Mr. Brian Ostroff reports

ARIANNE PHOSPHATE REPORTS CORPORATE AND FINANCIAL RESULTS FOR THIRD QUARTER 2019

Arianne Phosphate Inc. has released its financial results for the three-month and nine-month periods ended Sept. 30, 2019. All amounts are in Canadian dollars unless noted.

"Despite a very challenging fertilizer macro, Arianne continues to execute on the advancement of its Lac a Paul project," said Brian Ostroff, chief executive officer of Arianne Phosphate. "Over the last quarter, we have advanced our project on several fronts including, the improvement of transportation logistics, the receipt of positive initial findings surrounding a downstream phosacid plant and the ability to attract additional key personnel to the Arianne team. Discussions with potential financiers and partners are also ongoing, and we believe the work the company is doing now places it in a very good position to take advantage of a turn in the fertilizer market."

Q3 2019 financial and operational highlights:

• In September, 2019, the company has extended on a $4.1-million loan with various third party lenders. The extended loan will have a maturity of Sept. 28, 2021. The loan bears interest at 8 per cent, paid semi-annually. As part of the loan extension, the company issued 7,453,800 non-transferable warrants, with each warrant entitling the holder to purchase one common share of the company at a price of 55 cents per share for a term of two years expiring on Sept. 28, 2021.
• In August, 2019, Arianne has closed on a $691,050 financing. Under the terms of the financing, Arianne has issued 1,256,455 units at a price of 55 cents per unit. Each unit comprises one common share and a one-half warrant. Each full warrant entitles the holder to purchase one common share at a price of 75 cents until Aug. 21, 2021.
• In July, 2019, the company announced efforts surrounding transportation logistics have significantly progressed. Arianne partnered with several parties to look at greater integration of aluminum into the truck trailer design. Through this initiative over the past year, Arianne and its partners have advanced a design that will be able to reduce the weight of the transport trucks and allow for a greater payload per run. Once integrated, this will result in fewer trucks on the road, increasing safety and reducing the overall environmental impact. As well, this design will bring about greater economies of scale, resulting in a reduction in the cost of transporting Arianne's phosphate concentrate to port and thus the overall operating cost for its project.
• In July, 2019, Arianne announced the addition of Raphael Gaudreault to its team. Mr. Gaudreault will be assuming the position of director of the mining sector and comes to Arianne after most recently serving as manager planning and mining performance at Arcelor.

Highlights subsequent to quarter-end:

• In October, 2019, Arianne announced that it has received its initial findings back from a study regarding a downstream phosphoric acid facility. The company's phosphate concentrate responded extremely well to the beneficiation process and resulted in the production of up to a 60 per cent P2O5 merchant grade acid (MGA) compared with the market typical 52 per cent MGA. Furthermore, due to the high-quality nature of the phosphate concentrate input, the gypsum byproduct produced during the process appears to have commercial value, whereas traditional phosphate concentrates will produce contaminated waste.

Financial summary

Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q3 2019. In the periods ended Sept. 30, 2019, the company incurred net losses of $400,000 for the three-month period and $1.7-million for the nine-month period. For the same periods in 2018, the net loss incurred was $500,000 for the three months and $1.4-million for the nine months.

Liquidity

At Sept. 30, 2019, the company had $1.1-million cash on hand. These funds will be allocated toward general working capital and advancing development of Lac a Paul in 2019.

Outlook

Through the rest of 2019 and into the new year, Arianne will be focused on the continuing advancement and development of its Lac a Paul project, namely:

• Complete partnership and financing arrangements;
• Continue to enhance the value of the project through project optimization;
• Continue the company's continuing dialogue with stakeholders.

Arianne's management discussion and analysis (MD&A) and condensed consolidated interim financial statements for the nine-month period ended Sept. 30, 2019, are available on the company's website and on SEDAR.

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).

We seek Safe Harbor.