Arianne Phosphate: Clarifying the PPA Plant Project's Potential

Arianne Phosphate Inc. recently issued a press release, clarifying aspects of its earlier announcement regarding the prefeasibility study (PFS) for a purified phosphoric acid (PPA) plant in Quebec. This clarification follows a June 2024 release, where the company detailed the economic potential of a PPA complex, intended to convert phosphate concentrate into battery-grade phosphoric acid for lithium-iron-phosphate batteries.
The company emphasized that the term "prefeasibility study" in this context does not align with definitions under Regulation 43-101, as this is an industrial rather than a mineral project. Consequently, the assumptions used in the study, although reflective of standard prefeasibility assessments, may not meet the same regulatory scrutiny typically applied to mining projects.
Arianne outlined the projected production capacity of the facility at 350,000 tonnes of PPA and 220,000 tonnes of secondary phosphoric acid, derived from 1.5 million tonnes of phosphate rock concentrate, with the potential to use materials from its Lac à Paul project.
Financial estimates indicate a capital expenditure of approximately USD 1.65 billion, with operating costs assessed under the American Association of Cost Engineers’ classification. The company noted that this information is crucial for informed decision-making regarding the project and discussions with potential partners. However, the release excluded critical future-oriented financial information related to net present value and internal rate of return, urging investors to perform independent due diligence before making investment decisions.
Arianne Phosphate is focused on the development of high-quality phosphate deposits, essential for the growing battery market, with shares traded on multiple exchanges including TSX-V and OTCQX.

The PFS is based on a maximum yearly production capacity of 350,000 tonnes of PPA (100% P2O5) and 220,000 tonnes of a secondary phosphoric acid from 1.5 MT of phosphate rock concentrate that can be purchased on the market on long term contract basis and could eventually include concentrate from Arianne's Lac à Paul project.
The Capex amount of US$1.65 billion and the Operating costs in the PFS were determined using a class 5 estimate as defined per the American Association of Cost Engineers (AACE) International Practice 18R-97 (Cost estimate classification system – As applied in Engineering, Procurement, and Construction in the Process industries). The estimate has an accuracy of +/- 40% based on costs of Q2 2024. CAD values were converted to USD at 1.35.

The annual and unit process operating costs in the PFS for the PPA complex were determined for a maximum production of 350,000 tonnes annually of battery grade PPA and 220,000 tonnes of a secondary phosphoric acid. The estimated operating costs for the PPA plant and the sulfuric acid plant include labour, electricity cost, potable and industrial water costs, maintenance material, mobile equipment costs, phosphate rock concentrate and sulfur.
The press release contained information extracted from the PFS prepared by independent engineering firms which included future-oriented financial information ("FOFI") on the construction of, and the production from a PPA complex located in Saguenay for a period extending December 31, 2024. The FOFI was included to provide the reader with elements of the financial information which the Company will use to make a decision to move forward or not with the Project, and to further progress on discussions with potential partners.
Under section 4A.2 of Regulation 51-102 respecting Continuous Disclosure Obligations, the public disclosure of FOFI should cover a period for which the information can be reasonably estimated. In many cases, the period should not go beyond the end of the reporting issuer's next fiscal year and, in order to comply with this policy, the Company excludes from its Press Release the following FOFI: the Net Present Value, Internal Rate of Return and payback period of the PPA complex.
Investors should perform their own due diligence and not rely on the FOFI made by the Company in its Press Release to guide them in their investment decisions.
About Arianne Phosphate:
Arianne Phosphate Inc. (www.arianne-inc.com) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high-quality igneous apatite concentrate grading 39% P2O5 with little or no contaminants ("Feasibility Study to Produce 3Mtpy of High Purity Apatite Concentrate at the Lac à Paul Project, Québec, Canada" released on November 13, 2013). The Company has 202,890,210 shares outstanding.
Qualified Person
Raphael Gaudreault, eng., Qualified Person by NI 43-101, has approved the technical disclosure in this release.
Mr. Gaudreault is also the Company's Chief Operating Officer.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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