Nemaska Exploration Inc. Increases Private Placement Financing

20 October 2010

QUEBEC CITY, QUEBEC--(Marketwire - Oct. 20, 2010) - NEMASKA EXPLORATION INC. (TSX VENTURE:NMX) ("Nemaska" or the "Corporation") is pleased to announce that as a result of strong investor interest in the private placement announced October 8 (the "Offering"), the Corporation has decided to increase the size of the Offering to $6,500,000. The Offering is being conducted by a syndicate of agents (the "Agents") led by Dundee Securities Corporation and including Industrial Alliance Securities. The Offering is comprised of 4,250,000 common share units ("Units") at a price of $0.40 per Unit and 9,600,000 flow-through units ("FT Units") at a price of $0.50 per FT Unit. In addition, the Corporation has agreed to grant the Agents an over‐allotment option, which will allow the Agents to purchase up to an additional 15% of the Offering in any combination of Units or FT Units at the respective issue price.

The Offering is being made by the Agents on a reasonable efforts basis and the closing is scheduled on or about November 2, 2010. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals. The Units and the FT Units are offered to accredited investors residing in Canada or in United-States. The securities to be issued comprised in the Units and the FT Units will be subject to a hold period of 4 months plus one day in Canada.

Each Unit will be comprised of one common share of the Corporation and one common share purchase warrant (a "Warrant"). Each FT Unit will be comprised of one flow‐through common share of the Corporation and one Warrant. Each full Warrant is exercisable for two years from the closing, at an exercise price of $0.55.

The net proceeds from the Units offering will be used for general working capital purposes. The gross proceeds from the FT Units offering will be used for exploration and development of the Corporation's Quebec properties. The Corporation's expenditures will qualify as "Canadian exploration expenses" (CEE) under the Income Tax Act (Canada) and will be renounced to investors for the 2010 taxation year.

The Corporation has agreed to pay the Agents a cash commission equal to 8% of gross proceeds of the Offering and issue compensation warrants equal to 8% of the FT Units and of the Units, exercisable for two (2) years following the closing at par with the Units or FT Units offered pursuant to the Offering.

About Nemaska

Nemaska Exploration Inc. is a mineral exploration company involved in the James Bay region of Quebec. Its main assets are the Whabouchi (lithium, beryllium deposit) (about 1,716 hectares), Lac Levac (nisk-1 nickel and copper deposit and extensions)(about 9,200 hectares), Lac Arques (Bourier lake sector and Rupert complex) (about 39,470 hectares), and Lac des Montagnes (Duval and Valiquette showings)(about 12,740 hectares) properties, all 100 % owned. These properties are contiguous and cover about 85 km of the Lac des Montagnes green belt polymetallic formation. They are easily accessible year round by either the Route du Nord from Chibougamau (280 km) or the Route de la Baie James from Matagami (380 km) and are located near the Cree community of Nemaska and the Némiscau airport.

The statements herein that are not historical facts are forward‐looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties. Actual results could differ from those currently projected. The Corporation does not assume the obligation to update any forward‐looking statement.