Focus Graphite Announces Non Brokered Offering and Closes First Tranche

OTTAWA, ONTARIO--(Marketwired - Aug. 28, 2015) -

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Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") announces the closing of the first tranche of a non-brokered private placement (the "Offering") for gross proceeds of $429,829. The Company has issued 3,306,381 units (the "Units") at a price of $0.13 per Unit, each Unit being comprised of one (1) common share of the Company and one common share purchase warrant (a "Warrant"), each Warrant entitling the holder thereof to acquire one (1) additional common share of the Company at a price of $0.17 per share until August 28, 2019.

In connection with the closing of the first tranche of the Offering, the Company paid cash finder's fees totaling $34,386 and issued 264,510 non-transferable warrants, each warrant entitling the holder to acquire one (1) common share of the Company at a price of $0.17 per common share until August 28, 2017.

The securities issued in connection with the closing of the first tranche of the Offering are subject to a four-month hold period expiring on December 29, 2015. The Company expects to proceed shortly with the closing of a second tranche for total gross proceeds (including the first tranche) of up to $2 million (15,384,616 Units). 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 advanced mining development company with an objective of producing graphite concentrate at its Lac Knife deposit located south west of Fermont, Québec. In a second stage, to meet Quebec stakeholder interests of transformation within the province and to add shareholder value, Focus is evaluating the feasibility of producing value added graphite products including battery-grade spherical graphite.

The Lac Knife project hosts a Measured and Indicated Mineral Resource Estimate* of 9.58 million tonnes grading 14.77% graphitic carbon (Cg) (432,000 tonnes Measured @ 23.66% Cg and 9,144,000 tonnes Indicated @ 14.35% 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 concentrate.