Plan Nord

Focus Graphite Announces a Feasibility Study for Value Added Graphite Products - Seite 2

The Lac Knife project has support from the local communities and a pre-development agreement with the Innu First Nation of Uashat mak Mani Utenam ("ITUM") that was announced in October, 2014. Focus Graphite met with local communities and key stakeholders during the mine feasibility study to be able to adjust the project to address concerns. These meetings will continue throughout the life of the mine.

Environmental sustainability throughout the Company's mine-to-market value chain is critical to Focus' future customers. Both the Lac Knife and Sept-Iles development projects will be powered by clean energy supplied by Hydro-Québec that will in turn supply clean, environmentally sustainable materials to the green energy sector.

The growing demand for Li-ion batteries from electric vehicles and the energy storage market associated to solar and wind energy creates market opportunities for value-added graphite products. In addition, market demand for graphite foils that are used to dissipate heat in portable electronic devices such as cell phones, computers, tablets and laptops is also growing.

Because of that anticipated demand, coupled with forecasted lower levels of production and export of graphite from China, graphite is now considered a critical material by the United States and the European Union.

Meanwhile, Focus continues to advance its $166 million structured project financing for the Lac Knife mine development project and discussions to secure off take agreements for the Li-ion battery industry and other potential markets are ongoing. In August 2014, Focus Graphite published its positive feasibility study of the Lac Knife mine and concentrator and submitted its social and environmental impact assessment with the Québec Government in November 2014.

Following completion of the graphite transformation Feasibility Study in 2015, Focus will make a definitive schedule for the mine project and the transformation plant. Third party analysts estimate the price of spherical graphite that is produced from natural flake graphite at $8,000 per tonne.

Qualified Persons

Don Baxter, P. Eng., Focus President & Chief Operating Officer, is a Qualified Person as defined by NI 43-101 guidelines, has reviewed and approved the technical content of this news release.