corporate presentation - accueil | nemaska lithium€¦ · nemaska lithium | company overview 1 2...

May 2018

Corporate Presentation

Forward-

looking

statement

• 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 mineral resources and of

lithium compounds.

• Nemaska filed a NI-43-101 compliant feasibility study

report on SEDAR on February 23, 2018. All technical

information should be reviewed according to this 2018

feasibility study.

• All figures are in Canadian Dollars unless otherwise

specified. Exchange Rate is CAD$1.00 = USD$0.77

2

3

Vertically integrated

lithium project

• Nemaska Lithium’s Whabouchi project in Québec is a vertically integrated lithium project from the raw material

at Whabouchi mine producing a high quality spodumene concentrate which is then transported and supplies

the Electrochemical Plant in Shawinigan producing high-purity lithium hydroxide and lithium carbonate.

Lowest cost producer

of lithium hydroxide

• With a vertically integrated operation, proprietary process, and access to affordable hydroelectric power in

Québec, these are key factors in the Whabouchi project being forecast to become the lowest cost producer of

lithium hydroxide globally.

Near-term cash flow• The construction and commissioning of the Whabouchi Mine and concentrator will result in the early

production of high- grade spodumene concentrate producing cash flow as expected to ramp-up in 2019 that

will support the financing in the Shawinigan Electrochemical Plant with expected start up in 2020.

World-class

counterparties

• Nemaska Lithium has secured world-class offtake partners by entering into agreements with FMC and

Johnson Matthey. The various groups have given the project key endorsements through offtake contracts,

product qualification and financial support. In addition, the Company has announced a streaming agreement

with Orion Mine Finance for USD 150 million and a private placement with SoftBank, as a strategic investor of

up to CAD 99 million.

Strong support from

key stakeholder

• Nemaska Lithium has strong support from both the Government of Québec and Federal Government that have

collectively invested CAD 26 million in Nemaska Lithium. Additionally, the Cree Nation of Nemaska has

independently acquired approx. 3% of the outstanding common shares.

Strategically located• The Whabouchi Project is ideally located with access to existing rail lines and the port of Trois Rivieres,

enabling the cost effective supply of products to customers.

Phase 1 Plant proof of

concept

• Nemaska Lithium constructed and developed a Phase 1 plant in 2016/17. The plant is a 1/65 scale

demonstration plant. The operating Phase 1 plant has successfully produced lithium hydroxide from

Whabouchi spodumene concentrate demonstrating Nemaska Lithium’s ability to produce lithium hydroxide,

and also enabling the qualification of products with customers and off-takers.

Investment Highlights

4

Nemaska Lithium | Company Overview

1

2

10,000 tonnes bulk sample producing

~1,100 tonnesspodumene concentrate

@ 6.25% (Li2O)

Phase 1 Plant successfully built, transforming

spodumene concentrate to high purity lithium

hydroxide

3

Delivered 30 tonnes of lithium hydroxide

samples of battery grade quality to Johnson

Matthey satisfying their product specification

Construction and development of commercial operations targeting(1)

✓ Start commercial production of spodumeneconcentrate in Q3 2019.

✓ Start commercial production of lithium hydroxide and carbonate in Q3 2020.

✓ Spodumene concentrate production on average of approx. 213,000 tonnes per year @ 6.25% (Li2O).

✓ Lithium hydroxide production on average of approx. 23,000 tonnes per year.

✓ Lithium carbonate production on average of approx. 11,000 tonnes per year.

Nemaska Lithium's Accomplishments to Date Next Steps

(1) Production figures are based on average yearly figures for life of mine and Shawinigan Electrochemical Plant and assumes project financing completed in Q2 2018Source: Nemaska Lithium Feasibility Study Issue Date 21st of February 2018

5

Nemaska Project Overview

Québec

Saguenay

Rouyn-Noranda Val-d’Or

Matagami

Nemaska

Chibougamau

Shawinigan

Montréal

Positioned to Become

1. One of North America’s largest spodumene deposits

located in the Eeyou Istchee James Bay region, Canada

• High grade NI 43-101 spodumene reserve of 37 Mt @ 1.4%

(Li2O).

• Expected to produce 213,000 tonnes on average of spodumene

concentrate @ 6.25% (Li2O).

• 11,000 tonnes bulk sample completed.

