Focus Graphite talks AI flake sizing at Lac Tetepisca

Executive Summary

• Focus Graphite Inc. has successfully developed and validated a low-cost, AI-enabled in situ graphite flake size characterization technology for its Lac Tetepisca project in Quebec.
• The technology integrates directly into the geometallurgical model, enabling high-resolution mapping of flake size distribution without extensive bulk metallurgical testing, which supports improved resource valuation and mine planning.
• Preliminary results indicate an inverse relationship between graphite grade and flake size, suggesting potential for a lower cut-off grade and improved project economics; results will be incorporated into the upcoming Manicouagan-Ouest graphitic corridor (MOGC) mineral resource estimate (MRE) update in late Q1 2026.

Key Details

• Technology Validation: Developed and validated an AI-enabled methodology using RGB image analysis of high-resolution optical microscopy images from coarse rejects of routine assaying.
• Benchmarking: Methodology benchmarked against bench-scale metallurgical testing on 30 composite samples and independently validated using automated particle analysis by scanning electron microscopy (SEM).
• Sample Processing: Approximately 300 samples are currently being processed to populate the geometallurgical model for the MOGC deposit. Sample processing is expected to be completed by mid-Q1 2026.
• Geological Findings: Preliminary results show an inverse relationship between graphite grade and flake size, with lower-grade zones hosting a significantly higher proportion of jumbo flakes.
• Economic Implications: The findings suggest a lower cut-off grade may be appropriate for the forthcoming MRE, potentially improving mine life, operational flexibility, and project economics.
• Future Application: Following validation at Lac Tetepisca, the company intends to apply this AI-enabled flake size characterization methodology to its Lac Knife graphite project.
• Resource Background (MOGC):
  • Indicated Resource: 59.3 million tonnes (Mt) grading 10.61% graphitic carbon (Cg) for an estimated content of 6.3 Mt of natural flake graphite (in situ).
  • Inferred Resource: 14.9 Mt grading 11.06% Cg for an estimated content of 1.6 Mt of natural flake graphite.
  • Current Valuation: Based on a basket price of $1,171 (U.S.) per tonne using 2020 metallurgical testing (18% jumbo, 22% large, 22% medium, 37% fine flakes).
  • Update Timeline: An updated MRE incorporating all 2022 drill holes is expected in late Q1 2026.
• Funding and Development: Technology developed by IOS Services Geoscientifiques Inc. with partial funding from Quebec's programme quebecois de valorisation des mineraux critiques et strategiques (PQVMCS).

Notable Quotes

• Richard Pearce, Technical Consultant: "In traditional graphite operations, limited visibility into flake size variability forces operators to rely on large stockpiles and higher inventories to manage production and sales risk. From hands-on experience, knowing where different flake sizes occur materially improves mine planning and operational efficiency. This AI-based flake size characterization tool enables mining with intent -- aligning extraction with customer requirements, reducing waste and improving overall economics."
• Dean Hanisch, CEO: "As Focus advances ESG-aligned downstream initiatives, it is equally important that responsibility and efficiency begin at the mining and extraction level. Technologies that enable selective mining, reduced waste and optimized resource use are essential to maintaining consistency across the value chain."