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IFOS.V ·

Itafos Announces Brokered Private Placement

Financings

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ITAFOS ANNOUNCES BROKERED PRIVATE PLACEMENT

TORONTO, ON – January 11, 2017 – Itafos (TSX VENTURE: IFOS) (“ Itafos” or the “Company”) is

pleased to announce that it has appointed Raymond James Ltd. (the “Lead Agent”) to lead a syndicate of

agents (the “Agents”) to sell, by way of a marketed private placement on a best efforts basis, shares of

the Company (the “Shares”) at a price to be determined in the context of the market for gross proceeds of

up to US$35,000,000 (the “Offering”). The net proceeds of the Offering shall be used primarily for the re-

commissioning of the Company’s Itafos Arraias SSP Operations and for working capital and general

corporate purposes.

Completion of the Offering is subject to a number of conditions, including the completion of due diligence

by the Agents, the negotiation and execution of a definitive agency agreement, satisfaction of any

regulatory requirements and receipt of the appr oval of the TSX Venture Exchange (the “ TSXV”). The

closing of the Offering is expected to occur on or about such date or dates as agreed upon by the

Company and the Lead Agent. The Shares issued with respect to the Offering will be subject to a

statutory hold period of four months plus a day from the date of issuance in accordance with applicable

securities legislation.

Zaff LLC (“ Zaff”) is expected to subscribe for approximate ly US$15,000,000 of the Shares under the

Offering. As an insider of the Company, Zaff’s subscr iption constitutes a related party transaction under

Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Investments (“MI 61-

101”) and TSXV Policy 5.9. The Company expects to re ly on the formal valuation exemption in section

5.5(a) of MI 61-101 and the minority approval exempti on in section 5.7(a) of MI 61-101 on the basis that

neither the fair market value of the Shares to be distributed to Zaff nor the consideration to be received for

the Shares will exceed 25% of the Company’s market capitalization at the time of Zaff’s subscription. Zaff

currently beneficially owns, or controls or directs, directly or indirectly 55,573,669 Shares, representing

96.60% of the issued and outstanding Shares (on an undiluted basis) as of the date hereof.

This news release does not constitute an offer of secu rities for sale in the United States. The securities

being offered have not been, nor will they be, registered under the United States Securities Act of 1933,

as amended, and such securities may not be offered or sold within the United States absent U.S.

registration or an applicable exemption from U.S. registration requirements.

About Itafos

Itafos (TSX VENTURE: IFOS) is focused on becoming a significant integrated producer of phosphate

based fertilizers and related products. Itafos has an experienced team with significant expe rience in the

business of fertilizer operations, management, marketing and finance. Itafos owns and operates the Itafós

Arraias SSP Operations, which consis ts of an integrated fertilizer producing facility comprised of a

phosphate mine, a mill, a beneficiation plant, a sulp huric acid plant, an SSP plant and a granulation plant

and related infrastructure located in central Brazil. Itafos’ exploration portfolio includes a number of

additional projects in Brazil, including the Santana Project, a high-grade phosphate deposit located in

close proximity to the largest fertilizer market of Mato Grosso State and animal feed market of Pará State,

and the Araxá Project, a high-grade rare earth element s, niobium and phosphate deposit located in close

proximity to two operating mines, therefore benefiting fr om existing local infrastructure. In addition, Itafos

owns an approximate 31.3% interest in GB Minerals Ltd. which owns the Farim Project, a high-grade

phosphate deposit located in Guinea Bissau and an approximate 29.6% interest in Stonegate Agricom

Ltd. which owns the Paris Hills Project, a high-gra de phosphate deposit located in Idaho, United States

and the Mantaro Project, a high-grade phosphate deposit located in Peru.

Forward-Looking Statements

This news release contains "forward-looking stat ements" within the meaning of applicable Canadian

securities legislation. Forward-lo oking statements include, but are not limited to, statements related to

activities, events or developments that the Company expects or anticipates will or may occur in the future,

including, without limitation, statements related to the closing of the Offering and the receipt of regulatory

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approval in respect of the Offering. These statements speak only as of the date of this news release.

Forward looking statements are based on a number of factors and assumptions made by management

and considered reasonable at the time such stat ements are made, and forward-looking statements

involve known and unknown risks, uncertainties and ot her factors that may cause the actual results,

performance or achievements to be materially differe nt from those expressed or implied by the forward-

looking statements. Such risk factors include but are not limited to, the Company not obtaining the final

approval of the TSXV for the Offeri ng and those factors di sclosed in the Company 's current Annual

Information Form and Management's Discussion and An alysis, as well as other public disclosure

documents, available under the Company’s profile on SEDAR at www.sedar.com. Although Itafos has

attempted to identify important factors that could cause actual actions, events or results to differ materially

from those described in forward-looking statements, there may be other factors that cause actions, events

or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking

statements will prove to be accurate. The forward look ing statements contained herein are presented for

the purposes of assisting investors in understanding the Company's plans, objectives and goals and may

not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-

looking statements. The Company undertakes no ob ligation to update forward-looking statements if

circumstances or management's estimates or opini ons should change except as required by applicable

securities laws.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the

TSXV) accepts responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Itafos

Brian Zatarain, Chief Financial Officer

[email protected]

www.itafos.com