Focus Graphite Establishes C$2.0 Million Revolving Credit Facility with CIBC to Support Government-Funded Work Programs and Working Capital

Focus Graphite Inc. has established a secured revolving credit facility with CIBC for up to C$2.0 million. The facility is designed to bridge the timing gap between the company's payment of eligible project expenditures and the receipt of non-dilutive government reimbursements. Interest is set at CIBC's Prime Rate plus 2.00% per annum, secured by a first security interest over the company's personal property and backed by an unlimited guarantee from Chairman Jeff York. No common shares, warrants, or other equity securities were issued, preserving existing shareholder capital.

The facility directly supports the execution of programs backed by over C$15 million in previously announced federal funding, including up to C$14.1 million from NRCan's Global Partnerships Initiative (GPI) and C$1.38 million from the First and Last Mile Fund (FLMF). Amounts borrowed are repayable on demand and may be re-borrowed, providing flexible working-capital management.

Focus Graphite Inc. (FMS) has secured a standard working-capital bridge designed for grant-funded mining developers. The facility does not alter the company's development timeline, technical milestones, or revenue generation prospects. By avoiding equity issuance, the facility mitigates near-term dilution risk. However, it does not solve the company's long-term capital requirements for the C$236.9 million pre-production capital needed to bring Lac Knife to production.

The news is fully consistent with the company's stated strategy of leveraging non-dilutive government funding while managing cash flow timing.

Focus Graphite Inc. (FMS) is a Canadian critical minerals developer focused on high-grade natural flake graphite. Its flagship Lac Knife Graphite Project in northeastern Quebec features a completed 2023 NI 43-101 Feasibility Study Update, which projects a 27-year mine life, approximately 50,000 tonnes of concentrate annually, and a pre-tax net present value (NPV) of C$500.6 million.

The company also holds the Lac Tetepisca project, one of the largest identified graphite deposits globally, with an updated mineral resource estimate of 144.3 million tonnes at high grades. Strategically, Focus Graphite is pivoting from pure resource development to downstream value creation. This shift focuses on chemical-free electrothermal purification and advanced battery anode materials to capture higher margins and secure North American supply chain contracts.