• 1,100 tonnes of spodumene concentrate @ 6.25% (Li2O)

produced.

a Fully-Integrated Lithium Producer2. The Whabouchi Mine in Nemaska is located close to

Shawinigan Electrochemical Plant

• Deposit located close to infrastructure with regional road

connecting the Whabouchi Mine to rail infrastructure.

• Mine site located 855 km from Shawinigan Electrochemical

Plant.

3. Shawinigan Electrochemical Plant to convert spodumene

concentrate to lithium carbonate and hydroxide that is

close to port

• Expected to produce on average 23,000 tonnes per year lithium

hydroxide.

• Expected to produce on average 11,000 tonnes per year lithium

carbonate.

• Access to affordable hydro electric power in Québec allows for a

low-cost conversion.

Source: Nemaska Lithium Feasibility Study Issue Date 21st of February 2018

6

Guy

Bourassa(1)

President & CEO,

Director

• President & CEO of Nemaska since inception in

2008.

• Over 33 years of mining experience. He is currently

a director of the Nouveau Monde Graphite and

Monarques Gold Corporation.

Steve Nadeau

CFO• CFO of Nemaska since inception in 2008.

• Over 20 years of accounting and finance experience in mining, manufacturing, electronics and automotive fields, previously acted as CFO of Monarques Gold Corporation.

• More than 25 years of experience in the mining and

metallurgical industry, both in Canada and

internationally.

• Previously Vice President of Human Resources and

Communications for Koniambo Nickel, a large-scale,

complex nickel operation in New Caledonia.

Chantal

Francoeur

VP Human

Resources

• More than 25 years of experience in the mining

industry, both in North America and internationally.

• Headed legal affairs for Graymont Limited and

Cambior Inc. (now Iamgold Corporation), as well as

for the African Region of Kinross Gold Corporation.

Marc Dagenais

VP Corporate

Secretary & Legal

Affairs

Senior Management and Board of Directors

Michel Baril(2)

Chairman

• Over 30 years as a mechanical engineer and senior executive.

• Currently serves as a Director at Raymor Industries Inc.

• Former President & COO at Bombardier’s Recreational Products division and EVP of Bombardier Transportation.

François

Biron(2)

Director

• Mining engineer with more than 40 years of mining experience.

• Formerly, General Manager at Inmet Mining Corporation.

Paul-Henri

Couture(2)

Director

• Over 35 years of experience as a financial management and investment professional specializing in mining.

• Held senior positions at the Caisse de dépôt et placement du Québec and Sentient Asset Management.

René Lessard

Director• Independent sales consultant in the construction industry.

• Formerly, Sales Manager at Campagna Motors and T-Rex Vehicles.

Senior Management

(1) Member of the Board of Directors(2) Members of the Executive and Audit Committee

Board of Directors

Source: Nemaska Lithium

Construction and Operations Team

7

Technical and Operations Team

Yves

Painchaud

Construction Project

Manager

• Senior mechanical engineer in the industrial field with over 30

years of significant experience in major construction sites in

Québec.

• During his career, he has held various management positions

and has been managing and supervising his own engineering

firm for more than 15 years.

Jean Béliveau

Project Engineering

Director

• Professional mechanical engineer experienced in the fields of

General Management, operations and maintenance

management as well as project management.

• Was involved in the start-up of new manufacturing production

units in Canada and abroad.

• A graduate in mining engineering from McGill University, Guy

holds over 35 years of industry experience.

• Over the course of his career, he has been part of both

underground and open-pit mining projects in Québec, Canada

and internationally with postings in Brazil, Chili, Columbia,

Nicaragua, Mali, Mexico, Portugal and Tunisia.

• Professional engineer with over 20 years of experience

in the metallurgical industry and the lithium battery

industry.

• Author/inventor of several patents in the rechargeable

lithium battery industry.

Jean-François

Magnan

Technical Manager

• Professional chemical engineer with more than 30 years

of experience in various manufacturing industries,

mainly the industrial chemical sector.

Bertin Ouellet

Process Chemical

Engineer

• Masters degree in Electrochemical Engineering and

Technologies. He has played an active role in

Nemaska’s pursuit of patents covering its innovative

technologies, of which he is a co-inventor.

