Arianne Extends Loan Financing

Press Release

SAGUENAY, QUEBEC – (October 1st, 2019) – Arianne Phosphate (the “Company” or “Arianne”) (TSX VENTURE: DAN; OTC: DRRSF; FRANKFURT: JE9N), a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, has announced that it has extended on a $4.1 Million loan with various third party lenders (the “Loan”).

The extended loan is in the aggregate amount of $4,100,000 and will have a maturity of September 28, 2021. The loan will bear interest at 8%, paid semi-annually.

As part of the loan extension, the Company has issued non-transferable warrants in the amount of 1,818 per $1,000 face value (for a total of 7,453,800 warrants), with each warrant entitling the holder to purchase one common share of the Company at a price of $0.55 per share for a term of 2 years expiring on September 28, 2021. These warrants will replace warrants that were issued as part of the original loan in September and October of 2016 (see Press Release dated October 28, 2016).

“The continued support of our investors is a necessary element as we move our Lac à Paul project towards development,” said Brian Ostroff, CEO of Arianne Phosphate. “Trading at only a fraction of our NPV, Arianne continues to hit milestones targeted at securing the necessary financing that will unlock the considerable value of this asset. The willingness of our lenders to continue to be part of this project, along with the ongoing support of all stakeholders, demonstrates the importance of this project to the region, as well as, the sizeable financial gains to be had on the part of investors.”

The securities issued in connection with the extension of the Loan are subject to a regulatory four-month and one day hold period expiring on January 28, 2020. The extension of the Loan remains subject to the final approval of the Exchange.

Arianne announces a 540,000 stock options grant to members of the Board of Directors and management. Each Option entitles the holder to purchase one common share of the Company until September 29, 2029 at a price of $0.44 per share, this being the closing price of the Company’s shares on the trading day preceding the date of grant. The Options are subject to a three years vesting period under the Plan and the Policy, and are also subject to regulatory approval.

Qualified Person
Jean-Sébastien David, P.Geo., Qualified Person by NI 43-101, has approved this release. Mr. David is also the Company’s Chief Operating Officer.

About Arianne Phosphate
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 released in 2013). The Company has 111,438,250 shares outstanding.

– 30 –

Contact Information:
Source: Jean-Sébastien David, C.O.O. Tel. : 418-549-7316 j.s.david@arianne-inc.com
Info: Brian Ostroff, C.E.O. Tel. : 514-908-4202 brian.ostroff@arianne-inc.com

IBF4