First Phosphate Corp. · CSE:PHOS
First Phosphate — Investor Presentation (February 2023)
41 slides from First Phosphate's investor presentation, Feb 8, 2023
Slide 1: Investor Presentation
Investor Presentation February 8, 2023 Phosphate for the LFP Battery Industry
Slide 2: Legal Disclaimer
Legal Disclaimer GENERAL The information contained in this presentation has been prepared by First Phosphate Corp. (the “Company”, “we”, “us”, or “our”) and contains confidential information pertaining to, among other things, the business, assets, operations, capital, management and prospects of the
Slide 3: The LFP Battery Opportunity in North America
The Lithium Iron Phosphate (LFP) Battery Opportunity in North America Global LFP Battery Market is Projected to Grow from Serious North American Shortage of Battery USD $10 billion in 2021 to USD $50 billion by 2028 Grade Phosphate ● North American phosphate is depleting ● Only pubco fully focused o
Slide 4: It Starts with Rare Phosphate Assets for the LFP Battery Industry
It Starts with Rare Phosphate Assets for the LFP Battery Industry Geographic Advantage (Quebec, Canada) Prized Igneous Anorthosite Rock Phosphate LFP Battery Grade Plus ● Friendly mining jurisdiction ● World’s cleanest source of phosphate rock ● Traceable, ethical, ESG, secure supply source ● Electr
Slide 5: First Phosphate in the ESG-Driven LFP Battery Ecosystem
First Phosphate in the ESG-Driven LFP Battery Ecosystem Extraction Advanced LFP Cathode Battery Cells Battery Beneficiation EV Assembly Refinement Active Material and Packs Recycling Upstream Phase 6 Phase 7 Concentrate AdvancedMidstreamLFP Grade Phase 5 LFP Cathode Downstream LFP Battery Mining Pur
Slide 6: A Look Forward into 2023
A Look Forward into 2023 Exploration Extraction and Beneficiation (I) Purified Phosphoric Acid (II) LFP Cathode Active Material (III) ● Drill at Begin-Lamarche ● Preliminary Economic Evaluation ● Evaluate sector partners ● Evaluate LFP cathode active ● Bluesky property ● Metallurgical study ● Purifi
Slide 7: Table of Contents
Table of Contents Phosphate Assets 08 Global Phosphate Market 12 LFP Battery Market - Global 15 LFP Battery - North America 20 LFP Cathode Active Material Manufacture 23 Purified Phosphoric Acid (PPA) 26 Timeline, Cap Table 31 Global Phosphate Comparables 33 Board, Management, Advisors 34 RESSOURCE
Slide 8: Optimally Located Flagship Property
Optimally Located Flagship Property Advanced Flagship Property Proximity to Saguenay City ● 43-101 Resource Estimate, Metallurgy ● 6th largest city in Quebec ● Commencing PEA February 2023 ● Commercial and industrial area ● 89 holes drilled for a total of 8,776 m ● Skilled industrial workforce ● Mai
Slide 9: Fully Covered Flagship Property Area
Fully Covered Flagship Property Area Lac à l'Orignal CH-300 ● Focus of 43-101, Metallurgy, PEA ● Free of all Net Smelter Royalties ● Surface sample assayed at 5.0% P2O5 ● Drilled grades up to 17.9%. ● Average grade of 5.2% ● 3 other showings within radius of 1 km ● 1500 m long by 250 m wide and up t
Slide 10: 43-101 Mineral Resource Estimate, Metallurgy (Lac à L'Orignal)
43-101 Mineral Resource Estimate, Metallurgy (Lac à L'Orignal) ● Metallurgical Testwork indicates an anticipated apatite grade of at least 38% P2O5 at over 90% recovery. ● The Lac à l’Orignal Deposit presents the potential for recovering two additional primary mineral products: a titanium oxide conc
Slide 11: 1500+ km of Additional Bluesky Phosphate-bearing Land Claims
2 1500+ km of Additional Bluesky Phosphate-bearing Land Claims ● Free of all Net Smelter Royalties GM2232 and MR3111 Fleury-Yves ● Discovered by Quebec government ● 9 unworked phosphate showings geologists ● Discovered by Quebec government geologists ● 6.7% and 16.2 % P2O5 ● OAGN (Oxide-Apatite Gabb
Slide 12: Why is Quebec Igneous Rock Phosphate so Rare?
Why is Quebec Igneous Rock Phosphate so Rare? 95% of the World’s Phosphate is found in heavy metal laden Sedimentary Rock. Only 4% of the World’s Phosphate is found in Clean Igneous Carbonatite Rock. Only 1% of the World’s Phosphate is found in Even Cleaner Igneous Anorthosite found mostly only in Q
Slide 13: Where is Phosphate Currently Produced?
