Focus and SOQUEM confirm historical REE-Cu-Fe grades at Kwyjibo with 30m of 2.52% TREO, 0.15% Cu, 3.70% P2O5 and 49.9% Fe2O3 at the Josette Prospect

OTTAWA, ONTARIO--(Marketwire - March 11, 2011) -Focus Metals Inc. ("Focus" or the "Company") (TSX VENTURE:FMS)

(This amended version clarifies data contained in our original, March 8, 2011 news release, specifically: data related to some meter intervals)

Focus Metals Inc. ("Focus" or the "Company") (TSX VENTURE:FMS) and partner SOQUEM Inc. ("SOQUEM") are pleased to report the results of the drill core re-analysis program targeting the Josette and Fluorine polymetallic (Fe-Cu-REE-P*) prospects on the Kwyjibo Property.

The Kwyjibo property, located in the Grenville Geological Province of Québec, hosts a Mesoproterozoic polymetallic (Fe- Cu-REE-(Au)*) deposit which is considered one of the most prospective iron oxide copper-gold ("IOCG") exploration targets in Québec. IOCG-type mineralization has to date been traced over at least 4 km on the property.

The drill core re-analysis program focused on the best REE-mineralized sections from 23 historical holes drilled at the Josette and Fluorine polymetallic prospects between 1994 and 1998. The re-analysis of drill hole 1088-95-29, host the best historical REE-intersection at Josette returned the following assay values and REE ratios (Table 1):

• 2.52% TREO, 0.15% Cu, 3.70% P₂O₅, 49.9% Fe₂O₃, 42.3% REE_mdi**, and 28% HREO over 29.98 m (from 29.15 to 59.13 m), including:

  • 4.51% TREO, 0.24% Cu, 6.67% P₂O₅, 61.37% Fe₂O_3, 43.4% REE_mdi and 29% HREO over 4.20 m (from 38.5 to 42.7 m); and

  • 0.48% Cu (best copper intersection) and 1.73 % TREO over 1 m (from 29.15 to 30.15 m).

The best REE intersections at Fluorine include (Table 1):

• 0.80% TREO, 0.01% Cu, 3.04% P₂O₅, 46.84% Fe₂O₃, 42.5% REE_mdi and 31% HREO over 15.33 m (hole 1088- 94-24; from 94.93 to 110.26 m), including:

  • 1,75% TREO, 5,98% P₂O₅, 35.50% Fe₂O₃, 41,2% REE_mdi and 30% HREO over 1.49 m (from 97.28 m to 98.77 m)

• 0.55% TREO, 1.61% P₂O₅, 38.06% Fe2O3 and 43.2% REE_mdi and 25 % HREO over 31.5 m (hole 1088-98-47; from 92.00 m to 123.5 m)

(** mdi = most desired by industry)

"The historical data confirms a double positive," said Gary Economo, President and CEO of Focus Metals Inc.

"First, it confirms the extraordinary geological nature of Kwyjibo with its unique REE-copper-iron association," Mr. Economo said.

"From a business perspective, and in terms of building shareholder value, the project economics associated with having coincidental copper and iron, both highly sought-after commodities, is not only unusual, it is rare among North American REE properties.

"Secondly, it confirms our decision to move towards an aggressive, fast-tracked and expanded drill program to begin the definition of an NI 43-101 compliant resource and metallurgical testing this year," he added.

"Because of what we now know, we aim to reduce a five-year development program to slightly more than two years," Mr. Economo said.

The re-analysis of the best historical REE and copper mineralised sections at the Josette and Fluorine prospects has upgraded the drill hole geochemical database for the Kwyjibo property to modern analytical standards.

The partners intend to follow through this summer with an expanded drilling program at those historical prospects in addition to their previously announced ground geophysical surveying, prospecting and trenching program targeting unexplained VTEM anomalies and selected showings.

A map of the Kwyjbo property showing the location of the main polymetallic prospects and the historical drill holes is available on the Company's Website at www.focusmetals.ca.

Highlights of the fall 2010 re-analysis program

Of the two drill-tested polymetallic prospects, the best mineralized intersections are located on the Josette horizon, between Josette showing (holes 95-34/34B) and hole 95-29 for a length of 400 meters, with ranges of 1.51 to 2.52 % TREO, 0.09 to 0.21 % Cu, 2.13 to 3.70% P₂O₅ and 16.08 to 49.9 % Fe₂O₃ over width of 15.85 to 30.95 meters (figure 1 and table 1). The ratio of HREO over TREO varies from 26 to 28 % and the REE_mdi ratio varies from 37.2 to 42.6%. The REE_mdi of Kwyjibo fall in the same range than both REE deposits of Zeus Zone of the Kipawa alkaline igneous complex (Matamec Exploration Inc.) in Québec's Témiscamingue and the B Zone of the Strange Lake alkaline complex (Quest Rare Minerals Ltd.), located at the border Quebec-Labrador in Northern Quebec, with a REE_mdi of 45 and 47% respectively based on the published REE resources evaluation of these deposits. The Fluorine horizon shows much lower value of REE with 0.43 to 0.67 % TREO, 1.37 to 3.04% P₂O₅ and 21.2 to 46.8 % Fe₂O₃ and anomalous copper values (< 600 ppm) over width of 15.33 to 31.5 meters. The ratio of HREO is much variable, between 16 to 31 % as well as the REE_mdi, between 30 and 42.5 % (table 1 and figure 1).

The REE_mdi ratio

Table 1 displays the best intersections for each historical drill hole. Values of TREO (total rare earth element oxides) are presented as the sum of all rare earth oxides of the lanthanide series plus yttrium oxide; strictly not a rare earth element, yttrium is included in the total amount of REE because of its chemical behaviour and technological uses that are similar to the lanthanides.

