Nemaska Lithium Concludes a USD 150M Streaming Agreement with Orion - Seite 2

Michael Barton, Portfolio Manager at Orion Resource Partners (UK) LLP said, "Orion is delighted to become a major investor in one of the most exciting lithium projects globally. We look forward to supporting Nemaska Lithium as Whabouchi and Shawinigan enter the next phase of development."

The Streaming Agreement provides for the sale and delivery to Orion of 14.5% on all lithium hydroxide and lithium carbonate produced at the Shawinigan plant and sold to third parties (collectively, "Stream Products"). Orion's purchase price paid to Nemaska Lithium under the Streaming Agreement will be 40% of the sales proceeds of such Stream Products. Nemaska Lithium will act as Orion's agent in the sale of the Stream Products to third-party off-takers. Through this arrangement, Orion will receive 60% of the sales proceeds from such Stream Products, which will result in Orion receiving a net portion of approximately 8.7% of the Stream Products sales. The maximum amount of Stream Products deliverable per year will not exceed the equivalent of 5,000 tonnes of refined lithium products.

In consideration of the Streaming Agreement, Orion will make an advance payment equal to USD 150M to Nemaska Lithium Shawinigan Transformation Inc., a wholly-owned subsidiary of Nemaska Lithium. The advance payment will be released in two equal tranches of USD 75M with the first tranche expected to be payable once the Project Financing is in place and once Nemaska Lithium has satisfied certain customary conditions which it expects to satisfy soon after the Project Financing completion. The second tranche will be payable upon the satisfaction of certain technical and other customary conditions that must be satisfied no later than December 31, 2019. In the event that these latter conditions are not satisfied, the second tranche will not be released and the percentage of Stream Products will be reduced from 14.5% to 7.5%.

About Nemaska Lithium

Nemaska Lithium is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide and lithium carbonate. These lithium salts are mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide. With its products and processes, Nemaska Lithium intends to facilitate access to green energy, for the benefit of humanity.