Where is Phosphate Currently Produced? Phosphate Reserves in Mt Source: Global Status of Phosphorus, 2016 Peak Phosphorus Curve Sedimentary Rock Igneous Rock Source: The Story of Phosphorus: Global Food Security and Food for Thought (2009) confidential 13
Slide 14: Phosphate Rock Concentrate Market Drivers
Phosphate Rock Concentrate Market Drivers Morocco Phosphate Rock Price: 300 USD/mt for Jan 2023 ● Agricultural need for fertilizer ● Growing Global Population ● Conflicts, Trade Wars, Ethical Supply Concerns ● Supply Security and Sourcing ● Barriers to Entry on Mining and Refinement ● ESG, carbon an
Slide 15: EV Manufacturers Move to the LFP Battery
EV Manufacturers Move to the LFP Battery May 9, 2022: Ford EV Batteries will Switch Over to Lithium Phosphate Soon https://fordauthority.com/2022/05/ford-ev-batteries-will-switch-over-to-lithium-phosphate-soon Apr 21, 2022: Almost Half of all Teslas Built in Q1 had the LFP Battery Pack https://insid
Slide 16: LFP Batteries also Deployed in Larger Applications
LFP Batteries also Deployed in Larger Applications Commercial Transportation May 29, 2022: CATL Batteries to Be Used by Europe's Top Electric Bus Maker Solaris https://insideevs.com/news/588650/catl-batteries-electric-buses-solaris May 23, 2022: LFP battery Increasingly Applied to Electric Buses, En
Slide 17: LFP Safety and Reliability Wins Out in Mass Market Adoption
LFP Safety and Reliability Wins Out in Mass Market Adoption • Non toxic (cobalt, manganese and nickel free) • Superior fire safety (much less heat produced) • Well defined performance (lower capacity loss, structurally more stable) • Environmentally friendly and recyclable (no harmful metals) • Lowe
Slide 18: LFP Battery Segment by 2040
LFP Battery Segment by 2040 LFP Global Growth Forecast $ $ 49.9 The Global Lithium Iron Phosphate Battery Market is projected to grow from USD 10 billion in 2021 to USD 50 billion by 2028. Source: https://www.fortunebusinessinsights.com/lithium-ion-li-ion-phosphate-batteries-market-102152 Source: Be
Slide 19: Over 90% of LFP Batteries Are Currently Made in China
Over 90% of LFP Batteries Are Currently Made in China Leading Global LFP Manufacturers: ● CATL (China) ● BYD (China) ● Panasonic (Japan) ● LGES (South Korea) ● SK Innovation (South Korea) Sources: $ https://www.saurenergy.com/ev-storage/the-top-5-ev-battery-manufacturers-in-the-world $ 49.9 https://
Slide 20: Domestic North American LFP Supply Required Urgently
Domestic North American LFP Supply Required Urgently Jun 10, 2022: The West needs to build LFP Battery Capacity https://insideevs.com/news/559579/west-needs-lfp-battery-capacity Mar 10, 2022: American Battery Factory to Launch LFP Production in the US https://www.electrive.com/2022/03/10/american-ba
Slide 21: Estimated Demand for LFP Cathode Active Material
Estimated Demand for LFP Cathode Active Material (EVs Alone) North America Europe Source: DeauVision Srl Source: DeauVision Srl 009 RESSOURCE ÉNERGÉTIQUE PURE Confidentiel 21
Slide 22: Build It and They will Come
Build It and They will Come Market Share by Application (%) LFP is a lot more than just EVs Consumer Electronics Electric Vehicles Energy Storage Others There will be no shortage of buyers for LFP cathode active material especially as raw material supplies in other battery chemistries become tighter
Slide 23: How Much Phosphate in an LFP Battery?
How Much Phosphate in an LFP Battery? LFP Inputs LFP Powder (LiFePO4) LFP Battery Source: https://www.allaboutcircuits.com Purified Phosphoric Acid (H3PO4): 28% Phosphate (PO4): 61% By 2030, the North American LFP Iron Sulphate (FeSO4): 62% Iron (Fe): 35% Battery Industry will require over 35% more
Slide 24: LFP Cathode Active Material Production - Precursors Method
LFP Cathode Active Material Production - Precursors Method Purified Phosphoric Acid H3PO4 Lithium Phosphate Carbon + Li3PO4 Source Lithium Iron Phosphate (LFP) LiOH or Li2CO3 H2O or CO2 Li3PO4 + Electric FePO4 + LiFePO4 Lithium Hydroxide or Carbonate Carbon Source Furnace Purified Phosphoric Acid Mi
Slide 25: LFP Cathode Active Material Production - Hydrothermal Method
LFP Cathode Active Material Production - Hydrothermal Method Reactor Vessel Carbon LiOH Source Lithium Hydroxide FeSO4 LiFePO4 Synthesis Electric Wet Milling Drying Mixing Iron Sulfate Furnace Calcination at 1000°C H3PO4 Purified Phosphoric Acid H2 O SO4− Electrical Consumption confidential 25
Slide 26: North American Purified Phosphoric Acid will be in High Demand
North American Purified Phosphoric Acid will be in High Demand Source: DeauVision Srl thousands of tonnes of Purified Phosphoric Acid (PPA) (H3PO4 at 85 wt.%) “What a shock - a closer look at the LFP supply chain indicates to us that there may very well be raw material supply chain issues to come for
Slide 27: North American Phosphoric Acid Supply is in Decline
North American Phosphoric Acid Supply is in Decline United States Phosphoric Acid Production Source: Statistica “What a shock - a closer look at the LFP supply chain indicates to us that there may very well be raw material supply chain issues to come for LFP.” Source: BMR Feb 2022 009 confidential 27
