SAGUENAY, QUEBEC – (September 2, 2014) – Arianne Phosphate (the \u201cCompany\u201d or \u201cArianne\u201d) (TSX VENTURE: DAN)\u00a0 (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate company advancing the Lac \u00e0 Paul Phosphate\u00a0 Project in Quebec\u2019s Saguenay region today is announcing changes to its management personnel as it moves its Lac \u00e0 Paul project through its next phase of development. These changes are being introduced to further focus the\u00a0\u00a0Company on its next major milestones. These primary milestones are: permitting; First Nations; improvements to\u00a0 OpEx\/CapEx; and securing a strategic partner.\u00a0<\/p>\n\n\n\n
As these milestones are pursued, Brian Kenny has requested that his focus be exclusively aimed at reducing both\u00a0 Capex and Opex which includes optimizing the transportation plan. Although able to address this during his tenure as\u00a0 CEO, other responsibilities that came with the CEO office did not allow him the time required to fully focus on such an important part of moving the project forward.\u00a0\u00a0<\/p>\n\n\n\n
\u201cI think we have a great project here and believe that my efforts are best served in my main area of expertise and, where I can have the greatest impact,\u201d Mr. Kenny stated. \u201cI look forward to continue working with the team and allowing us to finish the goal we have set; to see a world class phosphate mine operating here in Quebec.\u201d <\/p>\n\n\n\n
As a result of Mr. Kenny\u2019s primary focus, the belief was that the CEO title was no longer applicable and Mr. Kenny has thus chosen to resign the title. Mr. Kenny will be staying with the Company as a consultant. The other responsibilities that had fallen to him as CEO such as administrative, financial strategy, investor and community relations will be reallocated to others within the management team.\u00a0<\/p>\n\n\n\n
Many of these redistributed responsibilities will fall directly to Arianne\u2019s current Chief Operating Officer Jean Sebastien David. Already a senior member of the management team, Mr. David was involved in large part with many of the operations of the Company. By being based in Chicoutimi, Mr. David knows all of the staff, many of the local officials, government officials and members of the First Nations communities and, has interacted regularly with them over the last few years since his original appointment to the Company.\u00a0\u00a0<\/p>\n\n\n\n
\u201cHaving had similar responsibilities in past, I have seen firsthand what is required to get projects permitted and built,\u201d Mr. David said. \u201cOriginally from the region, I am also very aware of what this mine means to the community. I look forward to the challenges that lie ahead and we [Arianne] will do everything we can to see this project happen.\u201d <\/p>\n\n\n\n
Supporting Mr. David\u2019s expanded role, Mr. Pierre Fitzgibbon will become Executive Chairman of Arianne, allowing him to play a more active role in the financial and strategic initiatives of the Company. Mr. Fitzgibbon sits on the board of several publically traded companies and has served in many senior positions including CFO for the National Bank of\u00a0 Canada, Vice Chairman of Investment and Corporate Banking at National Bank Financial and sat on the Board of the\u00a0Caisse de D\u00e9p\u00f4t et Placement du Quebec, a $200 billion pension fund. Most recently, Mr. Fitzgibbon served as CEO of\u00a0 Atrium Innovations, a company acquired early this year for over $1 billion.\u00a0<\/p>\n\n\n\n
\u201cI look forward to being more personally involved with Arianne and supporting the team as required,\u201d said Mr. Fitzgibbon. \u201cThis move is well timed following my transition out of Atrium and gives me the ability to use my skills and contacts towards what should be another Quebec success story.\u201d <\/p>\n\n\n\n
Arianne has also named Dino Fuoco as its new Chief Financial Officer. Mr. Fuoco is a graduate of the University of\u00a0 Montreal and comes with 30 years experience in business management. Mr. Fuoco has served as an officer in several large enterprises including John Labatt (now a division of Anheuser-Busch InBev), Provigo (now a division of Loblaw\u00a0 Companies Limited) and Alliance Forest Products Inc. (later acquired by Bowater Canada). In addition to his activities in the private sector, Mr. Fuoco has also served in senior positions with government organizations including Executive\u00a0 Vice-President and CFO of the Soci\u00e9t\u00e9 G\u00e9n\u00e9ral de Financement du Quebec and has been a Board member of Hydro Quebec Capitech (venture capital).\u00a0\u00a0<\/p>\n\n\n\n
