Mr. Raphael Gaudreault reports

ARIANNE PHOSPHATE CONDITIONALLY APPROVED FOR SUPPORT FROM THE GOVERNMENT OF CANADA

The government of Canada has conditionally approved Arianne Phosphate Inc. for a grant of up to $735,000 for the advancement of its work on purified phosphoric acid (PPA). Pending final due diligence, the funding will be provided through Natural Resources Canada's Critical Minerals Research, Development and Demonstration (CMRDD) program and is part of an $80.3-million investment announced by Prime Minister Carney at the 2025 G7 Leaders' Summit to help build reliable critical minerals supply chains in Canada.

The announcement was made on Saturday, Oct. 4, 2025, by Tim Hodgson, Minister of Energy and Natural Resources. Mr. Hodgson said: "By investing in projects like Arianne Phosphate's technology centre, we are strengthening Canada's leadership in critical minerals and building a cleaner, more secure future -- furthering the goals spelled out at the G7 in Kananaskis. This investment not only supports innovation, supply chain security and good jobs here at home, it also ensures we are leveraging our natural resources to stay at the forefront of the global shift to clean technologies." Claude Guay, parliamentary secretary to the Minister of Energy and Natural Resources, also added: "This investment in Arianne Phosphate's innovative project highlights Canada's commitment to securing a reliable and sustainable supply of critical minerals essential for, among other uses, clean energy generation and storage. By backing projects like this, we are creating jobs and securing a sustainable, homegrown supply of essential resources for the future."

Phosphate, long understood as a necessary agricultural commodity, has come into greater awareness and demand for its use in batteries (lithium-iron-phosphate, or LFP), as many carmakers are now producing EVs (electric vehicles) based on this chemistry. As well, the rapid growth in energy storage systems (ESS), a market dominated by the LFP battery, is providing a sizable increase in demand for these batteries. Combined, the growth in both the EVs and ESS has led to the LFP battery surpassing other battery chemistries, making it the most widely used globally in 2024. Like many critical minerals and battery technologies, China dominates the LFP market with a global market share of over 95 per cent, and, if the West is going to minimize its reliance on Chinese imports, it will need to develop a suitable Western alternative.

Arianne Phosphate is the owner of the Lac a Paul phosphate project in Quebec, Canada, the world's largest greenfield phosphate deposit. Having spent $100-million over the past 15 years, the mining project is fully permitted, making it a vital component in Canada's critical mineral strategy and, currently, the only shovel-ready phosphate project. Geologically, the deposit is igneous, allowing the company to produce an extremely pure phosphate concentrate capable of being easily transformed into PPA, a necessary ingredient for the LFP battery. Independent analysis cites the growing demand for PPA, along with its limited supply growth into the end of the decade as a bottleneck for the industry. Arianne published its prefeasibility study in the summer of 2024, indicating the company's ability to become a dominant player in the PPA market by constructing a downstream facility to convert the region's high-purity phosphate concentrate into a high-grade PPA. The current funding from the Canadian government will be a considerable help to the company and the industry as a whole if Canada is to meet the important strategic necessity.

"The receipt of this funding will be significant in our efforts to advance our work surrounding the transformation of our phosphate into PPA," said Raphael Gaudreault, chief operating officer of Arianne Phosphate. "Having recognized phosphate as a critical mineral in 2024, we appreciate the Canadian government's continued support of phosphate and our company. This grant will help in the development of a vital industry, one that Canada has a significant advantage in and will help build a reliable critical mineral supply while unlocking the jobs and economic benefit that will come with it."

Marco Gagnon, executive chairman of Arianne, stated: "On behalf of the board and management team, we want to thank the government and Minister Hodgson for their support. The government of Canada's support of Arianne allows us to move forward the development of our Lac a Paul project to the benefit of the country, our stakeholders and our shareholders. Recognized as a critical mineral in 2024, phosphate is an essential mineral used in lithium-iron-phosphate batteries as well as food and agriculture. The advancement of our project will help bring about the government's vision of being a leader in critical minerals."

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 213,714,811 shares outstanding.

Qualified person

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

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