Saguenay, Quebec - Newsfile Corp. - May 11, 2023 - First Phosphate Corp. (CSE: PHOS) (FSE: KD0) ("First Phosphate" or the "Company") is pleased to announce that members of its management team and board of directors (the "Purchasers") have reached an agreement for the purchase of 50% of the common shares of First Phosphate currently owned by Glen Eagle Resources Inc. ("Glen Eagle"). 

Through this agreement, the Purchasers will be acquiring 2,700,000 common shares of First Phosphate that are scheduled to be released from escrow in 2023 and in 2024. Glen Eagle will retain 2,700,000 common shares of First Phosphate scheduled to be released from escrow in 2025 and 2026. The agreement is subject to customary closing conditions, including obtaining all necessary approvals under the escrow agreement and all applicable securities laws. Glen Eagle had originally received common shares of First Phosphate through the sale of the Lac à l'Orignal flagship property to First Phosphate on September 12, 2022.

"This agreement allows GER to fulfill its need for immediate liquidity and yet for First Phosphate to maintain an orderly market in the trading of its common shares," said First Phosphate Chairman of the Board, Laurence W. Zeifman. "I am proud of our board and management team for stepping up swiftly and decisively with our own personal financial resources in favour of a solution that strengthens shareholder value."

"We thank First Phosphate's management and board for having worked with us to find an elegant solution to our own internal need for restructuring," said incoming CEO of Glen Eagle, Karl Trudeau. "We see tremendous promise in the business of First Phosphate and plan to do whatever possible to help to support its world-class business and management team."

The transaction is set to close by May 31, 2023 upon which time, the Purchasers will file all necessary SEDI and early warning notices. Further details of the transaction will be the subject of a press release at the closing date.