Mr. Bennett Kurtz reports

FIRST PHOSPHATE CLOSES FINAL TRANCHE OF OVERSUBSCRIBED PRIVATE PLACEMENT

On July 10, 2026, First Phosphate Corp. closed the final tranche of its non-brokered private placement financing, as further described in the company's news releases dated May 28, 2026, and June 15, 2026.

In aggregate, under the two tranches of the offering, the company has raised gross proceeds of $17,698,290 through the issuance of 7,238,070 flow-through shares for gross proceeds of $14,476,140, and through the issuance of 1,611,075 hard-dollar units for gross proceeds of $3,222,150.

Under this tranche of the financing, the company raised a total of $2,277,650 through the issuance of 960,500 flow-through shares for gross proceeds of $1,921,000 and 178,325 hard-dollar units, comprising 178,325 common shares and 178,325 warrants, for gross proceeds of $356,650.

Together with this offering, and since June, 2022, the company has raised approximately $80.2-million in 11 management-led non-brokered private-placement financings and from funds received from option and warrant exercise.

In connection with the current tranche of the offering, the company paid $12,000 in cash finders' fees, issued 8,040 compensation common shares at a deemed price of $2.00 per common share and issued 14,040 compensation warrants. In aggregate between the two tranches, the company paid $168,880 in cash finder's fees, issued 330,960 compensation shares and issued 424,400 compensation warrants. All securities issued under the offering are subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. The company intends to use the proceeds from the offering as disclosed in the company's press release dated May 28, 2026. The company may close another tranche of the offering at its discretion subject to the policies of the Canadian Securities Exchange.

Board appointment

The company is pleased to announce the return of Peter Kent to its board of directors effective July 10, 2026. Mr. Kent has been instrumental in the development of the company having previously served as president, as a director and as an adviser to the company. All existing directors will also remain on the board.

Audit committee changes

The company has restructured its audit committee in connection with Mr. Kent's appointment to the board with Mr. Kent replacing John Passalacqua on the audit committee. The audit committee now consists of Laurence W. Zeifman (chair), Peter J. F. Nicholson and Mr. Kent.

RSU (restricted share unit) and option grant

Mr. Kent has been granted: (i) 51,134 restricted share units with 11,134 vesting on Aug. 31, 2026, and 40,000 vesting on Feb. 28, 2027; and (ii) 300,000 incentive stock options with each option exercisable for one common share of the company at $2.00 until Dec. 29, 2028. The options shall vest in four tranches with 25 per cent vesting on each of Jan. 10, 2027, July 10, 2027, Jan. 10, 2028, and July 10, 2028.

About First Phosphate Corp.

First Phosphate is a mineral exploration and development and clean technology company dedicated to building and reshoring a vertically integrated mine-to-market supply chain for the production of LFP batteries in North America. Target markets include energy storage, data centres, robotics, mobility and national security.

First Phosphate's flagship Begin-Lamarche property, located in Saguenay-Lac-Saint-Jean, Que., Canada, represents a rare North American igneous phosphate resource producing high-purity phosphate characterized by very low levels of impurities.

We seek Safe Harbor.