Nicolas

Laroche

Electrochemical

Engineer

Simon Thibault

Director,

Environmental and

Social

Responsibility

• Specialized in environmental mining policies and

permitting in Canada, especially in the provinces of

Québec, Ontario and Manitoba.

• Collaborated on Environmental Permitting of mining

projects, Environmental and Social Impact Assessments,

Environmental Auditing and Environmental Baseline

Studies, Preliminary Economic Assessments, Pre-

Feasibility Studies and Feasibility Studies.

Technical Team

André

Bouchard

Director of

Operations,

Shawinigan Plant

• Professional with more than 30 years of experience in

operations and maintenance management for Rio Tinto’s

titanium dioxide metallurgical and chemical plants.

• He has an outstanding record in the implementation and

administration of world-class asset management processes,

continuous improvement programs and strategic asset

planning.

Source: Nemaska Lithium

Guy Lauzier

General Manager

Whabouchi Mine

Capital Structure (May 14, 2018)

Shares outstanding 402,018,577

Options (average exercise price $0.76) – August 2018 to March 2023

Warrants (average exercise price $1.49) – July 2019

15,949,484

30,825,635

Fully Diluted 448,793,696

Distribution on a fully diluted basis

Management and employees

Ressources Québec, Tianqi and Nemaska Development Corp.

Institutional

Others

≈8 %

≈13 %

≈45%

≈34 %

8

9

Streaming Agreement | USD 150 million

• Orion Mine Finance is an alternative investment manager with USD 3.9 billion under management and specializes in providingflexible and comprehensive capital solutions to global mining companies.

• Orion Mine Finance has a seasoned team of investment professionals with demonstrated capabilities in structuring debt, equity,streaming, offtake and royalty investments; its strategy is to employ a disciplined, risk-adjusted investment process when evaluatinginvestment opportunities.

• It has provided stream finance to a wide range of mining companies, including Stornoway Diamond Corp, Lundin Gold Inc, PremierGold Ltd, Lydian International Ltd, Lynx Resources Ltd, Pretium Gold Inc, Heron Resources Ltd, Mantos Copper SA and LithiumAmericas Corp.

Provisions Comments

Funding: • USD 150 million provided by Orion Mine Finance to be used for the construction of the Whabouchi Project

Stream:

• Orion Mine Finance will purchase 14.5% of all lithium products produced from the Whabouchi and Shawinigan Projects (excluding the first 300,000 tonnes of spodumene concentrate)

• Orion Mine Finance shall pay 40% of Nemaska’s average realised sales price per tonne for all lithium products purchased under the stream

• Nemaska Lithium is responsible for selling 100% of the lithium products to third parties, with Nemaska’s payments under the stream satisfied on a net cash settlement basis

Security :

• Guaranteed by the members of the Debtor Group

• Second rank security to the bond issue

• Security is governed by the intercreditor agreement, subordinating the claims of the Streaming Facility

Cap: • The Streaming Facility is capped at 5,000 tonnes per annum(1)

Streaming Facility Terms

(1) There is a make-whole in the event that Nemaska falls short, allowing the cap to be increased the following year.Source: Orion Mine Finance

About Orion Mine Finance

10

SoftBank Private Placement | CAD 99 million

About SoftBank

• The SoftBank Group (TOKYO:9984) is a Japanese global technology player that aspires to drive the information revolution with amarket capitalization of USD 78 billion and an enterprise value of USD 202 billion.

• SoftBank makes investments in a variety of ventures in Japan and beyond. Its portfolio holdings extend from mobile and fixed-linetelecommunications to internet commerce and content, technology services, marketing and broadband infrastructure. The Companyalso provides venture capital to +60 technology-related companies in Asia, Europe, and the US.

• "This investment in Nemaska is of monumental importance to the SoftBank Group's strategy," said Masayoshi Son, Chairman & CEOof SoftBank Group Corp. "We are extremely pleased to be further accelerating the Mobile Revolution, an era of IoT (Internet ofThings) and electric vehicles enabled by the fusion of technology and energy storage“.

Provisions Comments

Amount: • CAD 99 million, subject to SoftBank not exceeding 9.9% ownership.

Price: • CAD 1.12 per Receipt

Completion:

• Completion of the Placement is subject to customary escrow release conditions for this type of transaction, including approval of the Toronto Stock Exchange. The closing of the Placement is expected to occur on or about April 2018.

