Focus Graphite Inc. Announces Strategic Offtake Agreements With Grafoid Inc.

OTTAWA, ONTARIO--(Marketwired - June 22, 2015) - Focus Graphite Inc., (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") an advanced stage graphite mining development company and sole owner of the high-grade Lac Knife, Québec natural flake graphite deposit, is pleased to announce it has entered into two offtake agreements with Grafoid Inc., a global leader in graphene application development.

The first offtake agreement (the "Energy Offtake") commits Grafoid to acquire, at its discretion, up to an annual maximum of 1,000 tonnes of high-purity (98.3% total carbon "Ct")(1) large flake (+80 mesh) graphite concentrate annually from the Lac Knife Project for 10 years, representing up to 6.8% of the projected annual production of 14,606 tonnes of high-purity large flake concentrate.

^{(1) 98.3% Ct purity is the average of 6 pilot plant runs. The pilot plant program was completed in 2013 by SGS Canada Inc., located in Lakefield, Ontario. See news release dated August 21, 2013.}

The second offtake agreement (the "Polymer Offtake") commits Grafoid to acquire, at its discretion, up to 25,000 tonnes of 97.8% Ct (average concentrate grade for all flake sizes) graphite concentrate annually from the Lac Knife Project for 10 years, representing up to 56.4% of the projected total annual production of 44,300 tonnes (all flake sizes).

Mr. Gary Economo, Chief Executive Officer of Focus Graphite, announced that the two companies have set forth initial terms for two offtake agreements. "The strong relationship and strategic alignment between the two companies is reflected in these agreements. Focus Graphite benefits from a substantial ongoing future revenue stream while Grafoid is assured a secure supply to meet customer needs," said Mr. Economo.

Grafoid is a Canadian graphene research and development company that invests in the development of industrial-scale graphene applications and technologies, in partnership with major global corporations and academic institutions. Grafoid's graphene products are developed under the trade name of Mesograf™.

Focus is the largest single shareholder in Grafoid Inc. holding 7,800,000 Grafoid common shares valued at US$39 million.(2)

^{(2) Grafoid Inc. is a private company that has raised nearly US$20 million and completed acquisitions at US$5 a share, as referenced in a company release on the acquisition of ALCERECO and in investment analyst coverage by NY-based JGL Partners LLC.}