ABE Resources to Acquire Nemaska Lithium's Sirmac Lithium Property

ABE Resources Inc. (TSXV: ABE) (OTC: ABEPF) (the "Company" or "ABE") is pleased to announce the signing of a definitive asset purchase agreement (the "Agreement") for the arm's length acquisition (the "Transaction") of a 100% undivided interest in the Sirmac Lithium Property (the "Sirmac Property") from Nemaska Lithium Inc. ("NemaskaLithium") (TSX: NMX) (OTC: NMKEF) (FRANKFURT: N0T). The Sirmac Property consists of 24 mining claims having a total area of approximately 1,100 hectares located approximately 180 kilometres North-West of Chibougamau, in the province of Québec.

Under the Agreement, ABE will make a $250,000 cash payment and issue 15,000,000 common shares of ABE to Nemaska Lithium and assume a pre-existing 1% net smelter return royalty on certain of the claims comprising the Sirmac Property. The Transaction remains subject to the approval of the TSX Venture Exchange.

"We identified the Sirmac Property as our top lithium project pick and initiated discussions with Nemaska Lithium," commented Yves Rougerie, President and CEO of ABE. "The property has an historical resource of 318,324 tonnes grading 2.04% Li2O for the #5 Dyke completed in 1994* and has at least twelve sparsely outcropping pegmatite dykes, most of which have yet to be tested by drilling. Nemaska completed more than $2-million of exploration work on the Sirmac Property after its acquisition in 2011 consisting of 72 shallow drill holes totalling 3,415 meters and extensive trenching and channel sampling of the #5 Dyke and we plan to build on that work immediately." 

Under the Agreement, Nemaska Lithium will have a pre-emptive right to participate in any future equity financing as long as it holds at least 10% of ABE's issued and outstanding common shares.

"We believe this transaction will foster and accelerate the development of the Sirmac Property, in all likelihood years ahead of when we could develop it, given our focus on building the Whabouchi Mine and Shawinigan plant. Eventually, Sirmac concentrate could represent an additional, reliable source for Nemaska Lithium. We remain very bullish on the demand for lithium salts and as such, we can contemplate increasing our production capacity in Shawinigan in the future and potentially needing additional sources of concentrate," commented Guy Bourassa, President and CEO of Nemaska Lithium.

Mr. Rougerie added, "With the addition of the Sirmac Property we will actively explore two highly prospective battery material properties. The Company will continue to explore the recently acquired Dôme Lemieux property in the Gaspésie region of eastern Québec. We should have results from the 3D model on the Dôme Lemieux out shortly. Both copper and lithium are very important minerals in lithium ion batteries and we are well positioned in both commodities with such excellent projects."

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