Escrow:

• The gross proceeds from the placement will be held in escrow and, once the escrow release conditions will be satisfied or waived (which include raising additional equity, concluding the streaming facility agreement and securing debt financing commitments), each receipt shall be automatically converted into one (1) share and the net proceeds of the placement will be released to the Corporation. If the escrow release conditions have not been satisfied or waived by August 6, 2018, the Receipts will be automatically cancelled and funds will revert to SoftBank.

Private Placement Key Terms

Rechargeable battery

42%

Ceramics 12%

Glass-ceramics 12%

Greases 7%

Polymer 5%

Glass 5%

Metallurgical powders

4%

Primary battery 2%

Air treatment 2%

Other 9%

Uses of Lithium in 2016 Uses of Lithium in 2026E

11Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018

Lithium Uses 2016 and 2026E

Total demand ~197,000 tonnes

Lithium Carbonate Equivalent

Expected total demand

~1,008,000 tonnesLithium Carbonate

Equivalent

Rechargeable battery

86%

Ceramics 3%

Glass-ceramics 3%

Greases 2%

Polymer 1%

Glass 1% Primary

battery …

Air treatment 0%

Other 2%

17

167

183

3434

12

15 274 45 5

34 34

1

37 38

29,5

325

GWh in 2016 Additional capacity being built or expected to be built GWh in 2021E

GW

h p

er y

ear

USA Sweden Poland Japan Korea Germany China Total

12

Source: Nemaska Lithium company presentation 9th of March, Benchmark Intelligence Network

24 260

‘000 tonnes battery grade LCE consumption per year in 2016

‘000 tonnes battery grade LCE consumption per year expected in 2021

Assumed 0.8 tonne LCE per GWh

Gigafactories Driving Demand for Lithium

10x in Expected Lithium Demand from Gigafactories between 2016 – 2021E

13

Pricing Outlook

Nominal Price Forecasts for Spodumene Concentrate, Lithium Carbonate and Lithium Hydroxide

9 510

13 183

13 900

14 750

15 700

16 700

17 800

19 000

20 200

7 585

12 500

11 020

12 750

14 100

15 500

17 050

18 800

560

790

850

700

600

550

500510

520530

540550

570590

610630

300

400

500

600

700

800

900

5 000

7 000

9 000

11 000

13 000

15 000

17 000

19 000

21 000

2016 2017 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e 2031e

USD

per

to

nn

e

USD

per

to

nn

e

Lithium Hydroxide (Left axis) Lithium Carbonate (Left axis) Spodumene Concentrate (Right axis)

Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018

14

Supply Outlook

Lithium Supply(2)New Lithium Development Projects(1)

Source: Roskill Global Industry, Markets and Outlook to 2026

• In response to the large increase in demand there are severalnew lithium development projects in the pipeline

• In response to increased lithium demand, new lithium supply hascome online predominantly from spodumene concentrateproducers in Australia

• After 2020, lithium produced from brine is expected to capturemarket share as some of the larger brine projects are expected tocome online in Argentina and Chile

(1) Estimates made prior to announcement of SQM and ALB’s deal with CORFO(2) Capacity outlook is total mined capacity assuming 100% utilization

15

2018 Feasibility Key Figures

Average Cost Per Tonne - Spodumene Concentrate

CAD 334/t (USD 257/t) CIF Shawinigan (open pit)

Average Cost Per Tonne - Lithium Hydroxide

Sales Prices FOB Shawinigan lithium hydroxide USD14,000/t, lithium carbonate USD 9,500/t for first 5 years and USD 12,000t thereafter

All calculations assume a 6.25% (Li2O) spodumene concentrate

Exchange rate CAD/USD: 0.77

Yearly Average Production

CAD 3,655/t (USD 2,811/t) FOB Shawinigan

Average Cost Per Tonne - Lithium Carbonate 99.99%

CAD 4,424/t (USD 3,403/t) FOB Shawinigan

Whabouchi Mine

≈ 213,000 tonnes of concentrate (6.25% Li2O)


≈ 23,000 tonnes of lithium hydroxide

≈ 11,000 tonnes of lithium carbonate

33 yearswith 2.9 year payback period (after-tax)

