Mr. Raphael Gaudreault reports

ARIANNE PHOSPHATE CAPS ROYALTY BUYBACK AND ISSUES SHARES AS INTEREST PAYMENT

Arianne Phosphate Inc. will issue 6,080,939 common shares at a price of 32.29 cents per share, in lieu of cash, as its annual interest payment to Mercury Financing Corp. as at March 31, 2024.

As part of the agreement with Mercury, Arianne has, at its sole option, the ability to pay its interest by way of cash or shares, and such cash amount would have been equal to $1,963,535. The company has elected to pay this amount in common shares with these securities issued being subject to a hold period ending Aug. 1, 2024.

As well, Arianne has been able to negotiate a cap in the amount it can pay in order to repurchase an additional royalty that was put in place in March, 2021, when the company extended its credit facility with Mercury for five years and lowered the annual interest rate to 8 per cent (see press release dated March 18, 2021). Under the terms of the extension, an additional royalty was put in place that would escalate by 25 cents per tonne annually while the credit facility was in place. This additional royalty could be bought back for $2.25-million for every year the credit facility was in place; however, Arianne has been able to cap the payment for the repurchase of this additional royalty to a maximum of $6.75-million.

Additionally, Arianne today is announcing that it has engaged Impaq Capital Inc. to provide investor relation services to the company. Under the terms of the agreement, Arianne will pay $5,000 per month for a minimum period of six months, and has issued 150,000 options that are good for a period of two years and exercisable at 27.5 cents. These options are subject to a vesting period of 25 per cent per quarter over the first year.

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 (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.

We seek Safe Harbor.