Saguenay, Quebec - Newsfile Corp. - December 4, 2024 - First Phosphate Corp. (CSE: PHOS) (OTCQB: FRSPF) (FSE: KD0) ("First Phosphate" or the "Company") is pleased to announce the positive results of its Preliminary Economic Assessment ("PEA") on the Bégin-Lamarche Property (the "Property" or the "Project") located 75 km northwest of Saguenay, Quebec, Canada. The PEA provides a potentially viable case for developing the Property by open pit mining for the primary production of phosphate concentrate and secondary bi-product recovery of magnetite concentrate. Highlights (all dollar amounts in Canadian dollars on a 100% project ownership basis unless otherwise indicated):

• The Project would produce an annual average of 900,000 tonnes of beneficiated phosphate concentrate at 40% P₂O₅ content and 380,000 tonnes of magnetite at 92% Fe₂O₃ content over a 23-year mine life.

• The Project generates a pre-tax internal rate or return (IRR) of 37.1% and a pre-tax net present value (NPV) of $2.100 Billion at an 8% discount rate at an approximate 3-year trailing average phosphate price plus a premium for purity and potential secure source of supply, and a 2-year trailing average magnetite price plus a premium for purity.

• The Project generates an after-tax internal rate or return (IRR) of 33.0% and an after-tax net present value (NPV) of $1.590 Billion at an 8% discount rate.

• The Project would generate an after-tax cash flow of $700 Million in years 1 to 3, resulting in a 2.9-year payback period from start of production. Pre-tax cash flow in years 1 to 3 is $783 Million for a 2.6-year payback period.

• The Project benefits from adjacent paved provincial road access and nearby electrical power line, and year-round accessible deep-sea Port of Saguenay at approximately 85 km driving distance. Initial capex for the Project is limited to $675 million.

• The PEA used Indicated and Inferred Mineral Resources in its calculations.

• The Project has no outstanding royalties or financing streams registered against it.

"We are pleased with the results and timely completion of this PEA. Existing local infrastructure keeps our capex low, our mine size controlled and our mine economics robust," says First Phosphate CEO, John Passalacqua. "Our internal Pre-Feasibility work is also near completion and we are now in a position to determine the timing on our Feasibility Study." PEA BASE CASE FINANCIAL SUMMARY (all dollar amounts in $Canadian unless otherwise noted, presented on a 100% ownership basis):

Pre-Tax Net Present Value (8% discount rate)	$2.100 Billion
After-Tax Net Present Value (8% discount rate)	$1.590 Billion
Pre-Tax Internal Rate of Return	37.1%
After-Tax Internal Rate of return	33.0%
After-Tax Payback	2.9 Years
Pre-production Capital	$675 Million
Sustaining Capital	$317 Million
Mine Life	23 Years
Process Plant Throughput	18,000 tpd
Concentrate Prices
Phosphate (40% P2O5)	$350/t USD
Magnetite (92% Fe2O3)	$168/t USD
Exchange Rate $CAD:$USD	$1.37 (0.73)

PEA TECHNICAL SUMMARY

Mine Life	23 years
Mine Plan Tonnage	150.5 Million tonnes
Process Plant Feed Grade
P2O5	5.76%
Fe2O3	10.32%
Strip Ratio (Waste:Process Plant Feed)	1.5:1
Operating Cost (per tonne of process plant feed)	$28.31

Pit-Constrained Mineral Resource Estimate at 2.5% P2O5 Cut-off (1-4)
Classification	Zone	Tonnes (M)	P2O5 (%)	P2O5 (kt)	Fe2O3 (%)	Fe2O3 (Mt)	TiO2 (%)	TiO2 (kt)
Indicated	Mountain	9.3	8.19	758	9.95	0.9	3.23	299
	Northern	32.2	6.00	1,934	10.91	3.5	3.33	1,073
	Total	41.5	6.49	2,692	10.69	4.4	3.31	1,372
Inferred	Mountain	6.8	8.57	584	10.34	0.7	3.68	251
	Northern	44.3	6.98	3,090	11.14	50	3.26	1,442
	Southern	162.9	5.63	9,177	10.85	17.6	3.73	6,080
	Total	214.0	6.01	12,851	10.89	23.3	3.63	7,773

Note: P_2...