Expected Mine Life and Payback Period

NPV

CAD 3.3B (USD 2.5B)

8% Discount (pre-tax)

CAD 2.4B (USD 1.8B)

8% Discount (after tax)

Internal Rate of Return (IRR)

34.4% (pre-tax) 30.5% (after tax)Total Initial Capital Costs

CAD 801m (USD 616m) in CAPEX

including contingency)

Source: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018

16Source: Nemaska Lithium, Google Maps

Whabouchi Mine | Mine Site Infrastructure

Montreal

Vancouver

Toronto

Nemaska

Cree community of Nemaska

To Route de la Baie-James

2km

Nemiscau Airport

Nemiscau Substations

Relais routier km 291

Whabouchi deposit

AlbanelSubstations

Route du Nord to Chibougamau

Powerlines

Roads

Whabouchi Property

• The Whabouchi Mine in Nemaska lies in close proximity to a network ofpowerlines with two hydro-electric power stations within 20 km.

• Whabouchi Mine located next to Route du Nord, which connects toChibougamau and James Bay Road.

• The Nemiscau Airport is located 17 km from mine site.

• The Cree community of Nemaska is over 30 km from the Whabouchi Minesite.

Mine Overview

Hudson Bay

17

Reserve Overview

Category Tonnage (Mt) Li2O (%)(1)

Open pit

Proven and probable 24 1.53%

Underground


Combined


Whabouchi Mine

Whabouchi Deposit

Simulation of how the Whabouchi Mine will look like once it is in production

Whabouchi Mine | Reserves and Deposit

(1) Li2O refers to spodumene concentrateSource: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018

18

Whabouchi Mine | Mining

• The Whabouchi Mine will operated as a conventional open-pit, truck and shovel, drill and blast operation.

• A 24-year mine life open pit and extension to 33 years viaunderground operation.

• Run-of-mine 1.03 million tonnes per annum ore grading 1.47-1.59% spodumene (diluted).

The Whabouchi Mine will operate Open Pit Mine Design by Phase

Current Mine Site Bulk Sample


19

Whabouchi Mine | Processing


• Processing at the Whabouchi Mine is straightforward and conventional:

– targeted initial production Q3 2019;

– life-of-mine recovery of 85.3% spodumene;

– simple crushing and sorting circuit consisting;

– low and high magnetic separation;

– stockpiles to handle downtime due to Cree “Goose Season Holiday” (21-day holiday); and

– ultimate product is a 6.25% (Li2O) spodumene concentrate.

• Already de-risked: Nemaska Lithium has test mined the Whabouchi Mine deriving a 10,000 tonnes bulk sample and achieved a 6.25% (Li2O) spodumeneconcentrate.

Whabouchi Concentrator Flow SheetProcessing Overview

20

Logistics | From Deposit to Customer

Concentrator Truck Train Plant

• Producing 6.25% (Li2O) spodumene concentrate from the mine and processing plant at mine site in Nemaska.

• Mine is in close proximity to roads connecting to Chibougamau.

• Spodumene concentrate is loaded onto road haul trucks in Nemaska.

• The concentrate will be transported ~300 km from Whabouchi to Chibougamauby truck on the all season gravel road, Route du Nord.

• Nemaska will build concentrate handling and storage facilities at Chibougamau to allow for concentrate receiving by trailers, unloading, storage and loading into rail car.

• Concentrate is loaded onto the rail cars at Chibougamauand transported 555 km by the CN to Shawinigan.

• An existing CN railway runs along the north-western side of the Shawinigan Electrochemical Plant.

• It is expected that deliveries with up to 18-100 tonne per railcar will be made every two to three days to the plant in Shawinigan.

• Railcars will enter the site from the railway at the south corner of the site onto the existing railway network.

• Railcars will be emptied from the bottom, one at a time over the concentrate receiving hopper.

• Lithium carbonate and hydroxide to be sold FCA Shawinigan.

