QUEBEC CITY, CANADA--(Marketwire - March 31, 2011) - (News - Market indicators) (OTCBB:NMKEF) (FRANKFURT:NOT) NEMASKA EXPLORATION INC. ("Nemaska" or the "Corporation") announces that it has signed a Conditional Asset sale agreement (Conditional Asset sale agreement) with its wholly owned subsidiary, Monarques Resources Inc. The Conditional Asset sale agreement concerns all the non-lithium related assets held by Nemaska and are comprised of the Lac Levac, Lac des Montagnes and Lac Arques properties. The sale is conditional on the closing of a financing of a minimum of $2M and is subject to regulatory authorities' approval. This is an all share transaction. The sale price is $7.5M, payable in shares of Monarques at a price of $0.40 a share or 18,750,000 shares of Monarques. The number of shares to be received by Nemaska will be adjusted to reflect Monarques' final financing price if lower than $0.40. The $7.5M sales price represents the book value, of these assets as of the date of the closing.

Nemaska intends to distribute to its shareholders, after the closing of Monarques' IPO, 3,685,645 of the shares received from the sale of its non-lithium assets.

After the closing of the Conditional Asset sale agreement, Nemaska will retain its core assets, the Whabouchi and Sirmac properties, and its holding in Monarques. Nemaska is expected to remain the largest shareholder of Monarques, post financing.

"The signing of the Conditional Asset sale agreement is our latest step towards having the financial markets recognize the value of Nemaska's non-lithium assets," commented Mr. Guy Bourassa, President and CEO of Nemaska. "With the Monarques'IPO, we believe we will be able to raise sufficient funds to begin a more aggressive exploration program of these assets and start to realize their full potential. In addition, with respect to our Whabouchi lithium project, we have made impressive progress advancing the development of this asset. We have successfully completed a preliminary economic assessment, have begun a feasibility study and added a major China-based lithium end-user in Chengdu Tianqi Industry Group as a strategic shareholder in Nemaska. With this substantial advancement of Whabouchi, it is now an appropriate time to proceed with the Monarques'IPO to separate our non-lithium exploration projects."

Monarques Resources Inc. intends to file within the following weeks, its preliminary prospectus. The public offering will involve a minimum offering of $2M with a syndicate of agents led by Industrial Alliance Securities Inc., and including Dundee Securities Inc. (collectively, the "Agents"). The Agents are to act on a best effort basis for this offering. Details of the offering will be released on filing of the preliminary prospectus.

About the non-lithium assets to be sold to Monarques

The Lac Levac (approx. 9,200 hectares), Lac Arques (approx. 39,470 hectares), and Lac des Montagnes (approx. 12,740 hectares) properties are contiguous and cover approximately 85 km of the Lac des Montagnes green belt polymetallic formation in the James Bay region in the Province of Quebec. They are easily accessible year round by either the Route du Nord from Chibougamau (280 km) or the Route de la Baie James from Matagami (380 km) and are located near the Cree community of Nemaska and the Némiscau airport. The Lac Levac property holds the Nisk-1 nickel-copper-PGE deposit on which resources have been released and confirmed by a NI 43-101 report.

The statements herein that are not historical facts are forward‐looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties. Actual results could differ from those currently projected. The Corporation does not assume the obligation to update any forward‐looking statement.