First Phosphate Corp. and Lithium Australia Limited Sign MOU for Joint Development of an LFP / LMFP Pilot and Commercial Plant

First Phosphate Corp. announced that it has signed a memorandum of understanding with Lithium Australia Limited for the potential development of a lithium iron phosphate and lithium manganese iron phosphate cathode active material manufacturing plant in North America. LIT has developed proprietary technology to produce LFP /LMFP CAM through its wholly owned subsidiary VSPC Pty Ltd. LIT is seeking a partner to support the commercialization of its LFP /LMFP technology through the development, construction and operation of a demonstration plant and an eventual commercial scale manufacturing facility.

The terms of the agreement include: LIT to provide samples of LFP and LMFP to First Phosphate to enable CAM pre-qualification for First Phosphate potential clients. Facilitation of LFP /LMFP CAM offtake discussions for LIT and First Phosphate potential clients. Provision to LIT by First Phosphate of PPA samples for suitability in the production of LFP and LMFP CAM.

Agreement on PPA offtake for the Demo Plant and Commercial Plant. Advancement of joint development and funding discussions for a 250-500 tonne per annum LFP /LMFP Demo Plant based on LIT LFP /LMFP production technology. Agreement on a joint development agreement and associated funding by LIT for the development of a full scale commercial plant of 25,000 tpa or greater to serve LIT and FPC potential offtake clients.

The locating of the Demo Plant and Commercial Plant either in Queensland, Australia or in North America. LIT has a conditional first right of refusal for offtake of up to 30% of spodumene produced by the Lake Johnston Lithium Project. If a JDA is established, LIT's Spodumene Offtake may be accessed to provide lithium units in favour of the JDA.

The Lake Johnston Lithium Project is a prospective lithium exploration opportunity located 450km east of Perth, Western Australia owned by Charger Metals NL and Rio Tinto Limited. The term of the MOU is two years commencing on the date of signing, or such later date as is agreed in writing between the parties.