Mr. Jean-Sebastien David reports

ARIANNE UPDATES ON DOWNSTREAM PHOSPHORIC ACID FACILITY

Arianne Phosphate Inc. has received its initial findings back from a study regarding a downstream phosphoric acid facility. The work surrounding the study commenced in Q3 2018 in partnership with the New Brunswick government (see press release dated Aug. 9, 2018), to review the possibility of constructing a phosphoric acid plant in Belledune, N.B.

The study was done with the Port of Belledune, utility and construction groups, as well as with phosphate experts from SNC-Lavalin SA Brussels and Prayon Technologies, Engis, Belgique which were responsible for running the tests and producing phosphoric acid. The key takeaway is that the Arianne phosphate concentrate responded extremely well during the process and was capable of producing a 60 per cent P2O5 merchant grade acid (MGA) and opposed to usual 52 per cent MGA and, therefore, should be able to be sold at higher prices. Further, because of the high-quality nature of the Arianne phosphate concentrate input, the gypsum byproduct produced during the process appears to have commercial value, as opposed to the typical contaminated waste generated by using traditional phosphate rock sources.

"These tests should now allow us to continue discussions with several groups that have indicated and interest in the possibilities of a phosphoric acid facility," said Jean-Sebastien David, chief operating officer of Arianne Phosphate. "With the right partner, the facility can have numerous advantages; control of its own rock source will provide an economic benefit as well as allow for greater security of supply. In addition, it will also provide a buyer for roughly 40 per ecnt of our own mine production."

Based on the study, Arianne will now review the merit of going downstream and the company will continue its discussions with would-be partners to further assess the strategic and economic advantage of this approach. "The logic of partnering with another entity on a downstream facility makes a lot of sense and, the key takeaway from this preliminary study is that our original thinking was sound," concluded Brian Ostroff, chief executive officer of Arianne Phosphate.

Qualified person

Jean-Sebastien David, PGeo, qualified person by National Instrument 43-101, has approved this release. Mr. David is also the company's chief operating officer.

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 with little or no contaminants (feasibility study released in 2013).

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