Focus Graphite Closes Second and Final Tranche of Offering

OTTAWA, ONTARIO--(Marketwired - March 31, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") announces the closing of the second and final tranche of its previously announced private placement (the "Offering") for gross proceeds of $883,799.70 (see Company's news release dated March 2^nd, 2015 and March 16, 2015 for more details on the Offering). For the second tranche, the Company has issued 2,525,142 units (the "Units") at a price of $0.35 per Unit, each Unit being comprised of one (1) common share of the Company and one half (1/2) of one common share purchase warrant (each whole warrant a "Warrant") with each Warrant entitling the holder thereof to acquire one (1) additional common share of the Company at a price of $0.55 per share until March 27, 2017.

In connection with the closing of the second tranche of the Offering, the Company paid cash finder's fees totaling $61,866 and issued 176,759 non-transferable warrants with each warrant entitling the holder to acquire one (1) common share of the Company at a price of $0.35 per common share until March 27, 2017.

The securities issued in connection with the closing of the second tranche of the Offering are subject to a four-month hold period expiring on July 28, 2015. The Offering is subject to the final approval of the TSX Venture Exchange.

The securities offered pursuant to the Offering will not be registered under the United States Securities Act of 1933 (the "Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

About Focus Graphite

Focus Graphite Inc. is an emerging mining development company with an objective to produce value added products initially for the lithium ion battery market from the Lac Knife graphite deposit located south west of Fermont, Québec. The Lac Knife project hosts a NI 43-101 Measured and Indicated Mineral Resource Estimate* of 9.6 million tonnes (432,000 tonnes Measured and 9,144,000 tonnes Indicated) grading 14.77% graphitic carbon (Cg) as natural flake graphite with an additional Inferred Mineral Resource Estimate* of 3.1 million tonnes grading 13.25% Cg. Focus' goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. The Feasibility Study filed with SEDAR on August 8, 2014 for the Lac Knife Project indicates the project is economically viable and has the potential to become a low cost graphite producer based on 7.86 million tonnes (429,000 tonnes Proven and 7,428,000 tonnes Probable) of Proven and Probable Reserves grading 15.13 Cg. On May 27, 2014 the Company announced the Potential for High Value Added Sales in the Li-Ion Battery Sector following battery coin cell tests performed on Lac Knife Spherical Graphite ("SPG"). Testing measured the performance metrics and confirmed Focus' capability to tailor lithium ion battery anode grade graphite and value added products to meet the most stringent customer specifications. Focus Graphite is a technology-oriented enterprise with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc.