Mr. Dean Hanisch reports

FOCUS GRAPHITE ADVANCED MATERIALS COMMENCES WORK PROGRAM WITH AETC FOR C4V DIGITAL DNA TESTING AND STRATEGIC SPECIALTY APPLICATIONS

Focus Graphite Inc. has commenced its advanced material preparation and testing program in collaboration with U.S.-based Advanced Energy Technologies Corp. (AETC), a leading processor of industrial graphite and carbon materials for the upstream and advanced downstream applications. This work is being undertaken to provide qualification materials to Charge CCCV (C4V) of Binghamton, N.Y., for qualification as part of C4V's proprietary Digital DNA Rapid Access qualification platform as well as to support various strategic and specialty industrial collaborations currently under prototype development and contracting with C4V's customer base.

The objective of this initiative is to fast-track the generation of premium-quality samples, including Focus's proprietary silicon-enhanced spheroidized graphite for anode active materials, from its Lac Knife project located in Quebec, Canada. Pilot lots of qualification products will be delivered to C4V for detailed performance testing, evaluation and integration into form-factored batteries, following their approval for use. Focus previously announced the strategic testing collaboration with C4V in a press release dated March 5, 2024, which highlighted the importance of the Digital DNA platform as well as the potential for Lac Knife material to be validated as a critical component for green utilities battery energy storage systems (BESS), gigafactory supply chains, and specialty and defence-related energy storage systems. The work program with AETC represents the next building block in that collaboration.

Focus welcomes the recent decision by the U.S. administration to exempt several critical minerals, including natural graphite, from the new Liberation Day tariffs announced by President Donald Trump on April 2, 2025. Under Section 3(b) of the executive order, critical minerals deemed essential to national security and clean energy objectives -- including natural graphite -- have been granted full exemptions. The urgency to execute this qualification test work stems from growing geopolitical tensions and trade restrictions, particularly between the United States and China. Despite soaring demand, the United States remains 100 per cent reliant on foreign imports of natural graphite -- primarily from China. The company is well positioned to respond to increased market demand and policy support on both sides of the border.

Jason Latkowcer, vice-president, corporate development, of Focus, commented: "We're aggressively executing our strategy to secure offtake partners and fast-track commercialization into advanced technology applications. This program is focused on qualifying our material for premium markets where demand is accelerating and supply chains remain highly vulnerable. Critical minerals have become a key geopolitical lever, and graphite has been under Chinese export restrictions since October, 2024."

Jeff York, chairman of the company, added: "Success happens when you solve a real problem. Right now, the U.S. and North America are in urgent need of secure, domestic sources of specialty graphite for national defence and the advanced materials supply chain. China is restricting exports of the type of graphite we have at Lac Knife, and the U.S. feels it. That's why natural flake graphite from Canada was left off the new tariffs. With two projects in hand and one in the final stages of the mine permit process, Focus is looking more and more like the near- and long-term solution."

About Focus Graphite Inc.

Focus Graphite is redefining the future of critical minerals with two 100-per-cent-owned world-class graphite projects and cutting-edge battery technology. The company'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.

The company's Lac Tetepisca project further strengthens Focus's portfolio, with the potential to be one of the largest and highest-purity and grade graphite deposits in North America.

At Focus, the company goes beyond mining -- it is pioneering environmentally sustainable processing solutions and cutting-edge battery technologies, including the company's patent-pending proprietary silicone-enhanced spheroidized graphite technology, designed to enhance battery performance and efficiency. Focus's commitment to innovation ensures a chemical-free, ecofriendly supply chain from mine to market.

Collaboration is at the core of Focus's vision. The company 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 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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