Slide 28: Phosphate Rock Concentrate Refined to Purified Phosphoric Acid
Phosphate Rock Concentrate Refined to Purified Phosphoric Acid Phosphate bearing rock is crushed and processed to obtain Concentrated Phosphate Rock (25%-41% purity level). Sedimentary Rock (25%-34%). Igneous Rock (38%-41%). Concentrated Phosphate Rock is then processed into medium purity Merchant Gra
Slide 29: Methods of Producing Purified Phosphoric Acid
Methods of Producing Purified Phosphoric Acid Thermal Process – Sedimentary Rock Wet Process – Sedimentary Rock Wet Process – Igneous Rock Large % of Large % of Small % of Small % of Large % of Purified Phosphoric Merchant Grade Purified Phosphoric Merchant Grade Purified Phosphoric Acid (PPA) for LF
Slide 30: Igneous Rock Phosphate Resolves Radioactive Gypsum Issue
Igneous Rock Phosphate Resolves Radioactive Gypsum Issue Sedimentary Rock Creates Gypsum Slag Piles Igneous Rock Facilitates Circular Economy The current method of producing Only Igneous Phosphate rock can phosphoric acid creates large gypsum slag meet the full ESG rigours of the piles with remainin
Slide 31: First Phosphate Development Timeline
First Phosphate Development Timeline Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2023 2023 2023 2023 Consolidation of over 1,500 km2 Assembly of world class Commence PEA - Lac à Evaluate sector partners for Purified phosphoric acid Complete PEA study for Lac of NSR free phosphate properties cross-functional advisor
Slide 32: Capital Markets Profile
Capital Markets Profile Ticker Symbol (CSE): PHOS Ownership VIP Investors Holders pre CTO Deeply invested management and board. Tight share structure 24% 1% Share Structure Data Shares Outstanding 45,295,580 Warrants ($0.50 strike mostly) 5,220,388 Board/Management/Advisory Options 6,225,000 Fully Di
Slide 33: Phosphate Public Company Comparables
Phosphate Public Company Comparables North High Purity LFP Battery Symbol Exchange Name Phosphate Deposit Location American Igneous Focused Source PHOS* CSE First Phosphate Corp. Saguenay (Quebec) Yes Yes Yes AEV ASX Avenira Ltd. Wonarah (Australia) No Partially No DAN TSXV Arianne Phosphate Inc. La
Slide 34: Board and Management
Board and Management CEO and Director - John Passalacqua, Int'l MBA, President and Director - Peter Kent was an is an international business strategist with over 35 international broadcast journalist, reporter, producer years of extensive technology and capital markets (CTV, CBC, NBC, Monitor, Globa
Slide 35: Board and Management
Board and Management VP, Operations - David Dufour, B.Sc.A, has over 30 VP, Corporate Affairs - Pierre A. Cossette LLL years experience in the development, management of (UdeM), LLM (McGill) has been a member of the high-growth businesses in Saguenay, Quebec. He has Quebec Bar since 1981. Pierre has
Slide 36: Advisory Board
Advisory Board Paul Pitman, P. Geo, is a registered Dr. Peir Pufahl, P. Geo, is professor of Earth Science professional geologist who has over 50 years’ at Queen’s University, Canada, and co-director of the experience as exploration geologist, as corporate Queen’s Facility for Isotope Research. He i
Slide 37: Thank you.
Thank you. John Passalacqua, CEO john@firstphosphate.com Peter Kent, President peter@firstphosphate.com Bennett Kurtz, CFO bennett@firstphosphate.com Pierre Cossette, VP pcossette@firstphosphate.com David Dufour, VP david@firstphosphate.com www.FirstPhosphate.com confidential 37
Slide 38: Statutory Rights of Rescission
Statutory Rights of Rescission Securities legislation in certain of the provinces of Canada provides purchasers with rights of rescission or damages, or both, where an offering memorandum or any amendment to it contains a misrepresentation. A “misrepresentation” is an untrue statement of a material
Slide 39: Statutory Rights of Rescission
Statutory Rights of Rescission Saskatchewan Investors Under Saskatchewan securities legislation, certain purchasers who purchase securities offered by an offering memorandum during the period of distribution will have a statutory right of action for damages against the issuer, every director and pro
Slide 40: Statutory Rights of Rescission
Statutory Rights of Rescission New Brunswick Investors Under New Brunswick securities legislation, certain purchasers who purchase securities offered by an offering memorandum during the period of distribution will have a statutory right of action for damages, or while still the owner of the securit
Slide 41: Statutory Rights of Rescission
Statutory Rights of Rescission Prince Edward Island Investors If an offering memorandum, together with any amendment thereto, is delivered to a purchaser and the offering memorandum, or any amendment thereto, contains a misrepresentation, a purchaser has, without regard to whether the purchaser reli
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