Emerging Growth Research Maintains Buy Rating on First Phosphate Corp. Following Successful C$9.6 Million Financing and CSE25 Index Inclusion

Rhea-AI Summary

First Phosphate (CSE:PHOS / OTC:FRSPF) secured C$9.6 million in a private placement (issued Dec 22, 2025), received a C$0.7 million offtake pre-payment, and was added to the CSE25 Index on Dec 19, 2025. Emerging Growth Research maintained a Buy rating with a 12-month target of C$4.83, implying ~360% upside from the C$1.05 close on Jan 6, 2026. The company is finishing a 30,000-metre drill program at Bégin-Lamarche due by April 2026 to support a feasibility study and resource conversion.

Use of proceeds targets final resource definition, feasibility work, and working capital.

Positive

• Completed C$9.6 million financing on Dec 22, 2025
• Received C$0.7 million offtake pre-payment
• Added to CSE25 Index on Dec 19, 2025
• 30,000-metre drill program completing by April 2026
• Emerging Growth Research 12-month target C$4.83 (360% upside)

Negative

• Share count increased by 15% to reflect recent financing
• Issued 2.6 million warrants at C$1.25 expiring Apr 29, 2026
• Updated target modestly reduced from C$4.93 to C$4.83

NEW YORK CITY, NEW YORK / ACCESS Newswire / January 7, 2026 / Emerging Growth Research today announced the release of its Flash Report on First Phosphate Corp. (CSE:PHOS)(OTC:FRSPF), maintaining a Buy rating with a 12-month price target of C$4.83, representing approximately 360% upside from the Company's closing price of C$1.05 on January 6, 2026.

The Flash Report highlights First Phosphate's successful completion of C$9.6 million in financing with limited dilution, receipt of C$0.7 million in offtake pre-payment, and inclusion in the CSE25 Index-three key developments that collectively de-risk the Company's investment case and reinforce visibility on upcoming positive catalysts.

Key Highlights from the Flash Report:

• Successful Capital Raise with Limited Dilution: First Phosphate completed the fourth and final tranche of its private placement on December 22, 2025, raising a total of C$9.6 million through the issuance of 8.0 million flow-through shares and 2.6 million ordinary shares at C$0.90 per share, together with 2.6 million warrants with a strike price of C$1.25 expiring April 29, 2026. Over the past three years, PHOS has raised C$49.7 million across ten private placement deals, demonstrating management's consistent ability to secure capital while preserving shareholder value.

• Additional Offtake Pre-Payment: First Phosphate received an additional C$0.7 million as a lump-sum pre-payment from its existing long-term phosphate concentrate offtake partner to further finance final resource definition at Bégin-Lamarche and advance the project toward feasibility study and production.

• CSE25 Index Inclusion: On December 19, 2025, PHOS common shares were added to the CSE25 Index as part of the Canadian Securities Exchange's quarterly rebalancing. This inclusion significantly increases the Company's visibility among investors and should improve stock liquidity through additional demand from index-linked investment products.

• Resource Definition Progress: First Phosphate is currently completing a 30,000-metre drill program at Bégin-Lamarche to finalize geological studies with the aim of converting indicated mineral resources into measured mineral resources. This drilling program is expected to be completed by April 2026, when the Company will decide to proceed with the feasibility study.

• Use of Proceeds: The capital raised will support activities related to final definition of mineral resources at the flagship Bégin-Lamarche phosphate mining project, advancing it to feasibility study, and working capital needs.

• Updated Valuation: Reflecting lower risk perception and improved visibility on positive catalysts, Emerging Growth Research lowered its discount rate by 50 basis points while increasing the share count by 15% to reflect the recent capital increase. The updated target price of C$4.83 (from C$4.93) maintains substantial upside potential, with PHOS trading at just 0.22x estimated net asset value.

According to Emerging Growth Research's analysis, these developments significantly de-risk First Phosphate's path toward becoming a vertically integrated mine-to-market LFP battery supply chain for North America. The Company's rare igneous phosphate resource at Bégin-Lamarche-one of only approximately 5% of global phosphate deposits with this geology-yields high-purity phosphate concentrate above 40% P₂O₅ with minimal impurities, positioning it advantageously for battery-grade purified phosphoric acid (PPA) production.

The firm's sum-of-the-parts analysis values the mine at a discount rate of 11.5% and the planned PPA plant at 13.5%, reflecting the Company's dual-revenue model that will generate cash flow from concentrate sales while advancing toward higher-margin battery-grade acid production. Management has indicated post-tax free cash flow from the mine alone should average approximately US$239 million per year at steady state, peaking near US$290 million, before layering in incremental PPA cash flows.

Key upcoming catalysts over the next 12 to 24 months include completion of the drilling program by April 2026, feasibility study advancement, permitting progress, additional multi-year offtakes, potential grant packages, and conversion of the Port Saguenay land option.

For a copy of the full Flash Report, please visit:

• https://emerginggrowth.com/wp-content/uploads/2026/01/First-Phosphate-Flash-Report-1.7.26.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 and cleantech company dedicated to building and onshoring a vertically integrated mine-to-market LFP battery supply chain for North America. Target markets include energy storage, data centers, robotics, mobility, and national security. First Phosphate's flagship Bégin-Lamarche Property in Saguenay-Lac-Saint-Jean, Québec is one of North America's rare igneous phosphate resources, yielding high-purity phosphate with minimal impurities.

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

Contact:

Emerging Growth Research
Research@EmergingGrowth.com
www.EmergingGrowth.com

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 completion of the drill program by April 2026, feasibility study timing, first production expectations, resource conversion, concentrate and PPA volume targets, mine net cash costs, free cash flow projections, offtake execution, permitting timelines, financing arrangements, and valuation projections. Actual results could differ materially due to competitive, regulatory, operational, technical, geological, market, or funding risks.

SOURCE: First Phosphate Corp.

View the original press release on ACCESS Newswire

FAQ

What financing did First Phosphate (FRSPF) complete on Dec 22, 2025?

First Phosphate completed a C$9.6 million private placement issuing flow-through and ordinary shares at C$0.90 per share.

How much offtake pre-payment did First Phosphate (FRSPF) receive and what is it for?

First Phosphate received a C$0.7 million lump-sum offtake pre-payment to fund final resource definition at Bégin-Lamarche.

When will First Phosphate (FRSPF) complete its Bégin-Lamarche drill program?

The company expects to complete the 30,000-metre drill program by April 2026 to support resource conversion and a feasibility decision.

What does inclusion in the CSE25 Index mean for FRSPF shareholders?

CSE25 inclusion (Dec 19, 2025) should increase visibility and may improve liquidity via index-linked investor demand.

What is Emerging Growth Research's 12-month price target for FRSPF and implied upside?

The firm set a C$4.83 target, implying roughly 360% upside from the C$1.05 closing price on Jan 6, 2026.

How might the 2.6 million warrants affect FRSPF near term?

There are 2.6 million warrants exercisable at C$1.25 expiring Apr 29, 2026, representing potential near-term share overhang if exercised.