Mr. Armand MacKenzie reports

SERV, SWISS EXPORT RISK INSURANCE, SUPPORTS GUARANTEE OF USD 212.5 MILLION FOR CAPEX OF FIRST PHOSPHATE MINE PROJECT IN QUEBEC, CANADA

First Phosphate Corp. has received a letter of support from Swiss Export Risk Insurance (SERV) for approximately $212.5-million (U.S.) for the purchase of Swiss machinery and equipment for its igneous phosphate mine project, as well as goods and services for the construction of its processing facility in Saguenay-Lac-St-Jean, Que., Canada.

SERV is prepared to consider insurance/guarantees in support of a buyer credit financing based on an assumed eligible Swiss export contract value of $250-million (U.S.) where SERV would consider supporting a financed amount of approximately $212.5-million (U.S.), corresponding to 85 per cent of such contract value. Should the final eligible Swiss export contract value be higher, SERV would be prepared to consider a correspondingly higher financing amount.

In accordance with the prevailing OECD guidelines, SERV would be prepared to provide cover of up to 95 per cent of the eligible financed amount. The financed amount may include up to 85 per cent of the export contract value, eligible local costs of up to 50 per cent of the export contract value, capitalized interest during construction and the export credit agency premium.

A sufficient portion of the project is expected to be sourced from Switzerland to be eligible for SERV coverage. SERV may also seek reinsurance from other export credit agencies in respect of significant portions of the project sourced outside Switzerland.

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.