Mr. Guy Bourassa reports

NEMASKA EXPLORATION ANNOUNCES THAT ITS SUBSIDIARY, MONARQUES RESOURCES INC. HAS FILED A PRELIMINARY PROSPECTUS FOR A MINIMUM OFFERING OF $2M

Nemaska Exploration Inc.'s recently formed subsidiary, Monarques Resources Inc., has obtained a receipt for its preliminary prospectus for an offering of a minimum of $2-million comprising 2.5 million units at a price of 40 cents per unit and two million common shares in the capital of Monarques, to be issued as flow-through shares, at a price of 50 cents per flow-through share. The total value of the subscription to units shall be equal or greater than the value of the subscription for flow-though shares received. Each unit consists of one common share at a price of 40 cents per common share and one-half of one common share purchase warrant. Each warrant will entitle its holder to purchase one common share at a price of 45 cents at the latest any time prior to 5 p.m. (Eastern Time) on the date that is 18 months following the closing date. This offering is made through Industrial Alliance Securities Inc. and Dundee Securities Ltd. acting as agents, on a best-efforts basis, in the provinces of Quebec, Ontario, Alberta and British Columbia. You can obtain a copy of the preliminary prospectus from Industrial Alliance Securities at 2200 McGill College Ave., Suite 350, Montreal, Que., H3A 3P8, or from Dundee Securities at 1 Adelaide East, Suite 2200, Toronto, Ont., M5C 2V9. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued. The corporation has also applied to list its shares on the TSX Venture Exchange.

Monarques has agreed to conditionally purchase all rights, titles and interests owned by Nemaska in the Lac Arques, Lac des Montagnes and Lac Levac properties for a purchase price of $7.5-million by issuing, as at the closing date of its initial public offering, a total of 18.75 million common shares at a price of 40 cents per common share. Of the 18.75 million common shares, Nemaska intends to distribute 3,685,645 common shares to its shareholders as a dividend. The closing date of the records to determine the shareholders allowed to receive the proposed dividend will not be known until the closing of Monarques's initial public offering has been completed.

We seek Safe Harbor.