Focus Graphite announced the results obtained from the 2014 core drilling program at its wholly owned Lac Tétépisca graphite project (the Project) located southwest of the Manicouagan reservoir in the Côte-Nord administrative region of north-eastern Québec.

Highlights:

In 2014, 16 HQ-diameter holes were drilled along four fences, spaced 200 m apart, and covering a 600 m strike length section of a 1.5-km long electromagnetic (EM) conductor mapped by a combined magnetic (MAG)-EM ground geophysical survey conducted over the "Manicouagan Ouest graphitic corridor". Eleven (11) holes intersected significant graphitic mineralisation (Table 1*).

The 2014 drill holes were loaded into Gemcom™ software and the three dimensional mineralised envelope has an azimuth of 210 degrees and dips at -40 degrees. The conversion factor for true width is 0.99 of the core length thickness. The thicknesses reported for the best intersection in the news release have been changed, however Table 1 lengths are core length thicknesses.

Best intersection: Hole LT-14-04, drilled at -45 degrees to a depth of 144 m, intersected 103.9 m grading 10.25% Graphitic Carbon (Cg1) including:

22.4 m grading 17.3 % Cg (from 36.8 m to 59.2 m); and

20.0 m grading 13.9 % Cg (from 89.5 m to 109.5 m)

The 2014 drilling identified a significant graphitic zone 60 to 100 m wide that extends down to these intersections at depth and within the main kilometric geophysical MAG-EM anomaly known as the "Manicouagan-Ouest Graphitic Corridor". A secondary graphitic zone is located 10 m to the northwest of the main zone and is 6-12 m wide.

The 600 m-long Lac Tétépisca graphitic corridor discovered by Focus in 2012 and held within the kilometric-scale MAG-EM anomaly mapped in 2014 now has significant measured drill core graphitic intercepts down to approximately 100 m depth. The encouraging initial drilling results at Lac Tétépisca further indicate that there is potential for a new large volume-high grade graphite deposit in the South Manicouagan reservoir area. In particular, interest for this type of deposit could come from the future graphite-based plastic polymer industry.

"We are extremely encouraged by these initial drilling results as they open the door to a potentially important sister resource to our flagship natural flake graphite deposit at Lac Knife, Québec; this is significant given our recent technological capabilities in purifying Lac Knife's fine flake graphite to a 99.99% carbon battery grade materials (refer to Focus news release dated August 8, 2016 available at www.focusgraphite.com and at www.sedar.com)"; said Focus Graphite President and CEO Gary Economo.

On September 25, 2015, Focus announced the Polymer Offtake, committing Grafoid to acquire, at its discretion, up to 25,000 tonnes of 97.8% Ct (average concentrate grade for all flake sizes) graphite concentrate annually from the Lac Knife Project for 10 years, representing up to 56.4% of the projected total annual production of 44,300 tonnes (all flake sizes). (Taken from Technical Report on The Lac Knife Graphite Feasibility Study; available at www.sedar.com under Focus Graphite Inc.).

The 2014 Lac Tétépisca drilling campaign was designed to test surface mineralization down to a vertical depth of approximately 100 m. The Lac Tétépisca graphitic corridor discovery was found as a result of initial prospecting and trenching work conducted in 2012 and in 2013 (refer to Focus news releases dated November 15, 2012 and October 20, 2014 available at www.focusgraphite.com and at www.sedar.com). Although the drilling at Lac Tétépisca was carried out in 2014, the core was only sampled and assayed in 2016, as the completion of the Lac Knife mineral project feasibility study was the Company's main priority at the time.

In 2014 Focus conducted a preliminary metallurgical characterization of a 10 kg composite channel sample. The metallurgical test work which was carried out at SGS Canada Inc., of Lakefield, Ontario, achieved a carbon content averaging 94.7% total carbon2(Ct) for all flake above 200 mesh, including 97.7% Ct for plus 80 mesh flake – a quality that is critical to the lithium ion battery market.

2014 Exploration Drilling Program

The 2014 Lac Tétépisca core drilling program was designed by Focus. Focus and IOS Services Géoscientifiques ("IOS") of Saguenay, Québec, supervised the drilling campaign. The core drilling was performed by Forage Rouillier of Amos, Québec. The core samples were logged in the field by Focus and IOS, and then shipped to IOS' laboratory facilities in Saguenay for storage and in preparation for future sampling and geochemical analysis. Starting in March 2016, the 16 core holes were sampled by IOS and the resulting samples were sent to COREM, an ISO/IEC 17025:2005 certified facility located in Québec-City, for graphitic carbon analysis using LECO high frequency combustion method with infrared measurement (code LSA-M-B10). Total sulphur was also analyzed by LECO (code LSA-M-B41).

Quality Assurance / Quality Control

Under the QA/QC program, about 10% of the samples were analyzed by COREM for total (code LSA-M-B45), organic (code LSA-M-B58), inorganic (code LSA-M-B11) and graphitic (code LSA- M-B10) carbon as well as for total sulphur (a total of 82 core samples). Duplicates of the same 82 samples were also sent to ACTLABS Laboratories of Ancaster, Ontario (ISO/IEC 17025:2005 with CAN-P-1579) for graphitic carbon (code 5D – C Graphitic) and total sulphur (code 4F – S Combustion infrared detection) determinations and for 35 multi-element analysis using ICP methods (code 1E2 – Aqua Regia). IOS introduced 66 standards, 32 duplicates (sawing, crushing or grinding duplicates) and 61 blank samples into the batch of core sample as part of the QA/QC program.

About the Lac Tétépisca Graphite Project

Focus Graphite's 100%-owned Lac Tétépisca Project consists of 87 contiguous map-designated claims ("CDC") covering 4,692.82 ha. The Project is located in the southwest Manicouagan reservoir area, 234 km north-northwest of Baie-Comeau, an industrial city located where the Manicouagan River intersects the North shore of St. Lawrence River. The Project is accessible year-round by logging roads that connect to Highway 389 which in turn connects to Baie-Comeau. The Project is part of the former Lac Guéret-Nord Project of SOQUEM Inc. and Quinto Technology Inc. Focus purchased 100% of the mineral rights to the Project in August 2011.