First Phosphate cheers phosphate inclusion on Cdn list

Executive Summary

• First Phosphate Corp. welcomes the inclusion of phosphate on the Canadian federal list of critical minerals essential for clean technology, following an amendment to the 2025 Canadian federal budget.
• This classification makes the company eligible for significant federal tax credits, specifically the Critical Mineral Exploration Tax Credit (CMETC) and the Clean Technology Manufacturing Investment Tax Credit (CTM), both offering a 30% refundable credit.
• The company highlights recent operational progress, specifically the production of commercial-grade LFP 18650 battery cells using high-purity phosphoric acid derived from its Begin-Lamarche property.

Key Details

• Regulatory Change: Phosphate was added to the list of critical minerals essential for clean technology in the 2025 Canadian federal budget.
• Tax Credit Eligibility (CMETC): First Phosphate can now access a 30% Canadian refundable tax credit for Canadian investors in junior mining companies regarding targeted exploration expenses. This funding is intended to support further exploration and development of mineral properties in Saguenay-Lac-St-Jean, Que., and the development of the region's district-level phosphate zone.
• Tax Credit Eligibility (CTM): The company is eligible for a 30% refundable tax credit for Canadian corporations investing in new machinery and equipment for manufacturing clean technologies or processing critical minerals.
• Infrastructure Application: The CTM will assist in building infrastructure for the operating and mining of advanced phosphate properties, including the planned phosphoric acid plant and the planned lithium-iron-phosphate (LFP) cathode active material plant.
• Operational Milestone: First Phosphate recently produced commercial-grade LFP 18650 battery cells using North American critical minerals.
• Source Material: The high-purity phosphoric acid used for these battery cells was produced using rare igneous anorthosite rock extracted from the company's Begin-Lamarche property in Saguenay-Lac-St-Jean, Que.
• Market Context: The company notes that an overwhelming majority of batteries produced globally are now based on LFP chemistry, with the majority of the cathode comprising high-purity phosphate found on First Phosphate's properties.

Notable Quotes

• "First Phosphate wishes to thank members of the standing committee on finance, Canada, and members of the standing committee on natural resources, Canada, for recognizing that phosphate is no longer just about fertilizer but also about high technology."