FRONTIER LITHIUM ANNOUNCES CLOSING OF CONVERTIBLE LOAN RESTRUCTURING

Frontier Lithium Inc. has completed the restructuring of its unsecured convertible loan, originally set to mature on August 25, 2026. The transaction capitalized accrued interest of $279,720, adding it to the principal to bring the new loan balance to $3,629,720. No new capital was raised; instead, the restructuring extends the maturity date by 18 months to February 25, 2028.

The conversion price was reduced from $0.65 to $0.455 per common share. The lender is an affiliate of Chairman Rick F. Walker, making this a related-party transaction exempt from formal valuation and minority approval under TSXV Policy 5.9. TSX Venture Exchange approval was secured, and management states the restructuring provides financial flexibility to advance the PAK Lithium Project.

Frontier Lithium Inc. (FL) has closed on a loan restructuring, a move that follows the proposal made on August 13, 2026. The agreement eliminates near-term default risk without necessitating new equity issuance or external debt.

The deal reduces the conversion price to $0.455, a change that is dilutive to existing shareholders as it lowers the threshold for debt-to-equity conversion. However, the adjustment aligns conversion terms with the current trading range of approximately $0.45, which reduces the likelihood of immediate forced conversion at depressed prices and helps preserve cash flow.

An 18-month extension provides crucial runway for the company to complete an updated mine and mill feasibility study, targeted for Q1 2027, and to advance permitting under Ontario's 1P1P framework. As a routine financing update with zero new capital inflow, the market impact is limited. The move stabilizes the balance sheet but does not alter the fundamental cash burn trajectory or project timeline.

Frontier Lithium Inc. is a Canadian critical minerals company focused on the PAK Lithium Project in Northwestern Ontario. The project is structured as a joint venture, with Frontier holding a 92.5% interest and Mitsubishi Corporation holding 7.5%. The PAK project encompasses a high-grade hard-rock lithium mine, a mill, and a planned downstream lithium conversion facility in Thunder Bay, aiming for a vertically integrated mine-to-battery supply chain.

A 2025 Definitive Feasibility Study outlined a 31-year mine life, an after-tax NPV of $932 million at an 8% discount rate, and an after-tax IRR of 17.9%. The project is recognized as a strategic priority under the G7 Critical Minerals Production Alliance and is the first participant in Ontario's "One Project, One Process" (1P1P) permitting framework.