Nemaska Lithium Corporate Presentation - February 2015 Guy Bourassa President and CEO
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Nemaska Lithium
Corporate Presentation
February 2015
Guy Bourassa
President and CEO
Forward-looking Statements
During the course of this presentation, Nemaska
Lithium Inc. will make a number of statements with
regard to the Company’s projects, business strategy
and plan, which could be construed as forward-looking.
Such forward-looking statements are subject to risks
and uncertainties that could cause results to be
materially different than expectations. It is uncertain if
further work will in fact lead to production of a mineral
resource or in an increase and/or discovery of minerals
on the properties.
2
Introducing the
Best Lithium Hard Rock Project Globally
3
Nemaska Lithium Overview
• Advanced lithium company with high-grade mining assets and patent pending
processes to produce high purity lithium hydroxide and lithium carbonate using
electrolysis.
• Key asset: Whabouchi – a world class lithium deposit
– North America’s richest hard rock lithium deposit - average grade 1.53% Li2O
– 2nd richest and largest deposit in the world with 27.3 MT Proven and Probable
Reserves
– Advanced stage of mine permitting (CEA and COMEX)
• Focused on Lithium Hydroxide:
– Lithium hydroxide growth projected to outpace all other lithium compounds,
including lithium carbonate
• Competitive production cost for lithium hydroxide and carbonate competitive as
per Feasibility Study
4
Nemaska Lithium Achieving Milestones
Defines a World Class Deposit
First NI 43-101 Compliant Resource Calculation in 2010, updated in 2011, updated in 2012 and 2014
Produces High Quality Product From Metallurgical Pilot Tests
Produces 6% spodumene concentrate from Whabouchi in 2010
Produces battery grade lithium carbonate in 2010 and battery grade lithium hydroxide 2013
Attracts Strategic Investor
Investment from largest Chinese transformer of spodumene concentrate - Tianqi Group
Demonstrates Competitive Advantage Over Competition
Release positive Preliminary Economic Assessment in 2012
Releases positive Feasibility Study 2014, validates Nemaska’s low cost production of high purity lithium hydroxide
Becomes a Market and Customer Driven Company
Makes strategic decision to focus on growing lithium hydroxide market rather than lithium carbonate
Develops proprietary technologies to produce highest quality lithium compounds at competitive prices
Signs Off Take Agreement and Collaboration Agreement with Clariant Canada
Sign First Nations Impact and Benefit Agreement (Chinuchi agreement in November 2014)
5
Nemaska Lithium Upcoming Milestones
• Achieve Market Penetration
– Build a Phase 1 plant to:
• Shorten time to market with product by producing lithium hydroxide and carbonate samples
• Engage customers with product in advance of building the mine and commercial hydromet plant
• Customer evaluation can take up to 12 to 18 months, Phase 1 Plant will produce enough product
to enable customers to use and test product
– Sign Commercial Off-Take Agreements
• Start Commercially Producing Lithium Hydroxide and Lithium Carbonate
– Complete mine permitting Q2-2015
– Attract a strategic partner to participate in the financing of commercial production
– Put financing in place and begin construction of mine, concentrator and hydromet plant Q4-2015
6
Very Good Location and Jurisdiction
• Top ranked mining jurisdiction
– Safe, Secure Location
– Supportive Government that funds
the exploration to development
• Established infrastructure in
place at mine site:
– Affordable and available power
– Knowledgeable workforce
– Established lodging
• Mine and concentrator located
in Nemaska
• Concentrate trucked to
Chibougamau, transferred to
rail to Valleyfield for processing
7
Excellent Infrastructure at Mine Site
8
Minimal Environmental Impact - 2.2 to 1 Strip Ratio
Electricity Line
9
Grade is KING + Low levels of Mica, Sodium and Potassium
Reserves Resources
Category Tonnage (Mt)* Li2O (%) Category Tonnage (Mt)* Li2O (%)
Open pit
Proven 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 1.27
Probable 5.7 1.29
Proven and probable 7.3 1.28
10Mine Expansion Potential
• Optimal open Pit
Design
• Underground Mine
expansion potential
• 26 Year initial Mine Life
• Competitive with all
other spodumene
producers
11Valleyfield Strategic Location
• The hydromet plant located in
Salaberry-de-Valleyfield, QC
Perron Industrial and Port Park
• Site selected for its excellent
infrastructure:
– serviced by two railway
systems for both Canada and
the USA
– access to major sea port
– pool of skilled workers from the
Montreal area
• State of the art hydromet plant
to use Nemaska’s proprietary
process to convert spodumene
concentrate into the purest
lithium hydroxide on the market
12Receive and Ship to Anywhere in the World
13Low Costs, Highest Quality
C$3,450/t
US$3,105/t
Remove Remove
Remove impurities Lithium
