Mr. Raphael Gaudreault reports

ARIANNE PHOSPHATE ADVANCES PREFEASIBILITY STUDY FOR A PURIFIED PHOSPHORIC ACID PLANT

Arianne Phosphate Inc. has commenced work on a prefeasibility study to construct a downstream purified phosphoric acid plant in the Saguenay-Lac-Saint-Jean region in Quebec capable of converting the company's high-purity phosphate concentrate into a finished PPA product. In pursuing this downstream integration, Arianne will be able to move beyond being a producer and seller of concentrate and leverage its geological advantage into becoming a dominant player in the high-purity, battery and specialty markets. As well, by moving to a fully vertically integrated operation, the company will benefit from significantly enhanced economics and allow the Saguenay region to establish itself within the global battery ecosystem. As currently planned, the facility would be the largest producer outside of China and, given the rare igneous nature of Arianne's deposit, should be very cost competitive as well.

Purified phosphoric acid has gained considerable interest over the past few years as it is an important ingredient in the lithium-iron-phosphate (LFP) battery. Currently, the supply of PPA is constrained, especially outside of China, as it has historically been used in food preservatives and other industrial applications, and now the LFP is rapidly encroaching on existing supply. Today, the LFP battery represents over 30 per cent of all batteries, with many industry analysts projecting it to be the most common of all battery chemistries within the next few years. This demand growth will result in the need for more PPA production, with Benchmark Mineral Intelligence projecting that requirement at an additional over one million tonnes of PPA annually; a very significant increase over what is currently produced globally. Furthermore, with China today producing over 90 per cent of all LFP batteries, Western supply is extremely limited.

Acknowledging the importance of phosphate and access to it, the government of Quebec recently placed the phosphate-bearing mineral apatite on its critical and strategic mineral list. This move follows other jurisdictions that have done the same, including the European Union.

"There is no doubt that we will need a significant increase in the supply of PPA, the question is where will that come from," said Brian Ostroff, president of Arianne Phosphate. "Today Arianne's Lac a Paul project is the world's largest independently owned resource, capable of producing a very high-purity/low-contaminant phosphate concentrate, already tested and confirmed to produce a battery-grade PPA. Our project is well situated in Quebec, Canada, near necessary infrastructure, fully permitted and shovel ready. Over the last 18 months, the company has expended a considerable amount of time and effort to ensure that we will be able to capitalize on this enormous opportunity. In answering the question of where this needed supply will come from, I would say that Arianne is ideally placed to address this urgent requirement and, in so doing, benefit from very significant strategic and economic advantages. As planned, our facility would be able to produce enough PPA to address 350 gigawatts per hour of annual demand from Western gigafactories, a significant portion of what will be required."

The PFS is studying the construction of a PPA plant situated in the Saguenay region of Quebec, trucking distance from Arianne's mine and, with easy access to major North American battery hubs such as Becancour, Que., the U.S. "battery-belt" in the southeast, and the American automotive industry in Michigan and surrounding states. The project anticipates the production of 350,000 tonnes of battery-grade PPA, which would make Arianne the single largest producer outside of China and capable of addressing a significant portion of Western battery requirements. Further, the facility would also produce over 200,000 tonnes of a secondary premium phosphoric acid used for animal feeds and specialty fertilizers. Due to projected closures both in North America and Europe, this secondary market will be greatly underserviced and also provide additional economic opportunity to Arianne.

"The Saguenay region is already known for its global advantage in industries such as aluminum," said Raphael Gaudreault, chief operating officer of Arianne Phosphate, "it would now become the player in Western production of phosphate for specialty uses like batteries. The integrated project, both mine and PPA plant, will be of significant benefit to the province and country. The region provides access to a skilled work force, advanced infrastructure including port, rail and hydroelectricity, and the ability to access emerging battery markets in both North America and Western Europe. As well, with the project being situated in Quebec, Canada, it will allow both Arianne and its customers to benefit from the economic incentives provided for by various government programs, with this further supported by phosphate's addition to the Quebec's critical mineral list. Lastly, as China currently represents over 90 per cent of all LFP production, this facility will allow for the continued diversification away from Chinese sources to a Western supply chain."

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 phosphorus pentoxide with little or no contaminants (feasibility study released in 2013). The company has 196,809,271 shares outstanding.

Qualified person

Raphael Gaudreault, Eng, qualified person by National Instrument 43-101, has approved this release. Mr. Gaudreault is also the company's chief operating officer.

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