Ms. Judith Mazvihwa-Maclean reports

FOCUS ANNOUNCES INCREASES IN FINANCING TO $5.2M

Focus Graphite Inc., further to its news release of Dec. 14, 2021, has increased the previously announced financing from $4-million to $5.2-million and will issue up to 57,777,778 common shares of the company issued on a flow-through (FT) basis at a price of nine cents per FT share.

The offering is expected to close in tranches, with the first tranche to close as soon as possible subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The FT shares will be sold on a private placement basis to accredited investors pursuant to the accredited investor exemption or other available and agreed upon exemptions from prospectus requirements. The FT shares will have a hold period of four months and one day from the date of issue.

The company also announced in its Dec. 14, 2021, news release that it may pay finders' fees equal to 7 per cent of the gross proceeds from a portion of the financing in cash and 7 per cent finders' warrants equal to the number of FT shares issued as part of the offering in accordance with the policies of the TSX Venture Exchange. Each finder warrant now entitles the finder to purchase one non-flow-through common share at a price of 15 cents per common share for a period of 12 months from closing of the offering.

About Focus Graphite Inc.

Focus Graphite is an advanced exploration company with an objective of producing flake graphite concentrate at its wholly owned Lac Knife flake graphite deposit located 27 kilometres south of Fermont, Que. In a second stage, to meet Quebec stakeholder interests of transformation within the province and to add shareholder value, Focus is evaluating the feasibility of producing value-added graphite products, including battery-grade spherical graphite.

Focus Graphite is a technology-oriented graphite development company with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc.

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