Mr. Dean Hanisch reports

FOCUS GRAPHITE COMMENCES HYDROGEOLOGICAL STUDY SUPPORTING REDESIGNED TAILINGS SYSTEM TO ELIMINATE MINE DRAINAGE AT LAC KNIFE

Focus Graphite Inc. has commenced a hydrogeological study at its wholly owned Lac Knife project.

The study will be executed by Yves Leblanc, PGeo, of Richelieu Hydrogeologie Inc. (RHI), a Quebec-based consulting firm specializing in groundwater management, mining and environmental hydrogeology, geothermal systems and individual well design. RHI has supported Focus and the Lac Knife project since 2019. The program will be carried out under the supervision and management of IOS Geosciences Inc., the company's geological consulting firm and general contractor for the Lac Knife project.

This study represents one of the final major technical milestones in advancing the company's environmental and social impact assessment (ESIA) -- a critical step toward the mine permitting phase for the project. The hydrogeological program will characterize groundwater flows, aquifer properties and potential interactions with project infrastructure such as the open pit and tailings storage facility, ensuring responsible water management and full compliance with Quebec's regulatory standards.

The Lac Knife deposit is located on a hill crest between Knife Lake and Pecan River, both tributaries of the Moisie River, which is designated as a planned aquatic reserve. As such, the highest standards of aquifer protection must be applied. This study aims to address concerns outlined in the second round of questions received in 2019 from Quebec's Ministry of Sustainable Development, Environment and the Fight Against Climate Change (MDDELCC) during its review of the company's original environmental and social impact study submitted in 2014. As part of the 2021 Lac Knife feasibility study update, the project's tailings storage facility was fully redesigned to incorporate nearby dolomitic marble, which will amend the tailings and eliminate the risk of acid mine drainage. This new design concept required a complete remodelling of the aquifer system. Results from the current hydrogeological modelling are expected by February, 2026, aligning with the planned submission of the final ESIA revision.

Focus continues to collaborate with IOS to finalize contracting for the remaining studies, including tailings dam breach analysis and dust dispersion modelling.

"The launch of the hydrogeological study marks another important step toward permit readiness," said Jason Latkowcer, vice-president, corporate development, Focus Graphite. "We are systematically closing out the final technical components of the ESIA -- with hydrogeological modelling being the most time sensitive -- ensuring that every environmental and social consideration is addressed with scientific rigour. Our commitment remains to advance Lac Knife responsibly, in alignment with indigenous and Quebec environmental standards and the growing global demand for ethically sourced graphite."

The Lac Knife project hosts one of the highest-grade flake graphite deposits in the world, with measured and indicated resources grading 14.95 per cent graphitic carbon (Cg). Once in production, Lac Knife is expected to supply high-purity graphite for defence, battery and advanced materials markets, supporting Canada's critical minerals strategy.

On Nov. 3, 2025, the company announced that it had been selected by Natural Resources Canada (NRCan) under the Global Partnership Initiatives (GPI) for conditional approval for a non-repayable contribution of up to $14,062,500, pending final due diligence.

Qualified person

The technical content disclosed in this news release was reviewed and approved by Rejean Girard, PGeo (Quebec), president of IOS Geosciences, a consultant to the company and a qualified person as defined under National Instrument 43-101.

About Focus Graphite Inc.

Focus Graphite is redefining the future of critical minerals with two 100-per-cent-owned graphite projects and battery technology. Focus Graphite'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.

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

Focus Graphite'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. Focus Graphite actively partners with industry leaders, research institutions and government agencies to accelerate the commercialization of next-generation graphite materials. As a North American company, Focus Graphite 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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