Mr. Dean Hanisch reports

FOCUS GRAPHITE CHAIRMAN CONVERTS FINAL C$835,000 LOAN TO EQUITY AT A PREMIUM TO MARKET

Focus Graphite Inc. chairman Jeff York, through his holding company, JJJY Holdings Inc., has agreed to convert the final $835,000 outstanding balance of his long-standing loan to the company into equity at 50 cents per share.

Under the proposed transaction, Mr. York will convert $835,000 into 1.67 million common shares of Focus at a deemed price of 50 cents per share, representing an approximately 11-per-cent premium to the company's 45-cent closing share price on Aug. 17, 2026.

The financing relationship dates back to 2019 and 2020, when Mr. York, through JJJY Holdings, provided significant capital to support Focus and its continuing activities. By Sept. 30, 2020, amounts due to JJJY Holdings had reached approximately $3.05-million. Since that time, the balance has been progressively reduced through a series of previously disclosed settlements and equity conversions. The $835,000 conversion announced today represents the final outstanding balance of Mr. York's long-standing shareholder loan to the company.

The transaction removes the company's remaining obligation under the long-standing shareholder loan without requiring a cash repayment, preserving capital for its development priorities and further strengthening its financial position.

"My decision to convert the remaining balance of my loan into equity reflects my continued confidence in Focus Graphite and the progress we are making across the business," said Mr. York, chairman of Focus Graphite. "With the loan now fully converted into equity, I am further aligning my interests with our shareholders while strengthening the company's financial position. Focus has made significant progress across its projects, technology and strategic partnerships, supported by growing government investment, and I remain committed to supporting the company as we move into the next stage of development."

The conversion also follows new federal support for the Lac Knife graphite project. On Aug. 17, 2026, Prime Minister Mark Carney announced major clean-energy and critical-mineral investments and specifically identified Focus Graphite's Lac Knife infrastructure project among the strategic predevelopment projects being supported through Natural Resources Canada's (NRCan) First and Last Mile Fund (FLMF). The federal announcement highlighted preconstruction work for a new transmission line and road connecting Lac Knife to Hydro-Quebec's power grid, supporting the development of graphite supply for battery and energy-storage technologies.

The final conversion further strengthens Focus's financial profile and preserves capital for its development priorities as the company advances its Quebec graphite assets, downstream technology and broader commercial strategy.

Focus continues to advance Lac Knife, its downstream advanced-materials initiatives and broader commercial strategy amid growing government and industry support for secure, resilient North American critical-mineral supply chains.

The shares-for-debt transaction remains subject to approval by the TSX Venture Exchange.

About Focus Graphite Inc.

Focus Graphite is building an integrated graphite platform to supply the industries shaping the future. Through the development of world-class graphite resources, advanced processing technologies and higher-value advanced materials, the company is positioning itself to support battery, defence, advanced manufacturing and other strategic industries across North America and allied markets.

The platform is anchored by the company's two 100-per-cent-owned graphite assets in Quebec. Lac Knife is one of North America's highest-grade feasibility-stage graphite deposits, while Lac Tetepisca is one of the largest identified graphite resources globally. Together with strategic technology partnerships and government-supported innovation initiatives, these assets provide the foundation for a secure, scalable and increasingly integrated graphite supply chain.

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