Mr. Don Baxter reports

FOCUS GRAPHITE ENTERS INTO A PRE-DEVELOPMENT AGREEMENT WITH THE UASHAT MAK MANI-UTENAM INNU FIRST NATION ON THE LAC KNIFE GRAPHITE PROJECT

Focus Graphite Inc. has signed a predevelopment agreement with the Uashat Mak Mani-Utenam Innu First Nation band council for the Lac Knife mine development project located 30 kilometres south of Fermont in northeastern Quebec.

The intent of ITUM-Focus agreement is to enter into a collaborative relationship in order to better understand the impacts of the project and to incorporate ITUM's concerns into the Lac Knife mine development project planning. The PDA further lays out the possibility that future negotiations could pave the way to a long-term partnership that would allow for the sustainable development of the project in the region as well as innovative opportunities in the secondary transformation market, all the while working with ITUM to address the community's social needs and supporting its long-term vision and aspirations.

Don Baxter, president and chief operating officer of Focus Graphite, said: "We are very pleased to announce this agreement with ITUM to work together regarding the environmental and social impact assessment of the Lac Knife mine development project. This predevelopment agreement with ITUM confirms that both parties will continue working together to better understand and assess the mine development project during the ESIA study process. Together, we will assess the environmental impact and project benefits in preparation for potential discussions toward the creation of a partnership.

"Now that we have published battery test results for value-added spherical graphite, we will also work toward a partnership regarding the secondary transformation of graphite concentrate to spherical graphite for the lithium-ion battery market. This opportunity to supply the battery-grade graphite market will undergo a preliminary economic assessment once the Lac Knife project financing process is completed."

Chief Mike McKenzie of ITUM said the agreement serves as a starting point for both parties' future collaborative efforts.

"This is an important first step in my community's assessment of the Lac Knife project. Amongst other measures, the agreement includes a welcome contribution from Focus Graphite to help offset the important costs associated with analyzing mining projects. I also salute Focus's interest in partnering with my community and note that the company's link to green technologies could prove to be an interesting sustainable partnership opportunity for the Innu of Uashat Mak Mani-utenam," Chief McKenzie said.

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