\u201cI look forward to my new role at Arianne Phosphate,\u201d commented Mr. Fuoco. \u201cI see many similarities to past roles I have played, helping a Company go through the steps of becoming a major factor in their industry, either alone or as part of a larger structure.\u201d <\/p>\n\n\n\n
These changes are effective immediately and are part of Arianne\u2019s strategy to advance its project. <\/p>\n\n\n\n
\u201cThese moves allow those at the Company to focus on their key areas of expertise, whether they be operational, permitting, cost cutting\/project optimization or financial,\u201d said Mr. Fitzgibbon. \u201cAll the pieces are there and this alignment of responsibilities should allow us to achieve our goals as quickly and efficiently as possible.\u201d <\/p>\n\n\n\n
These changes come about on the back of a very successful six months at Arianne which has seen the Company increase inferred resources, identify potential new zones, lower its projected operating costs and secure a favorable power agreement with Hydro Quebec. These advancements have also occurred at a time when the uncertainty surrounding many countries involved in phosphate rock production have increased and the world will continue to look for stable and reliable production.\u00a0<\/p>\n\n\n\n
Second Quarter Corporate and Financial Results <\/strong><\/p>\n\n\n\n Arianne reported its corporate and financial results for the second quarter ended June 30, 2014. Arianne\u2019s\u00a0 Management Discussion and Analysis (MD&A) and Financial Statements for the quarter are available on the\u00a0 Company\u2019s website and on SEDAR at www.sedar.com<\/a>.\u00a0<\/p>\n\n\n\n \u201cWe are pleased with the success of our second quarter,\u201d commented Jean-Sebatien David, COO of Arianne. \u201cAmongst other highlights, the success of our July financing demonstrates continued support from our leadership team and existing shareholders towards the development of our world-class Lac \u00e0 Paul Project. It provides us with the necessary capital to continue timely project advancement, including activities essential to securing the environmental permit and further project optimization. Our continued commitment to defining Lac \u00e0 Paul\u2019s upside potential and strengthening\u00a0 the Project\u2019s economics was evident in the second quarter of 2014.\u201d\u00a0\u00a0<\/p>\n\n\n\n Mr. David added, \u201cWe fortified Lac \u00e0 Paul\u2019s already robust economics by securing a favorable power agreement with the Quebec Government and our metallurgical work has lowered our production cost for phosphate concentrate which will result in a significant cost savings over the mine life.\u201d <\/p>\n\n\n\n Q2 2014 Corporate & Financial Highlights <\/strong><\/p>\n\n\n\n Post \u2013 Q1 2014 Highlights <\/strong><\/p>\n\n\n\n Financial Summary <\/strong><\/p>\n\n\n\n In Q2 2014, Arianne did not generate revenue or positive cash flows as the Company is still a development-stage entity. In the three months ended June 30, 2014, the Company incurred a net loss of $1,639,487 compared to a loss of\u00a0 $1,508,003 in the same period in the 2013. The Company\u2019s net loss and cash burn are consistent with its budget.\u00a0<\/p>\n\n\n\n Liquidity <\/strong><\/p>\n\n\n\n At quarter-end, the Company had $2,108,307 of cash on hand and working capital of $706,818, which includes\u00a0 $615,388 in cash reserved for exploration and evaluation expenses. The Company\u2019s working capital will be allocated towards completing critical project development work in 2014.\u00a0\u00a0<\/p>\n\n\n\n In addition, since July 1, 2014, the Company has received net proceeds of $5.1 million from the first tranche of the $8 million financing announced in July (see press release dated July 31, 2014.) Based on current estimates for future project development, Arianne anticipates it will need additional financing in 2015.\u00a0<\/p>\n\n\n\n About Arianne Phosphate <\/p>\n\n\n\n Arianne Phosphate (\u201cArianne Phosphate Inc.\u201d) (www.arianne-inc.com<\/a>) is developing the Lac \u00e0 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 39% P2O5 with little or no contaminants. The Company has\u00a0 92,868,755 million shares outstanding.\u00a0<\/p>\n\n\n\n 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. <\/p>\n\n\n\n Contact Information: <\/p>\n\n\n\n Source: Jean-Sebastien David, COO Tel: 418-459-7316\u00a0j.s.david@arianne-inc.com<\/a><\/p>\n\n\n\n Info: Dino Fuoco, CFO Tel: 514-945-9313\u00a0dino.fuoco@arianne-inc.com<\/a>\u00a0<\/p>\n\n\n\n Follow Arianne on: <\/p>\n\n\n\n Facebook: https:\/\/www.facebook.com\/ariannephosphate<\/a>\u00a0<\/p>\n\n\n\n Twitter: http:\/\/twitter.com\/arianne_dan<\/a>\u00a0<\/p>\n\n\n\n YouTube: http:\/\/www.youtube.com\/user\/ArianneResources<\/a>\u00a0<\/p>\n\n\n\n Flickr: http:\/\/www.flickr.com\/photos\/arianneresources<\/a>\u00a0<\/p>\n\n\n\n