Whabouchi Chibougamau Shawinigan

~300 km from Whabouchi to Chibougamau ~555 km from Chibougamau to Shawinigan

Source: Nemaska Lithium Feasibility Study Issue Date 21st of February 2018

21Source: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018

Electrochemical Plant | Existing Buildings in Shawinigan

Phase 1 Plant

Commissioned in Q1-2017

and in production

Hydroelectric Power Plant

Electrochemical Plant

Anticipated commissioning Q3-2020

Shawinigan Electrochemical Plant Flow Sheet

22

Shawinigan Electrochemical Plant | Flowsheet


• The Shawinigan Electrochemical Plant process for the conversion of spodumene concentrate to lithium compounds is a patented proprietary process of Nemaska:

– thermal conversion;

– acid baking and leaching;

– impurity removals;

– ion exchange;

– electro membrane process;

– lithium hydroxide monohydrate crystallization; and

– lithium carbonate precipitation;

• Sulphuric acid is recycled to be used in the acid baking process which reduces costs.

• Hydrogen created by the electrochemical process is recovered as a source of energy.

Comments

23

Nemaska to Produce a High Quality Hydroxide

Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium

Lithium Hydroxide Grade Comparison

54,8 %

56,5 %

56,5 %

56,5 %

56,5 %

56,5 %

57,5 %

Sichuan State Lithium Materials

Sichuan Tianqi Lithium Industries

Sichuan Ni & Co Guorun New

Chengdu Chemphys

Albemarle

FMC Corporation

Nemaska Lithium

LiOH grade

Purity Specifications

Product Market specifications(1) NMX Specifications

LiOH, wt%54.8 - 56.5 57.5

Ca, mg/kg10 – 100 < 1

Na, mg/kg20 – 500 < 20

K, mg/kg10 – 250 < 10

Mg, mg/kg

10 < 1

Fe, mg/kg5 – 21 < 5

Al, mg/kg10 < 1

CO2, wt%0.035 - 0.35 < 0.2

Cl, mg/kg15 – 100 < 10

SO4, mg/kg50 – 300 < 150

Cr, mg/kg5 – 100 < 1

Cu, mg/kg1 – 5 < 1

Ni, mg/kg1 – 10 < 1

Si, mg/kg20 - 30 < 10

Zn, mg/kg10 < 1

Sol. Acid, mg/kg40 – 1000 < 50

(1) Based on the companies to the left’s specifications Source: Nemaska Lithium press release 8th of January, 2018

Nemaska’s Concentrate Hydroxide and Carbonate Cost Advantages

US$ Costs for Nemaska vs. Competitors – Hydroxide US$ Costs for Nemaska vs. Competitors – Carbonate

Concentrate Costs for Nemaska vs. Competitors (all US$)

14

25

Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska Lithium Note: Battery and technical grades: Includes direct carbonate production from raw materials (brine and minerals); SQM & Albermarle costs assume potash cost share methodology; China mineral conversion assumes USD 500/t CIF spodumene price; Nemaska shown at 2021 carbonate output; North American Lithium (NAL) assumes 50% increase in feasibility –level costs; LAC/SQM & NAL output shown at 50% of capacity

Nemaska to Become a Low Cost Producer

Lithium Carbonate Cost Curve 2021E

USD per tonnelithium carbonate

• Nemaska Lithium is expected to be on the middle of the cost curve for lithium carbonate producers once it reaches full capacity in 2021.

• Only three companies are expected to have a lower cash costs: Albermarle, Lithium Americas and SQM.

• Nemaska Lithium will produce lithium carbonate from lithium hydroxide.

• Nemaska Lithium is expected to become the lowest cost producers among hard rock lithium converters.

USD per tonnelithium hydroxide

• Nemaska lithium is expected to be the lowest cost producer of lithium hydroxide.

• Nemaska Lithium will produce lithium hydroxide directly. This is different from SQM and Albermarle where lithium hydroxide is produced from lithium carbonate.

• Nemaska Lithium benefits from low-cost carbonate supply from internal operations and patented process for conversion of spodumene to lithium hydroxide and lithium carbonate.

Source: Roskill Marketing Review on Nemaska Lithium, 19th of February 2018, Nemaska LithiumTechnical and battery grades; SQM, Albemarle and FMC costs assume lithium carbonate procured internally at cost; China and Australia conversion plant costs assume USD 500/t spodumene concentrate cost; FMC assumes USD 9,500/t carbonate feedstock cost; Nemaska shown at capacity;

Lithium Hydroxide Cost Curve 2021E

26

(1) As per Feasibility Study with cut off date 1st of December 2017 Source: Nemaska Lithium

Derisking Initiatives | Phase 1 Plant Proves Methodology

WHABOUCHIMINE

SHAWINIGAN ELECTROCHEMICAL PLANT

END PRODUCT

• USD 49 million of equity already invested in theconstruction of the mine(1)

• 1,100 tonnes of spodumene concentrate alreadyproduced.

