First Canadian Graphite Receives Authorization to Commence Phase III Trenching and Diamond Drilling at Lac Gueret South Project

First Canadian Graphite Inc. (FCI) has received the Authorization for Impact-Causing Exploration Work (ATI) from the Québec Ministry of Natural Resources and Forests, permitting the commencement of its Phase III exploration program at the Lac Guéret South Project. The initiative targets Zone 13, a high-priority graphite target characterized by a 3.3 km strike length. The program encompasses mechanized trenching, stripping, channel sampling, and approximately 20,000 meters of diamond drilling.

Stripping and channel sampling are scheduled to begin in mid-November 2026, with drilling operations to follow immediately. The program is expected to last between five and six months and carries a budget of C$6,500,000. The primary objective is to test the subsurface continuity of high-grade graphite mineralization mapped over the 3.3 km strike, aiming to demonstrate mineralized thicknesses, grade distribution, and continuity at depth.

Previous surface sampling results from Zone 13 returned assays of up to 43.4% graphitic carbon (Cg). Of 46 samples analyzed, 45.7% exceeded 15% Cg. Additionally, a new high-grade anomaly with a strike length exceeding 10 km and widths greater than 150 m was outlined.

Phase II magnetic-electromagnetic (Mag-EM) survey data identified conductive extensions to the east, north, and northwest, including a Z-fold system. These areas may be included in the Phase III program pending further evaluation. The ATI applies exclusively to exploration activities and does not authorize mine development.

First Canadian Graphite Inc. (FCI) has secured the necessary permit approval to proceed with its Phase III drilling program, a routine administrative milestone required to advance the project. The program and its pending Airborne Technology Initiative (ATI) were explicitly announced in August and September 2026 as the next step following the Phase II airborne survey. This approval confirms the company is on track to deliver drill results in early 2027.

To fund the initiative, the company closed a C$3 million hard-dollar financing on October 21 and a C$2 million flow-through financing on October 23, totaling C$5 million. Combined with prior capital, this funding covers the C$6.5 million program budget. The drilling campaign was fully anticipated by the market, with the stock having already rallied on the Zone 13 discovery, EM survey results, and recent financings. The permit approval confirms execution but introduces no new fundamental surprises.

First Canadian Graphite Inc. (FCI) is advancing its Lac Guéret South Graphite Project in the Manicouagan region of Québec, Canada. The company holds over 236 km² of claims and optioned ground, positioning it as one of the largest landholders in the district. The project borders Nouveau Monde Graphite’s Uatnan project, which carries a C$3.5B NPV, a proximity that underscores the area's district-scale potential. Infrastructure advantages include access to hydroelectric power, roads, and deep-water ports.

In Zone 1, FCI has defined a NI 43-101 compliant resource estimate comprising 1.76 million tonnes indicated at 17% Cg and 1.53 million tonnes inferred at 16.4% Cg. Meanwhile, the Zone 13 discovery has confirmed high-grade surface graphite over a 3.3 km strike length with widths exceeding 150 m. Surface samples from this zone have returned grades up to 43.4% Cg. Airborne electromagnetic surveys suggest a district-scale conductive system extending more than 10 km.

The company’s development goals include expanding the resource to 30+ million tonnes by 2027/2028. FCI aims to complete a preliminary economic assessment (PEA) by the same timeframe and advance the project toward feasibility and commercial production.