Nemaska Exploration Closes $3.7 Million Private Placement With Chengdu Tianqi Industry Group

05 March 2011

QUEBEC CITY, QUEBEC--(Marketwire - March 4, 2011) -(TSX VENTURE:NMX)(OTCBB:NMKEF)(FRANKFURT:NOT) NEMASKA EXPLORATION INC. ("Nemaska" or the "Corporation") is pleased to announce that it has closed, under escrow, a $3.7 million private placement with an absolute controlled subsidiary of Chengdu Tianqi Industry Group Co., Ltd. ("Tianqi Group" or "Tianqi"). Tianqi Group is the parent company of Sichuan Tianqi Lithium Industries Inc., the largest lithium battery material provider in China that uses ore (spodumene concentrate) as its raw material to produce, among other products, lithium carbonate. Through its subsidiaries, Tianqi has captured a significant share of the Chinese lithium market and forged long-term relationships with the majority of Chinese battery manufacturers. Simultaneously they have created an international sales network covering multiple countries, in a proactive move to expand outside China in anticipation of the growing demand for lithium batteries.

"Our team conducted extensive due diligence on Nemaska before making our investment decision and our geologist and lithium experts were very pleased with the drilling, metallurgy and technical reporting done by Nemaska to date," commented Vivian Wu, Vice President of Corporate Development of Tianqi Group. "Our customers have communicated an increasing demand for our lithium products and accordingly we sought to diversify our supply. As with our customers, we build long term relationships with our suppliers and we view this investment as a first step in strategic supply discussions with Nemaska as it progresses towards becoming a spodumene concentrate producer."

Guy Bourassa, President and CEO of Nemaska Exploration, said "With this investment, Tianqi now holds 10% of all of the issued and outstanding shares of Nemaska, a significant position in the Corporation and a validation of our business plan to be first to market with new production. We look forward to a long and productive relationship."

Under the terms of the subscription agreement previously announced on January 4, 2011, the absolute controlled subsidiary of Tianqi will receive 7,370,468 common shares (the "Shares") of Nemaska at a price of $0.50 per Share and 4,963,050 share purchase warrants (the "Warrants") for aggregate gross proceeds of $3,685,234 (the "Private Placement"). Each Warrant entitles its holder to purchase until March 5, 2012, one additional Share at an exercise price of $0.61 per Share. The TSX Venture Exchange (the "Exchange") has conditionally approved the Private Placement. The securities to be issued will be subject to a hold period of 4 months plus one day in Canada. Following closing of the Private Placement, Tianqi will indirectly become an insider of the Corporation. Therefore, the Private Placement has been completed in escrow, subject to the confirmation of the suitability of Tianqi's insiders by the Exchange, which is expected within the next three weeks.

Dundee Securities Corporation acted as the sole agent in this Private Placement and will receive a cash commission equal to 4.5% of the gross proceeds of the Private Placement and compensation warrants equal to 4.5 % of the Shares, each such warrant entitling it to purchase, until March 5, 2011, one additional Share at an exercise price of $0.50 per Share.

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.

About Tianqi Group

Chengdu Tianqi Industry Group Co., Ltd. is an integrated company group involved in three main business areas: lithium compounds, minerals and agricultural machinery. The company has its headquarters in Chengdu City, the economic hub of south-west China. With its branches, production and resource bases located in Shehong, Ya'an, Ganzi, Montreal and Amsterdam, the company has positioned itself to become a leading raw material provider for the new energy industry, and a provider of agricultural machinery with international competitiveness.

Tianqi Group is the absolute controlling shareholder of Tianqi Lithium.

About Tianqi Lithium

Sichuan Tianqi Lithium Industries Inc. (Shenzhen: 002466) is the world largest lithium chemical producer that converts from hard rock lithium concentrates. With its devotion of more than ten years to the research, production and sales of lithium compounds and chemicals, the company now offers a diverse product portfolio ranging from carbonate to lithium metal meeting almost all kinds of raw material demand of battery producers.

Tianqi Lithium holds a significant market share and is one of the most important raw material providers for the new energy industry in China. Through its international sales network the company is also on its way to respond to the increasing demand around the globe.

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, except as required by applicable laws.