Arianne Phosphate Inc.
TSX VENTURE : DAN
FRANKFURT : JE9N
OTCBB : DRRSF

Arianne Phosphate Inc.

November 18, 2013 16:35 ET

Arianne Phosphate Files Lac a Paul Phosphate Rock Project Feasibility Study Technical Report

(All amounts expressed in US dollars unless otherwise indicated)

SAGUENAY, QUÉBEC--(Marketwired - Nov. 18, 2013) - Arianne Phosphate Inc. (the "Company" or "Arianne") (TSX VENTURE:DAN)(FRANKFURT:JE9N)(OTCBB:DRRSF) is pleased to announce that NI 43-101 compliant technical report ("NI 43-101") of the Lac à Paul Phosphate Rock Project ("Lac à Paul" or "the Project") has been filed under Arianne's profile on SEDAR at www.sedar.com and on Arianne' website at www.arianne-inc.com. The technical report filing follows the press release of October 24, 2013, announcing the project feasibility study results.

Brian Kenny, the CEO of Arianne commented: "We are very pleased to have filed the NI 43-101 report on the feasibility of the Lac a Paul project as a major achievement for Arianne. This accomplishment will allow Arianne to move forward with the activities which we have planned for 2013/2014 allowing us to advance the project to construction and production".

Jean-Sébastien David, the Chief Operating Officer (COO) of Arianne commented: "The report's filing marks an important step in the development of the Lac à Paul project. We can now focus on working with the regulatory agencies to finalize the evaluation of the Environmental Impact Assessment. We expect to finalize the process of obtaining permits in the next year. We will also continue our dialogue with the communities of Saguenay-Lac-Saint-Jean and the First Nations to ensure the social acceptability of the project".

Study Highlights

  • Net Present Value ("NPV") of US$ 1,910.1 million at an 8% discount rate.
  • Gross revenue, in real terms, of US$ 16,124.8 million and operating cash flow of US$ 7,379.6 million.
  • Internal Rate of Return ("IRR") of 20.7% with a capital payback of 4.4 years before taxes and mining duties.
  • A 25.75 year mine life (excluding pre-production) with an average annual phosphate concentrate production of 3 million tonnes with a grade of 38.6% P2O5 and with average mill recovery of 90.0%
  • The Initial Capital Cost of the Project is US$ 1,214.7 million comprising US$ 982.5 million for the mine and US$ 232.2 million for the concentrate transport system that delivers product to the deepwater Port of Saguenay open 365 days per year.
  • The All-In Cost onboard the Ship in the Port of Saguenay is US$ 93.7/tonne life of mine (LOM) (i.e. FOB Port of Saguenay), yields an operating margin of 56% with an average selling price of $213/tonne at the port.
  • Measured and Indicated Mineral Resources in the Paul Zone alone of 590 million tonnes grading an average of 7.1% P2O5 at a 4.0% cut-off grade.
  • 75.7 million tonnes of saleable concentrate at 38.6% P2O5 in Proven and Probable Mineral Reserves reported at 3.5% P2O5 cut-off grade of 472.1 million tonnes at an average grade of 6.9 % P2O5 (taken from the Paul Zone Mineral Resource).
  • Confirmed power availability of 115MWatt at the Chute des Passes power plant located 30 km from the mine.

NI 43-101 Compliance

Unless otherwise indicated, Arianne has prepared the technical information contained in this news release ("Technical Information") based on information contained in the feasibility study dated October 24, 2013 relating to Arianne's Lac a Paul phosphate rock mine project available under Arianne's company profile on SEDAR at www.sedar.com. The feasibility study was prepared by or under the supervision of a qualified person (a "Qualified Person") as defined in NI 43-101. Readers are encouraged to review the full text of the feasibility study which qualifies the Technical Information (see press release of October 24, 2013). Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The feasibility study is intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the feasibility study.

The Technical Information has been prepared under the supervision of Jean-Sébastien David, Geo., COO, and Qualified Persons under NI 43-101.

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 38.6% P2O5 with little or no contaminants. The Company has 80.1 million shares outstanding.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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This press release contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements", are made as of the date of this press release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the amount of mineral resources and exploration targets; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the mining operation; (iv) assumptions relating to capital costs, operating costs and other cost metrics set out in the Feasibility Study; (v) assumptions relating to gross revenues, operating cash flow and other revenue metrics set out in the Feasibility Study; (vi) assumptions relating to recovered grade, average ore recovery and other mining parameters set out in the Feasibility Study; (vii) mine expansion potential and expected mine life; (viii) expected time frames for completion of permitting and regulatory approvals and making a production decision; (ix) future exploration plans; (x) future market prices for rough Phosphate Concentrate s; and (xi) sources of and anticipated financing requirements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements are made based upon certain assumptions by Arianne Phosphate or its consultants and other important factors that, if untrue, could cause the actual results, performances or achievements of Arianne Phosphate to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Arianne Phosphate will operate in the future, including the price of Phosphate Concentrate, anticipated costs and ability to achieve goals. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, but are not limited to: (i) estimated completion date for the Environmental and Social Impact Assessment; (ii) required capital investment and estimated workforce requirements; (iii) estimates of net present value and internal rates of return; (iv) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (v) the assumption that a production decision will be made, and that decision will be positive; (vi) anticipated timelines for the commencement of mine production; (vii) anticipated timelines for community consultations and the conclusion of an Impact and Benefits Agreement; (viii) market prices for rough Phosphate Concentrate and the potential impact on the Lac à Paul Project's value; and (ix) future exploration plans and objectives.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation, (i) risks relating to variations in the grade, phosphate rock lithologies and country rock content within the material identified as mineral resources from that predicted; (ii) variations in rates of recovery and breakage; (iii) the greater uncertainty of exploration targets; (iv) developments in world Phosphate Concentrate markets; (v) slower increases in Phosphate Concentrate valuations than assumed; (vi) risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; (vii) increases in the costs of proposed capital and operating expenditures; (viii) increases in financing costs or adverse changes to the terms of available financing if any; (ix) tax rates or royalties being greater than assumed; (x) results of exploration in areas of potential expansion of resources; (xi) changes in development or mining plans due to changes in other factors or exploration results of Arianne Phosphate; (xii) changes in project parameters as plans continue to be refined; (xiii) risks relating to receipt of regulatory approvals or the conclusion of an Impact and Benefits Agreement with aboriginal communities; (xiv) the effects of competition in the markets in which Arianne Phosphate operates; (xv) operational and infrastructure risks; and (xvi) the additional risks described in Arianne Phosphate's most recently filed Annual Report, annual and interim MD&A, and Arianne Phosphate's anticipation of and success in managing the foregoing risks. Arianne Phosphate cautions that the foregoing list of factors that may affect future results is not exhaustive.

When relying on our forward-looking statements to make decisions with respect to Arianne Phosphate, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Arianne Phosphate does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Arianne Phosphate or on our behalf, except as required by law.

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