Mr. Dean Hanisch reports

FOCUS GRAPHITE'S RECENTLY PURIFIED MATERIAL SELECTED FOR COMPRESSION MOLDED ROCKET NOZZLE

Focus Graphite Inc.'s high-purity graphite material, processed and further purified through the company's strategic partner, American Energy Technologies Co. (AETC), is now being advanced for specialty applications within the advanced downstream application sectors -- including use in a compression-moulded rocket nozzle scheduled for flight testing on the Dash Block 1 sounding rocket, developed by Pluto Aerospace Inc.

The processed graphite originates from the Lac Knife resource in Quebec, Canada. At AETC's modern fully equipped industrial graphite and carbon processing facility in Wheeling, Ill., graphite-bearing ore from Lac Knife underwent initial concentration and advanced purification. From this material, coarse flake graphite of various mesh sizes (plus 16 through plus 325) was recovered and thermally purified, positioning it for transformation into a variety of products for specialized downstream applications.

One of the most compelling demonstrations of this graphite's capabilities is its selection for the manufacture of ablative rocket nozzle inserts, crucial components capable of withstanding temperatures exceeding 3,000 C, Mach 6 speeds and forces up to 150 G. The use of both natural flake and synthetic graphite in the nozzle ensures durability, heat resistance and ablation control -- making it ideal for aerospace-grade propulsion systems. Graphite is the preferred material in these contexts due to its thermal stability, low density and excellent erosion resistance under extreme conditions.

The Dash Block 1 rocket test flight is tentatively scheduled for August, 2025, in New Mexico. As part of this mission, Focus Graphite's purified P100 mesh graphite will contribute directly to vehicle performance and durability. Focus Advanced Materials' logo will be displayed on the rocket body.

Dean Hanisch, chief executive officer of Focus Graphite, stated: "This opportunity showcases our high-performance graphite material in real-world aerospace applications. Our strategy has always been to go beyond bench-scale evaluations and provide tangible, high-TRL [technology readiness level] proof that our material can meet the demands of advanced industries. When it comes to securing offtake agreements and strategic partnerships, you can't argue with real-life performance. This rocket nozzle is just the beginning."

In alignment with the executive order (Feb. 20, 2025) on "Immediate measures to increase American mineral production," this partnership and demonstration allow Focus Graphite to assert that its minerals, processed minerals and derivative products are contributing to U.S. national interests. This is a significant milestone in establishing a North American supply chain for critical minerals -- especially as China has placed restrictions on exports of specialty flake graphite, including grades essential to the government applications.

The demand for autonomous and secure access to high-end graphite is growing rapidly. By proving the company's material's versatility in aerospace and specialty battery systems, Focus Graphite supports national security, technological independence, and the supply resiliency of critical materials for Canada and the United States.

In addition to the rocket nozzle project, purified Lac Knife graphite is also being qualified for:

• Silicon-enhanced lithium-ion battery anodes (in partnership with C4V);
• Cathode conductivity enhancement (in partnership with C4V);
• Lead-acid battery expanders;
• Near-net-shaped moulded parts;
• Functional and specialty coatings using graphene pigments.

Each of these projects highlights the diversity of applications for the company's advanced materials and reaffirms Focus Graphite's commitment to being an innovative supplier for multiple high-technology markets.

The company will continue to keep its shareholders and partners informed of the confirmed date and time of the Dash Block 1 rocket launch in New Mexico. Focus Graphite looks forward to showcasing its capabilities on a national and global scale.

About Focus Graphite Inc.

Focus Graphite is redefining the future of critical minerals with two 100-per-cent-owned graphite projects and battery technology. Focus Graphite'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.

Focus Graphite's Lac Tetepisca project further strengthens the company's portfolio, with the potential to be one of the largest and highest-purity and highest-grade graphite deposits in North America. At Focus, the company goes beyond mining -- it is pioneering environmentally sustainable processing solutions and innovative battery technologies, including the company's patent-pending silicon-enhanced spheroidized graphite, designed to enhance battery performance and efficiency.

Focus Graphite's commitment to innovation ensures a chemical-free, eco-friendly supply chain from mine to market. Collaboration is at the core of the company's vision. Focus Graphite 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 Graphite 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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