Mr. Dean Hanisch reports

FOCUS GRAPHITE INITIATES JOINT DEVELOPMENT WITH FORGE NANO TO EVALUATE ADVANCED COATING TECHNOLOGY FOR LAC KNIFE GRAPHITE

Focus Graphite Inc. has entered into a joint product development agreement (JPDA) with Forge Nano Inc., a leading U.S.-based semiconductor equipment and advanced materials company pioneering atomic layer deposition (ALD) technology for AI-era (artificial intelligence) chip manufacturing and defence battery applications, to evaluate ALD coating technology on natural graphite sourced from the company's Lac Knife project in Quebec.

This focused development program is designed to generate near-term performance data on ALD-coated natural graphite, with results expected to inform future scale-up, customer engagement, commercial off-takes and financing pathways. The work targets improved cycle life, fast-charging performance and durability under demanding operating conditions, areas that are becoming increasingly important across battery, industrial and defence applications.

Key highlights:

• Joint product development program with Forge Nano to evaluate ALD-coated natural graphite;
• Approximately two kilograms of Lac Knife graphite to be processed and evaluated across multiple coating conditions;
• Program designed to generate performance data for battery applications, including improving cycle life, fast-charging capability, and material stability;
• Results to support future pilot programs, financing applications, scale-up decisions and downstream engagement.

Program overview and strategic rationale

The JPDA establishes a structured proof-of-concept program to evaluate ALD coating on Focus Graphite's high-grade natural graphite.

Under the agreement, Focus will supply uncoated graphite from Lac Knife and Forge Nano will perform coating, analytical testing and electrochemical evaluation.

The objective is to determine whether ALD can serve as a viable alternative to conventional pitch coating, which remains the industry standard but is energy intensive and dependent on fossil-fuel inputs.

In addition to potential cost and environmental considerations, the program is designed to evaluate performance under real-world conditions. Modern battery systems are increasingly required to operate under fast-charging, repeated-cycling and variable-temperature environments, all of which can accelerate material degradation. Surface-level engineering, where many of these failure mechanisms originate, is emerging as a key lever to improve performance.

"Performance gains in next-generation batteries are increasingly unlocked at the surface level," said Jason Latkowcer, vice-president, corporate development, at Focus Graphite. "By combining Lac Knife's high-grade graphite with Forge Nano's atomic layer deposition platform, we are evaluating how atomic-scale coatings can improve battery life, charging performance and durability. This collaboration is a step toward positioning this material for higher-performance roles within North American energy and defence supply chains."

Why Forge Nano

Forge Nano brings a differentiated platform based on Atomic Armor ALD, a precision coating process that modifies materials at the atomic scale to enhance performance at the surface level.

This approach enables highly uniform coatings that can improve cycle life, enhance rate capability and increase material stability under demanding conditions. These attributes are increasingly important across battery, industrial and defence applications, where reliability, performance consistency and energy efficiency are critical.

Forge Nano's broader platform also includes its subsidiary, Forge Battery, which is advancing a three-gigawatt-hour-per-year, U.S.-based lithium-ion manufacturing facility supported by over $100-million (U.S.) in Department of Energy funding. The facility is focused on producing high-performance, domestically manufactured battery cells for defence and niche mobility markets, further reinforcing the relevance of advanced material technologies within North American supply chains.

By working with Forge Nano at this stage, Focus Graphite is evaluating whether these performance enhancements can be achieved using natural graphite from Lac Knife, supporting the development of higher-value graphite products aligned with evolving market requirements.

Expected outcomes and next steps

The primary deliverable from this phase is a comprehensive data package that will support:

• Follow-on pilot-scale development programs;
• Engagement with battery manufacturers and downstream partners;
• Applications for non-dilutive financing and strategic support.

This initial phase is intended to establish a technical and economic basis for advancement toward kilogram-scale production and future pilot programs, subject to successful results.

If validated, future development may include scaling the process using Forge Nano's manufacturing systems, increased graphite supply and expanded battery validation, including application-specific testing.

As previously announced on Dec. 8, 2025, the company formalized a funding agreement of up to $14,062,500 in non-repayable contributions under NRCan's Global Partnerships Initiative (GPI). The GPI funding is specifically intended to support the development and demonstration of electro-thermal purification technology in Canada. Insights generated from this program are expected to inform downstream processing opportunities, including coating and material enhancement processes, which may be evaluated for integration into future development stages, subject to successful results.

Qualified person

The technical content disclosed in this news release was reviewed and approved by Richard Pearce, PE, president of Brasil Insight Capital LLC, a consultant to the company, and a qualified person as defined under National Instrument 43-101.

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. 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 -- Focus Graphite 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.

Focus Graphite's commitment to innovation ensures an eco-friendly supply chain from mine to market. Collaboration is at the core of Focus Graphite'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.

We seek Safe Harbor.