Focus Graphite Inc.

(An exploration stage Company)

MANAGEMENT’S DISCUSSION AND ANALYSIS For the three and six month periods ended March 31, 2021

FOCUS GRAPHITE INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTH PERIODS ENDED MARCH 31, 2021.

The following Management Discussion and Analysis (“MD&A”) of the operations, results, financial condition and future prospects of Focus Graphite Inc. (“Focus” or the “Company”) are current as of May 26, 2021. It should be read in conjunction with the Company’s interim unaudited financial statements and notes thereto for the three and six month periods ended March 31, 2021, and the audited annual financial statements and the notes thereto for the year ended September 30, 2020 which were prepared in accordance with International Financial Reporting Standards (“IFRS”). The reporting currency is in Canadian dollars. All financial results presented in this MD&A are expressed in Canadian dollars unless otherwise stated.

This MD&A contains or may refer to certain statements that may be deemed “forward-looking statements”. Forward-looking statements include estimates and statements that describe the Company’s future development plans, objectives or goals, including words to the effect that the Company expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "anticipates", "believes", "could", "estimates", “predict”, “seek”, “potential”, “continue”, “intend”, “plan”, "expects", "may", "shall", "will", or "would" and similar expressions. Since forwardlooking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those in forwardlooking statements. Factors that could cause actual results to differ materially from those in forwardlooking statements include market prices for mineral commodities; exploration successes; new opportunities; continued availability of capital and financing; general economic, market or business conditions; and litigation, legislative, environmental or other judicial, regulatory, political and competitive developments. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. Focus does not undertake to update any forward-looking statement that may be made from time to time by Management or on its behalf, except in accordance with applicable public disclosure rules and regulations.

Nature of Business

Focus is a Canadian mineral exploration and development company incorporated under the Canada Business Corporations Act . The Company is engaged in the acquisition, exploration and development of mineral properties principally in Québec, with the aim of discovering commercially exploitable deposits of minerals (primarily graphite, rare earth elements (“REE”)). The Company’s main focus is to bring the Lac Knife graphite project to production.

Common shares of the Company are listed for trading on the Toronto Stock Exchange Venture Market (‘‘TSX-V’’) under the symbol “FMS” and on the OTCQX under the symbol “FCSMF”. Focus’ corporate office is located at 945 Princess St., Box 116, Kingston, Ontario, K7L 0E9.

Going Concern Assumption

The financial statements accompanied by the management’s discussion and analysis have been prepared on a going concern basis in accordance with International Financial Reporting Standards (“IFRS”). The going concern basis of presentation assumes the Company will continue to operate for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. The Company is in the exploration stage and has not earned revenue from operations. During the six months ended March 31, 2021, the Company incurred a net loss of $829,523 (2020 - $1,671,730) and negative cash flows from operations of $721,384 (2020 negative cash flows from operations $2,358,494). In addition, the Company has a working capital deficiency of $737,627 and a deficit of $52,652,184.

During the quarter ended March 31, 2021, the Company had options and warrants exercised, raising total proceeds of $5,125,546 attributed to;

$1,372,500 from the exercise of 27,450,000 options at $0.05 per share by optionees including officers and directors of the Company
$3,753,046 from the exercise of 37,530,460 warrants at $0.10 per share by various third parties.

The above factors indicates a material uncertainty exists that raises significant doubt about the Company’s ability to continue as a going concern. In assessing whether the going concern assumption is appropriate, Management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. This assessment is based upon planned actions that may or may not occur for a number of reasons including the Company’s own resources and external market conditions.

The Company’s ability to continue as a going concern, realize its assets and discharge its liabilities in the normal course of business, meet its corporate administrative expenses and continue its exploration activities in fiscal 2021, is dependent upon Management’s ability to obtain additional financing, through various means including but not limited to equity financing. No assurance can be given that any such additional financing will be available, or that it can be obtained on terms favorable to the Company. Failure to obtain additional financing results in material uncertainties that cast significant doubt as to the Company’s ability to continue to operate as a going concern.

The financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis was not appropriate for these financial statements, then adjustments would be necessary to the carrying amounts of assets and liabilities, the reported expenses and the classifications used in the statements of financial position.

Given the current market conditions, there is no assurance that the Company will be successful in raising the additional required funds.

To address its financing requirements and streamline operational costs, Management sold its free trading shares in Braille Energy Systems Inc. (formerly Mincom Capital Inc.) for proceeds of $409,302 and its interest in the Eastmain-Léran Polymetallic properties in the James Bay territory of northern Québec during the year ended September 30, 2020 for proceeds of $2,300,000 to be paid over three years and $500,000 was paid in fiscal 2020 (refer to the Corporate Development section). In addition, the Company is considering the potential sale of part of its equity position in Grafoid Inc. (Grafoid). The Company holds 7,800,000 shares in Grafoid.

The outcome of the potential sale of the Grafoid shares cannot be predicted at this time and Management’s ability to complete the sale will depend on market conditions and its ability to find buyers for these assets. The Company’s Board of Directors approved pursuing the sale.

Corporate Development Highlights

Focus Reports Excellent Long Term Cycling Results from Its Testing of Lac Knife High Purity - Spherical Coated Graphite; Lithium Ion Batteries Show Zero Capacity Loss After 250 Cycles

Testing Indicates Potential to Exceed 2000 Cycles in Automotive Batteries

On September 28, 2017, the Company announced excellent results from ongoing independent laboratory tests comparing long term cycling performance of Lac Knife surface coated spherical crystalline fine flake graphite against commercially competitive standard grades of coated crystalline flake graphite in the anodes of CR2016 coin cells.

Infographics accompanying this announcement are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/63ecfd7b-5659-4767-940d98fe16779805

http://www.globenewswire.com/NewsRoom/AttachmentNg/7a1cf37e-0e35-4f61-983e995b8e62086e

The results presented are a follow up from data presented in Focus’ November 25, 2015 news release where similar tests were run on Lac Knife’ standard grade spherical graphite. Those tests exhibited essentially zero loss in capacity after 110 cycles versus two commercially competitive grades that showed losses of 4.4% and 6.4% over the same number of cycles.

Testing was conducted at a globally recognized laboratory in Europe. The name of the laboratory is being withheld because of commercial and competitive confidentiality.

Ongoing Life Cycle Testing

On November 25, 2017 Focus Graphite published data showing that its Lac Knife Standard Grade of uncoated and coated spherical graphite exhibited essentially zero loss in capacity after 110 cycles versus two commercially competitive grades that showed losses of 4.4% and 6.4% over the same number of cycles.

In a presentation to the International Battery Seminar in Fort Lauderdale, Florida on March 26, 2017, Dr. Joseph Doninger, Focus’ Director of Manufacturing and Technology presented long term cycling test results showing that the zero loss in capacity of the Standard Grade of coated spherical graphite lasted for 250 cycles and showed a loss of only 4.5% in capacity after 570 cycles compared with losses of 11.7% after 440 cycles and 10.5% after 510 cycles for a competitive supplier’s coated spherical graphite.

He said that projecting these results suggests that Lac Knife’s coated SPG could last beyond 2000 cycles in full sized batteries.

The purpose of its ongoing battery materials testing efforts is to validate the commercial viability of the high purity crystalline flake graphite recovered from its Lac Knife deposit, and to demonstrate that Lac Knife graphite holds the potential to improve the performance of anodes in Lithium-Ion batteries (refer to May 27[th] , 2014 and February 26[th] , 2015 News Releases).

The properties of the flake graphite recovered from the Lac Knife high quality and high carbon content graphite deposit, allow for the recovery of concentrate that grades 98% C even in the finer size fractions down to 200 mesh (75 microns) that are usually the most difficult products to sell. This holds the potential for Focus to create a high-margin business opportunity by providing customers with a finer grade, lower cost, value-added graphite product.

Battery manufacturers require a cost competitive alternative to current sources of synthetic and natural flake graphite. China produces the majority of the world’s purified SPG, using methods generally regarded as environmentally unsustainable.

Presentation of Data:

All Lac Knife flake graphite materials tested were purified, spheronized and sized for application in the anodes (negative electrodes) of Lithium-Ion batteries. The anodes for all samples tested consisted of 90% graphite, 7% PVDF binder and 3% carbon black and a copper coil current collector with a thickness of 20 microns. All cells were assembled and tested in a CR2016 coin cell configuration prepared with 1M LiPF6/EC/DMC electrolyte and lithium foil counter electrodes. The coin cells were then cycled between 0.003 and 1.5 volts. Formation was carried out with C/10 current density and cycling was carried out with the same voltage limits at C/10. To evaluate the cycling performance, half cells made with the lithium metal counter electrode were charged and discharged at a relatively low current density and cycled galvanostatically at a C/10 rate until the limit of the test was reached.

Focus is currently engaged in battery testing with more than 20 potential end-users and seven universities and government laboratories.

Focus has established a recent history of technological successes by designing processes leading to superior performing coated spherical graphite for use in battery anodes and high performing expanded graphite for use in Li-Ion battery cathodes.

The Company’s proprietary, low temperature process, developed by its technical team headed by Dr. Doninger, is believed to be more efficient than very high temperature thermal purification and is suitable for the removal of specific types of impurities found in the Lac Knife graphite deposit.

The path from graphite product development to the battery manufacturers' testing labs is a lengthy, multi-step process.

Staged R&D testing is a prerequisite to the sale, or offtake, of any manufactured graphite for use in lithium-ion, alkaline and lead-acid batteries in the automobile, consumer, medical equipment, tools, hand-held industrial devices and aviation manufacturing industries or with military equipment suppliers.

Qualified Person

Dr. Joseph Doninger, Focus Graphite's Director of Technology and Manufacturing is the Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects - has reviewed and approved the technical content of this news release. Dr. Doninger is an internationally recognized graphite processing expert and himself, the inventor of a number of patents and an author of over 27 technical papers and presentations related to graphite processing and the use of graphite in energy storage systems. Dr. Doninger is a co-editor on the NATO Science Series book titled "New Carbon Based Materials for Electrochemical Energy Storage Systems". Dr. Doninger is also an Honorary Professor at the Department of Chemistry from the Kiev National University of Technologies and Design.

Focus and SOQUEM Launch Preliminary Economic Assessment of their Kwyjibo Rare Earth Element Project in Northern Québec – Met-Chem Selected to Conduct Study

Refer to ‘Exploration Activities’ Section of the MD&A - Kwyjibo Polymetallic (Fe-REE-Cu-(Au)) Project, Côte-Nord Administrative District of Québec

Preliminary Economic Assessment of the Kwyjibo Project

Refer to ‘Exploration Activities’ Section of the MD&A - Kwyjibo Polymetallic (Fe-REE-Cu-(Au)) Project, Côte-Nord Administrative District of Québec

Focus Introduces Its New “Superfine Grade” of Coated Spherical Graphite for Lithium Batteries to the International Battery Industry

On October 10, 2017, the Company announced the introduction of a Superfine Grade of coated spherical graphite product sourced from its Lac Knife Graphite Project.

The Company’s manufacturing accomplishment was achieved under the direction of Dr. Joseph Doninger, Focus’ Director of Manufacturing and Technology, and follows the Company’s original May 27, 2014 announcement of the development of its premium standard (medium) and fine battery grades, and; its subsequent August 8, 2016 announcement of the successful purification of Lac Knife’s fine grade material to 99.99% purity which is shown in the following Scanning Electron Microscope (SEM) photomicrograph of a flake of purified Lac Knife graphite.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/19dd47dc-41c8-4ce1-b62a2db97d76a1ae

As previously disclosed, Focus’ new Superfine Grade graphite product development was first presented to the 34[th] International Battery Symposium (IBS) in Fort Lauderdale, Florida, by Dr. Doninger on March 21, 2017.

Highlights include :

Market introduction of Focus’ first Superfine coated spherical graphite
Enlarges Company’s potential customer base
Expands Focus’ value-added product range

Focus’ development and introduction of a Superfine Grade to the battery market represents a milestone in the Company’s ongoing efforts to continuously improve its products to meet industry demands and are intended for use in various lithium-ion battery applications. The first cycle Galvanostatic curves in Figure 1 show that the new Superfine Grade of spherical graphite has a very high reversible capacity of 360 mAh/g and low first cycle loss of only 1.19%.

An infographic accompanying this announcement is available

at http://www.globenewswire.com/NewsRoom/AttachmentNg/16fab8d7-641a-4f69-8050dd479b12f773

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/494ef0f5-0b43-44e9-85936728e2c7b8b9

The particle size distribution curves for the new Superfine Grade of spherical graphite are compared with the Standard and Fine Grade curves in Fig. 2 and show that Focus now offers a wide range of particle sizes to meet the demands of the battery industry.

An infographic accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/42ef4124-58ad-4c16-924589b15aa59222

Dr. Doninger noted that the high Reversible Capacity of 360 mAh/g, low Irreversible Capacity Loss of 1.19% and low surface area of 0.89 m[2] /g for the new Superfine Grade of spherical graphite compare very favorably with the Lac Knife’s Standard and Fine grades introduced in 2014 as shown in Table 1.

A table accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/8a5bd647-8eb4-4700-9f9e5893dce130f9

The Company knows of no other junior graphite developer today with a deposit capable of competitively converting their fine flake component to battery grade production. Focus Graphite President and Chief Executive Officer Gary Economo said the Company’s ongoing R&D and materials testing aims to position Focus as a commercially competitive and important source of new graphite products for next generation energy storage and production.

Focus is currently engaged in battery testing with more than 20 potential end-users and seven universities and government laboratories.

As a technology graphite developer, Focus is deeply engaged in R&D and development of graphite concentrate and value-added products for a low carbon economy.

The Company’s proprietary, low temperature process, developed by a Focus Graphite technical team headed by Dr. Doninger, is believed to be more efficient than very high temperature thermal purification and is suitable for the removal of specific types of impurities found in the Lac Knife graphite deposit.

Focus' low temperature process versus conventional very high temperature purification processes obviates the use of large amounts of energy - one of the largest single cost components of graphite purification.

Focus has acquired an intimate understanding of both the future needs of the battery manufacturing sector and trends in that sector as a long-standing Board Member of Chicago-based NAATBatt International (the National Alliance for Advanced Transportation Batteries).

Holding the ability to purify Lac Knife's fine flakes expands the company's potential to sell substantially more of the graphite extracted from Lac Knife into high-value, high-tech applications instead of approximately 30 percent being sold for lower value industrial applications.

The path from graphite product development to the battery manufacturers' testing labs is a lengthy, multi-step process.

Qualified Person

Dr. Joseph Doninger, Focus Graphite's Director of Technology and Manufacturing is the Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects - and has reviewed and approved the technical content of this news release. Dr. Doninger is an internationally recognized graphite processing expert and himself, the inventor of a number of patents and an author of over 27 technical papers and presentations related to graphite processing and the use of graphite in energy storage systems. Dr. Doninger is a co-editor on the NATO Science Series book titled "New Carbon Based Materials for Electrochemical Energy Storage Systems." Dr. Doninger is also an Honorary Professor at the Department of Chemistry from the Kiev National University of Technologies and Design.

Focus Unveils Its Highly Conductive Ultrafine and Expanded Graphites For Battery Cathodes Creating a Complete Line of Value-Added Lac Knife Graphite Products for Lithium-Ion and Alkaline Batteries

Testing Indicates Electrical Conductivity of Lac Knife’s Ultrafine and Expanded Graphites Outperform Commercially Available Synthetic and Standard Flake Graphites by up to a Factor of 10.

On October 18, 2017, the Company announced that ongoing independent testing of its new ultrafine grades of flake graphite and expanded, natural flake graphite from its Lac Knife, demonstrate up to 10 times the electrical conductivity over standard grades of synthetic and natural graphite used in Li-Ion and Alkaline battery cathode applications.

Focus’ new superfine grades of flake graphite and the ultrafine grades of expanded graphite were first presented at the 34[th] International Battery Symposium (IBS) in Fort Lauderdale, Florida, by Dr. Joseph Doninger, Focus’ Director of Technology and Manufacturing on March 21, 2017. (The complete technical presentation entitled “Advances in the Performance of Lac Knife Natural Flake and Expanded Graphite in Electrochemical Power Sources ” can be accessed by following the link)

Dr. Doninger’s presentation also included the introduction of the Company’s Superfine Coated Spherical Graphite product to add to its standard and fine grades developed previously and an update on longterm battery cycle testing.

The Company’s latest achievements are an extension to Dr. Doninger’s developmental efforts first reported on March 31, 2016 at the 33[rd] International Battery Seminar. That initial publication of expanded graphite test results demonstrated that the expanded Lac Knife flake graphite produced nearly doubled the electrical conductivity of the cathode mix when compared with the standard competing grades of synthetic and flake graphites.

Expanded graphite is a form of processed natural crystalline flake, featuring dramatically improved electrical conductivity in cathode mixes. Delaminated expanded flake is also preferable to conventional air-milled flake and/or premium quality synthetic graphites when higher conductivity properties are desired.

A U.S. based independent battery testing conducted the scientific investigations and testing. The identity of that facility has been withheld for commercially competitive reasons.

The Company intends to continue its long-term cycling testing to 1000 cycles, develop new grades spherical graphite for use in high power applications; develop silicon modified graphite for high-capacity applications, and; continue its development of Lac Knife expanded graphite for use in battery cathodes.

