SAGUENAY, QUEBEC--(Marketwired - Aug. 29, 2013) - Arianne Phosphate (the "Company" or "Arianne") (News - Market indicators)(FRANKFURT:JE9N)(OTCBB:DRRSF) today filed its financial statements for the second quarter of 2013.

During the second quarter and through August, 2013, Arianne made significant progress on the Feasibility Study (FS) of the Lac a Paul phosphate project, financing and in other key areas:

• In July, 2013, Arianne secured financing that raised a total of $7.6 million in four separate transactions (see press releases of July 12 and July 29, 2013 for details);

• In June, 2013, the Company filed its Environmental Impact Assessment (EIA) for the Lac à Paul apatite mining project with the Ministère du développement durable, de l'environnement, de la faune et des parcs (MDDEFP) for review (see press release of June 28, 2013 for details). The Company expects to file the final EIA report by the end of 2013;

• In June, 2013, the Company announced the appointment of Mr. Brian Kenny as its new Chief Executive Officer (CEO), effective July 3^rd, 2013. Brian is a seasoned project development executive, having most recently overseen the development and completion of more than $10 billion in development projects in the UAE, Saudi Arabia and Western Algeria over 5 years with Dubai Aluminum Co Ltd. Brian is familiar with Québec and the Saguenay region from his experience in aluminum smelting at Alma and other Québec industrial development projects (see press release of June 26, 2013 for details);

• In June, 2013, the Company announced the appointment to its Board of Directors of Dominique Bouchard, of Chicoutimi, Québec and of Steven Pinney, of Minneapolis, Minnesota, U.S.A. Dominique is a 33-year veteran of the Alcan and Rio Tinto organizations, having most recently served as President of Rio Tinto Iron & Titanium until his retirement in May, 2013. Mr. Pinney is a 32-year veteran of the Mosaic Company and Cargill Inc., having most recently served as Senior Vice President of Phosphates and Supply Chain for a Mosiac business unit (see press releases of June 18 and June 10, 2013 for details). 
  
  
• In May, 2013, the Company held its annual general meeting of shareholders in Montreal, Québec at which time Messrs., Luc Boivin, James Cowley, Marco Gagnon, David DeBiasio, Guthrie Stewart and Siva Pillay were elected to the Board of Directors. Following the meeting, the Board confirmed that Mr. Guthrie Stewart will serve as interim Chairman of the Board. Shareholders also approved changing the Company's name to Arianne Phosphate Inc.
  

Mr. Brian Kenny, Chief Executive Officer of the Company commented: "Arianne continued to make significant progress in a number of key areas in the development of our world-class Lac à Paul phosphate deposit. The Feasibility Study is entering the final stages and we completed a key milestone in filing the EIA". In regards to the $7.6 million July financing, Mr. Kenny stated: "This transaction was completed in difficult market conditions and with the support of existing lenders and shareholders. It is a significant step forward for Arianne and allows us to gear up for the permitting process and undertakes other key activities that move the project forward."

Key milestones to come in 2013 include the following:

• Completing the Feasibility Study expected in Fall, 2013;

• Moving along the EIA process by responding to enquiries with the final document expected to be submitted at the end of 2013;

• Continuing the various steps required to obtain permits required for the operation of the proposed Lac à Paul mine;

• Adding new members to the team; and

• Organizing additional public consultations to discuss all aspects of the Lac à Paul mining project.

Financial Summary

Second Quarter, FY 2013

The net loss for the three month period ended June 30, 2013 was $1,508,003 compared to a net loss of $756,117 for the same period in 2012.

This increased loss in the second quarter 2013 is mainly due to the impact of deferred taxes of $433,204. This amount comes from the expected manner of recovery of the Company's prospection and evaluation assets as there are indications that its exploration and evaluation assets could be recovered through use rather than though sale. Accordingly, the Company recorded a deferred income tax liability of $433,204 and a corresponding deferred tax expense.

The increased loss is also due to higher administrative costs of $298,396 related to the increased level of activity at the Company for the development of the Lac à Paul project, increased public consultations with local communities, and increased discussions with shareholders and other stakeholders.

The net loss for the quarter also includes $87,275 ($316,488 in 2012) in share-based compensation expense and represents the value of share purchase options granted but not vested.

Year to date, FY 2013

The net loss for the six month period ended June 30, 2013 was $3,677,701 compared to a net loss of $1,087,748 for the same period in 2012. This increased loss is mainly due to the impact of deferred taxes of $1,701,781. This amount comes from the expected manner of recovery of the Company's prospection and evaluation assets as there are indications that its exploration and evaluation assets could be recovered through use rather than though sale. Accordingly, the Company recorded a deferred income tax liability of $1,701,781 and a corresponding deferred tax expense.

The increased loss is also due to higher administrative costs of $732,369 related to the increased level of activity at the Company for the development of the Lac à Paul project, increased public consultations with local communities, and increased discussions with shareholders and other stakeholders.

The net loss for the six months also includes $143,891 ($319,053 in 2012) in share-based compensation expense and represents the value of share purchase options granted but not vested. In addition, the fair value of marketable securities decreased by $ 46,549 during the second quarter of 2013 as compared with an increase of $117,968 for the same period in 2012.

Liquidity

The Company ended the second quarter with cash of $1.1 million and mining tax credit receivables of $3.2 million. Based on current spending estimates for the FS, post FS activities including gearing up for the permitting process and future project development, Arianne anticipates it will need additional financing before the end of 2013. The Company expects it will be able to raise the required amount of funds at competitive rates.

The Company's Interim Financial Statements and accompanying management's discussion and analysis for the quarter ended June 30, 2013 and the year ended December 31, 2012 are available on the Company's website and on SEDAR at www.sedar.com. Unless otherwise noted, all figures in the news release are reported in Canadian dollars.

About Arianne Phosphate

Arianne Phosphate ("Arianne Phosphate Inc.") (www.arianne-inc.com) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits should produce a high quality igneous apatite concentrate grading 39% P₂O₅ with little or no contaminant. The Company has 79 million shares outstanding.

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.

Follow Arianne on:

Facebook: http://www.facebook.com/pages/Arianne-Resources-Inc/113071105425184

Twitter: http://twitter.com/arianne_dan

YouTube: http://www.youtube.com/user/ArianneResources

Flickr: http://www.flickr.com/photos/arianneresources

Resources Investing News: http://resourceinvestingnews.com/?s=Arianne