New graphite bearing corridor discovered

The Focus Graphite 100%-owned Lac Tétépisca graphite property, which consists of 102 contiguous map-designated claims (“CDC”) covering 5,503.08 ha. The Project is located in the southwest Manicouagan reservoir area, 234 km north-northwest of Baie-Comeau, in the Côte-Nord administrative region of Québec.

The property, which is accessible year-round by logging roads that connect to Highway 389 that connects Baie-Comeau on the Coast to the Project area, is part of the former Lac Guéret-Nord property of SOQUEM Inc. and Quinto Technology Inc. Focus purchased 100% of the mineral rights in the Lac Tétépisca project in August 2011.

The Lac Tétépisca graphite discovery is located 10 km north of the Lac Guéret graphite deposit which hosts National Instrument (NI) 43-101 compliant Measured and Indicated mineral resources of 7.6 Mt grading 20.40% Cg (Source: Roche, 2012: Technical Report on the Lac Guéret Graphite Project; available at www.sedar.com under Mason Graphite Inc.).

The graphite-bearing outcrops within the Manicouagan-Ouest graphitic corridor are composed of fine to medium grained quartz-feldspar-biotite schists, with local occurrences of garnet and kyanite. Fine to coarse graphite flakes and associated sulphides compose 10% to 20% of the rocks, and up to 50% in strongly mineralized zones.

The 2012 discovery prompted an airborne Mag-TDEM geophysical survey of the property. The final report on the survey, received in May 2013, identified two important electromagnetic conductors, one over the area of the Manicouagan-Ouest corridor, and another anomaly in the southern part of the property. This work was followed up in July 2013 with a comprehensive exploration program over the best EM anomalies delineated from the MAG-EM survey.

On October 20, 2014, Focus Graphite announced the results of the Company’s 2013 trenching program at the Lac Tétépisca graphite project, namely that significant widths of graphitic mineralization ranging from 95 to 110 meters in thickness were intersected in a new zone. Four fences of holes were spaced 200 metres apart, covering a 600-metre strike length of this new zone in a drill program designed to test surface mineralization found in trenches down to a vertical depth of approximately 100 metres. The Manicouagan-Ouest graphitic corridor was discovered by Focus in 2012 and then exposed and channel sampled in two trenches in the fall of 2013. Assays up to 88.5 m @ 12.82 % graphitic carbon (“Cg”) and 84 m @ 11 % Cg were obtained. The 2014 drill hole assay results are pending.

Preliminary metallurgical characterization of a 10kg composite sample achieved a carbon content averaging 94.7% total carbon (“Ct”) for all flake above 200 mesh, including 97.7% Ct for plus 80 mesh flake — a quality that is critical to the lithium-ion battery market. The concentrate was produced by only a three-stage cleaner flotation test. This suggests that the impurities are loosely attached to the surface and perimeter of the flakes and are not embedded within the graphite mineral layers of individual flakes, similar to what has been shown at Lac Knife. The concentrate grades could be further improved through secondary polishing and cleaning as was shown to be the case with the Lac Knife concentrate.