Mr. Dean Hanisch reports

FOCUS GRAPHITE OFFICIALLY COMMENCES GOVERNMENT-SUPPORTED THERMAL PURIFICATION PROJECT TO ESTABLISH DUAL-USE GRAPHITE PRODUCTION IN CANADA

Focus Graphite Inc. has shipped a six-tonne bulk ore sample from its 100-per-cent-owned Lac Knife graphite project to SGS Canada Inc. in Lakefield, Ont., officially commencing pilot-scale processing under its Natural Resources Canada-(NRCan)-financed demonstration program. The program is designed to produce approximately 500 kilograms of graphite concentrate to support downstream thermal purification, final reactor engineering and product validation initiatives.

The six-tonne sample will undergo crushing, blending, head assays and metallurgical benchmarking prior to pilot-scale processing. SGS will operate a batch pilot flotation circuit to generate high-grade graphite concentrate targeting approximately 95-per-cent graphitic carbon. Final concentrate will be dried and screened into size fractions suitable for subsequent purification testing. The company anticipates that concentrate will be produced and shipped to its technology partner, Thermal & Material Engineer Center (TMEC), within approximately eight to nine weeks to support the commencement of final reactor design work, with the balance of the three-month program consisting primarily of data compilation and reporting activities.

As previously announced on Dec. 8, 2025, the company formalized a funding agreement for up to $14.1-million in non-repayable contributions under NRCan's Global Partnerships Initiative (GPI). Tim Hodgson, Minister of Energy and Natural Resources, said: "As global demand for critical minerals accelerates, Canada is ready to lead. Focus Graphite's work at Lac Knife shows how we can build a fully Canadian value chain -- from resource to high-purity graphite -- and strengthen our economic security in the process. Advancing pilot-scale processing here at home supports good jobs, attracts investment and reinforces Canada's position as a trusted supplier in a changing world."

Claude Guay, Parliamentary Secretary to the Minister of Energy and Natural Resources, added: "Today's progress at Lac Knife shows how Canadian companies are translating ambition into action. By advancing pilot-scale processing here in Canada, Focus Graphite is helping build the downstream capacity that supports good jobs, strengthens regional economies and positions Canada to supply the advanced materials our partners rely on."

Richard Pearce, technical adviser to Focus, stated: "SGS Lakefield is a globally recognized leader in mineral processing and pilot-scale metallurgical testing and has extensive familiarity with the Lac Knife flowsheet. This bulk sample program represents a key milestone as we advance Lac Knife toward vertically integrated, high-purity graphite production in Canada. Generating pilot-scale concentrate materially derisks scale-up and accelerates our pathway toward commercial demonstration."

The concentrate generated through this program will serve two primary strategic objectives. Material shipped to TMEC will support final engineering, detailed design optimization and preparation of construction-level specifications for the company's thermal purification plant reactor, representing a critical step toward fabrication and demonstration-scale production. In parallel, a portion of the concentrate will be retained for customer qualification and product validation initiatives, enabling engagement with potential end users across battery, defence, and advanced materials sectors. Together, these workstreams advance Focus's objective of establishing an integrated, Canadian supply chain pathway from resource to high-purity graphite product.

High-purity graphite is an essential material used in lithium-ion batteries, energy storage systems, advanced defence applications and high-technology manufacturing. Establishing domestic production capacity for graphite concentrate and purification is increasingly viewed as strategically important for supply chain security, advanced manufacturing competitiveness and energy transition objectives.

In parallel with metallurgical testing, Focus has conducted site visits to multiple potential host facilities in Quebec and Ontario for installation of its planned thermal purification demonstration plant. The company is actively evaluating existing industrial infrastructure, utilities access, logistics networks and permitting pathways as it advances final reactor design in collaboration with its technology partner.

The company will provide further updates as pilot-scale processing progresses and as additional milestones are achieved.

Qualified person

The technical content disclosed in this news release was reviewed and approved by Richard Pearce, PE, president of Brasil Insight Capital LLC, a consultant to the company, and a qualified person as defined under National Instrument 43-101.

About Focus Graphite Advanced Materials Inc.

Focus Graphite Advanced Materials is redefining the future of critical minerals with two 100-per-cent-owned world-class graphite projects and cutting-edge battery technology. The company's flagship Lac Knife project stands as one of the most advanced high-purity graphite deposits in North America, with a fully completed feasibility study. Lac Knife is set to become a key supplier for the battery, defence and advanced materials industries.

The company's Lac Tetepisca project further strengthens its portfolio, with the potential to be one of the largest and highest-purity and grade graphite deposits in North America. At Focus, the company goes beyond mining -- Focus is pioneering environmentally sustainable processing solutions and innovative battery technologies, including its patent-pending silicon-enhanced spheroidized graphite, designed to enhance battery performance and efficiency.

The company's commitment to innovation ensures a chemical-free, eco-friendly supply chain from mine to market. Collaboration is at the core of the company's vision. The company actively partners with industry leaders, research institutions and government agencies to accelerate the commercialization of next-generation graphite materials. As a North American company, the company is dedicated to securing a resilient, locally sourced supply of critical minerals -- reducing dependence on foreign-controlled markets and driving the transition to a sustainable future.

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