Mr. Brian Ostroff reports

ARIANNE PHOSPHATE REPORTS CORPORATE AND FINANCIAL RESULTS FOR SECOND QUARTER 2019

Arianne Phosphate Inc. has released its financial results for the three-month and six-month period ended June 30, 2019.

"The second quarter of the year was a strong one for the company," said Brian Ostroff, chief executive officer of Arianne. "During the period, Arianne received continued support by way of investment, added additional technical personnel, and advanced discussions with potential partners and offtakers, all necessary pieces for the future development of our Lac a Paul mine. Our hope is to bring our world-class phosphate mine into production as soon as possible and unlock the considerable value for our investors and stakeholders that come with it."

Second quarter 2019 financial and operational highlights:

• In August, 2019, Arianne closed on a $691,050 financing. Under the terms of the financing, Arianne has issued 1,256,455 units at a price of 55 cents per unit. Each unit is composed of one common share and a half warrant. Each full warrant entitles the holder to purchase one common share at a price of 75 cents until Aug. 21, 2021.
• In June, 2019, Arianne entered into a non-binding memorandum of understanding (MoU) with Sinoconst, a large Chinese state-owned enterprise. Under the terms of the MoU, Arianne and Sinoconst have agreed to work toward a final binding agreement relating to the development of Arianne's Lac a Paul project, which would include full project financing. On a parallel track, efforts to secure offtake are expected to be undertaken by Sinoconst in support of the financing package discussed under the MoU.
• In May, 2019, the company closed a $1.5-million investment from the government of Quebec by way of a private placement into the common shares of Arianne. Under the terms of the offering, the government of Quebec is subscribing for 3,671,970 common shares of the company at a price of 40.85 cents per share.
• In May, 2019, the company announced that Arianne shareholders re-elected Dominique Bouchard, Mr. Ostroff, James Cowley, David DeBiasio, Marco Gagnon, Siva Pillay, Steven Pinney, Claude Lafleur and Jean Fontaine as directors of the company during the annual general meeting of shareholders of the company, held on May 29, 2019, in Montreal.

Highlights subsequent to quarter-end:

• In July, 2019, the company announced efforts surrounding transportation logistics have significantly progressed. Arianne partnered with several parties to look at greater integration of aluminum into the truck trailer design. Through this initiative over the past year, Arianne and its partners have advanced a design that will be able to reduce the weight of the transport trucks and allow for a greater payload per run. Once integrated, this will result in fewer trucks on the road, increasing safety and reducing the overall environmental impact. As well, this design will bring about greater economies of scale, resulting in a reduction in the cost of transporting Arianne's phosphate concentrate to port and, thus, the overall operating cost for its project.
• In July, 2019, Arianne announced the addition of Raphael Gaudreault to its team. Mr. Gaudreault will be assuming the position of director of the mining sector and comes to Arianne after most recently serving as manager planning and mining performance at Arcelor.

Financial summary

Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in second quarter 2019. In the second quarter ended June 30, 2019, the company incurred net losses of $600,000 for the three-month period and $1.2-million for the six-month period. For the same period in 2018, the net loss incurred was $40,000 for the three months and $700,000 for the six-month period of 2018.

Liquidity

At June 30, 2019, the company had $1.2-million in cash on hand. These funds will be allocated toward general working capital and advancing development of Lac a Paul in 2019.

Outlook

Through the rest of 2019, Arianne will be focused on the continuing advancement and development of its Lac a Paul project. Expected milestones include:

• Complete partnership and financing arrangements;
• Continue to enhance the value of the project through project optimization;
• Continue the company's continuing dialogue with stakeholders.

Arianne's management's discussion and analysis and condensed consolidated interim financial statements for the six-month period ended June 30, 2019, are available on the company's website and on SEDAR.

As well, the company today announced the departure of Mr. DeBiasio from its board of directors. Arianne wants to thank Mr. DeBiasio for his considerable contribution to the company over the years, helping it move through the exploration stage toward development.

Qualified person

Jean-Sebastien David, PGeo, qualified person by National Instrument 43-101, has approved this release. Mr. David is also the company's chief operating officer.

About Arianne Phosphate Inc.

Arianne Phosphate is developing the Lac a Paul phosphate deposits, located approximately 200 kilometres north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high-quality igneous apatite concentrate grading 39 per cent P2O5 with little or no contaminants (feasibility study released in 2013).

We seek Safe Harbor.