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Focus Graphite Creates a 613 mAh/Kg Reversible Capacity Silicon- Enhanced Graphite Anode for Li-Ion Batteries – Nearly Doubling Theoretical Capacity of 372 mAh/Kg

Corporate Updates

October 26, 2017

For Immediate Release

FMS: TSX-VENTURE

Focus Graphite Creates a 613 mAh/Kg Reversible Capacity Silicon-

Enhanced Graphite Anode for Li-Ion Batteries – Nearly Doubling

Theoretical Capacity of 372 mAh/Kg

OTTAWA – Focus Graphite Inc. (FMS: TSX-V; OTCQX: FCSMF; FSE: FKC) (“Focus” or the

“Company”) is pleased to report it has developed a silicon -enhanced graphite anode for next

generation lithium-ion batteries.

Testing in CR2016 coin cells showed the Company’s initial efforts to introduce nano-sized silicon

into Lac Knife spherical graphite anode materials were successful in nearly doubling the

capacity of Lithium-Ion batteries currently using synthetic and standard flake graphite in the

anode mix.

Dr. Joseph Doninger, Focus Director of Manufacturing and Technology - who headed the testing

program– said the testing results pushed performance well beyond the prescribed limits of

theoretical reversible capacity of 372 Ah/kg for lithium-ion battery cells.

“Our aim has always been to create and d evelop scientific solutions that not only work, but

solutions that win for our customers and the marketplace,” said President and Chief Executive

Officer Gary Economo.

“The combination of our graphite resource at Lac Knife and the in-house scientific and technical

capabilities to overcome performance and safety issues related to Lithium-Ion batteries may well

represent a significant step forward for the battery industry,” Mr. Economo said.

In a February 25, 2015 news release, the Company announced its spherical graphite (SPG)

exhibited superior performance in coin cells when compared with commercial grades of synthetic

graphite. This data is shown in Figure 1 below:

As shown, Focus Graphite’s carbon coated fine grade of spherical graphite (SPG) at a reversible

capacity of 366 Ah/kg is very close to the theoretical limit of 372 Ah/kg achievable with graphite.

In addition, coin cells made with the two commercial gra des of synthetic graphite achieved

reversible capacities of only 345 and 347 Ah/kg, about 6% lower in capacity than the Lac Knife

SPG. However, both the excellent performance of the Focus SPG and the commercial grades of

synthetic graphite used in the anode have almost half of the capacity achieved with the new

Focus silicon-enhanced Lac Knife SPG.

With pure silicon alone used as the anode material, theoretical reversible capacities as high as

4200 Ah/kg are possible. However, there is a serious problem with using silicon in that it swells

and contracts as much as much as 400% during the lithiation a nd de-lithiation process that

occurs during cycling. This results in the formation of an unstable anode and hence an unusable

lithium- ion battery. Much work has been reported in the literature to add lithium to the graphite

used in the anodes but continuing stability problems caused by the swelling of the silicon have

held back its development.

“Focus Graphite has developed a process that addresses this problem and as indicated in

Figure 2 below, with the addition of 18 wt. % silicon nanoparticles into our Lac Knife SPG, we

have shown the possibility of achieving a reversible capacity value of 613 Ah/kg – almost twice

the capacity of the commercially available grades of synthetic graphite and our standa rd Lac

Knife spherical graphite,” said Dr. Doninger.

Figure 2.

This data was presented at the 30th International Electric Vehicle Symposium and Exhibition

held from October 9th to 11th , 2017, in Stuttgart, Germany. A copy of the paper presented is

available on the Focus website via the following link: Electrochemical Performance of Lac Knife

Natural Crystalline Flake Graphite from Quebec, Canada in Lithium Ion Batteries.

As shown above, a reversible capacity of 613 Ah/kg was achieved with the Lac Knife silicon -

enhanced SPG at a C/20 rate after the first cycle which is the same charging rate that was used

in the coin cell tests run on the synthetic and Lac Knife graphite anode materials sho wn in

Figure 1. Although the irreversible capacity loss (ICL) after the first cycle was 26.4% compared

to 0.7% for the untreated SPG, the high reversible capacity achieved with the silicon -enhanced

SPG indeed is quite remarkable particularly since these te sts were conducted on an uncoated

grade of spherical graphite.

