Frontier Lithium (FL) Q3 2025 earnings summary

Executive summary

• Entered agreement for $3.35M unsecured convertible loan from a related party to fund purchase of industrial land for a lithium conversion facility in Thunder Bay, Ontario.

• Option to purchase 183-acre Mission Island Lands, including a 50-acre water lot, expected to be exercised and closed by February 28, 2025.

• Filed interim financial results for Q3 ended December 31, 2024; documents available on SEDAR+.

Significant events and developments

• Convertible loan matures in 18 months, convertible at $0.65/share, accrues interest at Canadian Overnight Repo Rate Average plus 3%.

• Loan is subordinate to secured debt and can be prepaid or converted at lender's option.

• Financing is a related party transaction but exempt from formal valuation and minority approval due to size relative to market cap.

• No finder's fee owed; closing subject to TSXV approval.

Capital allocation and financing

• Net proceeds from the loan will be used to acquire land for a planned lithium conversion facility, supporting vertical integration.

• Facility location offers strategic access to transportation and markets for lithium salts.