Slide 1: Investor Presentation
CSE:PHOS | FSE:KD0 Investor Presentation March 27, 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: First Phosphate: only listed developer focused on phosphate for LFP batteries
First Phosphate (CSE: PHOS) (FSE: KD0) is the only publicly listed mineral development company that is fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (“LFP”) battery industry. First Phosphate plans to vertically inte
Slide 4: 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 5: Why the LFP Battery?
Why the LFP Battery? LFP batteries use lithium iron phosphate (LiFePO4) as the cathode active material. LFP batteries operate similarly to other lithium-ion batteries. They have the advantage of being non-toxic, having superior fire safety, longer life and lower cost. LFP Battery May 9, 2022 – Ford
Slide 6: Reasons to Buy First Phosphate
Reasons to Buy First Phosphate 1. Geographic Advantage 2. The Right Type of Phosphate 3. Driven by EV Battery Market Flagship property with exploration upside World’s cleanest source of phosphate rock Phosphate with characteristics to go from ( >1500 km2 of royalty-free claims) from igneous anorthos
Slide 7: 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 ● Only pubco fully focused on phosphate for LFP battery ● North Amer
Slide 8: Estimated Demand for LFP Cathode Active Material (EVs Alone)
Estimated Demand for LFP Cathode Active Material (EVs Alone) LFP Cam Demand - North America $ LFP Cam Business - North America Source: DeauVision Srl Source: DeauVision Srl LFP Cathode Active Material Industry Projections ($USD Billions) 1 Tonne LFP Cam = ~ USD $25,000 First Phosphate is targeting 9
Slide 9: Build It and They will Come
Build It and They will Come Global Lithium-Ion Battery Market 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
Slide 10: 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 11: 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 12: 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 13: 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 14: First Phosphate Catalysts & Milestones for 2023
First Phosphate Catalysts & Milestones for 2023 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2023 2023 2023 2023 ✔ Consolidation of over 1,500 ✔ Assembly of world class ✔ Drill at Begin-Lamarche ✔ MoU with Prayon ✔ Beneficiation pilot Evaluate input material km2 of NSR free phosphate cross-functional advisory (Explo
Slide 15: First Phosphate Key Advantages
First Phosphate Key Advantages ● Assembled world class Board, Management, Advisory Team ● Major North American and European partners and proven providers. ✔ Major Offtake ● Manageable mine size near infrastructure. CapEx aimed at value-add ✔ Toll Processing ✔ PPA Technology Transfer ● Important seco
Slide 16: Capital Markets Profile
Capital Markets Profile First Phosphate commenced trading on February 23, 2023 Ownership Canadian Securities Exchange (CSE): PHOS Frankfurt Stock Exchange (FSE): KD0 Management, Insiders, Associates, Advisors, Share Structure Data VIP Investors Friends & Family 75% 25% Share Price (as at March 24, 20
Slide 17: CEO and Director - John Passalacqua
CEO and Director - John Passalacqua, Int'l MBA, is an international business strategist with over 35 years of extensive technology and capital markets experience. In 1998, John gained the title of a top 50 international business strategist on the early internet. He is involved in private and public
Slide 18: Table of Contents
Table of Contents Global Phosphate Market 19 LFP Battery Market 21 Purified Phosphoric Acid (PPA) 27 LFP Manufacture 31 Board, Management, Advisors, Comparables 34 Appendices 36 CSE:PHOS | FSE: KD0 confidential 18
Slide 19: 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) CSE:PHOS | FSE: KD0 confidential 19
Slide 20: 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 21: EV Manufacturers Move to the LFP Battery - More Phosphate!
EV Manufacturers Move to the LFP Battery - More Phosphate! 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
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: North American Phosphoric Acid Supply is in Decline
North American Phosphoric Acid Supply is in Decline United States Phosphoric Acid Production (MGA & PPA) PPA - Where North America Needs to Go Source: Statistica Source: Source: StatisticaSrl DeauVision “What a shock - a closer look at the LFP supply chain indicates to us that there may very well be
Slide 28: Purified Phosphoric Acid is a Specialty Product
Purified Phosphoric Acid is a Specialty Product 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 Grade Phosphoric
Slide 29: Method of Producing Purified Phosphoric Acid Matters
Method of Producing Purified Phosphoric Acid Matters 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)
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: 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 32: 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 33: 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 CSE:PHOS | FSE: KD0 c
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: Management / Advisory Board
Management / Advisory Board VP, Operations - David Dufour, B.Sc.A, has Dr. Peir Pufahl, P. Geo, is professor of Earth Science over 30 years experience in the development, at Queen’s University, Canada, and co-director of the management of high-growth businesses in Queen’s Facility for Isotope Resear
Slide 36: 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 37: Appendix I - Fully Covered Flagship Property Area
Appendix I - Fully Covered Flagship Property Area Lac à l'Orignal ● Focus of 43-101, Metallurgy, PEA CH-300 ● Drilled grades up to 17.9%. ● Free of all Net Smelter Royalties ● Surface sample assayed at 5.0% P2O5 ● Average grade of 5.2% ● 3 other showings within radius of 1 km ● 1500 m long by 250 m
Slide 38: Thank you.
Thank you. John Passalacqua, CEO john@firstphosphate.com Peter Kent, President peter@firstphosphate.com Bennett Kurtz, CFO bennett@firstphosphate.com David Dufour, VP david@firstphosphate.com www.FirstPhosphate.com CSE:PHOS | FSE: KD0 confidential 38
Slide 39: 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 40: 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 41: 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 42: 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