Qualified Person

Focus Creates a 613 Ah/Kg Reversible Capacity Silicon-Enhanced Graphite Anode for Li-Ion Batteries – Nearly Doubling Theoretical Capacity of 372 mAh/Kg

On October 26, 2017, the Company announced it has developed a silicon-enhanced graphite anode for next generation lithium-ion batteries.

Testing in CR2016 coin cells showed the Company’s initial efforts to introduce nano-sized silicon into Lac Knife spherical graphite anode materials were successful in nearly doubling the capacity of LithiumIon batteries currently using synthetic and standard flake graphite in the anode mix.

Dr. Joseph Doninger, Focus Director of Manufacturing and Technology – who headed the testing program – said the testing results pushed performance well beyond the prescribed limits of theoretical reversible capacity of 372 Ah/kg for lithium-ion battery cells.

In a February 25, 2015 news release, the Company announced its spherical graphite (SPG) exhibited superior performance in coin cells when compared with commercial grades of synthetic graphite. This data is shown in Figure 1, link below:

Figure 1. http://www.globenewswire.com/NewsRoom/AttachmentNg/46e31f86-4cdf-4ea88c97-d0b8e0d2f059

As shown, Focus Graphite’s carbon coated fine grade of spherical graphite (SPG) at a reversible capacity of 366 Ah/kg is very close to the theoretical limit of 372 Ah/kg achievable with graphite. In addition, coin cells made with the two commercial grades of synthetic graphite achieved reversible capacities of only 345 and 347 Ah/kg, about 6% lower in capacity than the Lac Knife SPG. However, both the excellent performance of the Focus SPG and the commercial grades of synthetic graphite used in the anode have almost half of the capacity achieved with the new Focus silicon-enhanced Lac Knife SPG.

With pure silicon alone used as the anode material, theoretical reversible capacities as high as 4200 Ah/kg are possible. However, there is a serious problem with using silicon in that it swells and contracts as much as much as 400% during the lithiation and de-lithiation process that occurs during cycling. This results in the formation of an unstable anode and hence an unusable lithium-ion battery. Much work has been reported in the literature to add lithium to the graphite used in the anodes but continuing stability problems caused by the swelling of the silicon have held back its development.

Dr. Doninger explained that Focus Graphite has developed a process that addresses this problem and as indicated in Figure 2 below, with the addition of 18 wt. % silicon nanoparticles into our Lac Knife SPG, we have shown the possibility of achieving a reversible capacity value of 613 Ah/kg – almost twice the capacity of the commercially available grades of synthetic graphite and our standard Lac Knife spherical graphite.

Figure 2. http://www.globenewswire.com/NewsRoom/AttachmentNg/eecb53bd-2725-4e0481a7-a0a4fd975851

This data was presented at the 30th International Electric Vehicle Symposium and Exhibition held from October 9 to 11, 2017, in Stuttgart, Germany. A copy of the paper presented is available on the Focus website via the following link: Electrochemical Performance of Lac Knife Natural Crystalline Flake Graphite from Quebec, Canada in Lithium Ion Batteries.

As shown above, a reversible capacity of 613 Ah/kg was achieved with the Lac Knife silicon-enhanced SPG at a C/20 rate after the first cycle which is the same charging rate that was used in the coin cell tests run on the synthetic and Lac Knife graphite anode materials shown in Figure 1. Although the irreversible capacity loss (ICL) after the first cycle was 26.4% compared to 0.7% for the untreated SPG, the high reversible capacity achieved with the silicon-enhanced SPG indeed is quite remarkable particularly since these tests were conducted on an uncoated grade of spherical graphite.

Additional testing is being planned to optimize both the formulations and process used to produce the silicon-enhanced Lac Knife SPG. These tests, along with coating the SPG with carbon to cushion the

swelling that can occur due to the presence of silicon in the graphite, should result in further increases in the reversible capacity and decreases in the irreversible capacity loss.

The following figures provide a partial overview of the scope of Focus Graphite’s silicon-doped graphite anode test project results.

Figure 3. http://www.globenewswire.com/NewsRoom/AttachmentNg/668f3aaf-526b-47038a17-878bcddc5ff1

Figure 4. http://www.globenewswire.com/NewsRoom/AttachmentNg/25395abf-bad9-49e4ad74-95f4334a2bde

Qualified Person

Dr. Joseph Doninger, Focus Graphite's Director of Technology and Manufacturing is the Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects - has reviewed and approved the technical content of this news release. Dr. Doninger is the developer and co-developer of a number of U.S., European and Canadian patents related to carbon processing methodologies and processing equipment. Also, a chemical engineer, Dr. Doninger is the author and co-author of some two dozen technical papers and studies related to graphite composite anodes; carbon-based materials for electrochemical energy storage systems; advanced graphite for Lithium-ion batteries and other related publications.

Focus’ Non-Brokered Flow-Through Private Placement Raised $3,492,048

On December 31, 2017, Focus raised a total of $3,492,048 gross proceeds in three tranches through a non-brokered flow-through private placement. A total of 43,650,600 Flow-Through Shares were issued in the financing at $0.08 per Flow-Through Share.

First Closing of a Non-Brokered Flow-Through Private Placement for $1,290,000

On November 7, 2017, the Company announced a first closing of a non-brokered private placement. It issued an aggregate of 16,125,000 flow-through common shares at a price of $0.08 per Flow-Through Share, for gross proceeds of $1,290,000.

In connection with the closing of the Offering, the Company paid cash finder’s fees totalling $60,000.

A director and an officer of the Company purchased a total of 2,500,000 Flow-Through Shares. Their participation under the Offering constitutes a “related party transaction” as defined under National Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“NI 61-101”). However, such participation is exempt from the valuation and minority shareholder approval requirements of NI 61-101 based on the fact that neither the fair market value of the Offering, nor the consideration paid by such person, exceeds 25% of the Company’s market capitalization. The Company did not file a material change report at least 21 days prior to the closing of the private placement as participation of the insiders had not been established at that time.

Second Closing of a Non-Brokered Flow-Through Private Placement for $1,952,048

Following an increase of the gross proceeds that may be raised through this financing, on December 20, 2017, the Company announced the second closing. It raised $1,952,048 in gross proceeds by issuing an aggregate of 24,400,600 flow-through common shares. In connection with the closing of the FT Offering, the Company paid cash finder’s fees totalling $114,123.

Third Closing of a Non-Brokered Flow-Through Private Placement for $250,000

On December 29, 2017, the Company announced the third and final closing of the private placement at which it issued an aggregate of 3,125,000 flow-through common shares at a price of $0.08 per FlowThrough Share, for gross proceeds of $250,000. In connection with the closing of the FT Offering, the Company paid cash finder’s fees totalling $15,000.

Focus Launches Phase III Drilling at its 100%-owned Lac Tétépisca Flake Graphite Project, Québec - 38 Holes Planned (total: 5,750 m)

On November 20, 2017, the Company announced the commencement of Phase III drilling at its wholly owned Lac Tétépisca Flake Graphite Project located southwest of the Manicouagan reservoir in the Côte-Nord administrative region of Québec. Phase III drilling continues to target the “ManicouaganOuest Graphitic Corridor” (MOGC), a 2.0 km-long graphite bearing structure mapped by the Company through prospecting, mechanical trenching and combined ground magnetic (MAG)-EM geophysical surveying from 2012 to 2014.

Phase I drilling conducted in 2014 tested a 600-m section of the MOGC with 16 holes (total: 1,873 m) positioned along four sections spaced 200 m apart. In 2016, the Company completed a second phase of infill and extension drilling on the MOGC which included 18 HQ-diameter holes (total: 2,424 m) drilled along four fences, completing the 200-m line spacing pattern in the extent of the MOGC, plus five (5) additional infill holes drilled at a 100-m spacing between 2014 fences. Fifteen (15) holes from the Phase II program intersected significant graphitic mineralization with grades ranging from 5.6% graphitic carbon (Cg) to 19.35% Cg over a minimum true thickness of 6.2 m (refer to Focus news release dated January 20, 2017, available at www.focusgraphite.com).

Phase III drilling commenced on November 17 using two drills rigs. Thirty-eight (38) HQ-diameter holes are planned (total: 5,750 m). The drilling is designed to further test the continuity, thickness and grade of the main graphitic mineralization within the MOGC at a 50-m hole spacing over a segment of 0.9 km and down to a vertical depth of 150 m. The large diameter drilling is also designed to provide graphite mineralization material to continue with pilot plant metallurgical testwork.

The fall 2017 exploration program at Lac Tétépisca is designed and operated by IOS Services Géoscientifiques of Chicoutimi, Québec, under the supervision of the Table Jamésienne de Concertation Minière (TJCM) of Chibougamau, Québec. The core drilling contractor is Chibougamau Diamond Drilling Ltd. of Chibougamau, Québec. Focus has earmarked a budget of $1.35 million for the fall exploration program.

Sample preparation will be provided by IOS, while assaying will be provided by the Consortium de Recherche en Traitement de Minerais (COREM) of Québec City. All core will be assayed for graphitic carbon and total sulfur, with an additional 10% of all samples to be assayed for total carbon, inorganic carbon, organic carbon and metallic trace elements. Quality control, monitored by an IOS chemist, will consist of 15% reference materials, including blank samples, certified and internal reference material, as well as 10% duplicates to be assayed by Activation Laboratories of Ancaster, Ontario.

Qualified Persons

Mr. Réjean Girard, P.Geo., President of IOS Services Géoscientifiques Inc. and a Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects - has reviewed and approved the technical content of disclosure.

Mr. Marc-André Bernier, M.Sc, P.Geo. (Québec and Ontario), a Director of the Company and a Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the non-technical content of this disclosure.

Focus Announces Unit Offering to Raise $1M

On December 15, 2017, the Company announced a unit offering for total gross proceeds of up to $1 million. The Offering consists of up to 12.5 million units at a price of $0.08 per Unit. Each Unit is comprised of one common share and one common share purchase warrant exercisable at a price of $0.12 per share for a period of 36 months following the closing date. The Unit Offering is subject to regulatory approval.

On December 20, 2017, Focus announced the close of this financing that raised gross proceeds of $600,000 by issuing 7,500,000 units at a price of $0.08 per Unit. In connection with the closing of the Unit Offering, the Company paid cash finder’s fees totalling $36,000.

Focus Formalizes Marketing Arrangement with Grafoid Inc.

On March 13, 2018, Focus announced it has executed a formal Marketing Agreement with Grafoid. Under the terms of the Marketing Agreement, Focus engaged Grafoid to provide marketing and product development and related services using its technical and industry knowledge and expertise. Grafoid will (i) provide marketing and product development and related services for Focus’ business projects (including the Lac Knife crystalline flake graphite deposit); (ii) assist in the development of offtake agreements with third parties; (iii) assist in the technological development of graphite products; (iv) assist Focus in its efforts to secure a $175-million financing to be used for capital expenditure funding to support the Lac Knife project; and (v) provide other services as may be agreed upon between the parties. Terms of the financing have not yet been determined. The Marketing Agreement is subject to applicable regulatory approval.

The Marketing Agreement formalizes the arrangement between the parties that has been in effect since October 1, 2017 and will continue until terminated. Focus will pay Grafoid $200,000 per month for the services provided, as well as a 3% success fee for completing the $175-million capital expenditure financing. Either party may terminate the Marketing Agreement upon 30 days’ written notice.

Focus and SOQUEM Announce Positive PEA for the Kwyjibo REE Project in Québec

Refer to ‘Exploration Activities’ Section of the MD&A - Kwyjibo Polymetallic (Fe-REE-Cu-(Au)) Project, Côte-Nord Administrative District of Québec

Focus SEDAR Files Kwyjibo PEA Report

Refer to ‘Exploration Activities’ Section of the MD&A - Kwyjibo Polymetallic (Fe-REE-Cu-(Au)) Project, Côte-Nord Administrative District of Québec

Focus Announces the Grant of Stock Options

On July 30, 2018, the Company announced the grant of 26,060,000 incentive stock options to its director, officers, employees and consultants. Each option allows the option holder to purchase shares in the Company at an exercise price of $0.05 per share. The options expire on July 30, 2023.

Focus Refines Roadmap for Supplying BioMedical Grade Graphite and Rare Earth Materials for Grafoid’s Roll-Out of Its Innovative BioMedical Applications

On November 8, 2018, the Company introduced its roadmap for refining BioMedical Grade Graphite to supply Grafoid’s product line of BioMedical Applications. Already an established source of high-grade graphite, suitable for use in BioMedicine, Focus is also excited by the potential of its Rare Earth projects –such as the Kwyjibo Rare Earth Element (“REE”) Project (“Kwyjibo”) – which increases the range of materials that Focus may have the ability supply in the future.

Within biomedicine, powerful imaging techniques from the single molecule to the whole organism directly impact the fundamental science or diagnosis. However, existing methods tend to be limited by the optical properties of the available probes. This has motivated a growing interest in leveraging nanoparticles for imaging – such as dye-doped silica particles, quantum dots, nanodiamonds or metallic nanoparticles.

A highly active area of this research is focusing on the development of rare-earth based nanoparticles where optical properties and low cytotoxicity are promising for biological applications. Rare-earth based nanoparticles offer a range of attractive properties which include high photostability, absence of blinking, extremely narrow emission lines, large stokes shifts, long lifetimes that can be exploited for retarded detection schemes, and facile functionalization strategies. With such a broad range of potential benefits, REEs offer a great deal of potential for reshaping imaging in biomedicine.

With this rapidly expanding demand for rare-earth based nanoparticles and high-grade graphite across the BioMedical spectrum, Focus Graphite is actively refining its roadmap for supplying BioMedical grade material for Grafoid’s product pipeline. A pipeline closing in on commercialization and recently bolstered by the addition of Dr. Shannon to Grafoid’s advisory board. Dr. Shannon brings extensive experience, insight and guidance on Grafoid’s portfolio of bio-medical applications and systems. Having received a

medical degree from Queen’s University in Canada, which included advanced training in surgery and sports medicine, Dr. Shannon also holds post-graduate degrees in neurochemistry and physiology. He has been actively engaged in applied medical research within these areas for over 27 years.

Focus Develops Proprietary Processing Technology for Producing Superfine, High-Performance Graphite for Use in the Production of Lithium-Ion Batteries

On November 13, 2018, the Company announced the successful results of its efforts to advance the production of superfine, high-performance graphite using its proprietary processing technology. The Company’s graphite from the Lac Knife is suitable for use across a wide range of technology applications from energy storage to biomedicine.

Over the last 4 years, the Company embarked on an intensive value-added product development and testing program. This has resulted in a number of product announcements including the introduction of high-performing coated spherical graphite, highly conductive graphite for cathodes and the introduction of new super-fine grades of spherical graphite. All of which have been based on Focus proprietary thermal process that purifies graphite without the use of chemicals. For further details on the company’s product development and testing programs, please see the EVS30 Whitepaper presented in Stuttgart, Germany in Oct 2017 on the website.

Typically, the large flakes hold more value for producers because they are much easier and less expensive to purify. The smaller flakes are typically sold off as industrial material and generally hold a much lower value in relation to its larger counterpart. Focus’ processing technology provides an effective method for refining these smaller flakes into superfine, high-grade graphite – which is ideal for use in lithium-ion batteries and other energy storage applications. With growing market demand for reliable sources of high-grade graphite to build the next generation of lithium-ion batteries, Focus’ proprietary process for refining superfine high-grade graphite inherently increases the value of smaller flakes to a level on par, or above, their larger counterparts. The net effect is an increase in the overall valuation for the total graphite load.

Focus is well poised with its history of technological successes designing processes that have led to superior performing coated spherical graphite for use in battery anodes and high performing expanded graphite for use in Li-Ion battery cathodes.

Focus Announces that its Superfine, High Performance, Conductive Graphite used in the Production of Lithium-Ion Batteries is Currently Being Tested by Major Battery Companies

On November 21, 2018, the Company announced that its superfine, high-performance, conductive graphite used in the production of Lithium-Ion batteries is currently being tested by Major Battery Companies.

Typically, a lithium-ion battery requires up to 15 times more graphite than lithium depending on which cathode is used. This is due to the high surface area and layered crystal structure of graphite making it highly suitable for use as an anode material into which the lithium Ions are intercalated. Additionally, some battery technologies require that the graphite in use be almost 100% pure. Sources of pure, highgrade graphite are scarce and not readily available in consistent supply. Focus’ proprietary thermal process has the ability to provide a consistent supply of superfine, high-performance, conductive graphite for the purity needs of these battery technologies. This is evident by the current testing of Focus’ products by battery companies who view potential suppliers like Focus as critical supply chain partners to meet their respective opportunities for growth.

With estimates predicting electric car and plug-in hybrid vehicle sales reaching approximately 14.2 million by 2025 and reflecting a compound average growth rate of 38 per cent per year from 2016 to 2025, these battery companies are refining their product roadmaps to service this rapidly growing demand for efficient and effective energy storage.[1 ]

For the last 4 years, Focus has been delivering innovations that represent potential advancements for the industry on a whole. Under the supervision of Dr. Joseph Doninger, Focus’ Director of Manufacturing

and Technology, Focus achieved a number of significant in-house manufacturing and technological milestones that reflect the high quality and physical attributes of its wholly owned Lac Knife graphite resource.

In a presentation at the International Battery Seminar in Fort Lauderdale, Florida, on March 26, 2017, Dr. Doninger presented long-term cycling test results demonstrating that the zero loss in capacity of the standard grade of coated spherical graphite lasted for 250 cycles and showed a loss of only 4.5% in capacity after 570 cycles.

