Mr. Dean Hanisch reports

FOCUS GRAPHITE EXECUTES FUNDING AGREEMENT FOR $14.1M UNDER NATURAL RESOURCES CANADA'S GLOBAL PARTNERSHIPS INITIATIVE

Focus Graphite Inc. has moved from conditional approval to a fully executed, non-repayable contribution agreement with Natural Resources Canada (NRCan) for funding up to $14,062,500 under the Global Partnerships Initiative (GPI).

The agreement formalizes the federal government's support for Focus Graphite's project titled: "Transformation of Canadian Flake Graphite into Ultra-High Purity Battery & Advanced Materials Using Electrothermal Fluidized Bed Technology." The project unites Canadian, Ukrainian and United States partners to produce ultrahigh-purity graphite for global battery, aerospace, defence and advanced material markets.

The agreement provides non-dilutive funding for the development, piloting and commercial demonstration of Focus's clean electrothermal purification process, enabling conversion of Quebec sourced natural flake graphite into ultrahigh-purity anode and advanced materials products. The project also advances broader NATO (North Atlantic Treaty Organization), G7 and European policy objectives for secure, diversified and ESG (environmental, social and governance) aligned critical mineral supply chains.

Once complete, the demonstration system is expected to produce purified graphite at volumes sufficient not only for downstream qualification, but also scalable to supply meaningful quantities to defence, aerospace, energy storage and advanced materials markets. This production capability represents a major step toward commercial readiness and supports the company's downstream strategy by enabling Focus to deliver high-purity material for evaluation and early market entry while continuing to advance its mining projects and longer-term processing infrastructure.

"Execution of this agreement significantly strengthens Focus Graphite's ability to help supply our allies with secure, ESG-aligned, high-purity graphite," said Dean Hanisch, chief executive officer. "Chinese graphite is currently embedded throughout North American military, aerospace and energy systems, creating strategic vulnerabilities across the entire allied value chain. The ability to produce ultrahigh-[purity material domestically, and process it using a clean, chemical-free purification method, positions Focus to directly support the shift toward reliable, non-Chinese sources of strategic critical minerals."

"This agreement unlocks our ability to move qualified graphite samples to international partners at a much faster pace, which is essential for advancing offtake discussions," said Jason Latkowcer, vice-president of corporate development. "We will continue to advance our Lac Knife and Lac Tetepisca projects while simultaneously delivering the high-purity material that allied partners require to validate Canadian graphite within their defence, aerospace, energy storage and advanced materials supply chains."

"Advancing research and development is essential to securing resilient and sustainable critical mineral supply chains. Through the G7 Critical Minerals Action Plan, we continue to work with trusted partners to deliver innovative projects -- like the progress achieved by Focus Graphite -- that reinforce Canada's decades-long leadership in the mining space, which allows us to supply our allies and become an energy superpower while reducing emissions," said Hon. Tim Hodgson, Minister of Energy and Natural Resources.

Federal funding details

Under the executed agreement, NRCan will provide up to $14,062,600 in non-repayable funding, representing approximately 73.6 per cent of total eligible project costs. Focus Graphite will contribute $4,787,500 in cash and an additional $250,000 in in-kind contributions toward the project. The eligible expenditures period extends from Oct. 14, 2025, through March 31, 2028, during which the company will execute all approved project activities.

Funding will support the full work program outlined in the agreement, including feedstock preparation, pilot-scale metallurgical processing, electrothermal purification trials, feasibility study, and the engineering, procurement, installation and commissioning, and demonstration of a commercial demonstration furnace.

Advancing a North American, sovereign supply chain

This federal investment advances Focus Graphite's objective of establishing a secure, fully North American graphite and advanced materials supply chain. The project is specifically structured to reduce reliance on Chinese processing routes and aligns with critical mineral strategies aimed at enhancing energy security, industrial resilience and defence readiness. The ultrahigh-purity graphite produced through this initiative is expected to supply key downstream sectors prioritized by Canada and its allies, including defence and aerospace, energy storage, electric vehicles, advanced materials, and anode production.

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. 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 its 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 -- Focus is pioneering environmentally sustainable processing solutions and innovative battery technologies, including its patent-pending silicon-enhanced spheroidized graphite, designed to enhance battery performance and efficiency.

The company'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, the company 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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