“Additional testing is being planned to optimize both the formulations and process used to

produce the silicon-enhanced Lac Knife SPG. These tests , along with coating the SPG with

carbon to cushion the swelling that can occur due to the presence of silicon in the graphite ,

should result in further increases in the reversible capacity and decreases in the irreversible

capacity loss.

“Ultimately, we have developed a silicon -enhanced graphite based anode that results in an

incredible increase in the capacity potential for lithium-ion batteries,” Dr. Doninger said.

Mr. Economo said the Company’s ongoing, long-term product testing program has contributed to

the development of a complete range of technology graphite products – including new graphite

products to the industry.

“The advances we have made in the development of our superfine graphite anode materials, our

expanded graphite for Lithium -Ion battery cathodes and, now; silicon-enhanced spherical

graphite for anodes underscores our aims and objectives of meeting industry needs,” Mr.

Economo said.

“And that is, to provide manufacturers with higher-performing, lower cost graphite materials and

products to meet next generational requirements,” he said.

Mr. Economo said battery manufacturers and institutions are currently testing Focus’ Lac Knife

graphite products globally. The average testing period is approximately 24 months with some

potential customers nearing the end of their long-term evaluations.

The following figures provide a partial overview of the scope of Focus Graphite’s silicon -doped

graphite anode test project results.

Figure 3.

The new product concept has been tested in the CR2016 coin cells vs. Li/Li+ reference electrode. The notional

schematic of a CR2016 cell is depicted above. The experimental variables included coated and uncoated versions of

Lac Knife silicon-enhanced spherical graphite.

Figure 4.

Figure 4 above shows galvanostatic curves throughout three cycles of a cell containing carbon coated graphite with

4.5 wt% silicon added. It was determined that the coated material fared better than the uncoated material because the

silicon was better protected by an outside amorphous carbon shell.

Qualified Person

Dr. Joseph Doninger, Focus Graphite's Director of Technology and Manufacturing is the

Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral

Projects - has reviewed and approved the technical content of this news release. Dr. Doninger is

the developer and co-developer of a number of U.S., European and Canadian patents related to

carbon processing methodologies and processing equipment. Also, a chemical engineer, Dr.

Doninger is the author and co-author of some two dozen technical papers and studies related to

graphite composite anodes; carbon-based materials for electrochemical energy storage

systems; advanced graphite for Lithium-ion batteries and other related publications.

About Focus Graphite

Focus Graphite Inc. is an advanced exploration and mining company with an objective of

producing graphite concentrate at its wholly owned Lac Knife flake graphite deposit located 27

km south of Fermont, Québec. In a second stage, to meet Quebec stakeholder interests of

transformation within the province and to add shareholder value . Focus is evaluating the

feasibility of producing value added graphite products including battery-grade spherical graphite.

Focus Graphite is a technology-oriented graphite mining development company with a vision for

building long-term, sustainable shareholder value. Focus also holds a significant equity position

in graphene applications developer Grafoid Inc.

For more information about Focus Graphite, please visit www.focusgraphite.com.

Forward Looking Statement

This News 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. Generally, such forward -looking information can be

identified by the use of forward -looking terminology such as "plans", "expects" or "does not

expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or

"does not anticipate", or "believes", or variations of such words and phrases or state that certain

actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be

achieved". Forward-looking information is subject to known and unknown risks, uncertainties

and other factors that m ay 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 gene ral

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) the risks associated with

entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with

uninsurable risks arising during the course of exploration, development and production; (ix)

competition faced by the Company in securing experienced personnel and financing; (x) access

to adequate infrastructure to support mining, processing, development and exploration activities;

(xi) the risks associated with changes in the mining regulatory regime governin g the Company;

(xii) the risks associated with the various environmental regulations the Company is subject to;

(xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of

interest; (xv) the reliance on key perso nnel; (xvi) liquidity risks; and (xvii) the risk of potential

dilution through the issue of common shares.

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 proceeding in

accordance with plans and such plans achieving their stated expected outcomes, receipt of

required regulatory approvals, 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 fo rward-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, reade rs should not place undue reliance on

forward-looking information. Forward-looking information is made as of the date of this News

Release, and the Company does not undertake to update such forward -looking information

except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined

in the policies of the TSX Venture Exchange) accepts responsibility for the accuracy of this

release.

Contact

Focus Graphite Inc.

Mr. Gary Economo

President and Chief Executive Officer

+1 613-241-4040

[email protected]

www.focusgraphite.com