Mr. Bennett Kurtz reports

FIRST PHOSPHATE SIGNS AGREEMENT WITH PORT SAGUENAY TO ESTABLISH PHOSPHORIC ACID PLANT

First Phosphate Corp. has finalized an industrial land option agreement with Port of Saguenay, located in Saguenay, Que., Canada.

The agreement marks progress on the memorandum of understanding (MOU) signed between the company and the port on Oct, 12, 2022. Under the agreement, First Phosphate has the exclusive right to enter into a definitive land lease with the port by Dec. 31, 2027, subject to various financial and development milestones and prior to anticipated facility construction beginning in 2028.

The agreement covers lands where the company plans to develop a phosphoric acid plant using advanced clean technology from Prayon SA of Belgium and to be implemented by international engineering firm Ballestra SpA of Italy. These lands offer strategic benefits and a competitive position, including:

• Direct rail and vessel access to North American and global markets, especially to the company's European offtakers;
• Access to large-scale industrial infrastructure, utilities and expansion lands;
• Eventual vertical integration between upstream phosphoric acid and downstream LFP (lithium-iron-phosphate) battery material production.

The agreement was signed today in Montreal at the premises of the Wallonia Export & Investment Agency (AWEX). In attendance for the signing were:

• Claude Guay, member of Parliament for LaSalle-Emard-Verdun, parliamentary secretary to the Minister of Energy and Natural Resources, Canada;
• Mario Simard, member of Parliament for Jonquiere, vice-chair, standing committee on natural resources, Canada;
• Andree Laforest, deputy, Chicoutimi, Minister of Municipal Affairs and Housing, government of Quebec;
• Francois Tremblay, deputy, Dubuc, government of Quebec;
• Anne Defourny, trade/investment counsellor, Wallonia Export & Investment Agency;
• Carl Laberge, president and board chair, Port Saguenay;
• John Passalacqua, chief executive officer, First Phosphate;
• David Dufour, executive vice-president, First Phosphate.

"Our government's ongoing investments in Port Saguenay will enable companies such as First Phosphate to process phosphate into phosphoric acid right here in Saguenay. We continue our efforts to ensure that our infrastructure is up to par for attracting businesses to the port and to our surrounding communities. We remain pro-active and positive for our Saguenay-Lac-Saint-Jean region," said Mr. Laforest, member of parliament for Chicoutimi, Minister of Municipal Affairs and minister responsible for the Saguenay-Lac-Saint-Jean region, and Mr. Tremblay, member of Parliament for Dubuc.

"The new government of Canada supports the development of critical minerals and the infrastructure needed to support them. Phosphate has been included by the federal government in the Canadian list of critical minerals to open doors for phosphate projects across Canada. This agreement demonstrates the economic opportunities these minerals bring to Canada and Quebec in the production and processing of critical minerals. We thank First Phosphate and the Port of Saguenay for their work in pursuing these opportunities. By working together, we will build the strongest economy in the G7," said Mr. Guay, member of Parliament for LaSalle-Emard-Verdun and parliamentary secretary to the Minister of Energy and Natural Resources.

"I am delighted with today's announcement: This is a major project for both the region and the whole of Quebec. Today, Saguenay-Lac-Saint-Jean is carving out a place for itself in the battery industry and not just any place. This project is a symbol of sustainable economic development and is in line with our commitment to promoting projects that contribute to the energy transition," said Mr. Simard, member of Parliament for Jonquiere and Bloc Quebecois spokesperson for natural resources.

"This agreement with First Phosphate confirms Saguenay's central role in the development of the critical minerals sector in both Quebec and Canada," said Saguenay Mayor Julie Dufour. "With our industrial infrastructure, strategic access to rail and maritime networks, and our strong commitment to welcoming innovative projects, Saguenay is proving its ability to attract major investment. This project aligns with our ambition to establish Saguenay as a key economic hub in northeastern Canada."

"This agreement with First Phosphate confirms the strategic advantages and role of the Port of Saguenay as a natural logistics hub in northeastern Canada for the development of the critical minerals sector. It follows major investments and infrastructure projects currently underway in its industrial port zone and is in line with the collaboration agreement recently signed with North Sea Port, a strategic port area in Europe," said Mr. Laberge, president and chief executive officer of Port Saguenay. "This agreement represents a significant step forward for economic diversification and the establishment of a promising industrial sector for Quebec and Canada."

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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