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FMS.V ·

Focus Graphite Closes $3.9 Million Bought Deal Offering

Financings

Focus Graphite Closes $3.9 Million Bought

Deal Offering

Ottawa, Ontario--(Newsfile Corp. - December 8, 2025) -

Focus Graphite Inc.

(TSXV: FMS) (OTCQB:

FCSMF) (FSE: FKC0) ("

Focus

" or the "

Company

") is pleased to announce that it has completed its

previously announced "bought deal" offering (the "

Offering

"). The Offering was led by Research Capital

Corporation as the sole underwriter and sole bookrunner (the "

Underwriter

").

Pursuant to the Offering, the Company issued 9,273,410 units of the Company (the "

Units

") at a price of

$0.42 per Unit, for aggregate gross proceeds of $3,894,832.20 including the partial exercise of an over-

allotment option granted to the Underwriter by the Company. Each Unit consists of one common share of

the Company (a "

Common Share

") and one Common Share purchase warrant of the Company (a

"

Warrant

"). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise

price of $0.60 per Common Share at any time until June 8, 2028.

The net proceeds from the Offering will be used for temporary working capital float, payments required

before reimbursement, technical and qualification materials associated with the Government of

Canada's Global Partnership Initiative and general corporate purposes.

The Units were issued pursuant to the listed issuer financing exemption under Part 5A of National

Instrument 45-106 - Prospectus Exemptions as amended by CSA Coordinated Blanket Order 45-935 -

Exemptions from Certain Conditions of the Listed Issuer Financing Exemption

(collectively, the

"

Listed Issuer Financing Exemption

"). The securities offered under the Listed Issuer Financing

Exemption are "free-trading" and will not be subject resale restrictions in accordance with applicable

Canadian securities laws.

The Company entered into an underwriting agreement dated December 8, 2025, with the Underwriter,

pursuant to which the Company (i) paid the Underwriter a cash commission of $272,638.25, and (ii)

issued an aggregate of 649,139 non-transferable broker warrants (the "

Broker Warrants

"). Each

Broker Warrant entitles the holder to purchase one unit (a "

Broker Unit

") at an exercise price of $0.60

per Broker Unit at any time until June 8, 2028. Each Broker Unit is comprised of one Common Share (a

"

Broker Share

") and one Warrant (a "

Broker Warrant

"). Each Broker Warrant entitles the Underwriter

to purchase one Common Share (a "

Broker Warrant Share

") at a price of $0.60 per Broker Warrant

Share at any time until June 8, 2028. The Broker Warrants, Broker Units, Broker Shares and Broker

Warrant Shares are subject to a hold period of 4 months and one day from the date of issue.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United

States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification

or registration under the securities laws of such jurisdiction. The securities being offered have not been,

nor will they be, registered under the United States Securities Act of 1933, as amended, and such

securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S.

persons absent registration or an applicable exemption from U.S. registration requirements and

applicable U.S. state securities laws.

About Focus Graphite Advanced Materials Inc.

Focus Graphite Advanced Materials is redefining the future of critical minerals with two 100% owned

world-class graphite projects and cutting-edge battery technology. Our flagship Lac Knife project stands

as one of the most advanced high-purity graphite deposits in North America, with a fully completed

feasibility study. Lac Knife is set to become a key supplier for the battery, defence, and advanced

materials industries.

Our Lac Tetepisca project further strengthens our portfolio, with the potential to be one of the largest and

highest-purity and grade graphite deposits in North America. At Focus, we go beyond mining - we are

pioneering environmentally sustainable processing solutions and innovative battery technologies,

including our patent-pending silicon-enhanced spheroidized graphite, designed to enhance battery

performance and efficiency.

Our commitment to innovation ensures a chemical-free, eco-friendly supply chain from mine to market.

Collaboration is at the core of our vision. We actively partner with industry leaders, research institutions,

and government agencies to accelerate the commercialization of next-generation graphite materials. As

a North American company, we are dedicated to securing a resilient, locally sourced supply of critical

minerals - reducing dependence on foreign-controlled markets and driving the transition to a sustainable

future.

For more information on Focus Graphite Inc. please visit

http://www.focusgraphite.com

LinkedIn:

https://www.linkedin.com/company/focus-graphite/

X:

https://x.com/focusgraphite

Investors Contact:

Dean Hanisch

CEO, Focus Graphite Inc.

[email protected]

+1 (613) 612-6060

Jason Latkowcer

VP Corporate Development

[email protected]

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release includes certain statements and information that constitute forward-looking

information within the meaning of applicable Canadian securities laws. All statements in this news

release, other than statements of historical facts are forward-looking statements. Such forward-looking

statements and forward-looking information specifically include, but are not limited to, statements that

relate to the future prospects of the Company and the Lac Knife project, and the use of proceeds of the

Offering.

Such forward-looking statements or information are based on a number of assumptions, which may

prove to be incorrect. Assumptions have been made regarding, among other things: conditions in

general economic and financial markets; accuracy of assay results; geological interpretations from

drilling results, timing and amount of capital expenditures; performance of available laboratory and other

related services; future operating costs; and the historical basis for current estimates of potential

quantities and grades of target zones. The actual results could differ materially from those anticipated in

these forward-looking statements as a result of

risk factors, including the timing and content of work

programs; results of exploration activities and development of mineral properties; the interpretation and

uncertainties of drilling results and other geological data; receipt, maintenance and security of permits

and mineral property titles; environmental and other regulatory risks; project costs overruns or

unanticipated costs and expenses; availability of funds; failure to delineate potential quantities and

grades of the target zones based on historical data; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's

management on the date the statements are made. The assumptions used in the preparation of such

statements, although considered reasonable at the time of preparation, may prove to be imprecise and,

as such, readers are cautioned not to place undue reliance on these forward-looking statements, which

speak only as of the date the statements were made. The Company undertakes no obligation to update

or revise any forward-looking statements included in this news release if these beliefs, estimates and

opinions or other circumstances should change, except as otherwise required by applicable law.

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.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED

STATES

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/277266