The ratios of the most demanding REE by industry, the "REE_mdi", is expressed as the percentage of the sum of Nd+Eu+Tb+Dy+Er+Y divided by the total REE (REEmdi = ((Nd+Eu+Tb+Dy+Er+Y)/ TREE) X 100). The REE_mdi ratio is an expression of the importance of REE sought by industry and it was developed by Professor Seredin of the Russian Academia of Science. Professor Seredin proposed a method to compare REE deposits based on the content of «critical» REE demanded by industry and the REE which are in oversupply (Ref.: Seredin, 2010. A new method for primary evaluation of the outlook for Rare Earth Elements ore. Geology of Ore deposits, vol. 52, no.5, p. 428-433).

Table 1. Summary of best drill hole intersections, Kwyjibo property historical core re-assaying program

Methodology and analytical variability

The re-sampling program of the best REE mineralized sections at the Josette and Fluorine polymetallic prospects was carried out in October 2010. A total of 409 samples were collected from 23 historical holes, comprising for the most part of quarter split core samples, were sent to ALS Chemex Laboratories in Val-d'Or and Vancouver for rare earth element, trace and major element analysis and where appropriate, for copper assaying. A standard reference sample (an internal standard prepared from mineralised Josette outcrop) and a blank sample were introduced in all sample batches for each historical hole except for holes with insufficient number of analyses, for a total of 16 internal standards and 12 blanks. The principal objective of the re-analysis of the best REE-mineralized drill core sections from Kwyjibo is to bring the chemical analysis database up-to-date with a single method, using a lithium borate fusion of the sample prior to acid dissolution and analysis by ICP-MS ("Induced-Couples Plasma Mass Spectrometry") in order to analyse the all range of REE and trace elements. This method is best suitable for minerals resistant to acids digestion, like some REE-bearing silicates. Previous analysis from 1994-1998 were mostly done by instrumental neutron activation analysis ("INAA"), except for a few holes where X-Ray Fluorescence ("XRF") was used, and in many holes, not all REE were analyzed. Major elements were analyzed using a lithium borate fusion of the sample prior to acid dissolution and analyzed by ICP-AES ("Induced-Couples Plasma Atomic Emission Spectrometry"). Where chalcopyrite mineralization was present, copper was analyzed by AAS ("Atomic Absorption Spectrometry") following an aqua regia digestion.

On the whole, the 2010 analytical results correlate well with previously published drill core geochemical data from the Kwyjibo property (1994-1998), except for P₂O₅ for which 2010 values are lower. Comparison of 2010 and 1994-98 results for a single sample show variable discrepancies in REE and P₂O₅ that can be explained by (a) the difference in analytical methods used in 1994-98 (INAA and XRF) and 2010 (ICP-MS); (b) the analysis of quarter split samples of BQ-size in 2010 in comparison to half core-sized samples in 1994-1998; and (c) the heterogeneous distribution of REE-bearing minerals in the mineralized sections.

Two-phase exploration program for 2011

Focus and SOQUEM are currently working on the design of a two-phase follow-up exploration program on the Kwyjibo property for 2011. Phase I of this program will comprise of line cutting and a ground time-domain electromagnetic ("TDEM") geophysical survey targeting selected VTEM anomalies; a trenching program at six targets (Josette, Grabuge, Gabriel, trench 95-30, 2010-SP-08 and near hole 95-37) aimed at augmenting the geological knowledgebase, including outcrop stripping on three VTEM anomalies associated with EM conductor (near hole 1088-95-37, 2010-SP-08, and north of Grabuge); bulk sampling (100 kg each) for preliminary metallurgical testing purposes at Josette, Trench 95-30 and Gabriel; and detailed geological mapping and prospecting. Phase II of the program will comprise of about 5,000 meters of core drilling on the Josette polymetallic zone in order to better define its shape, size and Cu-REE grades, and on the most prospective TDEM and VTEM anomalies. The field exploration program is scheduled to start in June and end in mid-to- end October, depending on weather conditions. This will be the first drill program on the property since the late 1990's.

Terms of the Agreement

Under the terms of the Agreement, Focus Metals may acquire a 50% interest in SOQUEM's Kwyjibo REE-Cu property, by spending up to $3M in exploration work on the property over a period of five (5) years of which $1M must be spent during the first two (2) years.

SOQUEM will act as the operator for all exploration carried out on the property for the first two years of the option period or until the first $1M in exploration work expenditures have been spent. Focus will then have the option to become operator by paying $50,000 in cash or issuing a block of common shares valued at $50,000.

About Focus Metals Inc.

Focus Metals Inc. is an emerging mid-tier junior mining exploration company with excellent discovery stage base metals and industrial minerals opportunities in Quebec. The Corporation intends also to acquire advance stage industrial minerals exploration properties in its portfolio in the future. The Corporation is led by a determined management and technical team with extensive exploration and mine production experience.

About SOQUEM Inc.

SOQUEM is a wholly-owned subsidiary of Société générale de financement du Québec ("SGF"). SGF is the Québec government's main industrial and financial development corporation. Its mission is to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Québec.

The technical information in this news release has been reviewed by Marc-André Bernier, M.Sc., P.Geo., a qualified person as defined by as defined by National Instrument 43-101.

This News Release may contain or refer to "forward-looking statements" which reflect Management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. These statements reflect Management's current beliefs at the time of this news release and are based on information currently available to Management. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Management's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. While the Company anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements, except in accordance with applicable securities laws. Accordingly, readers are advised not to place undue reliance on forward-looking information.