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FMS.V ·

Focus Graphite Inc. Announces Closing of Shares for Debt Transaction

Share Capital & Compensation

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Focus Graphite Inc. Announces Closing of Shares for Debt

Transaction

(TSXV: FMS)

Ottawa, ON January 10, 2025 – Focus Graphite Inc. (“Focus” or the “Company”) (TSX-V:

FMS; OTCQX: FCSMF; FSE: FKC), announced today that further to its October 23, 2024 news

release, it has settled an aggregate of $865,000 in debt owed by the Company to JJJY Holdings

Inc. (the “ Lender”) in respect of an unsecured loan made to the Company o f $2,300,000 (the

“Debt”). The balance of the Debt has no maturity date and bears no interest. In settlement of the

Debt, the Company issued 11,533,333 common shares of the Company to the Lender at a deemed

price of $0.075 per share (the “Debt Settlement”). The common shares issued in connection with

the Debt Settlement are subject to a hold period that expires on May 7, 2025.

The issuance of the shares pursuant to the Debt Settlement is considered to be a "related party

transaction" as defined under Multilateral Instrument 61 -101 - Protection of Minority

Securityholders in Special Transactions (“MI 61-101”) as the Lender is a company controlled by

a director and Chairman of the Board of Focus. The Debt Settlement is exempt from the formal

valuation and minority shareholder approval requirements of MI 61 -101 pursuant to subsection

5.5(a) and 5.7(a) of MI 61-101 as neither the fair market value of the transaction nor the fair market

value of the consideration exceeds 25% of the Company's market capitalization.

About Focus Graphite Inc.

Focus Graphite Inc. is an advanced materials company developing sustainable mining and

technology innovation s. At the heart of our operations is the Lac Knife flake graphite deposit,

known for its exceptional high purity and grade —ideal for applications in the military, defense,

and green energy revolutions. Currently advancing through Canada’s mine permitting process,

Focus Graphite is on the verge of transforming this resource into a cornerstone for critical mineral

supply.

Our proprietary, environmentally sustainable processing technologies ensure a green, chemical -

free pathway from mine to market. The Company’s proprietary silicon -enhanced spheroidized

graphite patent technology is aimed at improving battery performance. We specialize in producing

advanced, high-purity graphite materials tailored for diverse industries, including EV batteries,

military applications, and high-tech manufacturing.

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Focus Graphite’s commitment extends beyond resource extraction —we are actively building

partnerships with industry leaders, academic institutions, and government bodies to accelerate the

commercialization of advanced materials and technologies derived from our flagship project. As a

proud Canadian company, we are dedicated to contrib uting to North America’s secure and

sustainable critical minerals supply chain.

For more information on Focus Graphite Inc. please visit https://focusgraphite.com/

Investors Contact:

Dean Hanisch

CEO, Focus Graphite Inc.

[email protected]

613-612-6060

Neither 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.