Mr. Matthias Voss reports

GKN HOEGANAES TO SUPPORT FIRST PHOSPHATE IN LFP CATHODE ACTIVE MATERIAL DEVELOPMENT

GKN Hoeganaes Corp. has agreed to a strategic collaboration with First Phosphate. This partnership marks a significant step toward establishing a North American supply chain for lithium iron phosphate (LFP) batteries, a critical component for the electric vehicle (EV) and energy storage industries.

The partnership follows GKN Hoeganaes's successful integration of First Phosphate's magnetite into its proprietary Ancorsteel melting process. This innovative process has led to the development of a high-purity iron powder, which serves as a precursor for lithium iron phosphate cathode active material, necessary for the production of LFP batteries.

LFP batteries, known for their cost-effectiveness, safety and stable raw material availability, are increasingly in demand for EVs and stationary energy storage systems. In support of this demand, the collaboration marks one of the first substantial efforts to establish a North American production line for LFP battery components, helping reduce dependency on international supply chains.

"Partnering with First Phosphate enables us to contribute our advanced iron powder technology to a rapidly growing industry that is focused on clean and efficient energy storage solutions," said Matthias Voss, president at GKN Hoeganaes. "This collaboration underscores our commitment to fostering a local supply chain for LFP batteries, addressing both sustainability and technological innovation."

First Phosphate is set to integrate high purity Ancorsteel into its upcoming iron phosphate precursor (FP pCAM) and lithium iron phosphate cathode active material (LFP CAM) production facility in Saguenay-Lac-St-Jean, Que., with ambitions to reach 400,000 tonnes per annum by 2032. Supporting this vision, GKN Hoeganaes is prepared to scale its Gallatin, Tenn., operations, already the world's largest steel atomizing plant, and will be providing its research and development facilities in Cinnaminson, N.J., for process enhancement and optimization.

"Working with GKN Hoeganaes to bring Ancorsteel to the market is a vital step in advancing our mission to create a sustainable and locally sourced LFP battery supply chain," said John Passalacqua, chief executive officer at First Phosphate. "This partnership combines our high-quality phosphate resources with GKN Hoeganaes's expertise in iron powder production, setting the stage for a robust North American battery ecosystem."

A key differentiator of this newly developed Ancorsteel material is its composition of sustainable North American iron scrap and magnetite, aligning with non-FEOC standards for domestic production. The partnership aims to secure the production of LFP batteries with domestic, circular and environmentally friendly materials.

About GKN Hoeganaes Corp.

GKN Hoeganaes, part of GKN Powder Metallurgy, is a world leader in the production of water atomized iron and alloy powders, all produced from locally sourced scrap material. The business has large-scale powder production plants in North America (Gallatin, Tenn.) and Europe (Buzau, Romania) to produce these materials, as well as a joint venture in Bazhou, China.

GKN Hoeganaes has produced powder for over 70 years and specializes in high-volume, customizable metal powder production, tailored to fit customer requirements.

About First Phosphate Corp.

First Phosphate (CSE: PHOS) (OTCQB: FRSPF) (FSE: KD0) is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (LFP) battery industry. First Phosphate is committed to producing at a high purity level, in a responsible manner and with low-anticipated carbon footprint.

We seek Safe Harbor.