Mr. Dean Hanisch reports

FOCUS GRAPHITE ACHIEVES 5N PURITY FROM LAC KNIFE GRAPHITE, REFINED TO NUCLEAR-GRADE PURITY LEVELS IN AETC TESTING

Focus Graphite Advanced Materials Inc.'s recent thermal purification testing completed by American Energy Technologies Company (AETC) has successfully refined Lac Knife flake graphite concentrate to a purity level of 99.999 wt. per cent C (5N). This milestone underscores Focus Graphite's potential to supply ultrahigh-purity graphite material for nuclear energy applications, a market historically dominated by synthetic graphite and limited to a small cohort of qualifying producers.

The thermal purification was conducted at AETC's Wheeling, Ill., facility under an inert gas atmosphere at 2,800 C without the use of halogen gases. The test results exceeded expectations, achieving 5N purity through a proprietary, environmentally safer process.

This breakthrough creates a new downstream market entry point for Focus Graphite, whose Lac Knife project is one of North America's most advanced, high-purity natural graphite deposits -- now nearing the end of the mine permitting process.

Additional material characterizations are under way and will include:

• SEM/EDS: scanning electron microscopy with energy dispersive X-ray spectroscopy to evaluate surface morphology and elemental composition;

• Scott volume: measurement of bulk density for assessing packing characteristics;

• Tap density: analysis of powder compressibility and packing uniformity;

• Laser diffraction: particle size distribution and aspect ratio changes due to thermal purification;

• Particle shape analysis: identification of predominant particle geometries in the 5N purity product;

• BET surface area: Brunauer-Emmett-Teller analysis to determine surface area for adsorption and reactivity studies.

"Achieving 5N purity from Lac Knife graphite through thermal processing alone provides strong technical and commercial validation of our material," said Jason Latkowcer, vice-president, corporate development at Focus Graphite. "As global momentum shifts toward energy resilience, and surging electricity demand driven by AI, data centres and electrification, nuclear power is regaining critical importance. Focus continues to progress towards our goal of supplying secure, high-purity natural graphite from a domestic North American source. Beyond the 5N precursor, we intend to further process the 5N purified power into specific market segments within the nuclear graphite market."

This development coincides with a significant resurgence in nuclear energy investment. In Canada, Ontario is leading the G7 with the construction of the world's first grid-scale small modular reactor (SMR) at the Darlington site, representing a critical step in clean energy transformation. Meanwhile in the United States, President Donald Trump recently signed an executive order prioritizing the revival and expansion of domestic nuclear energy capacity, placing further emphasis on the supply of key materials like nuclear-grade graphite.

According to Anna Doninger, manager of government relations at American Energy Technologies Co., "We at AETC were pleased to confirm that Focus Graphite's Lac Knife natural flake graphite concentrate was thermally purified to an impressive 99.9992 wt. per cent C purity, based on platinum crucible LOI testing. Even more noteworthy, this 5N-level purity was achieved without the use of halogen gas -- using thermal purification at 2,800 C in an inert gas environment. This result positions Focus Graphite as a potential entrant into the nuclear graphite market, a space currently accessible to only a select few companies in North America. It's important to note that there is no generic 'nuclear-grade' graphite; production methods are proprietary, and end users must carefully select grades that meet their exact specifications. Historically, nuclear graphite powders have been predominantly synthetic. However, the ability of certain natural graphite materials -- like Focus's -- to meet both high-purity and equivalent boron concentration (EBC) requirements opens the door for natural graphite to serve as a viable, and in some cases superior, alternative. Natural graphite meeting these specifications can command prices in the range of $30,000 (U.S.) to $35,000 (U.S.) per tonne for 99.999 wt. per cent C LOI with less than two ppm EBC. The next phase of our collaboration will involve EBC testing of Focus's thermally refined graphite to further validate its applicability in nuclear-grade applications."

Focus Graphite's strategy includes continued testing and validation of its 5N graphite for nuclear applications, as well as evaluating commercial pathways to serve this premium market. As the company moves closer to full mine permitting and production readiness, these results further enhance the strategic and economic potential of the Lac Knife project.

About Focus Graphite Advanced Materials Inc.

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

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