This is significant when compared with a competitive supplier’s spherical graphite, which we used for testing purposes, that lost 11.7% after 440 cycles and 10.5% after 510 cycles. With a better than 50% cycling performance in comparative testing, these results suggest that Focus Graphite’s coated SPG could last beyond 2000 cycles in full sized batteries. These results are significant to battery manufacturers who factor life cycle economics as a key benefit to end-users.

Closing of Two Tranches of Flow Through Private Placement Raising $1,275,000

On December 11, 2018, the Company closed the first tranche of its flow-through private placement raising gross proceeds of $650,000. The flow-through private placement comprised of 13,000,000 flowthrough units at a price of $0.05 per Unit. Each Unit is comprised of one flow-through common share and one common share purchase warrant. Each Warrant entitles its holder to purchase one common share at a price of $0.055 per common share until December 12, 2020, respectively. In connection with the financing, the Company paid cash finders’ fees of $38,500 and issued, as additional consideration, 770,000 non-transferable broker warrants, each broker warrant entitling the holder to acquire one common share of the Company at a price of $0.055 until December 11, 2020, respectively. A Director of the Company participated in the private placement for a total amount of $100,000.

On December 27, 2018, the Company closed a second tranche of its flow-through private placement raising gross proceeds of $625,000. The flow-through private placement was comprised of 12,500,000 flow-through units at a price of $0.05 per unit. Each Unit is comprised of one flow-through common share and one common share purchase warrant. Each Warrant entitles its holder to purchase one common share at a price of $0.055 per common share until December 27, 2020. In connection with the financing, the Company paid cash finders’ fees of $43,750 and issued, as additional consideration, 875,000 non-transferable broker warrants, each broker warrant entitling the holder to acquire one common share of the Company at a price of $0.055 until December 27, 2020, respectively.

Focus Appoints Lindsay Weatherdon to Board of Directors

On April 10, 2019, the Company announced the appointment of Lindsay Weatherdon to the Board of Directors, effective April 5, 2019.

Mr. Weatherdon is currently President of Concord National Ontario & Quebec Divisions; one of Canada’s leading Canadian Consumer Packaged Goods Sales & Marketing Agencies, in addition to President of BESI (Braille Energy Systems Inc. TSX-V: BES). Mr. Weatherdon has a diverse background in global sales, holding Executive Positions in hardgoods manufacturing developing retail strategies across large box and warehouse club formats. Mr. Weatherdon is an active board member of Stria Lithium Inc, a TSX Venture-listed junior exploration company (TSX-V: SRA) focused on the emerging green energy revolution and a consultant and private shareholder in Grafoid Inc., a graphene research, development and investment company.

The Company also announced the grant of 6,500,000 incentive stock options to its directors, officers, employees, and consultants. The options are to purchase up to 6,500,000 common shares of the Company at an exercise price of $0.05 per share and expire on April 10, 2024.

Focus Engages NextCap Investor Relations to Provide Investor Relations Services and Increase Visibility in U.S. Markets

On September 13, 2019, the Company announced it has engaged NextCap Investor Relations LLC (“NextCap”) to lead a comprehensive, strategic investor relations and communications program in the

United States and in other key regions. NextCap will partner closely with Focus’ Management Team and Board of Directors to develop and implement a comprehensive investor relations strategy with the purpose to increase the Company’s visibility in the investment community and goal to enhance shareholder value.

Focus Announced the Sale of Its 50% Interest in the Kwyjibo Project to Investissement Quebec

On May 25, 2020, the Company announced it closed the sell of its 50% interest in the Kwyjibo rare earth elements Project to Investissement Québec for the sum of $7,237,696 pursuant to the letter of intent (LOI) announced on April 23, 2020. The project, totalling 116 map-designated claims (CDC) and covering 6,283.5 ha, is located a few kilometres north of Manitou Lake, approximately 125 km northeast of Sept-Îles, in the Côte-Nord administrative district of Québec. The Kwyjibo claim block is also located 25 km east of the Québec North Shore and Labrador (QNSL) rail line and is accessible by air from float plane and helicopter bases located in or near Sept-Îles.

The Company also announced that, subject to Exchange approval, it will seek to convert up to $1,500,000 of loans due to two of its Directors to shares at $0.02 per share.

Focus Adopts New Stock Option Plan and Announces Stock Option Grants

On June 11, 2020, the Company announced it has adopted a new 20% fixed incentive Stock Option Plan to replace the previous 10% rolling stock option plan. The Company also announced the grant of incentive stock options under the new plan as compensation to its directors, officers, employees and consultants to purchase 36,370,000 shares at an exercise price of $0.05 per share until June 10, 2025.

The new Stock Option Plan and the subsequent option grant are subject to the approval of the TSX Venture Exchange and the disinterested shareholders of the Company and will be presented for approval at the Company’s next annual shareholders' meeting.

Focus Announces Retirement of CEO and Succession Plan

On June 16, 2020, the Company announced that Gary Economo, President and Chief Executive Officer, will retire as President and CEO effective June 30, 2020. Following his retirement, Mr. Economo will be available to provide ongoing input and support with respect to the Company’s flagship Lac Knife graphite project as required by Focus Graphite management. The Board of Directors has commenced a search for a new President and CEO who has the expertise and track record to lead the company through the next phase of development at the Lac Knife project.

Focus Announces Appointment of Marc R. Roy as Chief Executive Officer

On July 16, 2020, the Company announced it has appointed Marc R. Roy as Chief Executive Officer, effective July 1, 2020. Mr. Roy will also join Focus Graphite’s Board of Directors effective July 1, 2020.

Mr. Roy brings to Focus Graphite more than 20 years of global experience in Executive Management roles. Mr. Roy, age 54, most recently served as an Executive at BDA, Inc. overseeing EMEA as well as global mergers and acquisitions from January 2017 to June 2020. Prior to his position at BDA, Inc., Mr. Roy served as CEO of Brand Alliance from May 2013 to January of 2017. Prior to Brand Alliance, Marc served as CEO of Accolade Reaction Promotion Group from January 1999 to February 2010. His extensive experience in mergers and acquisitions as well as track record in delivering results, while leading transitioning companies, made him an ideal addition to the executive team and Board of Directors.

Focus Sells Its 100% Interest in the Eastmain-Léran Project, Eastern Eeyou Istchee James Bay Territory, Québec

On July 22, 2020, the Company announced it has signed a definitive asset purchase agreement for the sale of its 100% interest in the Eastmain-Léran project to a third party. The transaction closed on July 16, 2020 and the initial payment of $500,000 due at closing has been received.

The Eastmain-Léran project is comprised of two contiguous properties located in eastern Eeyou Istchee James Bay territory of northern Québec, 37 km southeast of Stornoway Diamonds (Canada) Inc.’s Renard diamond mine, and 10 km to the East of the Otish Mountains access road (HWY 167 North): The Eastmain-Léran/Alta Option property which consist of 32 map-designated (“CDC”) claims covering an area of 1,678.81 ha and the Eastmain-Léran/Staked property consists of 505 CDC claims covering

an area of 26,437.07 ha. The Eastmain-Léran/Alta Option property is subject to a 2% Net Smelter Royalty (NSR) payable to Ressources Minières Alta Inc., which can be purchased at any time by the Purchaser for $500,000.

Terms of the Agreement

The Purchaser will acquire from Focus, 100% interest in the project in consideration of:

(a) a payment of $500,000.00 in cash at Closing (payment received on July 16, 2020);

(b) a second payment of $500,000.00 in cash by the 1st of December, 2021;

(d) a final payment of $800,000.00 in cash by the 1st of December, 2023.

The Purchaser shall have the right to elect to pay a portion of the Post-Closing Instalment in the form of shares (the "Share Consideration"), to a maximum of fifty percent (50%) of such Post-Closing Instalment.

Upon the Purchaser meeting all of its obligations under the Agreement by December 1, 2023, Focus Graphite will transfer all mineral titles to the Purchaser and upon competition of the transfer, Focus will retain a 0.5% NSR on the Eastmain-Léran/Alta Option property which can be purchased at any time by the Purchaser for $125,000, along with a 2.5% NSR on the Eastmain-Léran/Staked property which can be purchased at any time by the Purchaser for $625,000.

Focus Announces Non-Brokered Private Placements of Flow-Through and Non Flow-Through Units

On November 13, 2020, the Company announced it plans to complete a non-brokered private placement of up to 4,285,715 units of the Company at a price of $0.035 per Unit for aggregate gross proceeds to the Company of up to $150,000, and up to 10,000,000 units of the Company at a price of $0.05 per Flow-Through Unit for aggregate gross Flow Through proceeds to the Company of up to $500,000 for the Flow-Through Offering.

Each Unit will consist of one common share in the capital of the Company and one non-transferable common share purchase warrant of the Company. Each Warrant issued as part of the Unit will entitle the holder thereof to acquire one Common Share at an exercise price per Common Share of $0.055 for a period of 48 months from the closing of the Offering. Each Flow-Through Unit will consist of one Common Share issued on a flow-through basis and one Warrant. Each Warrant issued as part of the Flow-Through Unit will entitle the holder thereof to acquire one Common Share, which is not a FlowThrough Share, at an exercise price per Common Share of $0.055 for a period of 24 months from the Closing Date.

The Company may pay finder's fees equal to 7% of the gross proceeds from a portion of the financing in cash, and 7% finders warrants equal to the number of units sold based on the same terms and in accordance with the policies of the TSX Venture Exchange. The net proceeds of the Offering will be used for existing operations and general working capital requirements, any finders’ fee payable in connection with the Offering and Flow-Through Offering, but will not be used to pay any management fees or investor relations fees. The net proceeds of the Flow-Through Offering will be used to support the Company’s Tetepisca drilling program. The Offerings are expected to close in tranches, with the first tranche to close as soon as possible subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

On December 18, 2020, the Company announced it increased the gross proceeds for its flow-through non-brokered private placement of up to 10,000,000 units for gross proceeds of $500,000, to 20,000,000 units to raise gross proceeds of up to $1,000,000, at $0.05 per Flow-Through Unit, to accommodate investor demand. The Company announced the closing of the first tranche of the flow through financing raising gross proceeds of $350,000 by issuing 7,000,000 Flow-Through Units. An insider of the Company participated in the closing of the Offering’s first tranche and subscribed for an aggregate of 4,000,000 Flow-Through Units representing an aggregate amount of $200,000.

Focus Announces Closing of $1,150,000 Private Placement

On December 30, 2020 the Company announced it closed its previously announced non-brokered private placement for total gross proceeds of $1,150,000. The closing of the offering occurred in two final tranches of $500,000 (the “Second Tranche”) and $300,000 (the “Final Tranche”) respectively subsequent to the previously announced first tranche closing of December 18, 2020. As part of the Second Tranche, the Company issued 10,000,000 units (the “Flow-Through Units”) at a price of $0.05

per Unit. Each Unit is comprised of one flow-through common share and one common share purchase warrant. Each warrant entitles its holder to purchase one common share at a price of $0.055 per common share until December 22, 2022.

In connection with the closing of the Second Tranche, the Company paid a cash finder’s fee totaling $35,000 and issued 700,000 warrants (the “Finder Warrants”). Each Finder Warrant entitles the finder to purchase one common share at a price of $0.055 per common share until December 22, 2022.

As part of the Final Tranche, the Company issued 3,000,000 Flow-Through Units for gross proceeds of $150,000 and 4,285,714 units (the “Non-FT Units”) at a price of $0.035 per Non-FT Unit for gross proceeds of $150,000. Each Non-FT Unit consists of one common share issued on a non-flow-through basis and a Warrant. Each Warrant issued as part of the Final Tranche entitles the holder to purchase one common share at a price of $0.055 per common share until December 29, 2020. In connection with the closing of the Final Tranche, the Company paid a cash finder’s fee totaling $20,000 and issued 528,571 Finder Warrants. The cash finders fee represents 10% of the gross proceeds from a portion of the Final Tranche and the Finder Warrants equal represent 10% of the number of units sold based on the same terms. Each Finder Warrant issued as part of the Final Tranche entitles the finder to purchase one common share at a price of $0.055 per common share until December 29, 2022. The securities issued in connection with the closing of the Second Tranche are subject to a four-month hold period expiring on April 23, 2021. The securities issued in connection with the Final Tranche are subject to a four-month holder period expiring April 30, 2021.

Focus Comments on Proposed RTO Between Grafoid and Stria Lithium

On December 11, 2020 the Company commented on Grafoid’s press release dated October 5, 2020 announcing that Grafoid signed a letter of intent dated September 23, 2020 with Stria Lithium Inc., which sets forth the general terms and conditions of a proposed business combination transaction that will result in a reverse takeover of Stria by Grafoid Shareholders.

Subject to the conditions set forth in the LOI, Stria and Grafoid will enter into a business combination transaction by way of a share exchange, amalgamation, arrangement or similar form of transaction, which will result in Grafoid becoming a wholly-owned subsidiary of Stria or otherwise combining its corporate existence with that of Stria. The final structure of the Acquisition is subject to receipt of final tax, corporate and securities law advice for both Stria and Grafoid.

As of June 30, 2020, Focus Graphite held 7,800,000 shares in Grafoid, representing approximately 16.38% of the total issued and outstanding shares of Grafoid.

Loan Conversion to Shares at $0,02 Per Share

During the quarter ended December 31, 2020, the Company initiated to convert up to $1,500,000 of loans due to two directors to shares at $0.02 per share.

Proceeds From the Exercise of Options and Warrants

During the quarter ended March 31, 2021, the Company had options and warrants exercised, raising total proceeds of $5,125,546 attributed to;

$1,372,500 from the exercise of 27,450,000 options at $0.05 per share by optionees including officers and directors of the Company - $3,753,046 from the exercise of 37,530,460 warrants at $0.10 per share by various third parties.

Grafoid and Focus Announce Submission of Provisional Patent Application for Advanced Anode Material Comprising Spheroidal Silicon Enhanced Graphite Particles

During the quarter ended March 31 2021, on March 1, 2021, Grafoid Inc. (“Grafoid”) and the Company, jointly announced the submission of a Provisional Patent Application titled: “Advanced Anode Material Comprising Spheroidal Silicon Enhanced Graphite Particles And Process For Making Same”. The present invention pertains to the field of electrode materials and in particular to processes for making materials for use as a new generation of lithium-ion battery anode material.

Due to the limitations of using silicon alone in battery anodes, adding silicon (Si) to graphite to increase the theoretical capacity limit in lithium-ion batteries has been gaining intellectual traction. There remains

a need for a highly controllable process for the efficient incorporation of silicon into a graphite matrix to provide spheroidal Si-enhanced graphite particles that are suitable for use as advanced anode materials.

For anode material to be considered battery-worthy, practical active material loadings on the anode should be on the order of 10 to 12 mg/cm[2 ] (or higher). In an embodiment of the invention, the anodes comprised of silicon-enhanced spheroidal graphite have active material loadings falling in the range from 6.2 to 16.2 mg/cm[2] . The formation of spheroidal particles is beneficial to provide maximum packing density in the formation of the lithium ion battery anode materials, which will maximize both the Specific Energy (Wh/kg) and Energy Density (Wh/L) of a full battery cell level.

Qualified Person

Overview of Grafoid Inc.

Founded in 2011, Grafoid Inc. is a graphene research, development and investment company that invests in, manages and develops markets for processes that produce economically scalable graphene for use in graphene development applications by leading corporations and institutions. Grafoid’s leading investment produces application friendly, minimal-defect, high-energy density few layer graphene, utilizing a safe, non-destructive extraction process, leaving the lowest possible ecological footprint. The completely unique, proprietary process results in what Grafoid regards as a new global standard for economically scalable, high-purity graphene products—that can be tailored to both industrial and commercial applications. For more information about Grafoid, please visit www.grafoid.com.

Focus Announces Grant of Incentive Stock Options

During the quarter on March 31, 2021, on March 1, 2021, the Company announced the grant of 30,000,000 incentive stock options to its directors, officers, employees, and consultants. The options are to purchase up to 30,000,000 Common Shares of the Company at an exercise price of $0.13 per share and expire on February 26, 2026.

- Focus Provides Update on its Lac Knife, Québec Project Commissions DRA Americas to Update Project Feasibility Study

During the quarter on March 31, 2021, on March 8, 2021, the Company provided an update on its ongoing efforts to complete the environmental and social impact assessment (ESIA) study for its Lac Knife flake graphite project. Focus resumed work on the ESIA study during the summer of 2020, as COVID-19 containment measures were being eased by the Québec government. IOS Services Géoscientifiques Inc. (IOS) of Saguenay, Québec is managing the ESIA study.

Focus also announced it commissioned global Engineering firm DRA Americas Inc. (DRA) to update the Company’s 2014 feasibility study for the Lac Knife project* and prepare a new technical report in accordance with the Canadian Securities Administrators' National Instrument (NI) 43-101 - Standards of Disclosure for Mineral Projects. The new feasibility study will be executed through DRA’s offices in Montréal, Québec with input from other DRA offices across the world.

