Focus Graphite Inc. (OTCQX: FCSMF) (FRANKFURT: FKC) ('Focus' or the 'Company') is pleased to announce the results of its Feasibility Study Update ('FSU') for the Lac Knife Project (the 'Project'), its 100% owned, high-grade crystalline flake graphite deposit located about 27 kilometres south-southwest of Fermont in the Cote-Nord administrative region of Quebec.

The Project is located on the Nitassinan (ancestral lands) of the Innu community of Innu Takuaikan Uashat mak Mani-utenam (ITUM).

The FSU was prepared by DRA Global Limited with assistance from various independent technical consultants.

The FSU is based on a 27-year mine life and produced a Pre-tax Net Present Value ('NPV') of $500.9 million calculated at a discounted cash flow ('DCF') rate of 8%. Pre-tax, the financial model has an Internal Rate of Return ('IRR') of 28.7% and a capital payback period of 2.8 years.

The after-tax financial model has an NPV of $285.7 million calculated at a DCF rate of 8%, and with an IRR of 22.4% and a capital payback of 3.3 years.

Results from the FSU indicate that the Project is viable economically with a Base Case scenario that includes a concentrator production line rate of 47,781 tonnes of flake graphite concentrate annually at an average mill feed rate of 365,320 tonnes per year of Mineral Reserves over a 27-year mine life. A concentrator availability of 93% was used for the FSU. The Project's additional Measured, Indicated, and Inferred Resources will continue to be evaluated to develop the mid- and long-term growth profile for the Company.

This feasibility study update marks a new significant milestone in the development of the Lac Knife Project,' said Marc Roy, President and CEO of Focus Graphite. 'It confirms that the project hosts a graphite deposit with an average graphitic carbon (Cg) grade of 99.7% in +80 mesh flake concentrate, which is exceptional in this industry. With the FSU in hand, Focus is ready to take the next step, which is to complete the environmental and social impact assessment (ESIA) study for Lac Knife and then move the Project through the Quebec Government environmental review and public consultation process towards mine permitting.'

Mr. Roy added, 'During these next steps, we plan to continue to consult the Indigenous and other local communities that could be impacted by the development of the project, to explain the results of the feasibility study to them, to listen to their concerns and expectations, and to offer them an opportunity to participate in project steering committees. We will also consult the Government of Quebec about potential incentives and initiatives that could help facilitate the development of the Project and achieve social acceptability, particularly incentives provided under its Plan for the Development of Critical and Strategic Minerals 2020-2025. At the same time, we intend to continue exploring the remainder of the Project for other significant flake graphite occurrences.'

The FSU for the Lac Knife project comes at a time when interest in developing a secure, North American source of high purity large flake graphite is on the rise. North American and European electric vehicle (EV) markets are set to expand significantly over the next two decades in an effort to get road emissions to carbon neutrality by 2050 and as governments enact industrial policies aimed at domestic development of EV supply chains. Furthermore, new EVs will be powered by batteries that require significant amounts of high-quality graphite.

The Project is designed as a stand-alone business operation to produce a line of high purity flake graphite concentrates destined mainly for the North American and European battery anode materials industry and for other specialty applications using natural flake graphite from Quebec. The updated Project feasibility study positions Focus to become a leading supplier of these graphite concentrates to EV battery manufacturers.

Lac Knife is unique in that all natural flake graphitic concentrates produced with flake size above 200 mesh (75 microns) size are more than 98% Cg. This allows Focus to divert finer sized products that would typically be difficult to sell due to their flake size to higher value-added products such as spherical graphite for batteries, due to the high carbon content of 98% carbon.

Although the Lac Knife mine will be a conventional open-pit mining operation using diesel-driven equipment, Focus is determined to utilize all electric mobile equipment as soon as it becomes economically available in order to make the Project a carbon-free operation, powered by low-cost hydroelectricity readily available in the area from Hydro-Quebec. In an effort to improve environmental mine safety, Focus is planning a dry tailings system instead of the originally planned tailings pond and reclaim system along with new mitigation measures designed to minimize the risks of acid mine drainage.

