OTTAWA, ONTARIO--(Marketwire - Sept. 25, 2012) - Focus Graphite Inc. ("Focus" or the "Company") (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) announces that the Ontario Securities Commission has (the "OSC"), in accordance with its guidelines, issued a Management Cease Trade Order ("MCTO") that prohibits, effective immediately, all trading of the securities of the Company by the Chief Executive Officer and the Chief Financial Officer. The MCTO is being issued following a review by the OSC of the Company's disclosure on the Lac Knife Project (the "Project").
The OSC had advised the Company that it was of the view that Focus had disclosed, in numerous documents, the outcomes on a study that includes the economic analysis of the potential viability of mineral resources on the Project that is not supported by a technical report as required by National Instrument in 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The Company subsequently issued a news release announcing that it had clarified the disclosure on the Project (see press release dated September 10, 2012). The management cease trade order will remain in place until lifted by the OSC upon application by the Company following the filing of a current NI 43-101 compliant technical report on the Project.
Until the MCTO is lifted, Focus will comply with the alternative information guidelines set out in National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults for issuers who have failed to comply with a specified continuous disclosure requirement within the times prescribed by applicable securities laws. The guidelines, among other things, require the Company to issue bi-weekly default status reports by way of a news release so long as the current NI 43-101 compliant technical report has not been filed. As announced in its September 10th news release, the Company is scheduled to release a Preliminary Economic Assessment on the Project within the next few weeks.
About Focus Graphite
Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. It is the owner of the NI 43-101 compliant Lac Knife graphite deposit grading 16% carbon as graphite. The company's goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is invested in the development of graphene applications and patents through Grafoid Inc.
Forward Looking Statements - Disclaimer
This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.
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.