• 6.25% (Li2O) spodumene concentrate alreadydelivered to the Shawinigan Electrochemical Plantfor conversion.

• Phase 1 Plant (small scale replica of theShawinigan Electrochemical Plant) alreadyconstructed.

• Produced lithium hydroxide with spodumene frommine.

• Used for product testing and quality verification bycustomers.

• Produced and delivered battery gradelithium hydroxide.

• Confirmation of product specifications fromend user.

27

Capex overview after project financing by quarter per Feasibility Study with cut off date 1st of December 2017. Note that an additional CAD 22 million has been invested in the project post this dateAssumed exchange rate of USD/CAD: 0.77Source: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018

Capital Expenditure Forecast by Project Quarter

12

40

55 53

29

16

3

4

46

81

66

51

60

53

33

14

17

86

136

118

8176

56

33

14

1

616

0

100

200

300

400

500

600

700

0

20

40

60

80

100

120

140

160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Year 1 Year 2 Year 3

USD

mill

ion

USD

mill

ion

Whabouchi Mine

Electrochemical Plant

Cummulative Project

28

Construction Schedule(1)

Whabouchi Mine

Engineering(2)

Procurement(2)

Manufacturing(2)

Delivery

Construction(2)

Pre-operational verification


Ramp up and commercial production

2018

Q4Q3Q2Q1

2019

Q4Q3Q2Q1

2020

Q4Q3Q2Q1

Engineering(2)

Procurement(2)

Manufacturing(1)

Delivery

Infrastructure

Construction

Pre-operational verification

Ramp up & commercial production

(1) Assuming Project Financing Q2 2018(2) Work streams initiated before Q1 2018Source: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018

29

Cashflow Overview from Feasibility Study(1)

(1) For a detailed overview of the cash flow statement summary see page 103 in the Offering MemorandumSource: Nemaska Lithium Feasibility Study, Issue Date 21st of February 2018

(8 000)

(6 000)

(4 000)

(2 000)

-

2 000

4 000

6 000

8 000

(450)

(350)

(250)

(150)

(50)

50

150

250

350

450

Project Year

US

D m

illio

n

US

D m

illio

n

After tax cash flow Tax Cumulative after-tax cashflow (secondary axis)

FMC

• FMC is a U.S. chemical manufacturing company based in Philadelphia, Pennsylvania, United States of America.

• FMC serves the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products.

• FMC employs approximately 6,000 people globally and operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition and FMC Lithium.

• FMC has contributed with a lump sum of USD 10 million to NemaskaLithium.

Pricing Mechanisms

30For further information see section 4 of “Risk Factors and Other Considerations” in the Offering Memorandum and 10.2 of “Offtake and other sale agreements”Source: Nemaska Lithium FMC, Johnson Matthey

Quality Offtake Partners Secured

Johnson Matthey

• Johnson Matthey is a global specialty chemicals company.

• Johnson Matthey focuses on clean air, clean energy and low carbon technologies and is an expert in the application and recycling of precious metals.

• Johnson Matthey has operations in over 30 countries and employs around 13,000 people.

• Its products and services are sold across the world to a wide range of advanced technology industries.

• Johnson Matthey has contributed with CAD 12 million to Nemaska Lithium.

• The pricing mechanisms for lithium carbonate prices, depending on the contract, are or will be either:

i. based upon market price;

ii. based on market price less a discount; or

iii. pre-determined fixed price contract denominated in USD (with an escalation factor over time).

• Depending on lithium hydroxide prices, the contract, are or will be based on market price less a discount. The market price under (i) and (ii) are set using several quotes from major buyers and sellers for the same volume and quality of product for that given year.

31

Project Summary | Key investment takeaways

Proven production

process

Near term commercial producer of

lithium compounds

To become the lowest cost producer of

lithium hydroxide

World-class counterparties

Unique location and process of

processing lithium

1 2 3 4 5

Emerging Vertically Integrated Low-Cost Lithium Producer in a Premier Jurisdiction

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