Canadian Phosphate Launches 3,000-Metre Drilling Campaign at Wapiti Phosphate Project in British Columbia

Wapiti Phosphate Project Advances to Resource Definition with 3,000 Metre Drilling Program

Canadian Phosphate Limited has progressed its flagship Wapiti Phosphate Project by launching the 2026 drilling program in northeastern British Columbia. As an Australian-listed phosphate exploration and development company, Canadian Phosphate focuses on advancing North American phosphate assets, with Wapiti as its core project. The initial drilling campaign of approximately 3,000 metres aims to assess the continuity, thickness, and grade of recognized phosphate horizons within priority targets identified through past exploration and recent geological modelling.

The drilling targets the East Limb and central Red Deer Syncline regions, focusing on confirming continuous phosphate seams south of the property. Drill holes will be spaced about one kilometre apart along strike to enhance the geological model and define targets for future infill drilling during the multi-year exploration permit. Dahrouge Geological Consulting Ltd. has been engaged to manage this phase, ensuring the technical expertise necessary for resource definition.

Mineral Resource Estimate Scheduled for Q4 2026 to Facilitate Economic Assessment

The primary goal of the drilling program is to collect geological data to support an updated Mineral Resource Estimate prepared under the JORC Code, expected by Q4 2026. This estimate is a pivotal milestone, providing the geological foundation for advanced engineering, mining, and economic studies. It is designed to offer the confidence required to progress toward prefeasibility and feasibility studies, which will assess the technical and economic feasibility of mining and processing phosphate from Wapiti.

The timing aligns with Canadian Phosphate’s broader development strategy, aiming to deliver sufficient geological definition and representative drilling samples to support metallurgical testing across multiple processing pathways. The resource estimate will also guide infill drilling priorities for the remainder of the exploration permit. Additional exploration targets beyond the current permit area remain under evaluation pending permitting and project requirements.

Drilling to Provide Samples for Metallurgical Testing Across Multiple Market Applications

Beyond defining resources, the drilling program is designed to supply representative samples for metallurgical studies assessing Wapiti’s suitability for various high-value phosphate applications. Canadian Phosphate pursues a diversified commercial strategy targeting agricultural and advanced industrial markets. The drilling supports development of enhanced phosphorus products for regenerative agriculture, Single Super Phosphate fertilizer for Western Canadian agriculture, and purified phosphoric acid produced via patented Novophos technology.

The purified phosphoric acid pathway targets two key markets: production of purified phosphoric acid for lithium iron phosphate cathode active materials—a vital component in the growing North American lithium iron phosphate battery supply chain—and manufacture of super phosphoric acid for liquid phosphate fertilizers. Managing Director Daniel Gleeson highlighted the importance of this multi-market approach: "The drilling program will help us evaluate Wapiti's suitability across multiple high-value markets. Alongside conventional phosphate fertilizers, we are advancing studies for producing purified phosphoric acid tailored to the expanding North American lithium iron phosphate battery supply chain."

Strategic Role in North American Critical Mineral and Fertilizer Supply Chains

The development of Wapiti coincides with North America’s broader efforts to localize critical mineral supply chains and secure domestic sources of essential raw materials for food security and energy transition. Canadian Phosphate views the Wapiti Project as a potential key domestic phosphate supplier for North American producers in these sectors. Phosphate remains a critical nutrient for global food production, and the company’s diversified product development approach enables service across agricultural and industrial markets within North America.

Focusing on the lithium iron phosphate battery cathode market reflects recognition of strong growth drivers in the energy transition sector. Purified phosphoric acid is essential for cathode production, and North American manufacturers seek reliable domestic sources of high-quality phosphate. Wapiti’s Canadian location and access to patented Novophos purification technology position the project to participate in this expanding supply chain. Management emphasized, "As North America continues to localize critical mineral supply chains and fertilizer production, the Company believes Wapiti is well positioned to become an important domestic phosphate source for food security and energy transition markets."

