New York, New York--(Newsfile Corp. - December 4, 2025) - Emerging Growth Research today announced the initiation of coverage on First Phosphate Corp. (CSE: PHOS) (OTCQB: FRSPF) (FSE: KD0), establishing a Buy rating with a 12-month price target of C$4.93, representing approximately 467% upside from the Company's recent closing price of C$0.87 on December 3rd, 2025.

The initiation report positions First Phosphate as a uniquely advantaged Western phosphate platform specifically designed for the lithium iron phosphate (LFP) battery decade, highlighting the Company's rare igneous ore base, deep-water port logistics, and staged integration model that should generate early cash flow while advancing toward purified phosphoric acid (PPA) production.

Key Highlights from the Initiation Report:

• Strategic LFP Positioning: First Phosphate is building a Québec-based platform that upgrades rare igneous phosphate ore into 40%-41% P₂O₅ apatite concentrate and converts over 90% of this into battery-grade PPA for LFP cathodes, addressing a critical Western supply gap as LFP's share of global batteries continues to rise.

• Dual Revenue Model: The Company's staged approach allocates up to 400ktpa of concentrate to a binding European offtake agreement while transferring the balance to its planned Port Saguenay acid complex (approximately 190ktpa on a P₂O₅ basis), creating transparent pricing anchors and lender-friendly structures.

• Rare Geological Advantage: Only about 5% of global phosphate deposits are igneous. First Phosphate's ore upgrades cleanly to above 40% P₂O₅ concentrate with low impurities, translating to higher acid yields, simpler purification, and more recyclable gypsum by-products compared to sedimentary alternatives.

• Port-Enabled Logistics: The Bégin-Lamarche mine in Saguenay-Lac-Saint-Jean connects by road to Port Saguenay, where First Phosphate holds an industrial land agreement through December 2027, compressing freight times to Europe and supporting tighter working capital cycles.

• Robust Project Economics: The preliminary economic assessment (PEA) indicates an after-tax NPV of approximately C$1.6 billion, a pre-tax IRR of about 37%, and payback under three years, with management targeting first production in 2029 and a 23-year operating life reaching approximately 900ktpa of concentrate at steady state.

• Strong Cash Generation Potential: Management guidance indicates post-tax free cash flow from the mine alone averaging about US$239 million per year, peaking near US$290 million, before incorporating incremental PPA cash flows once the acid plant reaches steady-state margins.

• Early Proof of Concept: First Phosphate recently announced the production of LFP battery cells manufactured using fully North American critical minerals, including FP-sourced phosphate, validating the technical suitability of its products for downstream battery applications.

According to Emerging Growth Research's analysis, First Phosphate addresses a structural bottleneck in Western PPA supply at a time when automotive demand for purified phosphates is expected to rise from about 5% of PPA demand in 2023 toward 24% by 2030, with grid-scale storage, data centers, and automation adding further pressure on scarce Western capacity.

The firm's sum-of-the-parts DCF analysis applies discount rates of 12% for the mine and 14% for the PPA plant, producing a fair value of C$4.93 per share. At the current share price of approximately C$0.76, First Phosphate trades at just 0.15x estimated net asset value.

For a copy of the full initiation report, please visit:

• https://emerginggrowth.com/wp-content/uploads/2025/12/First-Phosphate-Initiation-12.4.25.pdf

or

• https://emerginggrowth.com/profile/frspf/ (on the right side of the page as you scroll down)

About First Phosphate Corp.

First Phosphate is a mineral development company focused on extracting and purifying igneous phosphate rock from the Saguenay region of Québec for the production of fertilizer and battery-grade phosphoric acid for the LFP battery industry. The Company has the exclusive rights to two significant mineral resource properties in the Saguenay region and is advancing its Bégin-Lamarche mine project alongside plans for an integrated phosphoric acid facility at Port Saguenay.

For more information, please visit https://www.firstphosphate.com.

Contact:

Forward-Looking Statements

This press release contains forward-looking statements concerning business operations and financial performance as well as plans, objectives, and expectations for First Phosphate Corp. that are subject to risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. These include but are not limited to statements regarding first production timing in 2029, production ramp expectations, concentrate and PPA volume targets, mine net cash costs, offtake execution, permitting timelines, M&A strategy, financing arrangements, and valuation projections. Actual results could differ materially due to competitive, regulatory, operational, technical, market, or funding risks.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276874