Mr. Dean Hanisch reports

FOCUS GRAPHITE CLOSES $3.9 MILLION BOUGHT DEAL OFFERING

Focus Graphite Inc. has completed its previously announced bought deal offering. The offering was led by Research Capital Corp. as the sole underwriter and sole bookrunner.

Pursuant to the offering, the company issued 9,273,410 units of the company at a price of 42 cents per unit for aggregate gross proceeds of $3,894,832.20, including the partial exercise of an overallotment option granted to the underwriter by the company. Each unit consists of one common share of the company and one common share purchase warrant of the company. Each warrant entitles the holder thereof to purchase one common share at an exercise price of 60 cents per common share at any time until June 8, 2028.

The net proceeds from the offering will be used for temporary working capital float, payments required before reimbursement, technical and qualification materials associated with the government of Canada's Global Partnership Initiative, and general corporate purposes.

The units were issued pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106, Prospectus Exemptions, as amended by CSA Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. The securities offered under the listed issuer financing exemption are free trading and will not be subject resale restrictions in accordance with applicable Canadian securities laws.

The company entered into an underwriting agreement dated Dec. 8, 2025, with the underwriter, pursuant to which the company: (i) paid the underwriter a cash commission of $272,638.25; and (ii) issued an aggregate of 649,139 non-transferable broker warrants. Each broker warrant entitles the holder to purchase one unit at an exercise price of 60 cents per broker unit at any time until June 8, 2028. Each broker unit comprises one common share and one warrant. Each broker warrant entitles the underwriter to purchase one common share at a price of 60 cents per broker warrant share at any time until June 8, 2028. The broker warrants, broker units, broker shares and broker warrant shares are subject to a hold period of four months and one day from the date of issue.

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.

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; the company is pioneering environmentally sustainable processing solutions and innovative battery technologies, including Focus'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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