Since 2014, Focus has completed or has undertaken several studies, the findings of which will serve as a basis for optimizing the potential of the Lac Knife project. The key changes to the feasibility study under consideration are:

Incorporation of additional equipment for tailings filtration for the dry stack tailings facility.
Evaluate the impact of additional bore hole data.
Incorporation of a new tailings management system concept for the project.
Update CAPEX and OPEX based on the latest 2020 equipment pricings and quotes.
Update economic model to take into consideration new graphite sales price as well as updated CAPEX and OPEX.
NI 43-101 Technical report on the Lac Knife graphite project feasibility study, Québec, Canada – Effective date: June 25, 2014. Available at www.sedar.com under Focus Graphite Inc.

Québec’s Ministry of the Environment and Climate Change (“MELCC”) has requested updated ESIA and feasibility study reports from Focus to complete their analysis of the Lac Knife project and determine if the project is ready to move to public information and consultation, the next phase of the environmental permitting process. Focus is aiming to complete both studies by the end of the year.

Update on the Lac Knife Environmental and Social Assessment (ESIA) Study

In 2017, Focus received a second series of questions on the ESIA study from the Québec MELCC. The process to answer Series II questions requires a fundamental change to the design of the tailings management system concept for the Lac Knife project along with additional field surveys designed to comply with new environmental guidelines and regulations introduced by the MELCC in 2016. Refinements to hydrogeochemical modelling (water quality estimates study) including water treatment concepts and atmospheric dust dispersion modelling (air quality impact study) were also requested by the MELCC.

The following surveys and investigations have been completed or are near completion:

Survey of groundwater flow and groundwater quality, including the installation of 21 piezometers in previous or purposely drilled wells,
Geochemical characterizations of:
on Surface water quality from 14 lakes plus the Aux-Pékans River (four out of six sampling phases completed).
Lacustrine (lake bottom) sediments from 28 sites (14 lakes)
Soils and overburden material, including 727 samples (143 sites) analyzed to set the local natural thresholds for metals and contaminants, including mechanized excavation of 44 trenches.
Kinetic lixiviation (humidity cells) tests on four pilot plant tailings samples
Wetland characterization plus an inventory of special-status and invasive plant species.

• Inventory of Chiroptera (bat) fauna. Focus has also instructed IOS Services Géoscientifiques to undertake, update, complete or commission the following surveys and investigations over the coming months: • Hydrogeochemical and ground water dispersion modelling.

Atmospheric dust dispersal modeling including greenhouse gas emissions.
Tailings management system concept
Tailings dam rupture mitigation measures.
Phase 5 (spring 2021) and Phase 6 (summer 2021) surface water sampling.
Caribou habitat characterization.
Updated mine closure plan.

Assuming the timely execution of the studies and reports delivery, the Company expects to submit the definitive and complete set of answers Series II questions on the Lac Knife project to the MELCC by December 31, 2021.

Qualified Persons

Réjean Girard, géo. (QC), President of IOS Services Géoscientifiques, a consultant to the Company and a and a Qualified Person as defined under National Instrument (NI) 43 – 101 Standards of Disclosure for Mineral Projects, has reviewed and approved the technical content of this news release relating to the Lac Knife Project ESIA study.

Marc-André Bernier, géo. (QC), P.Geo. (ON), M.Sc., Senior Technical Adviser to the Company and a Qualified Person as defined under NI 43 – 101 Standards of Disclosure for Mineral Projects, has reviewed and approved the technical content of this news release relating the Lac Knife feasibility study.

About IOS Services Géoscientifiques

IOS Services Géoscientifiques is a diversified geological consulting group based out of Saguenay, Québec, offering specialized services to the mineral exploration industry since 1992. Its expertise in project development is built on an integrative approach involving a long experience in fieldwork management and execution, laboratory services and professional consulting that relies on the capabilities of its professional geologists, engineers, and biologists. Involved in the Lac Knife project since its onset in 2010, IOS has managed all drilling and sampling programs on the project. This long-

standing involvement provides IOS with an acute understanding of the project and of the potential environmental issues surrounding graphite mining.

About DRA

DRA is a diversified global engineering, project delivery and operations management group headquartered in Perth, Australia, with an impressive track record spanning more than three decades. Known for its collaborative approach and extensive experience in project development and delivery, as well as turnkey operations and maintenance services, DRA delivers optimal solutions that are tailored to meet clients’ needs. With expertise in the areas of project development, mining, mineral processing, plant optimisation, operational readiness, systems integration, operations & maintenance and related water, energy, industrial and infrastructure requirements, DRA delivers truly comprehensive solutions to the resources sector. DRA employs over 4,500 people and offers flexible engineering & operations management services worldwide through 20 offices.

Focus Announces Non-Brokered Private Placements of Flow-Through Shares

Subsequent to the quarter ended March 31, 2021, on April 21, 2021, the Company announced that it plans to complete a non-brokered private placement of up to 16,666,667 flow-through shares (the “FT Shares”) of the Company at a price of $0.12 per FT Share (the “Offering Price”) for aggregate gross proceeds to the Company of $2,000,000 (the “Offering”).

The proceeds of the Offering will be used to support the exploration program on Company’s Tetepisca Graphite Project located southwest of the Manicouagan reservoir in the Cote-Nord administrative region of north- eastern Quebec.

The Offering is expected to close in tranches, with the first tranche to close as soon as possible subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The FT Shares will be sold on a private placement basis to accredited investors pursuant to the "accredited investor" exemption or other available and agreed upon exemptions from prospectus requirements. The FT Shares will have a hold period of four months and one day from the date of issue.

The Company may pay finder's fees equal to 7% of the gross proceeds from a portion of the financing in cash, and 7% finders warrants equal to the number of FT Shares issued as part of the Offering (the “Finder Warrants”) in accordance with the policies of the TSX Venture Exchange. Each Finder Warrant entitles the finder to purchase one (1) non-flow-through common share at a price of $0.12 per common share for a period of 24 months from closing of the Offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Focus Closes First Tranche of Non-Brokered Flow-Through Offering

Subsequent to the quarter ended March 31, 2021, on May 5, 2021, the Company announced the closing of the first tranche of the previously announced non-brokered private placement (the "Offering") for gross proceeds of $1,822,800.08. The Company has issued 15,190,001 flow-through common shares (the "Flow-Through Shares") at a price of $0.12 per Flow Through Share.

In connection with the closing of the first tranche of the Offering, the Company paid cash finder's fees totaling $117,236 and issued 976,966 non-transferable finder’s warrants (the “Finders Warrants”). Each Finders Warrant entitles the holder to acquire one (1) non-flow-though common share of the Company at a price of $0.12 per common share until May 4, 2023.

The securities issued in connection with the closing of the first tranche of the Offering are subject to a four-month hold period expiring on September 5, 2021. The Offering is subject to the final approval of the TSX Venture Exchange.

Two insiders of the Company participated in the Offering and subscribed for an aggregate of 2,500,000 Flow-Through Shares representing an aggregate amount of $300,000. Participation of insiders of the Company in the Offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of 61-101

as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time.

Focus Reports 92.6 m Grading 12.7% Graphitic Carbon (Cg) from Initial Five Holes of Infill and Extension Drilling Program at Lac Tétépisca, Québec − Includes 49.4 m Sub-Intercept grading 16.2% Cg

• Along with Focus Graphite’s Lac Knife Project, Lac Tétépisca results provide Focus with two highquality, graphite projects in development in Québec

Subsequent to the quarter ended March 31, 2021, on April 27, 2021, the Company announced the results for the first five (5) drill holes from its fall 2020 infill and extension core drilling program at its wholly owned Lac Tétépisca Graphite Project located southwest of the Manicouagan reservoir in the Côte-Nord administrative region of Québec. The fall 2020 drilling program comprised 30 HQ-diameter holes (total: 5,437 m) designed to complete the systematic testing of the Manicouagan-Ouest Graphitic Corridor. Results for the remaining 25 drill holes will be released over the coming weeks as analytical data are received, compiled, and verified.

Highlights:

• In the fall of 2020, 30 HQ-diameter holes (Figure 1) were drilled to test the continuity of the graphitic mineralization within the Manicouagan-Ouest Graphitic Corridor (MOCG) with respect to the variability of graphitic carbon thicknesses and grades. Analytical results for the first five holes have been received. Highlights are presented in Table 1 in Technical Section of the MD&A.

• Best intersection1 : Hole LT-20-80, drilled at -45o to a depth of 201.0 m on Line 1+00 North, intersected 92.6 m grading 12.7% Cg (from 44.2 m to 136.8 m; Table 1), including: o 49.4 m grading 16.2% Cg (from 81.3 m to 130.7m; Table 1); and o 11.45 m grading 16.1% Cg (from 59.45 m to 70.9 m; Table 1). • The Manicouagan-Ouest Graphitic Corridor (MOCG) is defined by a linear kilometer-long ground geophysical Magnetic (MAG) - Electromagnetic (EM) anomaly that trends N035o . Since 2014, Focus has tested the MOCG with 106 holes drilled over a 1.4 km strike length for a total of 16,468 m. The main graphite-bearing zone is 85 m wide on average, with drilling down to approximately 150 m vertical.

Once all the results from the fall 2020 drilling program are compiled, they will form the basis of Focus’ maiden mineral resource estimate for the Lac Tétépisca project, which is being prepared by DRA Americas Inc. and is expected to be completed in the coming months. Refer to the Technical Section for details on the results.

Focus Signs MOU With Australian Battery Casing Technology Company Vaulta and Lithium Battery Manufacturer Braille Energy Systems Inc.

Subsequent to the quarter ended March 31, 2021, on May 10, 2021, the Company announced it signed a Memorandum of Understanding ("MOU") with Australian battery casing technology company Vaulta (Battery Graphene Corp Pty Ltd) and Braille Energy Systems Inc. (formerly Mincom Capital Inc.) (TSXV: BES) to utilize the collective companies resources to identify collaborative opportunities for the advancement of batteries in key market segments.

Under the terms of the MOU, the companies will work together to conduct market analysis to identify new sectors of interest and co-develop products. The companies plan to combine resources to evaluate, design methodologies and the use of advanced materials suitable for end market product development. Specifically, on March 1, 2021, Focus Graphite announced the submission of Provisional Patent Application titled: "Advanced Anode Material Comprising Spheroidal Silicon Enhanced Graphite Particles And Process For Making Same". The present invention pertains to the field of electrode materials and in particular the processes for making materials for use as a new generation of lithiumion battery anode material.

The execution of this MOU creates a framework by which all parties can work collaboratively to establish viable projects and marketing activities to achieve increased market penetration and revenue potential. Additionally, the entities will explore cost effective domestic (North America) manufacturing.

Exploration Activities

Three months ended March 31, 2021

		Lac Knife	Kwyjibo	Manicouagan	Eastmain-Leran	Total
		$	$	$	$	$
Balance-beginning of period December 31, 2020		19,737,386	-	6,258,968	-	25,996,354

Additions
	Independent technical study	4,275	-	4,500	-	8,775
	Drilling	-	-	3,750	-	3,750
	Metallurgical analysis	225	-	825	-	1,050
	Resource estimate		-	6,221	-	6,221
	Property maintenance	150	-	150	96,595	96,895
	Preliminary economic assessment (PEA)	-	-	-	-	-
	Feasibility studies	1,650	-	-	-	1,650
	Abondoned Property	22,790	-	-	-	22,790
	Pre-feasibility studies		-	-	-	-
	Environmental studies	4,203	-	-	-	4,203
		33,292	-	15,446	96,595	145,333


Balance - end of theperiod March 31,2021		19,770,678	-	6,274,413	96,595	26,141,687

Six months ended March 31, 2021

		Lac Knife	Kwyjibo	Manicouagan	Eastmain-Leran	Total
		$	$	$	$	$
Balance-beginning of September 30, 2020		19,530,384	-	4,291,172	-	23,821,556

Additions
	Independent technical study	4,275	-	4,500	-	8,775
	Drilling	-	-	1,957,281	-	1,957,281
	Geochemical survey	-	-	300	-	300
	Metallurgical analysis	225	-	1,050	-	1,275
	Resource estimate	-	-	19,736	-	19,736
	Property maintenance	525	-	375	96,595	97,495
	Preliminary economic assessment	3,450	-	-	-	3,450
	Feasibility studies	1,650	-	-	-	1,650
	Abondoned Property	45,875	-	-	-	45,875
	Pre-feasibility studies		-	-	-	-
	Environmental studies	184,295	-	-	-	184,295

		240,294	-	1,983,241	96,595	2,320,131


Balance - end of theperiod March 31,2021		19,770,678	-	6,274,413	96,595	26,141,687

Three months ended March 31, 2020

		Lac Knife	Kwyjibo	Manicouagan	Eastmain-Leran
		$	$	$	$

Balance-beginning of period Sep 30 2019		18,891,530	6,773,510	4,163,532	2,324,572

Additions
	Drilling	-	565.5	2,000,000	-
	Independent technical studies	-	1,881.2	-	-
	Geophysical survey	-	-	-	-
	Geological mapping	-	2,627.6	-	-
	Geochemical survey	-	125.0	-	-
	Metallurgical analysis	-	-	-	-
	Resource estimate	-	26.2	-	-
	Property maintenance	2,052	-	1,620	41,879
	PEA	-	-	-	-
	Feasibility studies	-	-	-	-
	Pre-feasibility studies	-	-	-	-
	Environmental studies	-	2,096.3	-	-
	Pre-development agreements	-	7,908.0	-	-

Balance - end ofperiod Mar 31 2020		18,893,582	6,788,741	6,165,152	2,366,450

Six months ended March 31, 2020

		Lac Knife	Kwyjibo	Manicouagan	Eastmain-Leran
		$	$	$	$

Balance-beginning of period Dec 31 2019		18,893,582	6,786,113	6,165,152	2,366,450

Additions
	Drilling	-	-	-	-
	Independent technical studies	-	-	-	-
	Geophysical survey	-	-	-	-
	Geological mapping	-	2,628	-	-
	Geochemical survey	-	-	-	-
	Metallurgical analysis	-	-	-	-
	Resource estimate	-	-	-	-
	Property maintenance	-	-	-	-
	PEA	-	-	-	-
	Feasibility studies	-	-	-	-
	Pre-feasibility studies	-	-	-	-
	Environmental studies	-	-	-	-
	Pre-development agreements	-	-	-	-

		-	2,628	-	-

Balance - end ofperiod Mar 31 2020		18,893,582	6,788,742	6,165,152	2,366,449

Lac Knife Graphite Project, Côte-Nord Administrative District of Québec

The Lac Knife project comprises 62 map-designated claims (CDC) covering 3,248.18 ha located in Esmanville Township (NTS map sheet 23B-11), 27 km south-southwest of the iron-mining town of Fermont, in the Côte-Nord administrative district of Québec. Focus signed a letter of intent on August 19, 2010 and acquired a 100% interest in the claims titles in October 2010 when it acquired all the issued and outstanding shares of 3765351 Canada Inc. Effective April 1, 2012, 3765351 Canada Inc. was liquidated, and its assets were transferred to Focus. 3765351 Canada Inc. was formally dissolved effective September 30, 2012.

The Lac Knife project is host to the historical Lac Knife graphite prospect discovered during regional government geological surveying in 1959. The prospect is located in the Grenville geological province of Northeastern Québec. Graphite mineralization is set in migmatized biotite-bearing quartz-feldspar gneiss belonging to the Nault Formation of the lower Proterozoic Gagnon Group. According to the Québec Ministry of Natural Resources (MRN), where this gneissic unit is sheared, brecciated and silicified, coarse graphite flakes and associated sulphide minerals make up 5-10% of the rock, with up to 20% or more in the more brecciated zones. Fuchsite and other iron-rich micas accompany the graphite and sulphide mineralization in the more silicified horizons.

Total capitalized exploration expenditures incurred on the project to date (net of tax credits and mining duties) are $19,770,678.

Historical Exploration Programs

The Lac Knife graphite prospect was the subject of a first detailed investigation by Société Minière Mazarin Inc. (“Mazarin”) from 1987 to 1990. Between 1988 and 1990 Mazarin, through some 99 core drill holes defined three main graphite-bearing zones, extending more than 500 m in length and to a minimum depth of 125 m. Mazarin sponsored a first feasibility study on the Lac Knife project which was completed in 1989. An updated study was prepared by Cambior Inc. in 1991. Under this study, Cambior proposed an open-pit mining operation for six months of the year, which would supply enough graphite ore to feed a 400t per day concentrator on a year-round basis for an annual production of 23,000t of graphite concentrate.

In April of 2000, Mazarin concluded an agreement with Tennessee-based Ucar Graftech, a unit of Ucar International, and a leading manufacturer of high-quality natural graphite-based materials, whereby Ucar Graftech was to conduct a feasibility study for the Lac Knife graphite project, including the collection and testing of a 3,500-tonne graphite-bearing sample. All work on the project was suspended in 2001 because of a recession and a decline in graphite prices. In 2002, Graftech and Mazarin planned a joint venture with the goal of starting production in 2004. However, the graphite market again declined, and the Project did not proceed. During those years IAMGOLD Management Québec (“IAMGOLD”) purchased Cambior which included the Lac Knife project. The registered owner of Lac Knife project was 3765351 Canada Inc., a subsidiary of IAMGOLD. On October 4, 2010, Focus announced the closing of the acquisition of all of the issued and outstanding shares of 3765351 Canada Inc., in exchange for (i) a cash payment of $250,000 and (ii) the issuance of 4,016,362 common shares and 2,008,181 warrants of the Company, each warrant entitling IAMGOLD to acquire an additional common share of the Company at a price of $0.10 for a period of 24 months.

