Canadian Phosphate advances Wapiti drilling and closes Diamond Mountain deal

Canadian Phosphate reported a quarter of drilling progress at its Wapiti phosphate project in British Columbia, completion of its Diamond Mountain acquisition in Utah and a new OTCQB listing for North American investors. The update matters because the company is pushing toward a mine-to-market phosphate strategy while building cash flow from existing inventory sales.

Why it matters: - Canadian Phosphate is trying to build a North American phosphate supply chain at a time when Canada still relies entirely on imported phosphate fertilizer. - The company is advancing two phosphate assets in Canada and the United States while also expanding access to U.S. investors through OTCQB trading. - Management says the strategy is meant to support future fertilizer production closer to Western Canada’s farming regions.

What happened: - Canadian Phosphate reported quarterly activities for September 2026, led by drilling at Wapiti, completion of the Diamond Mountain acquisition and improved North American investor access. - The company completed 18 holes totaling 2,638m at the Wapiti Phosphate Project by early September. - The company completed the acquisition of 100% of the Diamond Mountain Phosphate Project in Utah on 31 July 2026. - Canadian Phosphate shares began trading on the OTCQB Venture Market in the United States on 20 August 2026 under the ticker CPHOF. - The company was also included in the Government of Canada’s Canada Investment Summit Pitchbook and Invest Alberta Pitchbook in September 2026.

The details: - At Wapiti in north-eastern British Columbia, Phase 1 diamond drilling targeted continuity, thickness and grade of known phosphate horizons. - Drilling focused first on the East Limb and central area of the Red Deer Syncline, with holes spaced about 1km apart along strike. - On 19 August 2026, the first eight holes all intersected the target Main Zone at the base of the Whistler Member. - Holes WP26-001 to WP26-003 hit the Main Zone deeper than any historical result, to as much as 158m downhole. - Hole WP26-008 intersected the Main Zone more than 3km south of the nearest historical drill hole. - On 9 September 2026, the company said the Main Zone had been intersected in eight of the nine holes drilled since the prior update. - Hole WP26-016 was abandoned above the target horizon because of thick overburden. - Hole WP26-018 intersected the Main Zone on the western limb of the syncline. - Phosphate mineralisation has now been traced over about 9km of strike along the east limb of the Red Deer Syncline. - Apparent thicknesses logged to date are within the historical range of 0.67m to 3.08m, with true widths not yet determined. - A total of 952 samples from holes WP26-001 to WP26-010 have been sent to AGAT Laboratories in Calgary, with assays pending. - Laboratory assays are required to confirm grade at Wapiti, and the reported intersections are based only on visual logging, portable XRF and downhole gamma readings. - The company said gamma logging measures natural radioactivity, not phosphate, and its relationship with P₂O₅ grade has not been established at Wapiti. - Diamond Mountain covers about 550 hectares in Uintah County, Utah, within the Meade Peak Phosphoria Formation. - The Utah project sits next to Simplot’s 4Mtpa Vernal Phosphate Mine. - The project carries 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. - The foreign estimate is not reported in accordance with the JORC Code. - Total consideration for Diamond Mountain can reach US$3.0 million, including US$250,000 in cash and 6,041,737 CP8 shares on completion, US$500,000 on the first anniversary of completion and up to US$1.5 million in deferred consideration. - The company issued 6,041,737 fully paid ordinary shares on 30 July 2026 as part of the acquisition consideration, with the shares subject to voluntary escrow. - Canadian Phosphate said it will recover and validate historical data at Diamond Mountain, update the geological model and begin twinning, verification and step-out drilling as permitting allows. - The company also plans mineralogical, beneficiation and product suitability testing, followed by infill and resource-definition drilling and a JORC-compliant Mineral Resource Estimate in 2027, subject to data quality and Competent Person assessment. - Sales of rock phosphate started the fall 2026 application season with supply from existing Montana stockpiles. - The company is targeting a progressive drawdown of the Montana inventory by the end of 2027, subject to customer demand and shipment schedules. - A substantial share of current orders is receiving down payments, which the company says shows customer commitment and helps prepare winter deliveries. - The company postponed extraction of the approved 10,000-tonne bulk sample at the Barnes Project in British Columbia to Q2 2027. - In the meantime, Canadian Phosphate will supply customers from about 30,000 tonnes of previously mined phosphate rock held in Montana. - Montana inventory carries a lower gross margin than Canadian product. - The company said customer demand is expected to grow as a key customer moves from plant commissioning to continuous operations. - The company had cash at bank of $3.144 million as of 30 September 2026. - It also said it retains access to about 30,000 tonnes of inventory in Montana stockpiles.

Between the lines: - The Wapiti drilling results are encouraging, but the real inflection point is assay data, which will determine whether the visual results translate into grade. - Diamond Mountain gives Canadian Phosphate a second advanced phosphate asset in a top-tier U.S. jurisdiction, which could broaden optionality for development. - The OTCQB listing and inclusion in Canadian and Alberta pitchbooks suggest a push to raise visibility with investors and government stakeholders, not just to advance geology. - The company’s use of Montana inventory keeps sales moving, but lower margins show the tradeoff while Canadian production is still being advanced. - Rising sulfur prices are strengthening the case for Wapiti because sulfur is a key input for phosphate fertilizer processing.

What's next: - Canadian Phosphate expects first assay results from Wapiti in Q4 2026. - The company plans to continue drilling on the western limb beyond the initial 3,000m program. - A high-resolution LiDAR and ortho-imagery survey is also planned for Wapiti. - Dahrouge Geological Consulting will continue broader Fernie Project studies to refine future exploration targets. - At Diamond Mountain, the company will keep validating historical data and advancing permitting for verification and step-out drilling. - Canadian Phosphate is progressing plans to import single superphosphate for trials with potential offtake and distribution partners across Western Canada. - The SSP program is intended to test agronomic and commercial benefits and support future offtake opportunities ahead of possible domestic SSP production. - Management expects the company’s current order flow to support fourth-quarter shipments and sales.