The controlled exfoliation of transition metal dichalcogenides (TMDs) into pristine single- or few-layer nanosheets remains a significant barrier to fundamental studies and device applications of TMDs. Here we report a novel strategy for exfoliating crystalline MoS2 into suspensions of nanosheets with retention of the semiconducting 2H phase. The controlled reaction of MoS2 with substoichiometric amounts n-butyllithium results in intercalation of the edges of the crystals, which are then readily exfoliated in a 45 vol % ethanol water solution. Surprisingly, the resulting colloidal suspension of nanosheets was found (by electron microscopy and atomic force microscopy) to consist mostly of trilayers. The efficiency of exfoliation of the pre-intercalated sample is increased by at least 1 order of magnitude relative to the starting MoS2 microcrystals, with a mass yield of the dispersed nanosheets of 11-15%.