Focus Graphite Closes First Tranche of Non-Brokered Offering

OTTAWA, ONTARIO--(Marketwired - April 4, 2016) -

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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 $1,531,549.95. The Company has issued 7,167,714 flow-through common shares (the "Flow-Through Shares") at a price of $0.175 per Flow-Through Share and 1,848,000 units (the "Units") at a price of $0.15 per Unit. Each Unit is comprised of one (1) common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles its holder to purchase one (1) common share at a price of $0.20 per share until April 1^st, 2020.

In connection with the closing of the first tranche of the Offering, the Company paid cash finder's fees totaling $113,803.99 and issued 670,742 non-transferable warrants, each warrant entitling the holder to acquire one (1) common share of the Company at a price of $0.20 per common share until April 1^st, 2020.

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 August 2, 2016. The Offering is subject to the final approval of the TSX Venture Exchange.

An insider of the Company participated in the Offering and subscribed for an aggregate of 571,429 Flow-Through Shares representing an aggregate amount of approximately $100,000. Participation of insiders of the Company in the Offering constitutes a "related party transaction" as defined under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions ("Regulation 61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of Regulation 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time.