Mr. Gary Economo reports

FOCUS GRAPHITE COMPLETES DEFINITIVE ASSET PURCHASE AGREEMENT WITH INVESTISSEMENT QUEBEC FOR THE COMPANY'S 50% INTEREST IN THE KWYJIBO RARE EARTH ELEMENTS PROJECT, QUEBEC

Focus Graphite Inc. has completed the definitive asset purchase agreement for the sale of the company's 50-per-cent interest in the Kwyjibo rare earth elements project to Investissement Quebec for the sum of $7,237,696.

The Kwyjibo property consists of 116 map-designated claims (CDC) covering an area of 6,283.5 hectares located a few kilometres north of Manitou Lake, approximately 125 km northeast of Sept-Iles, in the Cote-Nord administrative district of Quebec. The Kwyjibo claim block is also located 25 km east of the Quebec North Shore and Labrador (QNSL) rail line, and is accessible by air from float plane and helicopter bases located in or near Sept-Iles.

Gary Economo, chief executive officer of Focus Graphite, commented: "We are very pleased today to announce the completion of the asset purchase agreement with Investissement Quebec to sell Focus Graphite's 50-per-cent interest in the Kwyjibo project. We believe the sale of this asset will unlock significant value to our shareholders and allow Focus Graphite to prioritize its resources on the remaining projects in the company's development pipeline."

The company also announced that, subject to exchange approval, it will seek to convert up to $1.5-million of loans due to two of its directors to shares at two cents per share.

About Focus Graphite Inc.

Focus Graphite is an advanced exploration company with an objective of producing graphite concentrate at its wholly owned Lac Knife flake graphite deposit located 27 km south of Fermont, Que.