Benchmark Feasibility Study Update For The Lac Knife Graphite Project

KINGSTON, ON - Focus Graphite Inc. reported on the Feasibility Study Update (FSU) for the Lac Knife Project high-grade crystalline flake graphite deposit located about 27 kilometers south-southwest of Fermont in the Côte-Nord administrative region of Québec. The Project is located on the Nitassinan (ancestral lands) of the Innu community of Innu Takuaikan Uashat mak Mani-utenam (ITUM). The FSU is based on a 27-year mine life and produced a Pre-tax Net Present Value ("NPV") of $500.9 million calculated at a discounted cash flow ("DCF") rate of 8%. Pre-tax, the financial model has an Internal Rate of Return ("IRR") of 28.7% and a capital payback period of 2.8 years. The after-tax financial model has an NPV of $285.7 million calculated at a DCF rate of 8%, and with an IRR of 22.4% and a capital payback of 3.3 years.

Results from the FSU indicate that the Project is viable economically with a Base Case scenario that includes a concentrator production line rate of 47,781 tonnes of flake graphite concentrate annually at an average mill feed rate of 365,320 tonnes per year of Mineral Reserves over a 27-year mine life. A concentrator availability of 93% was used for the FSU. The Project's additional Measured, Indicated, and Inferred Resources will continue to be evaluated to develop the mid- and long-term growth profile for the Company.

"This feasibility study update marks a new significant milestone in the development of the Lac Knife Project," said Marc Roy, President and CEO. "It confirms that the project hosts a graphite deposit with an average graphitic carbon (Cg) grade of 99.7% in +80 mesh flake concentrate, which is exceptional in this industry. With the FSU in hand, Focus is ready to take the next step, which is to complete the environmental and social impact assessment (ESIA) study for Lac Knife and then move the Project through the Québec Government environmental review and public consultation process towards mine permitting.During these next steps, we plan to continue to consult the Indigenous and other local communities that could be impacted by the development of the project, to explain the results of the feasibility study to them, to listen to their concerns and expectations, and to offer them an opportunity to participate in project steering committees. We will also consult the Government of Québec about potential incentives and initiatives that could help facilitate the development of the Project and achieve social acceptability, particularly incentives provided under its Plan for the Development of Critical and Strategic Minerals 2020-2025. At the same time, we intend to continue exploring the remainder of the Project for other significant flake graphite occurrences."