In addition, the Corporation has also agreed to pay and issue to the vendor, based on certain milestones of expenses on the property and results obtained, a maximum of $1,400,000 and a maximum of 1,400,000 shares of the Corporation. The following is a schedule of milestones:

1. $100,000 and 100,000 shares after $2.5 M in exploration work

2. $100,000 and 100,000 shares after $5 M in exploration work

3. $100,000 and 100,000 shares after $7.5 M in exploration work

4. $100,000 and 100,000 shares after $10 M in exploration work

5. $100,000 and 100,000 shares after $12.5 M in exploration work

6. $100,000 and 100,000 shares after $15 M in exploration work

7. $300,000 and 300,000 shares at reception of an independent Pre-feasibility study

8. $500,000 and 500,000 shares at reception of an independent Feasibility study

The vendor holds a 3 % NSR royalty on all metals. The Corporation has the option at any time before expiry of 3 months after beginning of commercial production, to buy 1 % NSR for an amount of $ 1 M.

The Corporation has also agreed that if it decides to transfer the property to a subsidiary in order to complete a spin-off of that asset, the vendor will receive 10% of the consideration received by the Corporation, subject to a minimum of $100,000 and 1,000,000 shares.

The technical sections of this press release have been prepared and reviewed by Denis Raymond, Geo. Eng. and qualified person according to NI 43-101 guidelines.

About Nemaska Exploration

Nemaska Exploration Inc., a reporting issuer in Quebec since November 2008, is a mineral exploration company involved in the James Bay region in Quebec. Its main assets are the Lac Arques property (about 30,000 hectares) and the Whabouchi property (about 860 hectares) which are 100 % owned. In addition the Company has the option to acquire 100 % interest in the Lac des Montagnes and Lac Levac properties belonging to Golden Goose Resources Inc. (about 32,000 hectares). All of these properties are contiguous and cover about 70 km of the Lac des Montagnes green belt polymetallic formation. These properties are easily accessible year round by either the Route du Nord from Chibougamau (280 km) or the Route de la Baie James from Matagami (375 km). They are located near the Cree community of Nemaska and the Nemiscau airport.