Focus Graphite Closes a Non-Brokered Offering

OTTAWA, ONTARIO--(Marketwired - Dec. 23, 2016) -

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Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") announces the closing of a non-brokered private placement (the "Offering") for gross proceeds of $212,500. The Company has issued 2,125,000 units (the "Units") at a price of $0.10 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 $0.10 per common share until December 23, 2020.

In connection with the closing of the Offering, the Company paid cash finder's fees totaling $16,000 and issued 160,000 non-transferable warrants, each warrant entitling the holder to acquire one (1) common share of the Company at a price of $0.10 per common share until December 23, 2018.

The securities issued in connection with the closing of the Offering are subject to a four-month hold period expiring on April 24, 2017. The Offering is subject to the final approval of the TSX Venture Exchange.

About Focus Graphite

Focus Graphite Inc. is an advanced exploration and development mining 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.

The Feasibility Study filed with SEDAR on August 8, 2014 for the Lac Knife Project indicates the project is economically viable and has the potential to become a low cost graphite concentrate producer based on 7.86 million tonnes of Proven and Probable Mineral Reserves** grading 15.13% Cg included in the Mineral Resource (429,000 tonnes Proven @ 23.61% Cg and 7,428,000 tonnes Probable @ 14.64% Cg).