Canadian Phosphate September 2026 Quarterly Activities Report

18 holes for 2,638m completed by early September, with the phosphate Main Zone visually intersected in every hole that reached the target horizon.

Canadian Phosphate Limited (OTCQB:CPHOF)

PERTH, WA, AUSTRALIA, October 26, 2026 /EINPresswire.com/ — Canadian Phosphate Ltd. (ASX: CP8; OTCQB: CPHOF) (“Canadian Phosphate” or “the Company”) is pleased to report a quarter of progress across its North American phosphate portfolio, led by drilling at Wapiti, completion of the Diamond Mountain acquisition and improved access for North American investors.

Canadian Phosphate Limited is a B2i Digital Featured Company. See the company’s in-depth profile at: https://b2idigital.com/canadian-phosphate-ltd-1

Managing Director and Chief Executive Officer Daniel Gleeson said:

“The September quarter has been a transformational period for Canadian Phosphate. Drilling at Wapiti advanced our understanding of the deposit, with the target Main Zone traced over approximately 9km along the east limb based on geological logging, portable XRF and downhole gamma readings. Laboratory assays remain pending and are required to confirm grade. We look forward to receiving the first assay results and progressing further drilling on the western limb.

“Rapidly rising sulfur prices continue to highlight the strategic importance of Wapiti’s location in Western Canada as the only advanced sedimentary phosphate project in Canada. Proximity to regional sulfur sources, together with access to highly cost-effective natural gas, hydroelectricity and rail infrastructure, provides a strong foundation for our phased pathway towards downstream phosphate fertilizer production. Being close to some of the world’s most advanced farmers further strengthens our opportunity to develop a competitive, regional source of phosphate fertilizer.

“Completing the Diamond Mountain acquisition gives us a second advanced phosphate asset in a tier-one US jurisdiction, while our OTCQB listing and inclusion in the Canada Investment Summit and Invest Alberta pitchbooks have also increased our visibility with North American investors and government as we work to establish a secure Canadian supply of phosphate fertilizer.

Meanwhile, our existing business continues to generate cash receipts that partially offset operating costs, with increased orders during the September quarter providing positive momentum for fourth-quarter shipments and sales.”

Activities during Q3 CY2026

Wapiti Project, British Columbia, Canada

During the quarter, CP8 commenced a Phase 1 diamond drilling program at its 100%-owned Wapiti Phosphate Project in north-eastern British Columbia, Canada. The program is managed by Dahrouge Geological Consulting, with NQ core drilling completed by Proterra Drilling Solutions. Drilling is designed to test the continuity, thickness and grade of the known phosphate horizons, initially focusing on the East Limb and central area of the Red Deer Syncline, with holes spaced approximately 1km apart along strike.

On 19 August 2026, CP8 reported that the first eight holes (WP26-001-008, approximately 1,051m) had all intersected the target Main Zone, located at the base of the Whistler Member. Holes WP26-001-003 tested down-dip and intersected the Main Zone deeper than any historical result (up to 158m downhole), while WP26-008 intersected the Main Zone more than 3km south of the nearest historical drill hole.

On 9 September 2026, CP8 reported that 18 holes (WP26-001 to WP26-018) had been completed for a total of 2,638m. The Main Zone was intersected in eight of the nine holes drilled since the previous update, with WP26-016 abandoned above the target horizon due to thick overburden. Hole WP26-018 also intersected the Main Zone on the western limb of the syncline. Phosphate mineralisation has now been traced over approximately 9km of strike along the east limb of the Red Deer Syncline. Apparent thicknesses logged to date are consistent with the historical range of 0.67m to 3.08m (downhole lengths; true widths not yet determined).

Figure 1: Map showing CP8’s Multi-Year Area-Based Permit and planned drill holes for Wapiti.

A total of 952 samples from holes WP26-001-010 have been dispatched in three shipments to AGAT Laboratories in Calgary for analysis, with assays pending.

Cautionary statement: The Main Zone intersections referred to in this report are based on visual logging, portable XRF and downhole natural gamma readings only and have not been confirmed by laboratory assay. Visual estimates and pXRF readings are not a substitute for laboratory analysis and may not identify impurities or deleterious elements. Gamma logging measures natural radioactivity, not phosphate, and its relationship with P₂O₅ grade has not been established at Wapiti. Laboratory assays are required to determine grade.

Completion of Diamond Mountain Acquisition, Utah, USA

On 31 July 2026, CP8 completed its acquisition of 100% of the Diamond Mountain Phosphate Project in Utah, USA, from Revival Gold Inc. and Utah Mineral Resources LLC, following satisfaction or waiver of the conditions precedent under the agreement announced on 1 June 2026.