Company Profile and Project Portfolio

Canadian Phosphate Limited, listed on the Australian Securities Exchange and headquartered in Perth, Western Australia, holds 100% ownership of the Wapiti Phosphate Project and the Fernie Project in Canada. The company is finalizing acquisition of the Diamond Mountain project, further expanding its North American portfolio. Wapiti remains the flagship asset and primary focus for operational and capital deployment. The board includes Non-Executive Chairman Stuart Richardson, Managing Director Daniel Gleeson, and Non-Executive Directors Malcolm Weber and Peter Doyle.

The company’s business model centers on developing phosphate deposits in strategically important North American jurisdictions, targeting both traditional agricultural fertilizer markets and emerging advanced industrial sectors. Emphasizing multiple downstream processing pathways supports a commercialization strategy aimed at maximizing resource value by serving diverse customers and markets. Ownership of resources, phosphate processing expertise, and strategic partnerships position Canadian Phosphate to develop competitive advantages in North American phosphate supply across distinct end markets.

Drilling Completion and Assay Reporting Timeline Set for Q4 2026

Canadian Phosphate has outlined a clear timeline following drilling commencement. The 3,000-metre drilling program will be completed, followed by geological logging, sampling, and laboratory analysis to determine phosphate grade, thickness, and continuity. Initial assay results are expected in the fourth quarter of 2026, with progressive updates to shareholders as data is received and analyzed. This phased reporting approach ensures ongoing communication regarding drilling progress and outcomes.

Alongside assay analysis, the company will prepare the updated Mineral Resource Estimate under the JORC Code, targeting delivery by end of Q4 2026. Concurrent metallurgical studies will evaluate core samples for fertilizer and purified phosphoric acid pathways, supporting multiple product development programs. Canadian Phosphate commits to regular shareholder updates throughout this key project phase.

Permitting, Customer Engagement, and Strategic Partnerships Progress Over Past Year

The drilling start marks the culmination of a year of systematic progress across permitting, customer engagement, strategic partnerships, and downstream processing opportunities. Managing Director Daniel Gleeson stated, "Over the past 12 months we have systematically advanced permitting, customer engagement, strategic partnerships and downstream processing opportunities." This reflects active efforts to secure regulatory approvals, build market relationships, and develop partnerships to support commercializing Wapiti’s phosphate resources.

Focus on downstream processing and partnerships indicates ongoing discussions with customers, equipment manufacturers, and technology providers to optimize processing pathways before major capital investments. These parallel activities reduce technical and commercial risks by validating market demand and processing options. The combined progress in permitting, customer engagement, and partnerships enhances the likelihood that the Q4 2026 Mineral Resource Estimate will be supported by engineering studies aligned with customer-validated processing scenarios.

Project Development and Market Risks and Uncertainties

While the drilling commencement is a major milestone, investors should recognize inherent risks and uncertainties in phosphate project development. Forward-looking statements acknowledge that actual outcomes may differ materially. Execution risks include potential drilling results that fail to confirm expected phosphate continuity, grade, or thickness. Permitting and regulatory challenges in Canada could affect development timing, though current permits support drilling.

Commercial risks involve possible changes in phosphate market conditions before production decisions. The lithium iron phosphate battery market, despite growth, faces technological shifts, competition, and chemistry changes that could impact purified phosphoric acid demand. Commodity price fluctuations affect Wapiti’s economic viability at development. Success in the diversified product strategy depends on validating processing technologies and securing offtake agreements, which are not guaranteed.

Mineral Resource Estimate Prepared Under JORC Code Compliance

The updated Mineral Resource Estimate will comply with the JORC Code—the Australasian standard for reporting exploration results, mineral resources, and ore reserves. This internationally recognized framework requires adequate drilling data, sound geological interpretation, and appropriate resource classifications (Inferred, Indicated, Measured) based on data quality and confidence.

The approximately one-kilometre drill spacing targets at least an Inferred resource classification for the initial estimate. Planned infill drilling during the exploration permit aims to upgrade resource confidence to Indicated and potentially Measured categories as data density improves. JORC compliance provides investors with a standardized basis for evaluating resource quality and confidence, facilitating comparisons with other companies and jurisdictions.