Mr. Dean Hanisch reports

FOCUS GRAPHITE HIGHLIGHTS STRATEGIC ALIGNMENT WITH WHITE HOUSE EXECUTIVE ORDER TO SECURE U.S. DEFENSE SUPPLY CHAINS

Focus Graphite Inc. today highlighted the strategic alignment between its long-term strategy and the White House Executive Order, "Securing America's Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials."

Issued on July 20, 2026, the executive order establishes as U.S. policy that military equipment, together with the critical materials required to manufacture, maintain and sustain it, should be sourced domestically or from allied nations. It directs the U.S. Department of War (DoW) to strengthen supply-chain transparency, identify strategic vulnerabilities, reduce dependence on unreliable foreign suppliers and accelerate the qualification of alternative sources. The executive order also calls for critical supply chains to be traced from raw-material origin through end use and requires contractors to actively qualify compliant domestic and allied sources where supply-chain vulnerabilities are identified.

The strategic urgency is particularly acute for graphite. According to the U.S. Geological Survey's (USGS) Mineral Commodity Summaries 2025, the United States was 100-per-cent net import reliant for natural graphite in 2024, with an estimated 43 per cent of U.S. consumption met by imports from China on average between 2020 and 2023. At the downstream level, the International Energy Agency's (IEA) Global Critical Minerals Outlook 2026 estimates that China accounts for more than 90 per cent of global refined graphite production, making processing one of the most significant bottlenecks to diversifying allied supply chains. These overlapping dependencies have elevated graphite from a battery material to an increasingly important strategic material supporting defence, advanced manufacturing, energy security and emerging technologies.

Focus believes these priorities align directly with its strategy of combining premium North American graphite resources, clean hydroelectric-powered processing, advanced purification and downstream advanced materials development through strategic partnerships to build a resilient graphite supply chain less dependent on concentrated foreign processing capacity.

"The White House has made the mission clear: know the source, secure the chain and qualify allied supply," said Dean Hanisch, chief executive officer of Focus Graphite. "The technologies defining modern economic and national security -- including drones, autonomous systems, AI infrastructure, advanced nuclear energy and resilient energy storage -- depend on materials that remain concentrated in foreign supply chains. Focus is well positioned to help build more resilient supply chains that address those vulnerabilities."

Proposal submitted under U.S. Department of War critical minerals initiative

Earlier this year, Focus submitted a proposal for the Lac Knife project under the DoW's Defense Industrial Base Consortium (DIBC) solicitation, "RPP-CM-26-01 - Domestic Processing Capabilities of Critical Minerals," which seeks to strengthen domestic and allied critical mineral supply chains supporting U.S. defence applications.

The proposal presented Lac Knife as the foundation of a secure North American graphite supply chain, supported by the project's high-grade Canadian natural graphite resource, completed 2023 National Instrument 43-101 feasibility study, scalable development profile and established transportation infrastructure. It also contemplated downstream upgrading with a proven U.S. project partner as part of an integrated cross-border supply-chain strategy.

The company believes the proposal supports the objectives of the initiative and reflects the same strategic priorities reinforced by the executive order. Focus will provide further updates, as appropriate, regarding the U.S. government's continuing evaluation process.

An integrated North American graphite platform

Focus's integrated North American graphite platform combines three core capabilities that support secure allied supply chains:

• Premium graphite resources -- Lac Knife, North America's highest-grade natural flake graphite project with a completed feasibility study, and Lac Tetepisca, one of the largest graphite resources in the Americas, provide a unique combination of near-term development readiness and long-term resource scale, forming the foundation for a secure North American supply of natural graphite.
• Advanced purification -- Focus is advancing an electrothermal purification pathway designed to produce ultrahigh-purity graphite while eliminating the acids and halogen gases associated with conventional chemical purification.
• Advanced materials development -- Focus is advancing downstream qualification programs across battery, defence, nuclear and other advanced industrial applications. Through strategic partnerships, including collaborations with U.S.-based technology partners Charge CCCV LLC (C4V) and Forge Nano Inc., the company is evaluating pathways to battery anode materials and other high-value graphite products.

Recent testing demonstrated that Lac Knife graphite concentrate can be thermally purified to 99.9996 wt. per cent carbon purity (5N+), highlighting its suitability as a premium feedstock for evaluation in demanding defence, nuclear, energy storage and other advanced industrial applications.

"The opportunity begins with premium graphite concentrate but extends far beyond it," said Jason Latkowcer, vice-president, corporate development. "Lac Knife's exceptional grade gives us the flexibility to create value at multiple points across the supply chain, from premium concentrate to qualified advanced materials. Our grade creates optionality. Our strategy creates value."

Focus's integrated North American graphite platform has also been supported by approximately $15.4-million in non-dilutive funding commitments from the government of Canada, including support for electrothermal graphite purification technology and critical infrastructure planning for the Lac Knife project.

Looking forward

Focus will continue advancing Lac Knife through permitting and toward its potential development as one of North America's next producing graphite mines. The company will also advance engineering of its electrothermal purification technology, progress technical studies at Lac Tetepisca and expand engagement with U.S. government stakeholders and defence, technology and industrial partners to support customer qualification, and strengthen secure North American and allied graphite supply chains.

Qualified person

The technical content disclosed in this news release was reviewed and approved by Rejean Girard, PGeo (QC), president of IOS Geosciences Inc., a consultant to the company, and a qualified person as defined under National Instrument NI-43-101.

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 -- the company 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.

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