The advanced sedimentary phosphate project covers approximately 550 hectares in Uintah County, within the Meade Peak Phosphoria Formation, and is located adjacent to Simplot’s 4Mtpa Vernal Phosphate Mine. The project hosts an NI 43-101 Foreign Estimate of 26.8Mt Measured and Indicated and 23.1Mt Inferred, for a total of 49.9Mt grading 19.67% P₂O₅ (not reported in accordance with the JORC Code). Please refer to the Company’s ASX announcements dated 1 June 2026 and 31 July 2026 for further information.

Cautionary statement: The foreign estimate is not reported in accordance with the JORC Code. A Competent Person has not done sufficient work to classify the foreign estimate as Mineral Resources in accordance with the JORC Code, and it is uncertain that following evaluation and/or further exploration work that the foreign estimate will be able to be reported as Mineral Resources in accordance with the JORC Code.

Figure 2: Location of Diamond Mountain Project in Utah, with Simplot’s Vernal Mine also shown.

Total consideration for the acquisition is up to US$3.0 million, comprising US$250,000 in cash and 6,041,737 CP8 shares paid on completion (together representing US$750,000), US$500,000 payable on the first anniversary of completion in cash or shares at the vendors’ discretion, and deferred consideration of up to US$1.5 million payable in cash or shares at CP8’s election on or before the first anniversary of commercial production.

During 2026/27, the Company will recover and validate historical drilling, assay, density and survey data, update the geological model, and commence twinning, verification and step-out drilling as permitting allows. Mineralogical, beneficiation and product suitability testing will be undertaken, followed by infill and resource-definition drilling and preparation of a JORC-compliant Mineral Resource Estimate, subject to data quality and Competent Person assessment in 2027.

Sales and marketing

Q3/Q4 2026 rock phosphate sales momentum

Rock phosphate sales have made a solid start ahead of the fall 2026 application season. CP8 is supplying customers from existing Montana stockpiles and is targeting a progressive drawdown of this inventory by the end of 2027, subject to customer demand and shipment schedules.

A substantial proportion of CP8’s current orders are receiving down payments, reflecting customers’ commitment to securing supply and enabling product preparation for deliveries throughout the winter period. This willingness to commit funds ahead of delivery provides a positive indication of demand from customers and the growers they supply, as growers seek alternative phosphate sources in response to the high cost of conventional monoammonium phosphate (MAP) and diammonium phosphate (DAP) fertilizers.

Barnes Bulk Sample and Montana Inventory

During the quarter, CP8 postponed extraction of the approved 10,000-tonne bulk sample at the Barnes Project in the Fernie region of British Columbia to Q2 2027. In the meantime, the Company will supply customers from approximately 30,000 tonnes of previously mined phosphate rock held in Montana, which carries a lower gross margin than Canadian product. Customer demand is expected to grow as a key customer moves from plant commissioning to continuous operations.

Activities planned for Q4 CY2026

Wapiti Exploration

CP8 expects to receive and report the first assay results from the Phase 1 drilling program, continue drilling on the western limb beyond the initial 3,000m program, and complete a high-resolution LiDAR and ortho-imagery survey across the property. Assay results will support an updated JORC Mineral Resource Estimate for Wapiti.

In parallel, Dahrouge Geological Consulting continues to advance exploration studies across the broader Fernie Project, with the results expected to refine future exploration targets and contribute to the Company’s ongoing assessment of the district’s phosphate potential.

Diamond Mountain Validation Program

CP8 will continue recovering and validating historical data at Diamond Mountain, update the geological model and advance permitting for verification and step-out drilling.

Single Superphosphate Market Development Program

The Company is progressing plans to import single superphosphate (SSP) for trials with potential offtake and distribution partners across Western Canada.

The program is designed to demonstrate SSP’s agronomic and commercial benefits as a potentially cost-effective source of phosphate, sulfur and calcium in a single application.

The trials will support customer engagement, assess regional demand and product performance, and help develop future offtake opportunities ahead of the potential establishment of domestic SSP production.

CORPORATE

CP8 commences trading on OTCQB Exchange

On 20 August 2026, CP8 shares commenced trading on the OTCQB Venture Market in the United States under the ticker CPHOF. The OTCQB listing provides North American investors with easier access to CP8 shares during US market hours and the ability to trade in US dollars through participating broker-dealers.

