Focus Graphite Highlighted in Prime Minister Carney's Historic Clean Energy and Critical Minerals Announcement; Completes Lac Knife Electrical Desktop Study

Focus Graphite Inc. (FMS) had its Lac Knife Graphite Project formally recognized in Prime Minister Mark Carney’s August 17, 2026, clean energy and critical minerals announcement as a strategic pre-development project eligible for Natural Resources Canada's First and Last Mile Fund (FLMF). The company completed an independent desktop study by Norda Stelo Inc. that outlines a preferred electrical connection strategy to Hydro-Quebec's 34.5-kV distribution grid.

The preferred infrastructure solution involves approximately 30.7 km of total line length, comprising 27.5 km of new construction and 3.17 km of upgrades, which significantly reduces the original ~50 km footprint. Hydro-Quebec will construct the principal distribution infrastructure, assume environmental permitting responsibilities, and handle long-term maintenance, shifting capital and regulatory burdens away from Focus. The desktop assessment preliminarily indicates a >50% reduction in Focus's direct power-related capital requirements compared to the 2023 Feasibility Study Update (FSU) assumptions.

Focus previously secured C$1,378,700 in non-repayable federal funding via FLMF to support engineering, environmental, permitting, and Indigenous engagement activities. Next steps involve confirming technical requirements with Hydro-Quebec and engineering consultants, with electrical work advancing concurrently with access-road planning.

Focus Graphite Inc. (FMS) released a desktop study for the Lac Knife project, marking a logical progression in its multi-year infrastructure de-risking campaign. This development follows a steady march from road corridor selection in July 2026 to FLMF funding in June 2026, and now this electrical desktop study in August 2026.

The study indicates a greater than 50% reduction in power-related capital expenditures, a significant operational improvement. However, management explicitly notes that this is a preliminary desktop assessment rather than a final engineering or capital cost estimate. Actual savings will depend on Hydro-Quebec's final engineering requirements and cost allocation.

Transferring infrastructure construction, permitting, and maintenance to Hydro-Quebec materially reduces execution risk and regulatory friction. This move aligns with the company's stated goal of reaching a "shovel-ready" stage. The news is in line with previous expectations and does not introduce unexpected financial or operational shifts. It reinforces the strategic narrative of government-backed critical minerals development but does not alter near-term cash burn or financing requirements.

Focus Graphite Inc. (FMS) is advancing two 100%-owned natural flake graphite projects in Quebec, Canada: Lac Knife and Lac Tetepisca. Lac Knife serves as the flagship project, featuring one of North America's highest-grade graphite deposits at approximately 15.4% Cg. The project has completed a full feasibility study and is currently advancing through the Environmental and Social Impact Assessment (ESIA) permitting phase.

Lac Tetepisca hosts one of the largest identified graphite resources in the Americas, containing approximately 144 million tonnes at high grades. The company recently updated the mineral resource estimate and is progressing toward metallurgical testing and a Preliminary Economic Assessment.

The company is vertically integrating its value proposition by developing an electrothermal purification process to produce ultra-high-purity graphite exceeding 99.95% C. This material is intended for battery anodes, defense, and advanced materials, aiming to reduce reliance on Chinese processing.