Mr. Raphael Gaudreault reports

ARIANNE PHOSPHATE PROVIDES CLARIFICATION TO PRIOR NEWS RELEASE

Arianne Phosphate Inc. issued a press release on June 27, 2024, announcing positive results from its purified phosphoric acid prefeasibility study relating to the construction of a purified phosphoric acid plant in the Saguenay region of Quebec to transform igneous-based phosphate concentrate into a battery-grade phosphoric acid for use in the lithium-iron-phosphate battery. Arianne would like to clarify certain information disclosed in the press release regarding the study.

As the study relates to a processing facility, readers are cautioned that the term prefeasibility study used by the company in the press release to refer to this study is not the same as that associated with mineral projects as defined under Regulation 43-101 respecting Standards of Disclosure for Mineral Projects, and this study should therefore not be viewed as equating to a prefeasibility study as defined under Regulation 43-101 because the project is not a mineral project but rather an industrial project, and therefore is not governed by Regulation 43-101.

Commensurate with a prefeasibility study, a number of general and untailored assumptions were used to assess the economic potential of a PPA complex.

The PFS is based on a maximum yearly production capacity of 350,000 tonnes of PPA (100 per cent P2O5) and 220,000 tonnes of a secondary phosphoric acid from 1.5 million tonnes of phosphate rock concentrate that can be purchased on the market on a long-term contract basis and could eventually include concentrate from Arianne's Lac a Paul project.

The capital expenditure amount of $1.65-billion (U.S.) and the operating costs in the PFS were determined using a Class 5 estimate as defined per the American Association of Cost Engineers International Practice 18R-97 (cost estimate classification system -- as applied in engineering, procurement and construction in the process industries). The estimate has an accuracy of plus or minus 40 per cent based on costs of second quarter 2024. Canadian-dollar values were converted to U.S. dollars at 1.35.

The annual and unit process operating costs in the PFS for the PPA complex were determined for a maximum production of 350,000 tonnes annually of battery-grade PPA and 220,000 tonnes of a secondary phosphoric acid. The estimated operating costs for the PPA plant and the sulphuric acid plant include labour, electricity cost, potable and industrial water costs, maintenance material, mobile equipment costs, phosphate rock concentrate, and sulphur.

The press release contained information extracted from the PFS prepared by independent engineering firms which included future-oriented financial information on the construction of, and the production from, a PPA complex located in Saguenay for a period extending to Dec. 31, 2024. The FOFI was included to provide the reader with elements of the financial information, which the company will use to make a decision to move forward or not with the project, and to further progress on discussions with potential partners.

Under Section 4A.2 of Regulation 51-102 respecting Continuous Disclosure Obligations, the public disclosure of FOFI should cover a period for which the information can be reasonably estimated. In many cases, the period should not go beyond the end of the reporting issuer's next fiscal year, and, to comply with this policy, the company excludes from its press release the following FOFI: the net present value, the internal rate of return and the payback period of the PPA complex.

Investors should perform their own due diligence and not rely on the FOFI made by the company in its press release to guide them in their investment decisions.

About Arianne Phosphate Inc.

Arianne 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 to produce three million tonnes per year of high-purity apatite concentrate at the Lac a Paul project, Quebec, Canada," released on Nov. 13, 2013). The company has 202,890,210 shares outstanding.

Qualified person

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

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