Ms. Judith Mazvihwa-Maclean reports

FOCUS GRAPHITE CLOSES SECOND TRANCHE OF FINANCING WITH ALUMINA PARTNERS

Focus Graphite Inc. has closed a second tranche under the previously announced equity financing facility with Alumina Partners (Ontario) Ltd., an affiliate of New York-based private equity firm Alumina Partners LLC.

In the second tranche under the equity financing facility, the company completed a private placement for gross proceeds of $200,000 from Alumina, with Alumina receiving 3,137,254 units of the company consisting of a common share priced at 6.375 cents per share and warrants to purchase 1,568,627 common shares, exercisable at 10.625 cents per share for 36 months.

The equity financing facility will provide the company with up to $12.0-million over a 24-month period for working capital and general corporate purposes. Under the equity financing facility, the company may, subject to certain conditions, restrictions and acceptance by Alumina, raise funds through private placements in tranches of up to $500,000. Each tranche shall be a private placement of units, to comprise one common share and one-half of a common share purchase warrant, which will be exercisable for 36 months. The units will be issued at a discount of 25 per cent of the closing market price at the time of each tranche, and the warrants will be issued at a 25-per-cent premium over the closing market price at the time of each tranche.

There are no standby charges or other upfront fees associated with the equity financing facility. Each tranche of units issued under the equity financing facility will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary four-month hold period.

In other news, Focus is pleased to report that on Dec. 2, 2021, the company received a first postclosing instalment payment in the amount of $500,000, paid in cash and shares of Mont Royal Resources Ltd., an Australian mining company per the terms of: (a) the mineral property acquisition agreement (MPA agreement) entered into on July 6, 2020, with Konkera Holdings Pty. Ltd., an Australian proprietary limited company regarding Focus's Eastmain-Leran/Alta option and Eastmain-Leran/Staked gold and base metals properties in Quebec; and (b) the assignment agreement between the company and Konkera dated May 7, 2021, whereby the company agreed to assign Konkera's obligations under the MPA agreement to a subsidiary of Northern Lights Minerals Pty. Ltd., an Australian proprietary limited company.

The payment of the postclosing instalment follows Mont Royal Resources' announcement on Dec. 1, 2021, that it had acquired a 75-per-cent interest in Northern Lights Minerals Pty. Ltd., an Australian proprietary limited company with mining claims (held by a Canadian subsidiary) and the rights to acquire a significant land package of further mining claims (acquisition assets) in the Upper Eastmain greenstone of eastern Eeyou Istchee Baie-James Territory, Northern Quebec. Focus's Eastmain-Leran/Alta option and Eastmain-Leran/Staked properties are included in Northern Lights Minerals' acquisition assets.

The company agreed to receive 30 per cent of said $500,000 payment by accepting shares of Mont Royal Resources as consideration representing $150,000 of the partial payment and 70 per cent to be paid in cash representing $350,000 which was wired to the corporation's bank account.

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 and Lac Tetepisca flake graphite projects located in the Cote-Nord administrative region of Quebec. In a second stage, to meet Quebec stakeholder interests in developing second transformation industries within the province and to add shareholder value, Focus is evaluating the feasibility of producing value-added specialty 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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