Focus Graphite Inc. and Grafoid Inc. Finalize Two Definitive, 10-Year Offtake Agreements for Lac Knife Graphite Concentrate

OTTAWA, ONTARIO--(Marketwired - Sept. 25, 2015) - Focus Graphite Inc., (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") an advanced exploration and development mining company and sole owner of the high-grade Lac Knife, Québec natural flake graphite deposit, is pleased to announce it has finalized two definitive offtake agreements with Grafoid Inc., a graphene application development company, and a related party.

The first offtake agreement (the "Graphene Offtake," formerly 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. (Taken from Technical Report on The Lac Knife Graphite Feasibility Study.)

^{(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). (Taken from Technical Report on The Lac Knife Graphite Feasibility Study.)

Mr. Gary Economo, Chief Executive Officer of Focus Graphite, announced the two companies have finalized terms for two offtake agreements and that Focus has received the first of 12 scheduled payments from Grafoid as per each agreement schedule.

"These agreements are the culmination of Focus Graphite's long-held strategic business vision that looked towards selling Lac Knife's high grade, high purity graphite into future high value technology markets," said Mr. Economo.

"And the future is represented by a small but significant flake graphite mining deposit on the road to development in the Northern Quebec community of Fermont," he said.

"These agreements assure Grafoid with a secure supply of graphite to meet its customer requirements for graphene, while Focus benefits from long-term revenue streams," Mr. Economo said.