Nemaska Lithium Completes Its CAD 1.1 Billion Financing Package - Seite 3

Following the Long Stop Date, additional conditions precedent are required to be met by the Corporation in order to permit the drawdown of Bond Funds from the Trust Account.

For additional details regarding the various conditions precedent, the terms and details of the Bonds and the Bond Offering, please refer to the Corporation’s press release dated May 10, 2018.  The full text of the Bonds Terms will be available on the Corporation’s profile on SEDAR at www.sedar.com following the date hereof. Readers are encouraged to refer to the full text of the Bond Terms for all of the terms and conditions of the Bonds.

The Corporation intends to apply to list the Bonds on the Nordic Alternative Bond Market (ABM).

SoftBank Private Placement Escrow Release

On April 25, 2018, the Corporation announced the closing of a subscription receipt private placement with SoftBank pursuant to which a total of 88,460,446 subscription receipts were issued at a price of CAD 1.12 per subscription receipt for gross proceeds of CAD 99.075M which were placed into escrow pending the satisfaction of certain escrow release conditions.

The Corporation is pleased to announce that all escrow release conditions have now been met following the completion of the Public Offering, the Contemporaneous Private Placement and the Bond Offering and, as a result, 83,729,011 subscription receipts have been converted and an equal number of common shares, representing 9.9% of the issued and outstanding common shares of the Corporation following completion of the Public Offering, the Contemporaneous Private Placement and the issuance of common shares pursuant to the SoftBank Private Placement, have been deemed to be issued to SoftBank for gross proceeds of CAD 93.8M (USD 72.1M) released from escrow to the Corporation.

A Unique and Unprecedented Financing Structure in the Lithium Industry

This announcement marks an important stage of the comprehensive Project Financing Package that will fund the construction, commissioning, working capital and reserve funds for the Whabouchi lithium mine and the Shawinigan electrochemical plant (collectively, the “Project”), as well as general working capital.

The closings today of these four elements of the Project Financing Package coupled with the USD 150M (CAD 195M) streaming agreement with Orion Mine Finance II LP (“Orion”) (the “Streaming Agreement”), as announced on April 12, 2018 allow Nemaska Lithium to deliver a CAD 1.1B (USD 849M) equivalent project financing to finance the development of the Project. 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 Nemaska Lithium has satisfied certain customary conditions at the latest on December 31, 2018. 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.