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FMS.V ·

Focus Graphite Announces Increase to Previously Announced Non-Brokered Private Placements of Flow-Through Units

Financings

Website : www.focusgraphite.com TSXV: FMS; OTCQX: FCSMF; FSE: FKC

Focus Graphite Announces Increase to Previously Announced Non-Brokered Private

Placements of Flow-Through Units

KINGSTON , ONTARIO, December 18, 2020 – Focus Graphite Inc. (TSXV: FMS ) (the “ Company ” or “ Focus

Graphite ”) is pleased to announce that it has increased the gross proceeds for the flow-through portion

of its previously announced non-brokered private pl acement of up to 10,000,000 units (“ Flow-Through

Units ”) for gross proceeds of $500,000 (the “ Initial Offering ”). The Company has increased the Initial

Offering to 20,000,000 Flow-Through Units at $0.05 per Flow-Through Unit for gross proceeds of up to

$1,000,000 to accommodate investor demand (the “ Offering ”).

Each Flow-Through Unit consists of one Common Share issued on a flow-through basis (a “ Flow-Through

Share ”) and one Warrant. Each Warrant issued as part of the Flow-Through Unit will entitle the holder

thereof to acquire one Common Share, which is not a Flow-Through Share, at an exercise price per

Common Share of $0.055 for a period of 24 months from the Closing Date.

The Company may pay finder's fees equal to 7% of th e gross proceeds from a portion of the financing in

cash, and 7% finders warrants equal to the number o f units sold based on the same terms and in

accordance with the policies of the TSX Venture Exchange.

The Company further announces the closing of the fi rst tranche of the Offering for gross proceeds of

$350,000. The Company issued 7,000,000 Flow-Through Units.

An insider of the Company participated in the closing of the Offering’s first tranche and subscribed for an

aggregate of 4,000,000 Flow-Through Units representing an aggregate amount of $200,000. Participation

of insiders of the Company in the Offering constitu tes a "related party transaction" as defined under

Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“ MI 61-

101 ”). The Offering is exempt from the formal valuation and minority shareholder approval requirements

of MI 61-101 as neither the fair market value of se curities being issued to insiders nor the considera tion

being paid by insiders will exceed 25% of the Compa ny's market capitalization. The Company did not file

a material change report 21 days prior to the closi ng of the Offering as the details of the participat ion of

insiders of the Company had not been confirmed at that time.

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 adequacy or accuracy of this release.

Website : www.focusgraphite.com TSXV: FMS; OTCQX: FCSMF; FSE: FKC

Forward Looking Information

This news release may contain certain forward-looki ng information and statements, including without

limitation, the closing of the Offerings, statements pertaining to the use of proceeds, and the Company's

ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein,

other than statements of historical fact, are forwa rd-looking information and such information involve s

various risks and uncertainties. There can be no assurance that such information will prove to be accurate,

and actual results and future events could differ materially from those anticipated in such information. A

description of assumptions used to develop such for ward-looking information and a description of risk

factors that may cause actual results to differ mat erially from forward-looking information can be found

in Focus Graphite's disclosure documents on the SED AR website at www.sedar.com. The Company does

not undertake to update any forward-looking information except in accordance with applicable securities

laws.

About Focus Graphite

Focus Graphite Inc. is an advanced exploration comp any with an objective of producing flake 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 de velopment 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 .

Focus Graphite Investor Contact:

Scott Anderson

Investor Relations

(858) 229-7063

[email protected]

Focus Graphite Inc.

Judith Mazvihwa-MacLean

CFO

(613) 581-4040

[email protected]