Focus Graphite talks flake recovery at Lac Knife

Mr. Dean Hanisch reports FOCUS GRAPHITE PILOT RUN DEMONSTRATES SIGNIFICANT INCREASE IN LARGE AND JUMBO FLAKE RECOVERY AT LAC KNIFE Focus Graphite Inc. has released results from a continuous pilot beneficiation program performed by American Energy Technologies Company (AETC) on its 100-per-cent-owned Lac Knife project. The adjustment from 97.8-per-cent total graphite content (TGC) to 95-per-cent TGC resulted in a substantial increase in coarse flake recovery. Large and jumbo flakes increased from approximately 33 per cent to 47 per cent, materially improving economics and diversifying market opportunities in a product portfolio approach planned by Focus. To achieve these results, Focus commissioned AETC to run an upstream beneficiation circuit consisting of 18 processing units connected in series in a continuous locked-cycle campaign. Over 800 kilograms of Lac Knife graphite-bearing rock was processed, producing a concentrate that not only met market specifications but also preserved natural flake size. By producing concentrate in line with real-world demand specifications, Focus maximizes downstream value while enhancing exposure to premium, non-battery markets. In Focus's original pilot plant testing program conducted at SGS Minerals in Lakefield (2013 to 2014), the objective of achieving a graphite concentrate grade of 97.8 per cent TGC at 90.7 per cent total recovery was successfully met. These results formed the technical foundation of the Lac Knife feasibility study (updated 2023), which outlined a process plant designed to produce 50,000 tonnes per year of graphite concentrate, including 47,781 tonnes of high-grade 97.8 per cent TGC salable concentrate from a feed grade of 14.8 per cent TGC. The process flow sheet developed through this work includes crushing, grinding, polishing, flotation, concentrate dewatering and drying, concentrate screening and bagging, and tailings filtration and loadout. While the feasibility study demonstrated Lac Knife's ability to deliver ultrahigh-purity graphite, subsequent market feedback confirmed that such high purities are not required -- and do not command a price premium -- in most anode or industrial applications. As a benchmark, the U.S. Defense Logistics Agency (DLA) strategic materials program has defined procurement specifications for natural graphite as negative 100 mesh concentrate. Lac Knife material comfortably exceeds U.S. defence-grade requirements, while simultaneously aligning with anode makers' specifications for EVs (electric vehicles) and stationary energy storage. Coarse graphite flakes are rare and command premium pricing in markets where physical size is the key differentiator. On Oct. 20, 2023, China announced its restrictions on certain graphite exports to the United States and other counties, with the new regulations taking effect on Dec. 1, 2023. These rules, requiring export permits for high-grade natural and synthetic graphite products, were introduced under the banner of protecting China's national security. Most projects worldwide produce very little of this unique material. With its coarse flake profile, Lac Knife positions Focus to supply several high-margin speciality applications: Jumbo flake (plus 30, plus 25, plus 20 mesh; approximately 5 per cent of total, up to 0.84 millimetre in size) -- High-end EMI shielding in electronics and defence equipment, corrosion resistant gaskets in marine and aerospace, crucibles for specialty alloys and rare-earth processing, radar absorbing and steal composites, icephobic for aircraft and ships, precursor for graphene platelets. Plus 50 mesh (approximately 15 per cent) and plus 80 mesh (approximately 24 per cent) -- Expandable and expanded graphite for fire-suppressant foams. With PFAS-based aqueous film-forming foams (AFFF), otherwise known as forever chemicals, being phased out amid billion-dollar lawsuits, demand for safe, graphite-based alternatives is expected to surge. Processed graphite generated from these flake sizes are also used in lead-acid and premium performance alkaline batteries. Plus 100 mesh -- Recently proven in a hypersonic rocket nozzle launch, this fraction is valued in aerospace, defence, semiconductor and advanced materials markets. Negative 100 mesh -- Tailored for the battery-grade anode market in both EVs and stationary battery energy storage systems (BESS) applications, ensuring compliance with global demand. Additionally, Lac Knife graphite demonstrates exceptionally low volatile content, a critical property for the most demanding nuclear and defence applications. While many companies can produce standard battery-grade graphite, nature rarely yields deposits with such a high proportion of coarse flakes. Lac Knife's increase in large and jumbo flake recovery from approximately 33 per cent to 47 per cent further strengthens Focus's strategic position. This advantage not only supports advanced processing pathways but also enables the company to deliver environmentally friendly materials to market, creating opportunities to replace PFAS-based forever chemicals with safer, sustainable alternatives. "The results from this pilot program reinforce Lac Knife's unique position as one of the few graphite projects capable of delivering both defense-grade and battery-grade material at scale," said Dean Hanisch, chief executive officer of Focus Graphite. "By achieving market-aligned concentrate specifications, we are not only positioned to supply the EV and energy storage sectors, but also to serve premium aerospace, defence and specialty markets. This dual-market advantage reduces risk, expands opportunity and underscores Focus Graphite's role as a strategic supplier in North America's critical minerals supply chain." It should be noted that this pilot program was conducted on more than 800 kilograms of Lac Knife graphite, and while the results are consistent with expectations, they may not fully represent the variability of the entire deposit. Focus intends to conduct larger scale testing in the future. Qualified persons The technical content disclosed in this news release was reviewed and approved by Rejean Girard, PGeo (Quebec), president of IOS Geosciences Inc., a consultant to the company, and a qualified person as defined under National Instrument43-101. About American Energy Technologies Company American Energy Technologies Co. (AETC) is a woman-owned, privately held business which conducts operations out of the greater Chicago area. In its Wheeling, Ill., facility, AETC operates three business units: a manufacturing plant making battery-ready graphite and carbon materials, a pilot demonstration facility for battery materials and graphite dispersions, and a fully functional applications laboratory supporting the above business units. Currently, AETC is one out of just three in total organizations which commercially manufacture lithium-ion battery-ready graphite in the United States. Furthermore, AETC's Wheeling, Ill., plant is currently the only industrial end-to-end commercial manufacturer of spherical purified surface coated natural graphite in the United States. In doing so, the company develops and operates an upstream ore beneficiation, unique refining, particle spheroidization, and carbon coating technologies. AETC is both developing and produces spherical graphite (natural and synthetic), expanded graphite, partially graphitized nanostructured carbons, ultrahigh-purity graphite-based electrically conductive inks, paints and coatings which find use within the industry. AETC is a proud supply chain member of electric vehicles and an approved supplier to twelve battery manufacturers and one fuel cell producer. About Focus Graphite Advanced Materials Inc. Focus Graphite Advanced Materials is redefining the future of critical minerals with two 100-per-cent-owned world-class graphite projects and cutting-edge battery technology. The company's 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. The company's Lac Tetepisca project further strengthens its portfolio, with the potential to be one of the largest and highest-purity and grade graphite deposits in North America. At Focus, the company goes beyond mining -- it is pioneering environmentally sustainable processing solutions and innovative battery technologies, including its patent-pending silicon-enhanced spheroidized graphite, designed to enhance battery performance and efficiency. The company's commitment to innovation ensures a chemical-free, eco-friendly supply chain from mine to market. Collaboration is at the core of its vision. The company actively partners with industry leaders, research institutions and government agencies to accelerate the commercialization of next-generation graphite materials. As a North American company, it is 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. 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