<div id="readability-page-1"><article>NRCan's $14.1M Federal Investment Accelerates Focus Graphite's Capacity to Supply Allies with Ultra-High-Purity Graphite for Defence, Aerospace, and Next-Generation Battery Materials.Ottawa, Ontario--(Newsfile Corp. - December 8, 2025) - Focus Graphite Inc. (TSXV: FMS) (OTCQB: FCSMF) (FSE: FKC0) (&#34;Focus&#34; or the &#34;Company&#34;), a leading developer of high-grade flake graphite deposits and innovator of next-generation lithium-ion battery technology, is pleased to announce that it has moved from conditional approval to a fully executed, non-repayable contribution agreement (the &#34;Agreement&#34;) with Natural Resources Canada (&#34;NRCan&#34;) for funding up to $14,062,500 under the Global Partnerships Initiative (&#34;GPI&#34;).The Agreement formalizes the federal government's support for Focus Graphite's project titled: &#34;Transformation of Canadian Flake Graphite into Ultra-High Purity Battery &amp; Advanced Materials Using Electrothermal Fluidized Bed Technology&#34; (the &#34;Project&#34;). The Project unites Canadian, Ukrainian, and U.S. partners to produce ultra-high purity graphite for global battery, aerospace, defence, and advanced material markets.The Agreement provides non-dilutive funding for the development, piloting, and commercial demonstration of Focus's clean electrothermal purification process, enabling conversion of Quebec sourced natural flake graphite into ultra-high purity anode and advanced materials products. The Project also advances broader NATO, G7, and European policy objectives for secure, diversified, and ESG aligned critical mineral supply chains. Once complete, the demonstration system is expected to produce purified graphite at volumes sufficient not only for downstream qualification, but also scalable to supply meaningful quantities to defence, aerospace, energy storage, and advanced materials markets. This production capability represents a major step toward commercial readiness and supports the Company's downstream strategy by enabling Focus to deliver high purity material for evaluation and early market entry while continuing to advance its mining projects and longer-term processing infrastructure. &#34;Execution of this Agreement significantly strengthens Focus Graphite's ability to help supply our allies with secure, ESG aligned, high purity graphite,&#34; said Dean Hanisch, Chief Executive Officer. &#34;Chinese graphite is currently embedded throughout North American military, aerospace, and energy systems, creating strategic vulnerabilities across the entire allied value chain. The ability to produce ultra-high purity material domestically, and process it using a clean, chemical free purification method, positions Focus to directly support the shift toward reliable, non-Chinese sources of strategic critical minerals.&#34; &#34;This Agreement unlocks our ability to move qualified graphite samples to international partners at a much faster pace, which is essential for advancing offtake discussions,&#34; said Jason Latkowcer, Vice President of Corporate Development. &#34;We will continue to advance our Lac Knife and Lac Tetepisca projects while simultaneously delivering the high-purity material that allied partners require to validate Canadian graphite within their defence, aerospace, energy storage, and advanced-materials supply chains.&#34;&#34;Advancing research and development is essential to securing resilient and sustainable critical mineral supply chains. Through the G7 Critical Minerals Action Plan, we continue to work with trusted partners to deliver innovative projects—like the progress achieved by Focus Graphite-that reinforce Canada's decades-long leadership in the mining space, which allows us to supply our allies and become an energy superpower while reducing emissions,&#34; said the Honourable Tim Hodgson, Minister of Energy and Natural Resources.Federal Funding DetailsUnder the executed Agreement, NRCan will provide up to $14,062,600 in non-repayable funding, representing approximately 73.6% of total eligible project costs. Focus Graphite will contribute $4,787,500 in cash and an additional $250,000 in in-kind contributions toward the Project. The eligible expenditures period extends from October 14, 2025 through March 31, 2028, during which the Company will execute all approved Project activities. Funding will support the full work program outlined in the Agreement, including feedstock preparation, pilot-scale metallurgical processing, electrothermal purification trials, feasibility study, and the engineering, procurement, installation, and commissioning, and demonstration of a commercial demonstration furnace.Advancing a North American, Sovereign Supply ChainThis federal investment advances Focus Graphite's objective of establishing a secure, fully North American graphite and advanced materials supply chain. The Project is specifically structured to reduce reliance on Chinese processing routes and aligns with critical mineral strategies aimed at enhancing energy security, industrial resilience, and defence readiness. The ultra-high purity graphite produced through this initiative is expected to supply key downstream sectors prioritized by Canada and its allies, including defence and aerospace, energy storage, electric vehicles, advanced materials, and anode production. About Focus Graphite Advanced Materials Inc. Focus Graphite Advanced Materials is redefining the future of critical minerals with two 100% owned