Focus Graphite Inc. Enters into $12 Million Equity Facility with Alumina Partners

KINGSTON, ON / ACCESSWIRE / July 5, 2021 / Focus Graphite Inc. (TSXV:FMS) (the "Company" or "Focus Graphite") announced today it has completed due diligence with Alumina Partners (Ontario) Ltd. ("Alumina"), an affiliate of New York-based private equity firm Alumina Partners, LLC, and closed a first tranche of private placement investment pursuant thereto.

Alumina is prepared to invest up to CAD$12 million in the company over a 24-month period for working capital and general corporate purposes, including to advance both of the Company's flake graphite projects in Quebec. The Company may, subject to certain conditions, elect to have Alumina invest in private placements of up to $500,000. Each tranche shall be a private placement of units, to be comprised of one common share and one-half of a common share purchase warrant, which will be exercisable for 36 months. The units will be issued at a discount of 15% to 25% from the closing market price at the time of each tranche, and the warrants will be issued at a 25% premium over the closing market price at the time of each tranche.

"Alumina Partners has a well-earned international reputation for partnering with companies that are committed to responsibly managed growth, and we welcome their participation as we continue to advance our flake graphite projects at Focus," said Marc Roy, President and CEO of Focus Graphite. "These investments by Alumina will provide us with capital to complete the permitting process at Lac Knife and complete a mineral resource estimate study at Lac Tétépisca."

"We are excited to support Focus Graphite as they progress work at their Lac Knife and Lac Tétépisca projects," added Adi Nahmani, Managing Member of Alumina Partners. "We have every confidence in management's ability to execute against plan and hit the ground running as the resource sector recovers from COVID-related impacts."

In the first tranche that closed on July 2^nd, 2021, the Company completed a private placement for gross proceeds of $200,000 from Alumina, with Alumina receiving 2,962,963 units of the Company consisting of a common share priced at $0.0675 per share and warrants to purchase 1,481,482 common shares, exercisable at $0.1125 per share for 36 months.

There are no standby charges or fees associated with these investments. Each tranche of units issued will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary 4-month hold period.