Arianne Phosphate announced that it has commenced work on a Prefeasibility Study ("PFS") to construct a downstream purified phosphoric acid plant ("PPA") in the region, capable of converting the Company's high-purity phosphate concentrate into a finished PPA product. In pursuing this downstream integration, Arianne will be able to move beyond being a producer and seller of concentrate and leverage its geological advantage into becoming a dominant player in the high-purity, battery and specialty markets. As well, by moving to a fully vertically integrated operation, the Company will benefit from significantly enhanced economics and allow the Saguenay region to establish itself within the global battery ecosystem.

As currently planned, the facility would be the largest producer outside of China and, given the rare igneous nature of Arianne's deposit, should be very cost competitive as well. Purified phosphoric acid has gained considerable interest over the last few years as it is an important ingredient in the lithium-iron-phosphate ("LFP") battery. Currently, the supply of PPA is constrained, especially outside of China, as it has historically been used in food preservatives and other industrial applications, and now, the LFP is rapidly encroaching on existing supply.

Today, the LFP battery represents over 30% of all batteries, with many industry analysts projecting it to be the most common of all battery chemistries within the next few years. This demand growth will result in the need for more PPA production, with Benchmark Mineral Intelligence projecting that requirement at an additional +1 million tonnes of PPA annually; a very significant increase over what is currently produced globally. Furthermore, with China today producing over 90% of all LFP batteries, Western supply is extremely limited.

Acknowledging the importance of phosphate, and access to it, the Government of Quebec recently placed the phosphate-bearing mineral, apatite on its critical and strategic mineral list. This move follows other jurisdictions that have done the same, including the European Union. The PFS is studying the construction of a PPA plant situated in the Saguenay region of Quebec, trucking distance from Arianne's mine and, with easy access to major North American battery hubs such as Bécancour, Quebec, the US "battery-belt" in the southeast and the American automotive industry in Michigan and surrounding states.

The project anticipates the production of 350,000 tonnes of battery-grade PPA, which would make Arianne the single largest producer outside of China and capable of addressing a significant portion of Western battery requirements. Further, the facility would also produce over 200,000 tonnes of a secondary premium phosphoric acid used for animal feeds and specialty fertilizers. Due to projected closures both in North America and Europe, this secondary market will be greatly underserviced and also provide additional economic opportunity to Arianne.