Focus Graphite Announces Pending Sale of Grafoid Shares and Other Benefits Tied to Grafoid's MOU With China's Xiamen Tungsten Co.

OTTAWA, ONTARIO--(Marketwired - March 23, 2016) - Focus Graphite Inc., (Focus Graphite or "the Company") (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) is pleased to announce its affiliate, Grafoid Inc., and Xiamen Tungsten Co. Ltd. (Xiamen), have signed a Memorandum of Understanding (MOU) for the establishment of a strategic joint venture partnership.

The MOU establishes terms for Xiamen's acquisition of up to a 20% equity position in Grafoid through the purchase of common shares - including up to 7,000,000 Grafoid common shares currently held by Focus Graphite and; it provides Focus Graphite with a portal in China for the future sale of value added graphite products through its strategic partnership with Xiamen. Focus Graphite, with 7.9 million shares, is the largest shareholder in Grafoid.

In summary, the MOU between Grafoid and Xiamen sets out parameters for actions that meet both parties' immediate and long-term business objectives through a joint venture arrangement. They include:

• Xiamen's desire to build a clean energy technology platform and introduce those technologies to the China market
• Grafoid's goals for developing industrial applications to open the China market for the commercialization of its suite of Mesograf™ and Amphioxide ™ graphene based products
• The fulfillment of Focus Graphite's desire to move forward with the development of the company's Lac Knife, Québec natural flake graphite project, and supply global markets with high purity, value-added, cost-competitive graphite products while supporting the next generation battery development platform of Grafoid, Focus Graphite, Stria Lithium Inc., and Braille Battery Inc.
• The establishment of Xiamen's business office at the Grafoid Global Technology Center in Kingston, Ontario to provide Xiamen with a North American base for future business expansion, and; the establishment of a Grafoid business office in China

A due diligence process will be concluded by May 22, 2016.

A publicly traded company listed on the Shanghai Exchange, Xiamen Tungsten is China's leader in smelting, processing and export of tungsten and other non-ferrous metal products; the operation of rare earth business interests, and; the supply of battery materials. It has annual revenues in excess of 10.143B CNY ($1.55B US).

Advancing the Lac Knife Graphite Project

Focus Graphite CEO and Director Gary Economo said the proceeds from the pending sale of Grafoid shares held by Focus Graphite will be applied to the company's continuing efforts to bring the Lac Knife Project into production.