Focus Exploration and Development Programs

Exploration work by the Company at Lac Knife started in 2010 with a geological and environmental due diligence evaluation of the project and a technical review of the historical project database by Roche Ltd. The results of which were used to plan a new core drilling campaign, the first at Lac Knife in over 20 years.

2010-2011 Drilling Campaign

During winter 2010-2011, the Company implemented a twelve-hole (1,233 m) core drilling program on the main graphite prospect which was designed to verify and replicate selected historical holes from the 1989 Mazarin drilling program. The results of the drilling served as a basis for the estimation by Roche of a first mineral resource estimate of the deposit. The final drill program report from IOS Services Géoscientifiques of Chicoutimi, Québec was received on January 15, 2013.

Mineral Resource EstimateNote:

These results related to the first Mineral Resource Estimate have been superseded by the results of the updated Mineral Resource Estimate disclosed January 28, 2014 (see below).

On December 5, 2011, the Company released the results of the first Mineral Resource Estimate (MRE) on the Lac Knife graphite project completed in accordance with National Instrument 43-101. According to Roche of Montréal, the Lac Knife project hosts a Measured and Indicated Mineral Resource totalling 4.972 Mt grading 15.67% graphitic carbon (Cg) as crystalline graphite (637 kt @ 15.59% Cg of Measured Mineral Resource and 4,335 kt @ 15.68% Cg of Indicated Mineral Resource) with an additional Inferred resource of 3.000 Mt grading 15.58% Cg as crystalline graphite. This MRE is based on a database of 112 drill holes (total 8,904 m) comprised of 12 holes drilled by Focus in 2010-2011 and 99 holes drilled by Mazarin in 1989-1990. The resource estimate and accompanying technical report by Roche dated December 5, 2011, was filed on SEDAR ( www.sedar.com ) on January 18, 2012, and is available on the Company’s website at ( www.focusgraphite.com ). The block model was developed using GEMS™ software by Gemcom. Mineralization blocks are 5 m long, 7 m wide and 5 m high. A cut-off of 5% Cg was used. Five different graphite bearing zones are included in the resource estimation; all zones start from surface and extend to a maximum depth of 125 m, for total dimensions of 350 m width by 650 m strike length. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The MRE served as the basis of a Preliminary Economic Assessment (PEA) on the Lac Knife project published in 2012 . Updated Mineral Resource Estimate

On January 28, 2014, the Company released an update of its Mineral Resource Estimate for the Lac Knife deposit (prepared by AGP Mining Consultant Inc. of Barrie, Ontario). The resource estimate is based on both the 2012 and 2013 additional exploration and definition drilling programs for a total of 9,103 m in 92 holes. This is in addition to 105 previous drill holes that totaled 9,217 m. The drilling successfully achieved the designed goal to upgrade the quality of existing Indicated and Inferred Mineral Resources into the Measured and Indicated categories.

The updated Measured and Indicated resources are estimated at 9.6 Mt grading 14.77% graphitic carbon (Cg) at a 3% Cg cut-off grade (432 kt @ 22.66% Cg of Measured Mineral Resource and 9,144 kt @ 14.35% Cg of Indicated Mineral Resource). Additionally, there are 3.1 Mt of Inferred Mineral Resources at 13.25% Cg using a 3% cut-off as presented in Table 1. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves.

Table 1. Lac Knife Updated Mineral Resource Estimate* @ 3.0 % graphitic carbon (Cg) cut-off.

	*Tonnage* *(t)*	Cg *(%)*	*In situ* *Graphite* *(t)*
Measured	432,000	23.66	102,000
Indicated	9,144,000	14.35	1,312,000
*Measured + Indicated*	*9,576,000*	*14.77*	*1,414,000*
Inferred	3,102,000	13.25	411,000

* Mineral resources are not mineral reserves and do not have demonstrated economic viability. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserve.

Highlights:

Measured and Indicated Mineral Resources reported at a cut-off of 3.0% Cg increased in tonnage by 92% to 9.6 Mt grading 14.77% Cg compared to the previous estimate of 4.9 Mt grading 15.76% Cg reported at a cut-off of 5.0% Cg.
Upgraded 432,000 tonnes of Indicated Mineral Resources to the Measured resource category grading an average of 23.66% Cg using a 3% cut-off grade.
The updated resource estimate increased the in-situ graphite content by 81%.
The bulk of the 3.0 million tonnes previously classified as Inferred Mineral Resource was successfully upgraded to the Measured and Indicated categories.
Delineation of an additional 3.1 million tonnes of Inferred Resources that is located within the southwest extension of the Lac Knife deposit

The updated Mineral Resource estimate is based on 197 diamond drill holes totalling 18,320 m of historic and recent drilling. This includes 104 surface diamond drill holes totalling 10,337 m completed by Focus Graphite since 2010. Mineral Resources have been reported within a constraining pit shell at a cut-off grade of 3.0% graphitic carbon (Cg). The results significantly increase the quality and tonnage of the resource. The Updated Mineral Resource Estimate details on the mineral resource estimation procedures are given in Focus’ press release dated January 28, 2014, which is available on the Company’s website at (www.focusgraphite.com). The Updated Mineral Resource Estimate was used to determine the estimated mine life based on the mill feed rate for the Feasibility Study.

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Preliminary Economic Assessment*

Note: These results related to the Preliminary Economic Assessment (PEA) have been superseded by the results of the Feasibility Study disclosed June 25, 2014 (see below).

On October 29, 2012, the Company released the highlights of its positive Preliminary Economic Assessment (PEA) of the Lac Knife project completed in accordance with National Instrument 43101. The PEA, prepared by RPA, in collaboration with Soutex (responsible for metallurgy and mineral processing) demonstrates that Lac Knife has a positive potential to become a profitable producer of graphite.

Operational Highlights*:

Indicated Mineral Resources totalling 4.938 Mt grading 15.76% Cg and Inferred Mineral Resources totalling 3 Mt grading 15.58% Cg.
Proposed 20 years of life of mine production of 6.0 Mt of mill feed at a grade of 15.66% graphitic carbon (Cg);
Open pit operation at 300,000 tonnes per year;
Average graphite recovery of 91.3% at Lac Knife processing plant;
Life of mine production of 928,000 tonnes of concentrate at 92% Ct on average, or approximately 46,600 tonnes of concentrate per annum;
Thermal purification upgrade of approximately 40% of the primary concentrate to 99.99% Cg by an existing producer with inherent purification losses of 15%;
Life of mine project production of 868,000 tonnes of concentrate at 93.5% Cg on average, including 338,000 tonnes of high purity 99.95% Cg product.

Financial Highlights*:

$246 million pre-tax Net Present Value (NPV) (at a 10% discount rate);
32% pre-tax Internal Rate of Return (IRR);
$926 million pre-tax undiscounted cash flow;
$3.7 billion total net revenue;
Pre-tax payback period of 2.8 years;
$154 million initial capital cost, inclusive of $33 million and $24 million in working capital and contingency (25%), respectively;
$68 per tonne average unit operating cost at Lac Knife;
$435 per tonne average unit operating cost, assuming thermal purification on a contract basis;
PEA economics assessment for the Project calculated based on graphite market prices of $10,000, $1,300, and $800 per tonne of battery grade (>99.95% Cg, +100 mesh), medium grade (>90% Cg, -100+200 mesh) and fine grade (>80% Cg, -200 mesh) respectively, on a FOB mine basis.
Cautionary note: The Lac Knife project PEA is considered to meet the requirements of a ‑ Preliminary Economic Assessment as defined in National Instrument 43 101 – Standards of Disclosure for Mineral Projects (NI 43-101). The economic analysis contained in the technical report is based, in part, on Inferred Resources (as defined in NI 43-101) and is preliminary in nature. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves (as defined in NI 43-101). Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the reserves, development, production, and economic forecasts on which the PEA is based will be realized .

For full details on data analysis and modelling and on engineering and economic assessment parameters and assumptions used in the Lac Knife PEA are available in the IRPA technical report

filed on SEDAR (www.sedar.com) on October 31, 2012, and available on the Company’s website at www.focusgraphite.com .

Updated Preliminary Economic Assessment

Note: These results related to the updated Preliminary Economic Assessment (PEA) have been superseded by the results of the Feasibility Study disclosed June 25, 2014 (see below).

On November 7, 2013, the Company announced updated results of the Preliminary Economic Assessment (PEA) for the Lac Knife Graphite Project The update was based on improved metallurgical results of the recent Pilot Plant test campaign using an optimized flotation and polishing circuit conducted at SGS Lakefield and announced on August 21, 2013.

The increase in concentrate grades and associated economic assessment results were updated in the project cash flow summary and were validated by RPA Inc. in consultation with Soutex Inc. of Québec-City. Inputs updated in the financial model included: final concentrate average grade increase from 92% Ct to 96.6% Ct within the new flake size distribution categories, a reduction in operating cost by $367 per tonne milled, due to the elimination of the need to purify the concentrate by a third party and the associated $27,600,000 in working capital requirements. Pricing is based on “run-of mine” concentrate prices, without the value-added price prices used in the original PEA financial model. The original report was filed on October 29, 2012.

The Lac Knife project has a pre-tax internal rate of return (IRR) of 36.4% and of 28.6% after tax and a pre-tax net present value of $ 316.9 million and of $185.3 million after tax in the base case using a weighted average price of US$1,866 per tonne of run-of-mine concentrates. The cost of production is $458 per tonne of concentrate (refer to the November 7, 2013, news release available at www.focusgraphite.com and at www.sedar.com ).

Highlights of PEA Update Are Summarized Below:

	Pre-Tax Value	After Tax Value
	($millions)	($millions)
Net Present Value
8% discount rate	316.9	185.3
10% discount rate	250.1	143.3
12% discount rate	198.4	110.6
Capital Expenditure including	125.95	125.95
a 25% contingency of $24m
Operating cost per tonne	$67.61	$67.61
milled
Operating cost per tonne of	$458.20	$458.20
concentrate produced
Pre-Tax IRR	36.4%	28.6%
Pre-Tax Payback Period	2.4 years	2.8 years
Exchange rate	US$1.00 = C$1.00	US$1.00 = C$1.00
Strip Ratio	1.12	1.12

*Cautionary note: This PEA is considered by RPA to meet the requirements of a Preliminary Economic Assessment as defined in Canadian NI 43-101 regulations. The economic analysis contained in the technical report is based, in part, on Inferred Resources, and is preliminary in nature. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty that the reserves, development, production, and economic forecasts on which the PEA is based will be realized .

Feasibility Study

On November 4, 2013, the Company retained the services of Québec-based Met-Chem Canada Inc. (“Met-Chem”) to complete a Feasibility Study and Mine Closure Plan to bring the Lac Knife graphite project closer to a production decision.

The Feasibility Study scope of work involves a comprehensive review of all project characteristics - from process validation to capital costs, operational costs, and basic engineering leading to the detailed engineering, marketing, environmental, health & safety, and other considerations in order to further validate and integrate the various technical aspects of the project.

On June 25, 2014, the Company reached a significant milestone in the development of the project when it released the highlights of its positive Feasibility Study (FS) of the Lac Knife project completed by Met-Chem Canada Inc. Results from the FS indicate that the Lac Knife Project is viable economically based on a 25-year mine life that resulted in a Pre-tax Net Present Value (NPV) of $383 million calculated at a discounted cash flow (DCF) rate of 8%. The financial model has an Internal Rate of Return (IRR) of 30.1% and a capital payback period of 3.0 years. The after-tax financial model has an NPV of $224 million calculated at a DCF rate of 8%, with an IRR of 24.1% and a capital payback of 3.2 years.

Table 1: Lac Knife’s Feasibility Study - Net Present Values Calculated at Various Discounted Cash Flow Rates for the Base Case Production Scenario and the Forecasted Average Price/t in 2016.

Lac Knife Feasibility Results (Pre-Tax)	Base Case	2016 Forecast	Units
Average Price / Tonne of Concentrate:	$1,713	$2,256	US$
Internal Rate of Return (IRR)	30.1	41.8	%
Net Present Value @ 6% Discounted Cash Flow	510	809	$ million
Net Present Value @ 8% Discounted Cash Flow	383	624	$ million
Net Present Value @ 10% Discounted Cash Flow	291	488	$ million
Payback Period	3	2.1	Years
Lac Knife Feasibility Results (After-Tax)	Base Case	2016 Forecast	Units
Internal Rate of Return (IRR)	24.1	32.8	%
Net Present Value @ 6% Discounted Cash Flow	304	476	$ million
Net Present Value @ 8% Discounted Cash Flow	224	364	$ million
Net Present Value @ 10% Discounted Cash Flow	165	280	$ million
Payback Period	3.2	2.4	Years

Note: All monetary values are in Canadian Dollars ("CDN") except where specified otherwise.

Results from the FS indicate that the Lac Knife Project is viable economically with a base case scenario that includes a concentrator production line rate of 44,300 tonnes of concentrate annually at an average mill feed rate of 323,670 tonnes per year of Mineral Reserves over a 25-year mine life. A concentrator availability of 93% was used for the study. The additional Measured, Indicated, and Inferred Mineral Resources will continue to be evaluated to develop the mid and long-term growth profile for the Company.

Highlights:

Reduced operating costs from PEA estimate of $458 per tonne of concentrate to $441 per tonne.
Mining costs are 126.95 $/t of concentrate ($17.85 per tonne of ore) with the major component associated contract mining costs. Contract mining versus lower cost

owner mining will be revisited with further evaluation of mine equipment leasing and associated owner’s costs.

Processing costs for the concentrator are, on average, over the life of mine $239.37 per tonne of concentrate produced, based on yearly average processing costs of $33.66 per tonne of ore processed. The low-cost hydroelectric power supplied by Hydro Québec contributes to overall low production costs.
Detailed engineering is planned to start in 2014 and further analysis of each of these cost components will continue during the detailed engineering stage.
Life of Mine Plan resulted in an overall average strip ratio of 1.8 to 1 for 25 years.
• The open pit design includes 429 kt of Proven Reserves and 7,428 kt of Probable Reserves for a total of 7,857 kt of Proven and Probable Mineral Reserves grading 15.13% graphitic carbon (Cg). The Mineral Reserves which account for mining dilution and ore loss are reported at a cut-off grade of 3.1% Cg. The Mineral Reserve is included within the Measured and Indicated Mineral Resources of 9,576 kt grading 14.77 % Cg (432 kt of Measured Mineral Resources grading 23.66 % Cg and 9,144 kt of Indicated Resources grading 14.35 % Cg). The reference point for the Mineral Reserve Estimate is the mill feed.
Average prices used in the financial model do not include value added products that can be produced using the typically lower valued finer natural flake graphite. These finer graphite concentrates can be further processed into value-added products for the Lithium Ion battery market because of their high carbon content of 98% carbon and realize a higher margin for a reasonable capital investment and operating cost over and above those outlined in this release. Based on these results it has become an important objective to outline the scope of this secondary transformation project for electrifying transportation and for use by other lithium battery end users.

Today, the prices for the Lac Knife graphite concentrates average US$1,713 per tonne based on the size distribution and high carbon grade. Also included in the table above are the results using forecasted prices for 2016 where the average price for the same concentrates is estimated to increase to US$2,256 per tonne. These prices are estimated by Industrial Minerals Data of the UK, who are recognized in this field as an independent source of accurate, detailed information for the natural flake graphite market.

Met-Chem's financial model does not include potential value-added, purified, spheronized, and coated battery-grade graphite in its financial and operational calculations.

The exchange rate used is 0.91 US Dollars per Canadian Dollar. Table 1 provides the Net Present Values calculated at various discounted cash flow rates for the Base Case production scenario of 44,300 tonnes of graphite concentrate produced annually. The financial analysis in the FS study used the 24- month price of US$1,713 per tonne that is a weighted average for the various graphite concentrates that are classified by flake size and also valued by their carbon content.

The annual milling capacity is 323,670 tonnes per year to produce 44,300 tonnes of concentrate annually at a cost of $441 per tonne of concentrate. The concentrate will grade 97.8% graphitic carbon (Cg) on average for a 25-year open pit mine life based on current open pit reserves. All graphite concentrate produced with flakes larger than 200 mesh containing more than 98% Cg.

The FS is based on the pilot plant test work run by SGS Mineral Services in Lakefield, Ontario, during the spring of 2013 and announced in a news release on August 21, 2013. The concentrator process flow sheet is based on standard flotation circuits followed by a series of polishing mills that upgrade the carbon content by cleaning impurities present in the ore that are generally found on the graphitic carbon flake surfaces of the Lac Knife mineralization. Pilot plant recovery was 91%, full scale, consistent operations should improve on the mill process recovery. Flake size distribution is expected to increase in favour of larger flake as the full-scale plant will start with a SAG mill which is better suited to mitigate flake damage as opposed to crushing and grinding methods used in the pilot plant.

Lac Knife is unique in that all natural flake graphitic concentrates produced with flake size above 200 mesh (75 microns) size are more than 98% total carbon. This allows Focus to divert finer sized products that would typically be difficult to sell due to their flake size to higher value-added products such as spherical graphite for batteries due to the high carbon content of 98% (See "Lithium Battery Coin Cell Test Results" below).

