Focus Graphite Inc.
TSX VENTURE : FMS
OTCQX : FCSMF
FRANKFURT : FKC

Focus Graphite Inc.

June 20, 2017 17:27 ET

Focus Graphite Closes Non-Brokered Flow-Through Private Placement

OTTAWA, ONTARIO--(Marketwired - June 20, 2017) -

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Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") announces the closing of a non-brokered private placement (the "Offering") for proceeds of $1,050,000. The Company has issued 11,666,666 flow-through common shares of the Company (the "Flow-Through Shares") at a price of $0.09 per Flow-Through Share.

In connection with the closing of the Offering, the Company paid cash finder's fees totaling $76,000 and issued 844,444 non-transferable warrants, each warrant entitling the holder to acquire one (1) common share of the Company at a price of $0.09 per common share until June 20, 2019.

The securities issued in connection with the closing of the Offering are subject to a four-month hold period expiring on October 21, 2017. The Offering is subject to the final approval of the TSX Venture Exchange.

A director of the Company purchased a total of 1,111,111 Flow-Through Shares. His participation under the Offering constitutes a "related party transaction" as defined under National Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("NI 61-101"). However, such participation is exempt from the valuation and minority shareholder approval requirements of NI 61-101 based on the fact that neither the fair market value of the Offering, nor the consideration paid by such person, exceeds 25% of the Company's market capitalization. The Company did not file a material change report at least 21 days prior to the closing of the private placement as participation of the insider had not been established at that time.

Update on Current Unit Private Placement

Focus is also is pleased to provide an update on its current unit offering (the "Offering") for gross proceeds of $5,000,000 following the first closing of the Offering (see the Company's press release dated June 6, 2017 for more details). The Company expects to proceed with the closing of the second tranche shortly. The Offering consists of a maximum of 66,666,666 units (the "Units") at a price of $0.075 per Unit. Each Unit is comprised of one (1) common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles its holder to purchase one (1) common share at a price of $0.10 per common share for a period of 48 months following the closing.

Finally, the Company announces that Mr. Jeff Hussey has resigned as Vice-president of Development, to pursue another career opportunity. Focus wishes to thank Mr. Hussey for his services and wishes him the best of luck in his future endeavours.

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.

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.

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