Focus Graphite Inc. Announces Strategic Offtake Agreements With Grafoid Inc. - Seite 3

The patented graphite-polymer process was developed by Grafoid's wholly owned subsidiary, Graflow Inc., in partnership with Rutgers University's AMIPP Advanced Polymer Center.

Under the initial terms of the Polymer Offtake agreement, Grafoid would pay Focus Graphite C$1 million over a 12-month period, with the first payment being on or before September 30, 2015, for the right of first refusal to purchase up to the annual maximum of 25,000 tonnes of the projected total annual production of all flake size graphite concentrate. Grafoid would also have the first right of refusal to extend the offtake agreement for an additional 10-year period. The pricing for an additional 10-year period will be set at market price less 10%.

Pricing for the offtake is derived from the Technical Report on The Lac Knife Graphite Feasibility Study(4) for blended average market pricing which is US$1,713/tonne, minus 10%. Accordingly, Focus estimates that the Company could record approximately US$385.4 million in revenue under the first 10-year term of the agreement, if fully exercised.

^{(4) Ibid.}

Completion of the offtake agreement transactions between Focus Graphite Inc. and Grafoid Inc. are subject to a number of conditions, including, but not limited to, the signing of definitive agreements within 60-days from the date of the announcement; approvals by the Board of Directors of both companies; and TSX-V acceptance.

Additional Terms of the Agreements

Focus will also divest between 1,000,000 and 2,000,000 common shares of Grafoid from the 7,800,000 common shares of Grafoid the Company currently owns. The proceeds from the sale will be applied to ongoing development costs of the Lac Knife Project.

"These initial offtake agreements represent a concrete example of Focus Graphite's value-added, mine-to-technology markets business strategy," said Mr. Economo. "Focus Graphite's technology graphite supply vision has been, and continues to be the cornerstone of our business mission for creating shareholder value and for the Company's future prosperity. In this regard, our strategy leads the way into diverse technology markets on a global scale," concluded Mr. Economo.