Proven and Probable Mineral Reserves:

The open pit design includes 429 kt of Proven Reserves and 7,428 kt of Probable Reserves for a total of 7,857 kt of Proven and Probable Mineral Reserves grading 15.13% graphitic carbon (Cg). The Mineral Reserves which account for mining dilution and ore loss are reported at a cut-off grade of 3.1% Cg. In order to access these reserves, 2,746 kt of overburden, 10,926 kt of waste rock and 231 kt of Inferred Mineral Resources must be mined. This total waste quantity of 13,903 kt results in a stripping ratio of 1.8 to 1. Table 2 presents the Lac Knife open pit mineral reserves that were estimated for the Feasibility Study. The Mineral Reserves are included in the Measured and Indicated Mineral Resources of 9,576 kt grading 14.77 % Cg (432 kt of Measured Mineral Resources grading 22.66 % Cg and 9,144 kt of Indicated Mineral Resources grading 14.35 % Cg). The reference point for the mineral reserve estimate is the mill feed. The remaining Measured and Indicated Mineral Resources within the Lac Knife deposit will help to develop the mid and long-term growth profile for the company (See Table 5 for MRE).

Table 2: Lac Knife’s Open Pit Mineral Reserves Estimated

Table 2
Lac Knife Open Pit Mineral Reserves*
Category	Tonnage (kt)	Cg Grade(%)
Proven	429	23.61
Probable	7,428	14.64
Proven and Probable	7,857	15.13

*The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserve. The reference point for the Mineral Reserve Estimate is the mill feed.

A pit optimization analysis was carried out using the MS-Economic Planner module of MineSight [®] which ran the Lerchs-Grossmann algorithm to determine the economic limits of the deposit. The analysis showed that the open pit design for the Feasibility Study should be based on a 25-year mine life that includes approximately 82% of the Measured and Indicated Mineral Resources.

The open pit design incorporates 10 m high benches and follows the pit slope recommendations from the 2014 geotechnical investigation. The pit is 700 m long and 400 m wide at surface and has a maximum pit depth of 100 m. Mining will be carried out by a mining contractor who will use conventional open pit mining methods that include drilling and blasting followed by a hydraulic excavator loading a fleet of 46-tonne haul trucks. The mine will be operated seasonally (7 months of the year) and a front-end wheel loader will be used to feed the processing plant from an ore stockpile during the winter months.

The study was conducted with engineering and estimation methods appropriate to target an estimate accuracy of 15% that is standard and realistic for capital and operating cost estimates in a Feasibility Study. Based on an extensive risk review exercise the contingency is 11.5%. The Capital Expenditures in Table 3 outline what is needed to construct the mine, processing plant, power line and all associated infrastructure that is estimated at a total of $165.55 million.

Table 3: Outline of Financial Resources Required to Construct the Mine

Table 3: Outline of Financial Resources Required to Construct the Mine	Table 3: Outline of Financial Resources Required to Construct the Mine
Table 3
Lac Knife Capital Expenditure - Cost Centres	CDN$ millions
Mine equipment,infrastructure,andpre-stripping	4.21
Infrastructure	11.62
PrimaryCrushing	7.02
Concentrator	62.24
Environmental and Tailings Management	8.22
Power and Communication at mine site	15.4
Indirect Costs	39.77
Contingency (11.5%)	17.07
Sub Total	165.55

The operating costs per tonne of concentrate produced are $441 (see Table 4 below). This is an improvement over the updated Preliminary Economic Assessment (PEA) that showed $458 per tonne of concentrate produced. One key variable to low production costs is Lac Knife's project location giving relatively easy access to low cost hydroelectric power from Hydro Québec at the intersection of the access road and Provincial Highway 389.

Table 4: Operating Expenditures Cost Centres

Table 4: Operating Expenditures Cost Centres	Table 4: Operating Expenditures Cost Centres
Table 4
Lac Knife Operating Expenditures (25-year average) Cost Centres	$/Tonne of Concentrate
Mining	126.95
ProcessingCosts(Concentrator)	239.37
General Administration Mine Site	74.70
Total Operating Costs	441.02

On August 8, 2014, the Company filed the complete Feasibility Study (FS) report of the Lac Knife project on SEDAR (www.sedar.com) in accordance with the National Instrument 43-101 standards and guidelines. The Feasibility Study was completed by Met-Chem Canada Inc. with contributions from AGP Mining Consultants, Journeaux Associates and Golder Associates. The FS report is also available on the Company’s website at www.focusgraphite.com .

The technical information related to the Feasibility Study was approved by Project Leader Mary-Jean Buchanan Eng., and Jeffrey Cassoff, Eng., Lead Mining Engineer, and Ewald Pengel P. Eng., Senior Metallurgist, who was responsible for concentrator design, all from Met-Chem Canada Inc., and all individuals that are Qualified Persons under NI 43-101 guidelines and all independent of the issuer. Pierre Desautels P.Geo. of AGP Inc. completed the NI 43-101 Mineral Resource Estimate report and is also independent of the issuer.

Off-Take Agreement with a Chinese Industrial Conglomerate

On December 20, 2013, The Company announced that it had entered into an offtake agreement for the future production from Lac Knife’s graphite resource located 27 km southwest of Fermont, Québec.

The strategic agreement for up to 40,000 tonnes per year, with a minimum amount of 50% of production of graphite concentrate and value-added products produced was signed on December 19, 2013, by the Company with an industrial conglomerate, comprised of heavy industry, manufacturing and technology companies located in Dalian City, Liaoning Province, China. The 10year agreement calls for the supply of up to 40,000 tonnes per year of large, medium and fine flake

graphite concentrate and value-added graphite products from the proposed Lac Knife mining and processing facility.

On March 6, 2014, the Company reported that the terms of the agreement announced in December 2013 bind the parties to a minimum floor purchase of 20,000 tonnes per year in addition of the supply ceiling of 40,000 tonnes per year of future production from its Lac Knife graphite deposit. This announcement highlighted the availability of graphite flake concentrate for other strategic offtake buyers.

The specific terms of the agreement, including pricing and renewal rights, are confidential for competitive reasons.

Summary of Focus’ Offtake Agreements

Offtake	Date of Agreement	Buyer	Minimum Quantity (tonnes)	Maximum Quantity (tonnes)	Products	Source of graphite concentrates andproducts	End date	Right to determine actual quantity
China offtake	December 19, 2013	Chinese industrial conglomerate	20,000	40,000	All flake sizes1	Lac Knife Project or other sources owned or controlled by Focus2	December 19, 2023	Focus
Graphene offtake	September 24, 2015	Grafoid Inc.	0	1,000	High purity (98.3% total carbon) large flake (>80 mesh) concentrate	Lac Knife Project or other sources owned or controlled by Focus2	10 years after commercial production start-up	Grafoid
Polymer offtake	September 24, 2015	Grafoid Inc.	0	25,000	All flake sizes1	Lac Knife Project or other sources owned or controlled by Focus2	10 years after commercial production start-up	Grafoid
TOTAL	-	-	20,000	46,000	-	-	-	-
Notes:

[1] Estimated yearly production of 44,300 tonnes as per the Feasibility Study dated June 25, 2014

[2] Focus to determine in its sole discretion origin of graphite concentrate to be delivered

Site Plan and Infrastructure Layout

On February 20, 2013, the Company received from Groupe Synergis of Shawinigan, Québec a letter report regarding the constraints related with the utilization of the Hydro Québec road as a Lac Knife project access road.

A contract was awarded to BBA Engineering, an independent consulting engineering firm in Québec in the second quarter of 2013. The mandate awarded includes the determination of any additional physical elements in the aim to complete the environmental baseline study, including site access road design and general mine site infrastructure layout. Part of this exercise was to determine various options for the installation of the concentrator, waste dumps, and tailings impoundment. Also included in the BBA Engineering mandate is a redesign of the project access road to abide by Hydro Québec regulations. This is required to have regular vehicle circulation during construction and operations without infringing on safety perimeters of the current electrical towers and infrastructure. This was a precursor to meeting with Hydro Québec to initiate discussions regarding the potential connection to the local power grid to service the Lac Knife mill and related project infrastructure. The cost was compared to generating electricity on site as a second option. Connecting to Hydro Quebec’s power grid is the recommended option.

Filtered Tailing Management Conceptual Design Report

On September 25, 2014, the Company received the preliminary version of the conceptual design of a filtered tailings and waste rock management facility report from AMEC Americas Ltd. The filtered tailings and waste rock management design was developed as an alternative to the concept presented in the feasibility study to reduce risk to the environment and to address the requests of the stakeholders.

The concept is to use waste rock berms around the perimeter of the pile and place filtered tailings (dewatered tailings) co-mingled with waste rock in the interior of the pile. Drainage from the pile will be collected and reused during operations. The drainage will be kept within the Lac Knife watershed instead of being discharged in the direction of the more sensitive Rivière aux Pékans watershed that is part of the proposed Rivière Moisie aquatic reserve. In November 2014, the concept was presented to the Association de protection de la Rivière Moisie.

Metallurgical Testing Program

Phase I Metallurgical Testwork

On April 11, 2012, the Company announced the results of the first phase of metallurgical testing for the Lac Knife project. The test work was conducted on a 250 kg sample by SGS Metallurgical Services of Lakefield, Ontario. The results of the initial metallurgical testing showed the deposit holds 46.1% large flake (+48 mesh to +100 mesh); 39% medium flake (+150 mesh to +200 mesh) with an overall global recovery test rate of 85.9%. The Company received the final report for the Phase I testing at SGS on January 4, 2013 .

Dense Media Separation (DMS) Testing Program

On February 28, 2013, the Company received the results from a trial dense media separation (DMS) testing program conducted by Metchib Metallurgical Laboratories of Chibougamau, Québec from November 5, 2012, to February 15, 2013. The test work was performed on a total of 300 kg of medium-grade graphite mineralization collected from a surface blast at the Lac Knife deposit in 2012. A total of 53 different tests were carried out on the sample to assess critical parameters such as crushing and grinding behaviours and degree of graphite particle liberation and particle shape and size distribution; and DMS cyclone design, pressure, cyclone feed conditions and concentrate recoverability. Select findings from the trial DMS testing program have been incorporated into the design of the flow sheet for the pilot plant testing program which began at SGS on April 17, 2013 (see below).

Phase II Variability Flotation Program

The contract for Phase II metallurgical testing at SGS was signed on September 24, 2012. Phase II testing program was designed to improve graphite flake recovery and to generate additional data required to finalize the operational parameters for the configuration of the pilot flotation plant. In November 2012, a total of seven composite 100 kg samples of low to high grade mineralized P-sized half-core from the Lac Knife deposit were prepared by IOS and then expedited to SGS in preparation for the variability flotation program. Phase II metallurgical testing at SGS began in December 2012 and was completed on March 25, 2013.

On March 4, 2013, The Company released preliminary Phase II locked cycle test* (LCT) results for the Lac Knife project. The testing was performed on 4 composites core samples comprised of lowgrade and semi-massive graphite mineralization with a large proportion of large flakes (+80 mesh) in the graphite concentrates that ranged between 35% and 58%.

On July 9, 2013, the Company reported that the results of the final Phase II locked cycle test* (LCT) metallurgical results performed at SGS in Lakefield, Ontario, continued to confirm an average concentrate grade of 96.4% total carbon (Ct) and a high average flake graphite recovery of 92.5%

(see Company’s July 9, 2013, news release available at www.focusgraphite.com). SGS has completed all 6 Phase II LCTs on composite core samples comprised of low-grade, semi-massive, and massive graphite mineralization with a head grade ranging between 6.0% Ct and 25.0% Ct.

Highlights of these test results are as follows:

The carbon content of graphite concentrates produced from the 6 composites averaged 96.4% Ct, including the finest graphite flake concentrate (-200 mesh) produced. This is a 4.4% increase over Phase I LCTs completed in mid-2012.
The average graphite flake recovery for the overall deposit following the final Phase II LCT’s increased to 92.5% which confirms the previous 4 tests and increases the recovery by 0.3% from the previous results.
The proportion of large flakes (+80 mesh) recovered from the low grade, semi massive, and massive types of mineralization (total: 6 graphite concentrate samples) ranged between 35% and 58%.
In addition, a LCT was completed on a composite sample of the deposit’s host rock grading 1% Ct. The concentrate grade obtained was also very good at 96% Ct with a flake graphite recovery of 94.5%. These results suggest that mining dilution would not impact the recovery nor the final concentrate grade and quality in a negative way.

* A locked cycle test is a repetitive batch flotation test conducted to assess concentrator flow sheet design. It is the preferred method for arriving at a metallurgical projection from laboratory testing. The final cycles of the test are designed to simulate a continuous, stable flotation circuit.

Pilot Flotation Plant Program

On April 17, 2013, the Company announced the commissioning of its pilot flotation plant (designed, built and operated by SGS in Lakefield, Ontario) and the start-up of circuit testing for the production of high-grade graphite concentrates from the Lac Knife deposit. The principal objectives of the pilot plant test work are to confirm the results from Phase II bench scale LCTs; to assess the technical viability and operational performance of the processing plant design; to generate tailings for environmental testing, and; to produce a range of graphite raw materials for customer assessments and for further upgrading. The test work will also generate data needed for scale up of relevant processing equipment and to identify those critical controls required to maintain consistency of graphite concentrate recovery and purity. The grinding and flotation components of the circuit have been configured specifically to minimize flake wear and breakage and to ensure the maximization of the medium and large graphite flake size recovery content.

Two bulk graphite composites were provided to SGS by the Company to use as feed material for the pilot plant that was designed to operate in continuous mode at a feed rate of 200 kg per hour. The first is a 21.6 tonne bulk sample of weathered semi-massive grade graphite mineralization that was collected from surface. The second bulk composite sample was assembled from drill core and consists of a 23.3 tonne blend of representative core samples from the massive, semi-massive and low-grade mineralization types within the Lac Knife deposit. The proposed mine plan for the deposit would not segregate the different mineralization types. Composite drill core samples were used for the pilot plant flotation program as a representative selection of the different types of mineralization throughout the deposit. Results of the earlier stage locked cycle tests demonstrated that there is no benefit in developing different flow sheets for each mineralization type. Both composites were crushed and homogenized by SGS prior to the pilot plant campaign to ensure consistent feed. Once the pilot plant circuit was dialled-in using the surface bulk sample, the composite core sample was introduced into the circuit. The results from the processing of the bulk drill core sample were used to establish the processing plant flow-sheet design. Graphite flake samples produced from the pilot plant was submitted to potential customers for quality evaluations and purification trials designed to generate final saleable products.

On August 21, 2013, the Company reported pilot plant test results from Lac Knife. The average total carbon (Ct*) head grade of the bulk sample was lower than the deposit average grade at 11.8% Ct to be able to increase the amount of mineralized material available for pilot plant testing at that time. Even with the lower head grade, the metallurgical results were excellent confirming the robustness of the concentrator flow sheet design. Refer to the August 21, 2013, news release available at www.focusgraphite.com and on www.sedar.com.

Highlights:

The average grade of the coarse size fraction (+ 80 mesh) was 98.3% total carbon (Ct) compared with 97.4% Ct in the Phase II locked cycle tests (LCTs*)
The average grade of the medium size fraction, less than 80 mesh and greater than 150 mesh in size, was 98.2% Ct compared with 97.4% Ct in the Phase II LCTs
The average grade of all size fractions greater than 200 mesh was 98.0% Ct compared with 97.2% Ct in the Phase II LCTs
The average carbon content of the pilot plant campaign was 96.6% Ct compared to 96.4% Ct reported in the Company’s July 9, 2013, press release on the final results of the Phase II LCTs. It is important to note that these results were achieved despite the fact that the less than 200 mesh fraction was not subjected to another cleaning circuit in the pilot plant run as was done in the LCTs, meaning the carbon content of the overall sample would likely have been even higher.
These results indicate that all three concentrate size fractions may be easier and more cost effective to beneficiate into technology grade graphite due to the high-grade carbon content obtained from the pilot plant testing. Higher concentrate grades translate into reduced levels of impurities that have to be removed in the thermal or hydrometallurgical purification processes.
All carbon analyses were performed by SGS Canada Inc. (“SGS”) and are reported as total carbon (Ct). The analytical methods that were used to determine the metallurgical results included total carbon analysis by Leco on the final concentrates. The lower grade tailings products were analyzed by the graphitic carbon (Cg) method to discount the organic carbon and carbonate carbon in the samples .

** A locked cycle test (LCT) is a repetitive batch flotation test conducted to assess flow sheet design. It is the preferred method for arriving at a metallurgical projection from laboratory testing. In a LCT the intermediate products are incorporated in the following cycles, thus simulating a continuous flotation circuit on a laboratory scale .

The fact that the medium and large graphite flakes could be upgraded to average grades ranging between 98% Ct and 98.3% Ct by flotation only suggests that the impurities are attached to the surface of the graphite flakes. Therefore, the concentrate has the potential to be purified to levels required by battery grade graphite manufacturers. The objective of the pilot plant testing was to produce the highest quality large flake graphite concentrate.

Exploration Work

2012 LiDAR Topographic Survey

In August 2012, the Company sponsored a remotely sensed Light Detection and Ranging (LiDAR) topographic survey of the entire Lac Knife claim block which was supplemented by optical air photography coverage. The Helicopter-supported survey was carried out by Mosaic 3D of La-Pêche, Québec. Deliverables included a high-resolution georeferenced LiDAR image; an ASCII database of XYZ elevation points; a georeferenced air photo mosaic; and a georeferenced topographic contour map in digital format. The high-resolution LiDAR survey data will be used for future detailed engineering and site infrastructure studies as well as for the planning of the access road work for the project.

