Mr. Bennett Kurtz reports

FIRST PHOSPHATE ANNOUNCES INTENTION TO COMPLETE $2,000,000 NON-BROKERED PRIVATE PLACEMENT TO STRATEGIC INVESTOR

First Phosphate Corp. has arranged a non-brokered private placement to a strategic investor for gross proceeds of a minimum of $2-million.

The offering mirrors the terms of the company's earlier offering announced on May 9, 2025, for initial gross proceeds of $1-million, which was subsequently oversubscribed for total proceeds of $3,517,519 in two tranches, on May 28, 2025, and June 2, 2025. The offering is anticipated to consist of any combination of:

1. Flow-through shares of the company at a price of 35 cents per share; and
2. Hard-dollar units of the company at a price of 35 cents per hard dollar unit, with each hard-dollar unit composed of: (i) one common share in the capital of the company; and (ii) one-half of one common share purchase warrant with each whole warrant exercisable for one common share at a price of 50 cents per common share until Dec. 31, 2025, subject to an accelerated expiry date (as defined below).

The gross proceeds from the flow-through offering are to be used to incur Canadian exploration expenses that are flow-through mining expenditures (as such terms are defined in the Income Tax Act (Canada)) related to the company's projects in Quebec. The net proceeds received from the hard-dollar-unit offering are to be used for exploration and development activities, working capital, and general corporate purposes.

The offering is expected to close, in one or more tranches, on or about July 8, 2025, or such other date or dates as may be determined by the company. All securities issued under the offering will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.

In connection with the offering, eligible finders will be paid: (i) a fee consisting of up to 8 per cent, in cash, of the gross proceeds raised from subscribers introduced by them; and (ii) such number of compensation warrants as is equivalent of up to 8 per cent of the number of hard-dollar units or flow-through shares issued to subscribers introduced by them. Each compensation warrant shall entitle the holder thereof to acquire one common share at a price of 50 cents per share until Dec. 31, 2025, provided that, if the volume-weighted average trading price of the common shares on the Canadian Securities Exchange for any five consecutive trading days equals or exceeds 80 cents, the company may, upon issuing a press release, accelerate the expiry date of the compensation warrants to the date that is 30 days following the date of such press release. The company reserves the right to pay cash finders' fees on the flow-through offering in common shares rather than cash issued at the flow-through offering issue price.

About First Phosphate Corp.

First Phosphate is a mineral development company dedicated to producing high-purity phosphate for the LFP battery industry. The company's vertically integrated approach connects sustainable phosphate mining in Quebec with North American battery supply chains, targeting the energy storage, data centre, robotics, mobility and defence sectors. First Phosphate's flagship Begin-Lamarche property in Saguenay-Lac-Saint-Jean is one of North America's rare igneous phosphate resources, yielding high-purity phosphate with minimal impurities.

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