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Nemaska Exploration Inc
Symbol NMX
Shares Issued 49,099,706
Close 2010-09-03 C$ 0.40
Market Cap C$ 19,639,882
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Nemaska produces 91% spodumene from Whabouchi

2010-09-07 17:09 ET - News Release

Ms. Wanda Cutler reports

NEMASKA EXPLORATION CONFIRMS HIGH GRADE SPODUMENE CONCENTRATE CAN BE PRODUCED FROM WHABOUCHI

Nemaska Exploration Inc. has released the results of metallurgical testing of a mini-bulk sample taken from its Whabouchi lithium/beryllium project. Approximately a one-tonne sample, obtained by core drilling across the pegmatite body, was submitted for metallurgical testing in late July to SGS Minerals Services (SGS Canada Inc.) at Lakefield, Ont. Spodumene concentrates containing from 3.26 per cent to 3.37 per cent lithium or 7.02 per cent lithium oxide (Li2O) to 7.25 per cent Li2O were produced and are composed of 88 per cent to 91 per cent spodumene grains, respectively. Optimization of the process to maximize liberation of spodumene is expected to improve concentrate grade and recovery. The concentrate has been roasted and leached, and 95 per cent of the lithium in the concentrate was extracted into solution. The solution is now undergoing hydrometallurgical processing for test production of lithium carbonate.

In addition, using the rougher concentrates only, without subsequent cleaner stages, the best two tests combined averaged 2.81 per cent Li (6.05 per cent Li2O) with average recovery of 79 per cent. Spodumene concentrate grades as low as 2.8 per cent Li (6.0 per cent Li2O) with recoveries over 80 per cent of contained Li are satisfactory for production of battery-grade lithium carbonate (Li2CO3) and lithium hydroxide monohydrate (LiOH-H2O). This would indicate that the usual subsequent cleaner stages will be unnecessary in concentrating Nemaska ore for battery applications resulting in lower costs of processing.

Gary Pearse, principal of Equapolar Consultants Ltd., an independent firm hired by Nemaska to oversee the metallurgical work and conduct a scoping study at Whabouchi, commented: "These very preliminary tests on Nemaska spodumene pegmatite material yielded uncommonly good concentrate grades and recoveries, and the lithium carbonate bench production tests are under way. The high extraction rate of lithium from the concentrate is most encouraging, and at this stage, there would appear to be no problem in producing 99-plus per cent lithium carbonate using standard technology."

Guy Bourassa, president and chief executive officer of Nemaska, added: "I am very pleased with results to date. I look forward to seeing more results from the metallurgical work and to getting the results from our scoping study which will examine the preliminary costs of putting this deposit into production. Our next steps will be to look for strategic partners to assist us in getting this product to market. Everything we have seen to date from this project suggests that we have the makings of Canada's next lithium mine."

The technical sections of this press release have been prepared by Mr. Pearse, BSc, MSc, PEng, Geo, a qualified person as defined in National Instrument 43-101.

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