Under NI 43-101 regulations, Focus cannot offset estimated costs in the FSU to include the proposed Canadian and United States financing programs for critical minerals projects, nor the recently announced Canadian federal government 30% tax credit on the purchase of electric mining equipment, both of which could significantly improve the economics of the Project.

Technical Report

A technical report detailing the FSU and completed in accordance with National Instrument (NI) 43-101 guidelines, will be filed and available on SEDAR with 45 days of this release.

Updated Mineral Resources

The Updated Mineral Resource Estimate (MRE) prepared by DRA shows that the Lac Knife Project has 12.0 Mt of Indicated resources grading 15.34 % Cg for an estimated content of 1.7 Mt of in-situ natural flake graphite, and 0.6 Mt of Inferred resources grading 16.90% Cg for an estimated content of 0.1 Mt of in-situ natural flake graphite.

This updated MRE follows infill and exploration drilling completed on the Project since the Feasibility Study (FS), which was published in 2014. A total of seventy-five (75) holes, with a cumulative length of 11,204 m, were drilled between 2014 and 2018, since the effective date of the previous MRE.

Of these 75 holes, a total of sixty-five (65) holes, for a total meterage of 8,072 m, were drilled in 2014, of which twenty-six (26) holes were exploration holes and thirty-nine (39) were definition drilling to tighten up the FS resource definition area. A total of ten (10) holes, for a cumulative length of 3,132 m, were later drilled in 2018 to test the graphite potential in the deep western side of the open pit shell footprint as defined in the 2014 Feasibility Study.

The MRE is based on the integration of geological, structural and grade information included in the resource drill hole database received and recorded solely from diamond core.

About DRA Global Limited

DRA Global Limited (ASX: DRA | JSE: DRA) (DRA) is a multi-disciplinary consulting, engineering, project delivery and operations management group predominantly focused on the mining and minerals resources sector. DRA has an extensive global track record, spanning more than three decades and more than 7,500 studies and projects as well as operations, maintenance, and optimisation solutions across a wide range of commodities.

DRA has expertise in mining, minerals and metals processing and related non-process infrastructure including sustainability, water and energy solutions for the mining industry. DRA delivers advisory, engineering and project delivery services throughout the capital project lifecycle from concept through to operational readiness and commissioning as well as ongoing operations, maintenance, and shutdown services.

DRA, headquartered in Perth, Australia, services its global customer base through 20 offices across Asia-Pacific, North and South America, Europe, Middle East, and Africa.

About Focus Graphite

Focus Graphite Inc. is an exploration and development company that seeks to produce flake graphite concentrate at its wholly owned Lac Knife and Lac Tetepisca flake graphite projects located in the Cote-Nord administrative region of Quebec. As part of its mission to build long-term, sustainable shareholder value, Focus is also evaluating the feasibility of producing value-added specialty graphite products, including battery-grade spherical graphite. Focus Graphite is a technology-oriented graphite development company with a vision for building long-term, sustainable shareholder value. Focus also holds an equity position in graphene applications developer Grafoid Inc. Focus is committed to operating in a socially, environmentally and ethically responsible manner.

Contact:

Tel: (613) 581-4040

Forward-Looking Statements

This press release contains 'forward-looking information' within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information, including references to the plans and project of the Company such as proceeding with production at the Company's Project, proceeding with permitting and environmental studies at Lac Knife, and other plans outlined in this press release. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as 'potential', 'high-potential', 'expected', 'optimistic', 'looking forward', 'moving forward', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would' or 'might'. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) fluctuations in commodity prices; (vii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (viii) competition faced by the issuer in securing purchasers, off-taker markets, clients and experienced personnel and financing; (ix) access to adequate infrastructure to support mining, processing, development and exploration activities; (x) the risks associated with changes in the mining regulatory regime governing the issuer; (xi) the risks associated with the various environmental regulations the issuer is subject to; (xii) risks related to regulatory and permitting delays; (xiii) risks related to potential conflicts of interest; (xiv) the reliance on key personnel; (xv) liquidity risks; (xvi) the risk of litigation and (xvii) risk management.

Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration, and development plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approval, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is given as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

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