2012 Infill, Deposit Margin and Exploration Drilling Programs

In September 2012, the Company completed a second round of infill, deposit margin and extensional core drilling on the Lac Knife graphite deposit. The drilling was performed by G4 Drilling of Val-d’Or, Québec under the supervision of IOS. A total of 56 PQ-sized core holes (total: 5,638 m) were drilled to collect sufficient data on graphite grades and mineral continuity to upgrade the current Inferred mineral resources in the southeastern part of the Lac Knife deposit to the Indicated category; to map the limits of the deposit; and to provide sufficient mineralized feed material for Phase II locked cycle tests (LCTs) and for the pilot plant campaign. A further 13 exploration NQ-sized core holes (total: 1,674 m) were drilled to test the extensions of the deposits to the South (12 holes) and iron formation in the northern part of the project (one hole).

Representative core samples were collected from all holes and shipped to IOS facilities for sample preparation (crushing and grinding). Prepared samples were sent to COREM in Québec City for graphitic carbon (Cg) and total sulphide analysis using LECO induction. In regard to QA/QC program, 10% of the samples were also analyzed by COREM for total, organic, inorganic and graphitic carbon as well as for total sulphides. Selected core samples were also sent to ACTLABS analytical service provider for total, organic, inorganic and graphitic carbon, total sulphides and for 35 multi-element analysis using ICP methods. IOS introduced standards, duplicates and blank samples as part of its QA/QC program. Final analytical results from the 2012 drilling campaign were received in February 2013.

On March 5, 2013, the Company released the results of the exploration drilling program for the 12 core holes (total: 1,384 m) that were drilled to test the strike-length extension of the Lac Knife graphite deposit up to 375 m to the South of the deposit’s West limb. The 12 exploration holes were spread over 4 drill fences spaced 100 m apart. Hole LK-12-170 drilled 175 m south of the deposit on Line 900 S returned the best graphitic carbon (Cg) intersection:

Hole LK-12-170: 66.8 m grading 14.68% Cg* (from 54.9 to 121.7 m), including 8.0 m grading 21.73% Cg (from 54.9 to 62.9 m), 21.7 m grading 17.99% Cg (from 70.0 to 91.7 m) and 21.3 m grading 18.22 % Cg (from 100.4 to 121.7 m)

Intersections are expressed as core length because the host rocks are highly metamorphosed and locally migmatized and folded. However, the drill holes crosscut the mineralization envelope at a high angle. The interpretation is based on historical data including Focus’ drill holes. *All core sample carbon analyses were performed by COREM and delivered as graphitic carbon (Cg) results, internal analytical code LSA-M-B10, LECO high frequency combustion analytical method with an infrared measurement system.

Significant graphite intercepts*** are still encountered up to 375 m south of the deposit as evidenced by Hole LK-12-174 drilled on Line 1100 S which intersected 20.9 m grading 19.31% Cg (from 20.0

to 40.9 m), indicating that the deposit remains open to the south. All the significant intercepts*** are summarized in table form in the Company’s March 5, 2013, news release available at www.focusgraphite.com . On July 4, 2013, the Company received the final report of the exploration drilling campaign from IOS.

On April 9, 2013, the Company released the results of the infill and deposit margin drilling program for the 56 PQ-sized core holes (total: 5,638 m). Hole LK-12-128 drilled on Line 500 S targeted the western zone of the deposit and returned one of the best graphitic carbon (Cg) intersections of the program:

Hole LK-12-128: 42.8 m grading 20.43% Cg* (from 60.7 to 103.5 m), including 11.8 m grading 36.08% Cg (from 79.7 to 91.5 m)

Most of the drill holes intercepted significant graphite intersections*** along the strike length of West, Central and East zones of the deposit as evidenced by the following Holes:

Hole LK-12-135: drilled on section 675 S: 60.5 m grading 17.88% Cg (from 61.0 to 121.5 m), including 13 m grading 32.33 % Cg (from 70 to 83 m) and 11.8 m grading 26.39 % Cg (from 106.7 to 118.5 m)
Hole LK-12-147: drilled on section 375 S: 42.8 m grading 17.59% Cg (from 12.4 to 55.2 m), including 5.4 m grading 39.56 % Cg (from 15.4 to 20.8 m)
Intersections are expressed as core length because the host rocks are highly metamorphosed and locally migmatized and folded. However, the drill holes crosscut the mineralization envelope at a high angle. The interpretation is based on historical data including Focus’ drill holes .
** All core sample carbon analyses were performed by COREM and delivered as graphitic carbon (Cg) results, internal analytical code LSA-M-B10, LECO high frequency combustion analytical method with an infrared measurement system .
*** Significant intercepts are defined as Cg >5% over a minimum of 6 m; maximum internal dilution of 6 m; maximum external dilution of 0 m .

All the significant intercepts are summarized in table form in the Company’s April 9, 2013, news release available at www.focusgraphite.com. On May 27, 2013, the Company received the final report of the definition drilling campaign from IOS.

On April 30, 2013, the Company received the results of an external QA/QC audit of the complete database of all three drill campaigns on the project (1989-1990, 2010-2011 and 2012). The results of the audit provided a framework for establishing the design of the 2013 infill drilling program on the Lac Knife Project.

2012 Horizontal Loop Electromagnetic (“HLEM”) Ground Geophysical Survey

From August 13 to October 4, 2012, G.L. Géoservice Inc. of Rouyn-Noranda, Québec, completed a magnetic and horizontal loop electromagnetic (HLEM) ground geophysical survey on the Lac Knife Project. The magnetic survey covered 202 line-km and the electromagnetic survey was performed over 182.2 line-km. The line spacing for both geophysical surveys was 100 m. The Company received the survey and the interpretation reports (submitted by Géophysique Camille St-Hilaire of Rouyn-Noranda) in December 2012. The geophysical anomalies identified by the surveys have been followed up during the course of the summer 2013 exploration program and exploration drilling program.

2013 Infill and Exploration Drilling Programs

Two drilling programs with one drill rig were conducted from July 6[th] until the closing of the exploration camp on October 25. A total of 5,932 m distributed in 54 holes was completed by Forages

M. Rouillier Inc. of Amos, Québec under the supervision of IOS Services Géoscientifiques of Chicoutimi, Québec. The drilling was uploaded to the resource model in order to update the Mineral Resource Estimate.

The first of two 2013 drilling programs at Lac Knife started on July 6 and finished on August 24 and included 1368 m of definition drilling (a total of 24 PQ-sized holes) within the deposit, 713 m of twin hole drilling (a total of 8 PQ-sized holes) as well as an extra 630 m of drilling for metallurgical testing purposes (a total of 6 PQ-sized holes) for a total of 2711 m of drilling (30 holes). The objective of the definition drilling was to upgrade the existing Indicated and Inferred Resources into the higher quality Indicated and Measured Resource estimate categories. An additional 2,208 m of exploration drilling (a total of 16 NQ-sized holes) was also completed as part of the first drilling program to test several geophysical targets, including interpreted adjacent south-east extensions of the deposit and a high priority target located about 200 m west of the deposit.

The second 2013 drilling program, conducted exclusively for exploration, started on October 9[th] and was ended on October 16, 2013. It included 1013 m of exploration drilling (a total of 8 NQ-sized holes) to test some observed showings and geophysical anomalies located north of the deposit.

Representative core samples were collected from definition holes (1310 samples) and exploration holes (474 samples) and then shipped to IOS facilities for sample preparation (cutting, crushing and grinding). Prepared samples were sent to COREM in Québec City for graphitic carbon (Cg) and total sulphides analysis using LECO induction. With regards to the QA/QC program, 10% of the samples have also been analyzed by COREM for total, organic, inorganic and graphitic carbon as well as for total sulphides. Around 10% of additional selected core samples have been sent to ACTLABS to be analyzed for total, organic, inorganic and graphitic carbon, total sulphides and for a 35 multi-element analysis using the ICP method. IOS introduced approximately 20% of standards, duplicates and blank samples as part of the QA/QC program (288 samples for definition holes and 146 samples for exploration holes).

On December 4, 2013, the Company released the results of the infill drilling program. All the definition holes intercepted mineralization as expected. Hole LK-13-187 drilled on Line 500 S targeted the western zone of the south part of the deposit and returned one of the best graphitic carbon (Cg) intersections of the program:

Hole LK-13-187: 67.8 m grading 21.10 % Cg* (from 17.4 to 85.2 m)

All the drill holes (except LK-13-203) intercepted significant graphite intersections*** along the strike length of the deposit as evidenced by the following holes from different parts of the deposit:

Hole LK-13-209: drilled on section 425 S in central part of the deposit: 7.2 m grading 27.03% Cg (from 21.5 to 28.7 m) and 25.3 m grading 30.94 % Cg (from 38.2 to 63.5 m)
Hole LK-13-201: drilled on section 250 S in northern part of the deposit: 34.7 m grading 19.34% Cg (from 22.0 to 56.7 m)
Intersections are expressed as core length because the host rocks are highly metamorphosed and locally migmatized and folded. However, the drill holes crosscut the mineralization envelope interpreted from the historical data and Focus’ drill holes at a high angle.

** All core sample carbon analyses were performed by COREM and delivered as graphitic carbon (Cg) results, internal analytical code LSA-M-B10, LECO high frequency combustion analytical method with an infrared measurement system.

*** Significant intercepts are defined as Cg >5% over a minimum of 6 m; maximum internal dilution of 6 m; maximum external dilution of 0 m.

All 36 significant intercepts and a location map of the drill holes are summarized in table form in the Company’s December 4, 2013, news release available at www.focusgraphite.com. On March 12, 2014, the Company received the final report of the definition and exploration drilling campaigns from IOS Services Géoscientifiques.

2014 Infill and Exploration/Condemnation Drilling Program

A Camp construction permit was received from the Caniapiscau MRC on June 5 while the land use permit was received from the MERN on June 19. Construction of the 2014 temporary exploration camp started on June 23, 2014 and was completed on July 6 by IOS Service Géoscientifique of Chicoutimi. The drilling program with one drill rig was conducted from July 17, to October 2, 2014, and the exploration camp was closed on October 10, 2014. In addition to IOS, the Company hired two Innu workers from the Uashat mak Mani-Utenam (ITUM) First Nation community.

A total of 7,565 m of drilling (62 holes) were completed including 4,523 m of infill drilling (39 holes) in the southwest extension of the deposit with the aim to upgrade the existing 3.1 million tonnes of Inferred Resources (refer to Focus news release dated January 28, 2014) into the higher quality Indicated and Measured Resource estimate categories. Almost all the infill drill holes have intersected mineralization as expected by the resource model. An additional 3,041 m of exploration/condemnation drilling was also completed to test several geophysical targets located below or nearby the proposed mine infrastructure in the southwest extension of the deposit, west of the deposit and in the northern part of the claim block. The drilling was performed by G4 Drilling of Val-d’Or, Québec under the supervision of IOS Service Géoscientifique of Chicoutimi.

Representative core samples were collected from all holes and shipped to IOS facilities for sample preparation (cutting, crushing and grinding). Prepared samples were sent to COREM in Québec City for graphitic carbon (Cg) and total sulphides analysis using LECO induction. For the QA/QC program, 10% of the samples will also be analyzed by COREM for total, organic, inorganic and graphitic carbon as well as for total sulphides. Around 10% of additional selected core samples were also sent to ACTLABS to be analyzed for total, organic, inorganic and graphitic carbon, total sulphides and for a 35 multi-element analysis using the ICP method. IOS introduced standards, duplicates and blank samples as part of the QA/QC program. On March 27, 2017, the Company received the final report of the definition and exploration drilling campaigns from IOS Services Géoscientifiques.

On March 27, 2017, the Company received the final report of the definition and exploration drilling campaigns from IOS Services Géoscientifiques. Upon receiving, the Company filed the final reports on the 2014 drilling program with the Québec MERN for exploration assessment credit purposes

Environmental and Social Aspects of the Lac Knife Project

Environmental Baseline Studies

During the course of the summer 2012 exploration program, the Company commenced the monitoring of the natural, physical and chemical aspects of the environmental baseline studies as the initial components of an Environmental and Social Impact Assessment (ESIA) on the Lac Knife project. The ESIA is a comprehensive assessment of all potential impacts that could occur throughout the life-cycle of a proposed mining project and it recommends measures to prevent and mitigate these impacts. The start of the ESIA process reflects the Company’s commitment to comply with or exceed all Federal, Provincial and municipal regulatory requirements for mine development. The contract to design, implement and manage the environmental baseline studies was awarded to Groupe Synergis Inc. (“Synergis”) of Shawinigan, Québec. In addition of managing the environmental baseline studies, Groupe Synergis was in charge of the natural habitat survey, while the survey of physical and chemical aspects was conducted by Terrapex of Brossard, Québec and

the social aspect study was performed by Del Degan, Massé & Associés Inc. (“DDM”) of QuébecCity. The data acquisition phase of the environmental baseline study was completed in winter 2014 and all the related reports were received in spring 2014.

Natural Habitat Aspect of the Environmental Baseline Studies

In September 2013, Groupe Synergis completed the Phase I collection of information over the claim block with respect to biological components (aquatic and terrestrial) of the environmental baseline studies. The different components regarding aquatic aspect include characterization of water, sediments, fish and benthic fauna for all lakes and streams. The different components regarding the terrestrial aspects included the characterization of ecosystems, the observation of birds, mammals, amphibians and reptiles. Groupe Hémisphères delivered the final report on land vegetation on December 4, 2013.

Phase II of data collection by Synergis was completed in the fall of 2013, including the completion of an aquatic and bird inventory over the Lac Knife Project area. The data acquisition also included the complete aquatic and terrestrial environmental characterization along the current project access road. To determine the current noise levels that characterize the project site before its development, a field campaign was also realized in fall 2013. This fieldwork was considered necessary as no data about the noise levels were available for the project site.

In the beginning of 2014, the Company received all the reports related with the natural habitat aspects of the environmental baseline studies from Groupe Synergis of Shawinigan. The herpetofauna (amphibians and reptiles) and bird observation reports were received in February while the fish, fish habitat, bottom lake sediments and surface water quality observation and characterization report was received in May 2014. The report regarding noise level characterization was also received in January 2014.

In April 2014, a survey was performed by Golder Associates regarding the potential frequentation of the Woodland Caribous during winter and early spring, in the Lac Knife Project area. No caribou were observed, and preliminary results suggest that the site was not frequented by the caribou during winter and early spring in the recent years.

Physical and Chemical Aspects of the Environmental Baseline Studies

Fieldwork for the physical and geochemical study components of the environmental baseline study were undertaken by Terrapex during fall 2012. The physical and geochemical aspects that were examined as part of the Phase I of the study included: 1) The soil cover (humus and B-horizon) and compositional characteristics; 2) basic hydrogeological characteristics of the area targeted for the proposed open pit ; 3) a review of general climatology conditions of the area; 4) hydrology of the proposed mine infrastructure sites; 5) preliminary evaluation of acid mine drainage (AMD) and metal leaching (ML) potentials of mineralized rock (composite samples of low grade, semi-massive and massive mineralization) and host rocks and of acidic soil samples in the old surface pitting areas. With respect to acid mine drainage and metal leaching potential, a series of composite samples (about 5.0 kg each) representative of the mineralization types and waste rock close to mineralization tested at SGS laboratories in Mississauga for Lock Cycle Tests (LCTs) were prepared by IOS Service Geoscientifiques of Saguenay, Québec and sent to Terrapex in Brossard. Sub-samples were split (about 1.5 kg) and sent for complete lithogeochemical characterization and static testing (ABA = acid base accounting) at ALS Minerals. The leftover pulps and rejects were recuperated for follow-up leaching tests (3 leaching protocols: TCLP 1311, acid rain 1312 and water CTEU-9) which were performed at Exova laboratory in Pointe-Claire, Québec in January 2013, under the supervision of Terrapex.

On February 15, 2013, the Company received the final report from Terrapex on the multi-element geochemistry of humus and B horizon soil samples collected as part of the fall 2012 environmental soil survey. This report addresses two of the objectives of the analysis which are to assess the

potential for graphite mineralization on other parts of the project based on soil geochemistry, and to evaluate the potential of the project to host other types of mineral deposits.

Two other reports were submitted in line with the environmental baseline studies in early 2013: 1) a report on hydrology of the Lac Knife watershed and climatology aspects dated March 25, 2013; and 2) the main report on physical and chemical aspects (Phase I) covering soil geochemistry characterization, hydrogeology and environmental characterization of mineralized zones, waste rocks and soils, dated April 25, 2013.

A winter geotechnical drilling program was undertaken by Terrapex in collaboration with IOS (in charge of field logistic) from March 18 to April 5, 2013. A total of 16 drill holes, including four observation wells for a total of 211 m, were drilled in the sector of the proposed waste rock and tailings impoundment site south of the Lac Knife deposit to evaluate the nature of the soils below the peat and the quality of the basement and in the small lake proposed to act as a polishing pond during the mine operational period. A total of 128 soil samples were collected. The final report was received on April 11, 2014.

