Mr. Raphael Gaudreault reports

ARIANNE PHOSPHATE RECEIVES STRATEGIC INVESTMENT FROM A GLOBAL MINING COMPANY

Arianne Phosphate Inc. has received financing by way of an unsecured convertible debenture from a global mining company. Arianne owns the fully permitted Lac a Paul phosphate mining project and is currently advancing work on its proposed downstream phosphoric acid project. The proceeds received from the financing will be used to advance the company's work on the downstream facility to better quantify the opportunity. The economic benefits of the downstream facility are driven by the conversion of regionally sourced igneous phosphate concentrate into a highly sought downstream product that requires additional supply, particularly originating outside of China.

"This is a significant step forward for the project and the company," said Brian Ostroff, president of Arianne Phosphate. "This investment comes from a group that has the skillset to help advance the project and provide us with a catalyst to aggressively move forward. In addition, demonstrating the ability to attract this investment can facilitate the project's advancement and help accelerate discussions with other parties that have expressed a strong interest in the project or shown interest in certain aspects of the project such as receiving product. This investment is a big plus for Arianne, its stakeholders, investors and the Saguenay region."

Investment terms

Under the terms of the investment, the strategic investor purchased a convertible debenture in the principal amount of approximately $3.8-million, that matures in three years and bears interest at 9.5 per cent per annum. Interest payments are added to the principal amount of the convertible debenture and, as a result, no amounts are required to be repaid by Arianne until the maturity of the instrument. The strategic investor has the option, at any time and subject to customary adjustments, to convert (i) the principal amount of the convertible debenture at a price of 35 cents per common share and (ii) the accrued interest thereon at a price per share equal to the greater of (a) 35 cents and (b) the market price at the time the accrued interest is converted, as determined in accordance with the rules of the TSX Venture Exchange. Upon the strategic investor reaching an ownership of at least 3.0 per cent of the issued and outstanding common shares of Arianne (either through conversion, open market purchase or otherwise), the company will enter into an investor rights agreement with the strategic investor that will provide customary participation and top-up rights and a board nomination right.

The investment remains subject to the final acceptance of the TSX Venture Exchange. The convertible debenture purchased by the strategic investor is subject to a four-month hold period under applicable Canadian securities laws ending on Feb. 11, 2025.

Downstream production

The proceeds from the investment will be used to advance the company's previously announced intention to build and operate a downstream purified phosphoric acid (PPA) plant. As highlighted in the preliminary study, Arianne is looking to construct a facility in the Saguenay region of Quebec, Canada, that would convert regionally produced phosphate concentrate into PPA. The two grades of phosphoric acid that would be produced at the facility are a very high-purity PPA known as white acid, used in the production of lithium-iron-phosphate (LFP) batteries and direct food additives and a second-tier phosphoric acid used in the production of specialty fertilizers and animal feeds. The facility would look to produce 350,000 tonnes annually of high-purity PPA and 220,000 tonnes of the second-tier phosphoric acid, making it a substantial Western producer of battery and food-grade PPA. Some of the benefits associated with the proposed facility include: easy access to premium phosphate concentrate, pre-existing logistics, beneficial ESG (environmental, social and governance) characteristics and strong economics.

In closing, Raphael Gaudreault, Arianne's chief operating officer, added: "This investment continues to demonstrate the interest and opportunity in critical minerals in general and our project in particular. The West has come to understand the importance of diversifying away from China when it comes to supply chains and involving global miners with both the skills and financial ability to assist with these projects will be instrumental if the West is going to be successful."

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.

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