Mr. Brian Ostroff reports

ARIANNE PHOSPHATE CLOSES LOAN FINANCING

Arianne Phosphate Inc. has closed on a $3-million loan with various third party lenders.

The loan will bear interest at 8 per cent, paid semi-annually, and has a maturity of three years with the company having the ability to repay the loan after one year at its option. As part of the loan, the company has issued non-transferable warrants in the amount of 800 per $1,000 face value (for a total of 2.4 million warrants), with each warrant entitling the holder to purchase one common share of the company at a price of $1.25 per share for a term of three years expiring on Sept. 28, 2019. Additionally, following the expiry of the regulatory hold period, should the closing price of Arianne's common shares on the TSX Venture Exchange be equal to or higher than $2 for 10 consecutive days, the company shall have the right to force the exercise of the warrants by providing the warrantholders with a 30-day notice period, following which the warrants will automatically expire.

"We continue to push forward towards the development of our significant phosphate asset," said Brian Ostroff, chief executive officer of Arianne Phosphate. "These additional funds will allow us to add additional staff related to detailed engineering and financing, as well as to continue our ongoing activities centred around discussions with potential partners and funders." Arianne anticipates closing on a second tranche of this financing within the next few weeks.

In conjunction with this loan, Arianne paid finders' fees in the amount of $120,000 and issued 96,000 non-transferable warrants. Each warrant is exercisable at 92 cents for a period of three years.

The securities issued in connection with the loan are subject to a regulatory four-month-and-one-day hold period expiring on Jan. 29, 2017. The loan remains subject to the final approval of the exchange.

Qualified person

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

About Arianne Phosphate

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.

We seek Safe Harbor.