The Company’s primary listing remains on the ASX under the code CP8. No new securities were issued and no capital was raised in connection with the OTCQB listing.

CP8 included in Canada and Alberta investment summits

In September 2026, CP8 was selected for inclusion in the Government of Canada’s Canada Investment Summit Pitchbook, which showcases Canadian nation-building projects to sovereign wealth funds, pension funds and other institutional investors. Following that selection, the Company was also included in the Invest Alberta Pitchbook, and Managing Director Daniel Gleeson was invited to attend associated Invest Alberta meetings and receptions.

Canada currently relies entirely on imported phosphate fertilizer, with approximately 60% sourced from the United States. CP8’s proposed Alberta operations form part of its phased mine-to-market strategy to produce fertilizer from Canadian phosphate resources closer to Western Canada’s agricultural regions. Inclusion in the pitchbooks does not constitute government funding, endorsement or a commitment to invest.

Issue of Consideration Shares

On 30 July 2026, CP8 issued 6,041,737 fully paid ordinary shares to the vendors as part of the completion consideration for the Diamond Mountain acquisition. The shares are subject to voluntary escrow, with 3,020,868 shares escrowed until 30 July 2027 and 3,020,869 shares escrowed until 30 July 2028. A cleansing notice was lodged in respect of the issue on 31 July 2026. There were no other issues, and no cancellations, of securities during the quarter.

Interim Financial Report

On 11 September 2026, CP8 released its Interim Financial Report for the half-year ended 30 June 2026.

Related party transactions

In accordance with ASX Listing Rule 5.3.5, during the September 2026 quarter Canadian Phosphate paid an executive director $98,000 in relation to his ongoing employment contract.

Canadian Phosphate paid a non-executive director $6,393 relating to interest on a director loan provided to Canadian Phosphate as outlined in Appendix 5B section 6.1. Canadian Phosphate also paid a non-executive director $4,973 relating to interest on a convertible note provided to Canadian Phosphate in November 2023.

Expenditure incurred on exploration and evaluation

During the quarter, the Company made payments of $376,717 for exploration and evaluation (Q2 2026: $170,632), $216,374 for production input costs (Q2 2026: $417,654), and $537,056 for administration and corporate related costs (Q2 2026: $396,413).

Cash/Appendix 5B commentary

As at 30 September 2026, the Company had cash at bank $3.144M, providing CP8 with a solid working capital position to advance its exploration and development plans.

The Company retains access to approximately 30,000 tonnes of inventory in stockpiles at its Montana locations.

Authorised by the board of Canadian Phosphate Limited.

For more information, please contact:
Daniel Gleeson
Managing Director and CEO
Canadian Phosphate Limited
Ph: +61 (0) 427 476 774

Nathan Ryan
Investor & Media Enquiries
NWR Communications
Ph: +61 (0) 420 582 887

BOARD OF DIRECTORS
– Stuart Richardson – Non-Executive Chairman
– Daniel Gleeson – Managing Director
– Malcolm Weber – Non-Executive Director
– Peter Doyle – Non-Executive Director

KEY PROJECTS
– Wapiti – Ownership 100%
– Fernie – Ownership 100%
– Diamond Mountain – Ownership 100%

Competent Person Statement

The information in this report that relates to Exploration Results for the Wapiti Phosphate Project is extracted from the Company’s announcements titled “Wapiti drilling intersects visual phosphate mineralisation” dated 19 August 2026 and “Drilling extends phosphate mineralisation strike to 9km” dated 9 September 2026. The information in this report that relates to the Diamond Mountain Phosphate Project and NI 43-101 Foreign Estimate is extracted from the Company’s announcements titled “Acquisition of Diamond Mountain Phosphate Project in Utah” dated 1 June 2026 and “CP8 completes acquisition of Diamond Mountain Project” dated 31 July 2026. Each of these announcements contained a Competent Person Statement.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement mentioned and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

In relation to the Diamond Mountain foreign estimate, the Company confirms that the supporting information provided in the announcement dated 1 June 2026 continues to apply and has not materially changed.

Forward-Looking Statements

This announcement may include forward-looking statements and opinions. Forward-looking statements, opinions and estimates are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of the Company. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements, opinions or estimates. Actual values, results or events may be materially different to those expressed or implied in this announcement.

Given these uncertainties, readers are cautioned not to place reliance on forward-looking statements, opinions or estimates. Any forward-looking statements, opinions or estimates in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, CP8 does not undertake any obligation to update or revise any information or any of the forward-looking statements opinions or estimates in this announcement or any changes in events, conditions or circumstances on which such disclosures are based.

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