Fe, Al, Si, to ppb Hydroxide
Ca, Mg
Cu levels Monohydrate
Lithium Primary Secondary Lithium
Ion Membrane
Sulfate Impurity Impurity Hydroxide
Exchange Electrolysis
Solution Removal Removal Solution
C$4,190/t
$US3,771/t
Lithium
Carbonate
14Feasibility Study Highlights
Expected Mine Life and pay back period 26 years with 3.7 years pay back period
Life of Mine Revenue $6.9 Billion (average of $267M/yr for 26 yr)
Cash Flow $3.4 Billion net of CAPEX (average of $151M/yr before initial CAPEX)
Pre-Tax After tax
NPV $924M 8% Discount $580M 8% Discount
$680M 10% Discount $412M 10% Discount
Internal Rate of Return (IRR) 25.2% 21%
Total Initial Capital Costs of $521 Million C$448M in CAPEX + (C$52M in Contingency and C$21M in Working Capital)
Average Cost Per Tonne Spodumene Concentrate Nemaska Hard rock (Chinese converters) Brines South America average
C$189/t (US$170/t) FOB US$200/t FOB Greenbushes
Whabouchi Mine Mine N/A
C$239/t (US$215/t) CIF US$425/t CIF Chinese plant
Valleyfield (average)
Average Cost Per Tonne Lithium Hydroxide C$3,450/t (US$3,105/t) US$5,700/t FOB US$4,000/t FOB
FOB Valleyfield
Average Cost Per Tonne Lithium Carbonate C$4,190/t ($US3,771/t) US$5,000/t FOB US$3,250/t FOB
FOB Valleyfield
Yearly average production ≈213,000 tonnes of concentrate (6%)
≈28,000 tonnes of lithium hydroxide
≈3,250 tonnes of lithium carbonate
Exchange Rate $C to $US 1 : 0.9
Sales Prices FOB Valleyfield Lithium Hydroxide US$8,000/t, Lithium Carbonate US$5,000/t 15
(All calculations assume a 6% Li2O spodumene concentrate) (All figures are quoted in $CDN, unless otherwise specified)Why Lithium Hydroxide ?
16Impact of Tesla Gigafactory (first of..)
17EV Battery Pack Trends1
» Tesla Model S » Chevrolet Volt
– 60 kWh – 16 kWh
– Nickel cobalt aluminum (NCA) – LMO by LG Chem
18650 cells by Panasonic – Uses lithium carbonate/hydroxide
– Uses lithium hydroxide – Estimated cost of cells: $9,600
– Estimated cost of cells: $25,000 – Estimated cost of pack: $17,000
– Estimated cost of pack: $40,000
» Nissan LEAF » Toyota Plug-in Prius
– 25 kWh – 4.4 kWh
– LMO cells by AESC – NCA cells by Panasonic
– Uses lithium carbonate/hydroxide – Uses lithium hydroxide
– Estimated cost of cells: $11,000 – Estimated cost of cells: $3,500
– Estimated cost of pack: $16,000 – Estimated cost of pack: $8,000
(1) Source : Medium- to Long-Term Outlook on xEVs and the
Secondary Battery Market. Navigant Research presentation at Battery Japan 2014. February 27, 2014.
18 ©2014 Navigant Consulting, Inc. All rights reserved.Few Newcomers & Less Capacity = Coming Shortage
SignumBox estimates adjusted by Nemaska to reflect expected lesser or delayed capacity by Newcomers
and overstated Chinese Capacity for battery grade Lithium Hydroxide
19Next Steps – Phase 1 Plant
• Phase 1 plant (500 t/y lithium
hydroxide and lithium
carbonate) is designed be a
module of the larger
commercial hydromet plant
– Off-take agreement with Clariant
Canada Inc. for the sale of
lithium hydroxide, including
collaboration for regeneration of
lithium sulfate rejects
– Produce commercial samples for
other potential clients
– Sign off-take agreements Pilot Scale Plant In Lab Testing –
Phase 1 Plant will be a Small Scale Commercial Version
Currently in discussions with
strategic partners, Governments
20 ©2014 Navigant Consulting, Inc. All rights reserved. 20Financing Options Mine and Hydromet Plant
• Excellent NPV, IRR and payback period for this project
• Currently in discussions with large end users looking to
secure long term supply agreements
– With FS results out we are in a position to further these discussions
• Will contemplate debt and equity combination
– Up to 70% in debt or off-take agreements or some combination
thereof
– Equity will not need to be secured until we have finalized the debt
arrangements
– End users/strategic partners are also interested in taking an equity
position
21Current Capital Structure (February 27, 2015)
Shares outstanding 191 596 104
Warrants and options
Options (average price $0.29 8 831 075
Warrants (average price $0.24)
41 911 155
Fully diluted 242 338 334
Distribution on a fully diluted basis
Management ≈12 %
Tianqi ≈8 %
Institutional investors ≈30 %
Retail ≈50 %
22Management and Board of Directors
Guy Bourassa, President and CEO
Mr. Bourassa is President and CEO since Nemaska’s inception in 2008. He brings more than 30 years of experience
in the mining industry to this role. Among other things he was instrumental in identifying and negotiating the
acquisition of the Whabouchi lithium property and securing over $35 million through financings in the capital
markets to develop this project. Through his leadership, the Company brought an historical lithium showing to a
world class deposit and has developed new innovative processes of producing high purity lithium hydroxide and
lithium carbonate, which should allow Nemaska to become a world leader in these lithium compound markets. Mr.
