Focus Graphite Completes Final Major ESIA Technical Study, Advancing Lac Knife Toward Permitting

Executive Summary

• Focus Graphite completed the Hydrogeological Assessment for its wholly-owned Lac Knife Graphite Project, finalizing a multi-year environmental program and completing the major technical work required to support the Environmental and Social Impact Assessment (ESIA) submission.
• The assessment validated regional groundwater conditions, confirmed the long-term performance of the redesigned dry-stack tailings storage facility (TSF), and established a scientifically supported baseline for future environmental monitoring and modeling.
• The Company will now compile and submit the updated ESIA package to Quebec's Ministry of the Environment, initiating the next regulatory stage including public consultation via the Bureau d'audiences publiques sur l'environnement (BAPE).

Key Details

• Assessment Completion: Finalized the Hydrogeological Assessment for the Lac Knife Graphite Project, concluding a multi-year environmental program and major technical work for the ESIA submission.
• Technical Execution: Conducted by Yves Leblanc, P.Geo. (Richelieu Hydrogeologie Inc.) under the supervision of IOS Geosciences Inc.
• Groundwater Conditions: Monitoring of 30+ wells confirmed naturally occurring groundwater conditions are well understood; groundwater near the deposit is slightly acidic and sulphate-rich due to natural sulphide oxidation but progressively buffers as it migrates away.
• Baseline Establishment: Established natural background concentrations for elements associated with mineralization to serve as a baseline for future groundwater monitoring and environmental modeling.
• Hydraulic Flow: Confirmed regional groundwater flow is naturally diverted away from the deposit by the hydraulic gradient of the Pekan River valley; subsurface groundwater follows a separate southwest flow regime, minimizing interaction with surrounding aquatic environments.
• TSF Design & Performance: Evaluated the long-term performance of the redesigned dry-stack TSF (from the 2021 Feasibility Study), which incorporates dry-stacked tailings, ~10% dolomitic lime to buffer acid generation, an engineered impermeable liner, non-acid generating waste rock containment dykes, drainage infrastructure, and water collection/treatment systems for recycling.
• Modeling Results: Hydrogeological modeling using 2021-2022 column leaching test data indicates dissolved constituents will be sufficiently diluted before reaching potential groundwater resurgence zones and will not exceed Quebec's MELCCFP environmental criteria over the long term.
• Stress Testing: Sensitivity analyses modeled infiltration scenarios significantly beyond normal design expectations (including substantial liner/drainage degradation), demonstrating the resilience of the TSF design and the effectiveness of multiple engineered containment measures.
• Climate Resilience: Climate change precipitation scenarios were evaluated and showed no material adverse impacts on the long-term environmental performance of the facility.
• Regulatory Next Steps: Company will compile and submit the updated ESIA package to Quebec's MELCCFP, triggering the next stage of regulatory review and public consultation administered by BAPE.
• Project Grade: Lac Knife features an exceptional 15.6% Cg (crystalline graphite) grade, which management highlights as critical for global competitiveness and North American supply chain security.
• Qualified Person: Technical content reviewed and approved by Rejean Girard, P.Geo. (IOS Geosciences Inc.), a qualified person under NI 43-101.

Notable Quotes

• Dean Hanisch, CEO: "Completing the remaining environmental studies and required reports is a major milestone for Lac Knife and reflects years of disciplined technical work and significant capital investment... Having now completed these outstanding studies, Focus has advanced through a critical stage that provides Lac Knife with a meaningful first-mover advantage."
• Dean Hanisch, CEO: "In graphite, grade is the critical equalizer: without exceptional grade, it is nearly impossible for North American graphite projects to compete globally, and Lac Knife's grade is what sets the Project apart."
• Jason Latkowcer, VP Corporate Development: "Supply chains begin with projects that can actually be built... Environmental permitting represents one of the most important value creation catalysts in project development. Our focus now shifts to advancing through the regulatory process while continuing to evaluate pilot-scale production opportunities on location that could further accelerate the development of this strategic asset."