Mr. Brian Ostroff reports

ARIANNE PHOSPHATE REPORTS CORPORATE AND FINANCIAL RESULTS FOR FIRST QUARTER 2020

Arianne Phosphate Inc. has released its financial results for the three-month period ended March 31, 2020.

First quarter 2020 financial and operational highlights:

• In February, 2020, the company closed on the first tranche of an equity financing in the amount of $425,025. Under the terms of the financing, Arianne issued 1,700,100 units at a price of 25 cents per unit. Each unit comprises one common share and one-half warrant. Each full warrant entitles the holder to purchase one common share at a price of 40 cents until Feb. 13, 2023.
• In April, 2020, Arianne received the final report from its partners for the optimization of the truck-trailer design. The new design will now allow for a payload of 150 million tonnes as opposed to the original 120 Mt of phosphate concentrate, providing for greater economies of scale. This increased payload per run will both improve Arianne's profitability as it lowers its FOB (freight on board) cost at port and reduce Arianne's environmental footprint as it will require fewer trucks to haul the same annual output.

Financial summary

Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in the first quarter of 2020. In the first quarter ended March 31, 2020, the company incurred net losses of $400,000 for the three-month period. For the same period in 2019, the net loss incurred was $600,000.

Outlook

Through the rest of 2020, 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 its dialogue with stakeholders.

Arianne's MD&A (management's discussion and analysis) and condensed consolidated interim financial statements for the three-month period ended March 31, 2020, are available on the company's website and on SEDAR.

Qualified person

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

About Arianne Phosphate Inc.

Arianne 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 phosphorus pentoxide (P2O5) with little or no contaminants (feasibility study released in 2013).

We seek Safe Harbor.