Nemaska Exploration Plans the Production of 202,000 Tonnes/Year of Spodumene Concentrate From Its Whabouchi Lithium/Beryllium Deposit

19 January 2011

QUEBEC, CANADA--(Marketwire - Jan. 19, 2011) - (TSX VENTURE:NMX)(OTCBB:NMKEF) – NEMASKA EXPLORATION INC. ("Nemaska" or the "Corporation") is pleased to release the results of a National Instrument 43-101 compliant Preliminary Economic Assessment (PEA), on its wholly owned Whabouchi lithium deposit located in the James Bay region, Province of Quebec, Canada.

Preliminary Economic Assessment Highlights
(All calculations assume a price of $280/tonne (FOB Plant) of 6% Li2O spodumene concentrate)
(All figures are quoted in CDN$)*
Open Pit Mine Production 2,950 tonnes per day (1 MT/year)
Average Annual Spodumene Concentrate production 202,000 tonnes of 6 % Li2O
Average Annual Revenue** $56.6 M
Pre-tax NPV 5% Discount
Pre-tax NPV 8% Discount
$184.0 M
$130.3 M
Pre-tax Internal Rate of Return (IRR) 26.6%
Average Operating costs $27.86 per tonne of ore
Total Initial Capital Costs $86 M (including $13.4 M contingency and $5 M working capital)
Expected Mine Life 15 years
Pay Back of Capital Costs 3.3 years
* Assuming CDN $ at par with US $
** No credit has been included for a possible beryllium concentrate that can also be produced since metallurgical tests on this specific mineral have yet to be completed.

The PEA contemplates an open pit mining scenario that would annually produce 202,000 tonnes per year of 6% Li2O spodumene concentrate on site.

The spodumene concentrate can be shipped to Asian and European markets from the deep sea port of Saguenay on the Saguenay River, approximately 7 hours drive from the Whabouchi deposit. It is also possible to deliver product to North American markets by railway, approximately 3 hours drive from the deposit.

The PEA was prepared by independent consultants Equapolar Consultants Limited in conjunction with BBA Inc. and Genivar Inc. The complete PEA will be filed on SEDAR within the next 45 days.

Gary Pearse, principal of Equapolar commented, "Based on our preliminary assessment of the Whabouchi deposit we believe the project is economically viable and justifies that the company proceed with a pilot plant and a full feasibility study. This PEA confirms that spodumene concentrate can be economically produced and shipped to end users."

An important use of spodumene concentrate is as a raw material in the production of different lithium products, including battery grade lithium carbonate, lithium hydroxide and lithium metal. Currently, most of the spodumene concentrate transformers are located in China and the majority of the spodumene concentrate supply comes from Australia.

"As demand evolves it becomes more important for end users to secure a geographically diversified supply of spodumene concentrate from producers," commented Guy Bourassa, President and CEO of Nemaska Exploration. "Obviously the province of Quebec represents a highly prospective and prolific location for spodumene. Our goal is to be one of the first to market, producing a high quality spodumene concentrate and we are targeting to complete our feasibility study by year end. The PEA illustrates that our project can be competitive with other producers globally. In addition, we are also studying the possibility of building our own lithium production facility in Quebec and transforming the spodumene concentrate into lithium products including lithium carbonate."

Mr. Bourassa will attend this year's Vancouver Resource Investment Conference. He will be available to update current and prospective shareholders on the Company's latest achievements. Nemaska will be exhibiting at booth 1030 at the Vancouver Convention Centre - West Exhibit Halls B & C on January 23-24, 2011.

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

About Nemaska

Nemaska Exploration Inc. is a mineral exploration company involved in the James Bay region of Quebec. Its main assets are the Whabouchi (about 1,716 hectares), Lac Levac (about 9,200 hectares), Lac Arques (about 39,470 hectares) and Lac des Montagnes (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.

Whabouchi NI-43-101 compliant resources estimate as of May 28, 2010:

Mineral Resources Estimates - Whabouchi Deposit
Resources Categories Tonnes
Li Metal
Be Metal
Measured 1,885,000 1.60 458 14,000 300
Indicated 7,889,000 1.64 446 59,900 1,300
Measured + Indicated 9,774,000 1.63 449 74,000 1,600
Inferred 15,396,000 1.57 420 112,100 2,300
Inferred mineral resources are exclusive of the measured and indicated resources. Bulk density of 2.68t/m3 used. Cut-off grade of 0.5%. Effective date May 28, 2010. * Rounded to the nearest thousand. **Rounded to the nearest hundred.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.