Mr. Brian Ostroffreports

ARIANNE PHOSPHATE MAKES ANNUAL INTEREST PAYMENT ON ITS CREDIT FACILITY

Arianne Phosphate Inc. will issue 10,824,601 common shares at a price of 18.09 cents per share, in lieu of cash, as its annual interest payment to Mercury Financing Corp. as at March 31, 2025. 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 $1,958,170.24. The company has elected to pay this amount in common shares with these securities issued being subject to a hold period ending Aug. 1, 2025.

As well, Arianne will issue five million non-transferable share purchase warrants to Mercury, having an expiration on March 31, 2026, and an exercise price of 33 cents per share (see press release dated March 18, 2021). Under the terms of the agreement, the company had undertaken to raise additional funds, by way of equity in the amount of $3-million within the one-year anniversary of the closing of the transaction and every anniversary thereafter for the three subsequent years for total cumulative gross proceeds of $12-million. If the company did not raise additional equity funds on a yearly and cumulative basis, the company would issue the lender an additional five million non-transferable share purchase warrants per year, where a financing milestone had not been met (maximum of 20 million non-transferable warrants). In this final year of the agreement, the company has opted to issue the additional five million warrants (at 33 cents per share) as opposed to raising equity at these current levels.

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 released in 2013). The company has 213,714,811 shares outstanding.

Qualified person

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

We seek Safe Harbor.