Bourassa is a recognized leader in the lithium industry having spoken at several international lithium and mining
conferences and events. Mr. Bourassa holds a law degree from Université Laval.
Michel Baril, Chairman of the Board and President of the Audit Committee
Mechanical engineer, with over 30 years of experience in management. Mr. Baril was an executive with
Bombardier Inc. Presently he acts as director of numerous public and private companies.
Steve Nadeau, Chief Financial Officer
Mr. Nadeau is a member of the Ordre des CGA du Québec as well as the CGA Association of Canada since October
1998. Prior to joining Nemaska, Mr. Nadeau held several senior financial positions at company producing products
related to the granite industry, electronics and automotive field. Mr. Nadeau is also Chief Financial Officer of
Monarques Resources Inc.
Jean-François Magnan, Eng. M.Sc. Technical Manager.
Mr. Magnan is a professional engineer with more than 20 years of experience in the metallurgical industry. During
his career, he held several positions within the lithium industry including: R&D Advisor, R&D Project Manager,
Consultant and Quality Control Metallurgist. He also acted as Project Manager for Phostech Lithium Inc. in 2000
and 2001. Mr. Magnan is the author/inventor of several patents in the lithium rechargeable batteries field. He holds
a Master's Degree in Materials Engineering from Laval University.
23Management and Board of Directors
Paul-Henri Couture, Director
Mr. Paul-Henri Couture has over 35 years of experience as a financial management and investment professional.
He has held senior positions at the Caisse de dépôt and placement du Québec and at Sentient Asset
Management Canada. During his tenure at the Caisse, Mr. Couture led a team responsible for a $3 billion
investment portfolio with a focus on financial institutions and natural resources sectors. While at the Caisse, Mr.
Couture also launched two innovative mining funds: Groupe Sodémex Inc. and MinQuest Capital. He built and
developed a $3-billion portfolio in turnarounds and corporate restructurings. Mr. Couture is President of
Minvest Capital, a business providing management and investing consulting services.
Vivian Wu, Director
Ms. Vivian Wu is Vice President (Corporate Development) of Chengdu Tianqi Industry Group Co., Ltd., an
integrates company group involved in three main business areas: lithium compounds, minerals and agricultural
machinery. Ms. Wu is also a director of Sichuan Tianqi Lithium Inc., a lithium chemical producer using
spodumene concentrate.
Gordon Gao, Director
Mr. Gordon Gao is Vice President of TQC Equipment Inc. (TQCE), the Canadian subsidiary of Chengdu Tianqi
Industry Group Co., Ltd.. Before joining TQCE in 2009, he worked as an international business manager of
Chengdu Enwei Group Co., Ltd. from 2002, which is specialized in medicine and health products. Mr. Gordon
Gao holds a Bachelor degree of Economics of East China Normal University, Shanghai, China (2000).
René Lessard, Director
Mr. Lessard was the Sales Manager of Campagna Motors Inc. from September 2008 to October 2009. From
October 2004 to October 2007, he was a sales manager of T-Rex Vehicles Inc. From February 2001 to July 2004,
he was the Sales Manager of Distribution GLR inc. in Québec City. From March 1997 to October 2000, he was a
sales representative of Ray-Flammes Inc. of Quebec City.
Judy Baker, Director
Ms. Baker holds an Honours B. Sc. Geological Engineering in mineral resources exploration and a MBA. She most
recently was the President, Chief Executive Officer and a director of Canada Lithium Corp. (now RB Energy) Ms.
Baker was instrumental in restructuring the company and strategically positioning it in the lithium business. Ms.
Baker is the past President and CEO of Superior Copper Corporation (previously Cenit Corporation).
24Conclusion – Why Nemaska
Emerging leader in growing high value market segment - lithium hydroxide
North America’s richest deposit, 2nd richest and largest in the world
State of the art processes of producing lithium hydroxide and lithium carbonate - leading
advantage over peers
Production costs compares favourably with competitors
Well located in Quebec
year round access to infrastructure,
shipping ports, rail access to North American markets,
long term contract for electricity – $0.05 KWh in Quebec lowest cost electricity globally
Upcoming near term catalysts for the Company
Phase 1 plant
Permitting
25Thank you!
Wanda Cutler, Investor Relations
wanda.cutler@nemaskalithium.com
www.nemaskalithium.com
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