Focus Graphite Secures Up to C$1.38 Million Under Natural Resource Canada's First and Last Mile Fund

Executive Summary

• Focus Graphite Inc. has executed a non-repayable Contribution Agreement with Natural Resources Canada to secure up to C$1,378,700 in federal funding under the First and Last Mile Fund (FLMF).
• The funding will finance engineering, environmental, permitting, and feasibility studies for the Lac Knife Graphite Mine Access Road and Hydro Connection Project in northeastern Quebec.
• The initiative aims to advance the flagship Lac Knife project toward a construction-ready stage, de-risk future infrastructure development, and strengthen North American critical mineral supply chains, with activities scheduled through March 2028.

Key Details

• Funding Amount & Structure: Up to C$1,378,700 in non-repayable federal funding, representing approximately 50% of total eligible project costs.
• Funding Source: Natural Resources Canada (NRCan) under the First and Last Mile Fund (FLMF), formerly the Critical Minerals Infrastructure Fund, part of the Government of Canada's C$3.6 billion Critical Minerals Investment Package.
• Project Scope: Lac Knife Graphite Mine Access Road and Hydro Connection Project located at the Company's flagship Lac Knife Graphite Project in northeastern Quebec.
• Use of Proceeds: Engineering and feasibility studies, environmental baseline work, geotechnical and LiDAR surveys, stakeholder engagement, regulatory and permitting activities, and detailed infrastructure design.
• Cost Share: Focus Graphite will contribute an equivalent amount (up to C$1,378,700) toward the project.
• Project Timeline: Scheduled to continue through March 2028.
• Strategic Objectives: Advance Lac Knife toward a construction-ready/shovel-ready stage, materially de-risk future infrastructure development, and support domestic/ally supply chains for high-grade natural graphite used in lithium-ion batteries, defense, and energy storage.
• Indigenous Collaboration: Establishment of joint technical and steering committees with the Innu Takuaikan Uashat mak Mani-Utenam (ITUM), including Indigenous workforce participation, skills development programs, and community consultation activities aligned with FLMF objectives.
• Expected Infrastructure Benefits: Year-round all-season access road, electrification of mining operations via Hydro-Quebec grid (reducing diesel reliance), enhanced sustainability/resilience, and long-term economic development opportunities across Quebec's North Shore region.

Notable Quotes

• Dean Hanisch, CEO: "We are honoured to receive this support from the Government of Canada, which recognizes the strategic importance of the Lac Knife project to the North American critical minerals supply chain... We are also fortunate to have existing road and power infrastructure, providing a significant advantage as we move closer to production."
• Jason Latkowcer, VP Corporate Development: "The objective is simple: advance Lac Knife, reduce risk and preserve shareholder capital... This funding helps move Lac Knife from planning toward execution. Early technical work has already identified opportunities to improve access, and we expect further optimization as engineering and infrastructure planning advances."
• Hon. Tim Hodgson, Minister of Energy and Natural Resources: "The development of Lac Knife is a perfect example of Canada's new mining era: a strategic project, developed to benefit local economies, sustainably, and in partnership with Indigenous Peoples... By investing in the infrastructure and early work needed to advance this high-grade graphite project, we are reducing risk, accelerating development, and helping to build a secure, end-to-end supply chain-from mine to market."