OTTAWA, ONTARIO -- (MARKET WIRE) -- 08/20/12

Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) is pleased to announce that Grafoid Inc. - in which Focus Graphite holds a 40% ownership stake - has executed a Joint Intellectual Property Development Agreement with New Jersey based CVD Equipment Corporation (NASDAQ:CVV).

(Please see the Marketwire August 20, 2012 Grafoid-CVD Joint News Release)

Focus Graphite and Grafoid President and CEO Gary Economo, said the one-year, renewable agreement utilizes both companies' scientific expertise to develop a catalyst material using Grafoid's graphene derivatives and carbon nanotubes.

Grafoid Inc. is a privately held Canadian corporation investing in graphene applications and an economically scalable production process for meso-graphene and its graphene derivatives from raw, unprocessed graphite ore.

Mr. Economo said the agreement represents a major developmental step forward for Grafoid as awareness of its scientific accomplishments continue to broaden within the graphene community.

"As the single largest shareholder in Grafoid and on behalf of Focus Graphite shareholders, the agreement with CVD underscores the significance of FMS management's decision to venture into the realm of cutting edge graphene technology. The strength of Grafoid's economically scalable mass production process provides us with our long-term business platform for growth and expansion within our industry," Mr. Economo said.

Under the terms of the agreement, Grafoid will provide expertise to develop unique intellectual properties in partnership with CVD including the identification and feasibility for creating new combinations of graphene with carbon nanotubes as a catalyst material.

The Agreement executed is based upon a 50/50 mutual agreement providing both parties with equal rights to share in jointly created IPs and the ability to further the JV on additional terms.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. It is the owner of the NI 43-101 compliant Lac Knife graphite deposit grading 16% carbon as graphite. The company's goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is invested in the development of graphene applications and patents through Grafoid Inc.

Forward Looking Statements - Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
geconomo@focusgraphite.com
www.focusgraphite.com