world-class graphite projects and cutting-edge battery technology. Our flagship Lac Knife project stands as one of the most advanced high-purity graphite deposits in North America, with a fully completed feasibility study. Lac Knife is set to become a key supplier for the battery, defence, and advanced materials industries.Our Lac Tetepisca project further strengthens our portfolio, with the potential to be one of the largest and highest-purity and grade graphite deposits in North America. At Focus, we go beyond mining - we are pioneering environmentally sustainable processing solutions and innovative battery technologies, including our patent-pending silicon-enhanced spheroidized graphite, designed to enhance battery performance and efficiency.Our commitment to innovation ensures a chemical-free, eco-friendly supply chain from mine to market. Collaboration is at the core of our vision. We actively partner with industry leaders, research institutions, and government agencies to accelerate the commercialization of next-generation graphite materials. As a North American company, we are dedicated to securing a resilient, locally sourced supply of critical minerals - reducing dependence on foreign-controlled markets and driving the transition to a sustainable future.For more information on Focus Graphite Inc. please visit http://www.focusgraphite.com.LinkedIn: https://www.linkedin.com/company/focus-graphite/ X: https://x.com/focusgraphite Cautionary Note Regarding Forward-Looking StatementsCertain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words &#34;could,&#34; &#34;intend,&#34; &#34;expect,&#34; &#34;believe,&#34; &#34;will,&#34; &#34;projected,&#34; &#34;estimated,&#34; and similar expressions, as well as statements relating to matters that are not historical facts, are intended to identify forward-looking information and are based on the Company's current beliefs or assumptions as to the outcome and timing of such future events.In particular, this press release contains forward-looking information regarding, without limitation: (i) the anticipated benefits, timing, and potential outcomes of the Global Partnerships Initiative (&#34;GPI&#34;) funding award and the contribution agreement with Natural Resources Canada; (ii) the design, development, construction, commissioning, and operation of the Company's proposed electrothermal purification demonstration facility; (iii) the timing, scope, and success of technical collaborations with Thermal &amp; Material Engineering Center LLC (&#34;TMEC&#34;) of Ukraine, the University of Texas at Dallas's BEACONS battery prototyping facility, American Energy Technologies Co. (&#34;AETC&#34;), and other potential partners; (iv) the Company's ability to advance pilot-scale and commercial-scale testing, including the purification of graphite concentrates to ultra-high-purity specifications; (v) the ability to accelerate the movement of qualified graphite samples to international partners and the potential advancement of downstream or international offtake discussions; (vi) the possibility that Lac Knife and Lac Tetepisca may become future contributors to North American, NATO, G7, or EU-aligned critical-mineral supply chains; and (vii) expectations regarding the scalability, cost-effectiveness, environmental performance, ESG alignment, and commercial viability of the Company's purification technology.Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, risks related to market conditions, regulatory approvals, changes in economic conditions, the ability to raise sufficient funds on acceptable terms or at all, operational risks associated with mineral exploration and development, and other risks detailed from time to time in the Company's public disclosure documents available under its profile on SEDAR+.The forward-looking information contained in this release is made as of the date hereof, and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties, and assumptions contained herein, investors should not place undue reliance on forward-looking information.Neither TSX Venture Exchange nor its Regulation Services accepts responsibility for the adequacy or accuracy of this release.<img id="corporateNewsLogo" src="https://imageproxy.pbkrs.com/https://images.newsfilecorp.com/files/1963/277244_a123b64bf47d5bd3_logo.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="200" height="62" original-src="https://imageproxy.pbkrs.com/https://images.newsfilecorp.com/files/1963/277244_a123b64bf47d5bd3_logo.jpg"/>To view the source version of this press release, please visit https://www.newsfilecorp.com/release/277244<img src="https://imageproxy.pbkrs.com/https://api.newsfilecorp.com/newsinfo/277244/375?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1" height="1" original-src="https://imageproxy.pbkrs.com/https://api.newsfilecorp.com/newsinfo/277244/375"/></article></div>

Focus Graphite Inc. has secured a $14.1M non-repayable funding agreement with Natural Resources Canada under the Global Partnerships Initiative. This investment supports the development of ultra-high purity graphite for defence, aerospace, and battery materials, advancing Focus Graphite's North American supply chain strategy. The project aligns with NATO, G7, and European policy objectives for secure, ESG-aligned critical mineral supply chains, reducing reliance on Chinese sources.

Focus Graphite Executes Funding Agreement for $14.1M under Natural Resources Canada's Global Partnerships Initiative | FCSMF Stock News