Focus Graphite Announces Pending Sale of Grafoid Shares and Other Benefits Tied to Grafoid's MOU With China's Xiamen Tungsten Co. - Seite 2

"In addition to providing Grafoid with a strategic partner, Grafoid's MOU with Xiamen, has benefits for Focus Graphite. When finalized, it will provide additional funding to allow us to advance our overall mine and transformation plant financing, and potentially open the China market to Focus Graphite for additional offtake partners and the sale of value added graphite products," Mr. Economo said.

"Specifically, this injection of funding could enable Focus Graphite to advance our Lac Knife detailed engineering and finalize the environmental permitting process" said Mr. Economo. "And, it enables us to move to the next stage in assembling our mine CAPEX financing."

Focus Graphite continues its graphite testing. Customer requirements will come from battery manufacturers and from original equipment manufacturers (OEMs) and Tier 1 and Tier 2 suppliers in North America, Asia and Europe associated with the 2015 Focus-Grafoid "Energy" and "Polymer Offtakes."

"The agreement leaves us potentially well positioned to provide a secure and reliable source of graphite feedstock for the Grafoid-Xiamen joint venture," Mr. Economo said.

"With regard to our green energy development focus," said Mr. Economo, "Grafoid's agreement with Xiamen Tungsten encourages our continued collaborative efforts with Grafoid, Stria Lithium Inc., and Braille Battery Inc. to expand our efforts in China and Asia for next generation battery development."

On September 25, 2015, Focus Graphite announced it had concluded two definitive, 10-year offtake agreements in a related party transaction with Grafoid for the purchase of Lac Knife graphite concentrate.

The first offtake agreement (the "Graphene Offtake," commits Grafoid to acquire, at its discretion, up to an annual maximum of 1,000 tonnes of high-purity (98.3% total carbon "Ct")(1) large flake (+80 mesh) graphite concentrate annually from the Lac Knife Project for 10 years, representing up to 6.8% of the projected annual production of 14,606 tonnes of high-purity large flake concentrate. (Taken from Technical Report on The Lac Knife Graphite Feasibility Study, available at www.sedar.com under Focus Graphite Inc)