Phase II of the Physical and Chemical Aspects of the environmental baseline studies was also awarded to Terrapex (June 13, 2013). The mandate included additional data collection for hydrology, hydrogeology, climatic conditions, groundwater quality, and evaluation of acid mine drainage and metal leaching (AMD/ML) potential for waste rocks, mineralized rocks, tailings and acidic soils. These AMD/ML tests were used to quantify the geochemical characteristics of the graphite mineralization and various types of unaltered and oxidized waste rock that was sampled close to the mineralization. The characterized tailing material was obtained from the pilot flotation plant testing that generated sample material. In September 2013, Terrapex of Brossard, Québec completed the Phase II data acquisition of the physical and chemical aspects of the environmental baseline studies consisting of: 1) additional soil sampling in 3 specific sites where acidic soil samples were identified in 2012 in the proposed open pit area; 2) water level in boreholes, groundwater quality sampling in boreholes, pumping tests, hydraulic conductivity tests and sampling of monitoring wells located around the future open pit; 3) measurement of flow at the effluent of Lac Knife and other tributaries; 4) meteorological data compilation from the Wabush and Fermont stations.

A second geotechnical drilling program was undertaken by Terrapex in collaboration with IOS (in charge of field logistics) from September 9 to September 30, 2013. The program was designed to evaluate the nature of the soils and the potential to use these as material for dam and dyke construction. Drilling was performed in two areas of potential options for the future waste rock and tailings impoundment sites and in the proposed future open pit location. A total of 32 geotechnical drill holes were completed and sampled. Five monitoring wells were installed in holes surrounding the proposed open pit location. The final report was received on April 15, 2014.

On March 4, 2014, the Company received the final report from Terrapex, of Brossard, Québec regarding hydrology, climatology, hydrogeology and the groundwater quality. A separate detailed report on the geochemical characterization and acid mine drainage and metal leaching potential (AMD/ML) of mineralized and host rocks, tailings and acidic soils was received on February 15, 2014.

From March 31 to May 2, 2014, the Company completed a combined geotechnical, environmental and exploration/condemnation winter drilling program under the supervision of IOS Services Géoscientifiques of Saguenay, Québec. The land use permit was received from Québec Government on March 19[th] . A drilling contract was awarded to G4 of Val-d’Or on March 24[th] to complete four (4) oriented drill holes for the open pit mine slope stability study, two (2) drill holes were performed for geotechnical study purposes of the proposed concentrator plant site, six (6) drill holes were completed for geotechnical/environmental study purposes related with the proposed tailings impoundment site, four (4) drill holes were performed for environmental purposes related with water and soils characterization and three (3) exploration/condemnation drill holes related with

the proposed tailings impoundment site. A total of 10 piezometers have been installed in the environmental drill holes and in some of the geotechnical drill holes.

No significant mineralization was intersected in the 3 exploration holes (total of 375 m). This drilling program was conducted to complete data acquisition related to the Feasibility Study and the ongoing Environmental and Social Impact Assessment (ESIA) study.

Social Aspects

On October 12, 2012, the Company held a first meeting with senior representatives of the Takuaikan Uashat Mak Mani-Utenam Innu First Nation ("ITUM”) of Uashat and Mani-Utenam, located near Sept-Îles, Québec. The Lac Knife graphite project lies on land designated as traditional territory by ITUM. A second follow-up meeting was held in Sept-Îles on December 13, 2012, during which future communications and information dissemination protocols between the parties were established and potential business opportunities for the community in connection with the development of the Lac Knife project were discussed.

At this early stage of dialogue, the intent of the Company and of the ITUM Innu is that the social, environmental, educational, and economic interests and long-term development vision of the community be integrated into the planning of the Lac Knife project. Both parties desire to create a unique sustainable development partnership project at Lac Knife that will enable the mineral diversification of the region and provide lasting economic benefits to the community while supporting mutual environmental and social responsibility objectives.

In the winter of 2013, Synergis, in collaboration with consulting firm Del Degan, Massé & Associés Inc. (“DDM”) of Québec-City commenced assisting the Company in preparing a public information base and organizing a first series of community consultation meetings on the Lac Knife project. The principal intent of the meetings was to present the project and the Company, report on the status of the environmental baseline studies and listen to communities’ concerns and needs of a social, economic, or environmental nature.

As part of the assessment of the social consideration of the Lac Knife project, on May 22, 2013, DDM held a meeting with the Mayor and Councillors of the city of Fermont. This is the closest community to the Lac Knife Project. During the meeting, DDM and the Company presented the scope and development timeline of the project. The presentation was well received and considered to be an excellent start to the public information and consultation process.

The project presentation illustrated the difference between Lac Knife and the most common iron ore mines in production in the area. In comparison to the last iron ore mine built at Bloom Lake in 2010 where approximately 20-25 million tonnes of Run of Mine (ROM) material are sent to the concentrator, Lac Knife will have an annual ROM of 300,000 tonnes, approximately 1% of comparable throughput at Bloom Lake. Resulting mill concentrates are also quite different, with the Bloom Lake mine scale of producing 7-8 million tonnes of concentrate, whereas Lac Knife will produce less than 50,000 tonnes annually. A diagram of the surface area of comparable footprints was used to illustrate that the Lac Knife project will probably cover 1% or less of the surface area compared to the historical and active iron ore mines in the area. In the last 5 years, the community has witnessed a significant increase in mineral development activity and related demands on the community.

A second meeting was held on May 28, 2013, with the citizens of Fermont. At this meeting, the broad elements of the project were presented and DDM and the Company answered questions from members of the community. This was the first public information and consultation meeting and the questions and comments that were raised will be integrated into the ESIA.

In September 2013, the Company completed the baseline work for the components related to the social environment. In October 2013, the Company and DDM went to Sept-Iles to meet the

community and some stakeholders to present the project and continue to collect information about the project.

In the beginning of May 2014, the Company met the Mayor and the Councillors of the City of Fermont as well as the General Director of the MRC of Caniapiscau. They also held an open house meeting in Fermont. More meetings with Takuaikan Uashat Mak Mani-Utenam Innu First Nation ("ITUM”) Band Council of Uashat and Mani-Utenam, the Innu community and the Association de la Protection de la Rivière Moisie were organized in Sept-Îles. The Company collected comments from stakeholders, and more meetings are planned following the publication of the feasibility study.

On June 18 and 19, 2014, the Company met the Gregoire family who is identified as the principal land user of the traditional Innu territory where the mine is planned. The Gregoire family gave information about the past and actual use of the land by the Innu. They communicated their expectations regarding employment, contracts, education, and communication. More meetings are planned with the family in the coming months. A committee composed of former chiefs of ITUM was also met with on June 18 by representatives of Focus Graphite. The chiefs also gave their expectations for the development of the territory. Following these meetings, a video (French/Innu) was prepared by Focus Graphite to explain the project. This video is available online ( www.innuwebtv.com ) to make sure that the Innu community has all the information related to the Lac Knife project.

During the meetings held in June 2014, the Company was informed by the stakeholders that the protection of the Rivière aux Pékans which is part of the proposed Rivière Moisie aquatic reserve located west of the claim block is of high importance. Stakeholders requested that Focus Graphite avoid, if possible, the construction of the tailings facility within the watershed of the Rivière aux Pékans, which discharges in the Moisie River 55 km downstream. Considering these requests, Focus awarded a contract to AMEC of Dorval, Québec to evaluate alternatives regarding the deposition of the tailings and the management of waste rock and water. AMEC will propose alternatives to the concept presented in the feasibility study to make sure that all the options are analyzed and that the one presenting the lowest risk for the environment, at reasonable cost will be chosen.

2014 Pre-Development Agreement with the Uashat Mak Mani-Utenam Innu First Nation

On October 28, 2014, the Company announced the signing of a Pre-Development Agreement (PDA) with the Uashat Mak Mani-Utenam Innu (“ITUM”) First Nation Band Council (refer to the October 28, 2014, news release available at www.focusgraphite.com and on www.sedar.com ). The intent of ITUM-Focus agreement is to enter into a collaborative relationship in order to better understand the impacts of the project and to incorporate ITUM’s concerns into the Lac Knife mine development project planning. The PDA further lays out the possibility that future negotiations could pave the way to a long-term partnership that would allow for the sustainable development of the project in the region as well as innovative opportunities in the secondary transformation market, all the while working with ITUM to address the community’s social needs and supporting its long term vision and aspirations.

2014 Environmental and Social Impact Assessment (ESIA) Study

In February 2014, the Company awarded the contract for the writing of the Environmental and Social Impact Assessment study report to Golder Associates Inc. of Montréal, Québec. The scope of the project is to process all information gathered in the field over the last two years and compile the data in a comprehensive report that meets governmental regulations in order to obtain the Global Certificate of Authorisation for the Lac Knife Project from the Ministère du Développement Durable, de l’Environnement et de la Lutte contre les changements climatiques (MDDELCC) of Québec.

On December 1, 2014, the Company filed the Environmental and Social Impact Assessment (ESIA) study report for the Lac Knife project prepared by Golder Associates with the MDDELCC (refer to

the December 1, 2014, news release available at www.focusgraphite.com and on www.sedar.com ). The ESIA is the main document used to communicate and discuss details of the project to all concerned regulators and community stakeholders regarding the project's impact, risk mitigation, and potential benefits. It is also a precursor to obtaining a mining lease for the project and is considered one of the key project milestones.

Project Regulatory Permitting

2013 Lac Knife Project Notice ( Avis de Project )

As part of the environmental permitting process, a formal Project Notice (Avis de Projet) describing the Lac Knife mining project was prepared by Groupe Synergis (Synergis) Shawinigan, Québec, in collaboration with Terrapex and was submitted to the MDDEFP ( Ministère du Développement Durable, de l’Environnement et des Parcs ; now MDDELCC) on April 3, 2013. The Company received the environmental study guidelines for the project from the MDDEFP on April 12, 2013.

The Lac Knife Mine Project Permitting Process

In February 2014, Focus retained the services of Golder Associates to assist the Company in obtaining the required federal, provincial and municipal permits and authorizations to develop the Lac Knife Project towards the Company’s goal of full commercial production. The mine permitting process in Québec comprises various federal, provincial and municipal authorizations for mine predevelopment, permitting (Mining Lease application and the “Mine Closure Plan” per the requirements of the Québec Mining Act), road construction, mine construction, ore processing, camp installation and other considerations all of which lead to a request to the Québec MDDELCC for a Global Certificate of Authorization for the project, per the requirements of the Québec Environmental Quality Act.

On April 16, 2015, the Company received the first series of questions from the MDDELCC regarding details of the Environmental and Social Impact Assessment (“ESIA”) for the Lac Knife project. The process to answer the 179 questions took Focus 20 months to complete, with final answers submitted to the MDDELCC on November 30, 2016. The support documentation that accompanies the answers includes the Mine Rehabilitation and Restoration Plan for the Lac Knife mine (mine closure plan). Under the Québec Mining Act (LMQ), a company who wishes to perform prescribed mining work and obtain a Mining Lease must submit a mine closure plan for the land affected by their operations, subject to approval by the Québec Ministry of Energy and Natural Resources (MERN) (reference: LMQ Chapter M-13, Division V, Article 101). The support documentation also includes a new mine waste and mill tailings management concept for the Lac Knife project developed by Montréal-based engineering firm SNC-Lavalin in conjunction with Lamont Inc. of Québec-City. The new concept differs significantly from the tailings management facility presented reported in the ESIA report filed by Focus on SEDAR on December 1, 2014 (refer to Focus news release dated December 1. 2014, available at www.sedar.com under Focus Graphite Inc.) Communication with the MDDELCC is ongoing as the permitting process continues towards the planned detailed engineering phase of the Lac Knife project.

Kinetic tests at SGS laboratories are ongoing and are used to measure any leachable metals from the tailings and mine waste rock. The results from these tests will help to design any water treatment required during production. Ecometrix performed a third-party review of the kinetic test results and a report was filed to complement the responses to the MDDELCC.

2017 Updated Mineral Resource Estimate

On January 24, 2017, the Company released an update of its Mineral Resource Estimate for the Lac Knife deposit. The updated Mineral Resource Estimate is based on 231 drill holes totalling 22,505 metres of historic and recent drilling and has been prepared by AGP Mining Consultants Inc. in accordance with Canadian Securities Administrators' National Instrument 43-101 "Standards of Disclosure for Mineral Projects" (NI 43-101).

At the 3% Cg cut-off grade, Measured and Indicated Mineral Resources are now estimated at 12.1 million tonnes grading 14.64% Cg (Table 1). Additionally, there are 2.3 million tonnes of Inferred resources at 16.20 % Cg (Table 1).

Table 1. Lac Knife Mineral Resource Estimate @ 3.0 % Cg cut-off

	Tonnage (t)	Cg (%)	In Situ Graphite (t)
Measured	447,000	21.45	96,000
Indicated	11,654,000	14.38	1,675,000
Measured + Indicated	12,101,000	14.64	1,771,000
Inferred	2,299,000	16.20	372,000

Cautionary note:

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
The rounding of tonnes as required by NI 43-101 reporting guidelines may result in apparent differences between tonnes, grade and contained graphite.

On March 6, 2017, the Company reported an adjustment to the Measured and Indicated resources statement disclosed on January 24, 2017. On February 5, 2017, the Company was informed by AGP Mining Consultants that a correction was applied to the classification model which affected the south portion of the resource estimate. The correction only affected the internal distribution of the Inferred and Indicated resources in the area covered by the latest infill drilling. The grade estimation was not affected by the change. Following the adjustment made by AGP Mining Consultants, using a 3.0% graphitic carbon (Cg) cut-off, the revised Measured and Indicated resources at Lac Knife now stand at 13.56 million tonnes grading 14.95% Cg (Table 2). This represents a 42% increase in Measured and Indicated resources compared to the 9.576 million tonnes grading 14.77% Cg reported in the 2014 Feasibility Study. The adjustment also translates into a 43% increase in graphite tonnes, from 1.414 million tonnes to 2.027 million tonnes (Table 2). Additionally, there are 840,000 tonnes of Inferred resources grading 13.90% Cg (Table 2).

Table 2. Revised Lac Knife Mineral Resource Estimate @ 3.0 % Cg cut-off

	Tonnage (t)	Cg (%)	Contained Graphite (t)
Measured	447,000	21.45	96,000
Indicated	13,112,000	14.73	1,931,000
Measured + Indicated	13,560,000	14.95	2,027,000
Inferred	840,000	13.90	117,000

Cautionary note:

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
• There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
The rounding of tonnes as required by NI 43-101 reporting guidelines may result in apparent differences between tonnes, grade and contained graphite.

Update for the Three Months Period Ended June 30, 2018

During the quarter ended June 30, 2018, Focus incurred exploration expenses totalling $76,286 on the Lac Knife project. The expenses incurred are mainly related to the Company’s ongoing efforts to address the Québec Ministry of Sustainable Development, Environment, and Fight Against Climate Change’ (MDDELCC) concerns over the Lac Knife project Environmental and Social Impact Assessment (“ESIA”) and to property claim staking, maintenance and renewal.

Scoping and Market Study for Processing in Québec

In January of 2018, Focus awarded a mandate to a consortium of specialized service providers to undertake a scoping and market study for the transformation of Lac Knife mine graphite concentrate into value-added products in Québec. The Québec Mining Act (chapter M-13.1) was amended in December 2013 to include new conditions for the granting and the renewal of mining leases. One of the new conditions stipulates that a scoping and market study for processing mineral substances mined in Québec is required for all projects for which a mining lease must be obtained or renewed.

On March 26, 2018, the Company awarded a mandate to Met-Chem of Montréal, a division of DRA Americas Inc, to prepare the scoping and market study in collaboration with the other specialized service providers. Delivery of the scoping and market study is expected by September 30, 2018.

* Cautionary notes related to the industrial transformation plant project: Feasibility studies on any value-added industrial projects are not the same as feasibility studies for mineral projects as defined under NI 43-101 and CIM Definition Standards for Mineral Resources and Mineral Reserves. Although Focus continues to work towards its objective of developing value-added products using graphite concentrates to be produced at the Lac Knife project or obtained from other graphite concentrate producers, the Corporation reiterates its primary objective of advancing the Lac Knife mineral project towards production of large, medium and fine flake graphite concentrate as demonstrated in the Lac Knife Feasibility Study dated August 8, 2014 (a copy of which is available on SEDAR at www.sedar.com). The feasibility of a transformation plant for value-added products remains to be demonstrated and could be determined to be uneconomical and therefore not feasible for the Corporation. It is therefore possible that Focus never move forward with such transformation plant despite its corporate objective to do so. Readers are therefore cautioned against undue reliance on this corporate objective given its uncertainty at the present time. Focus intends to bring the Lac Knife deposit into production despite any potential negative decision on the fabrication of value-added products.

Environmental and Social Impact Assessment (ESIA)

On March 8, 2017, Focus received the second series of questions from the MDDELCC regarding the Environmental and Social Impact Assessment (“ESIA”) for the Lac Knife project, and the Company’s answers to the first series of questions, including the addendums. Focus met with MDDELCC officials on April 18, 2017, to review the scope of Series II questions and to try to agree to a going-forward strategy to address the MDDELCC’s main concerns over the ESIA.

On September 28, 2017, Focus awarded a mandate to IOS Services Géoscientifiques Inc. (IOS) of Saguenay, Québec to conduct an independent review of the Lac Knife project ESlA and of the ongoing environmental review process by the MDDELCC, including assessing the scope of the second series of MDDELCC questions on the ESIA. A technical working committee comprised of Focus, IOS, Services Géoscientifiques Labtem Inc. (Labtem), and Table Jamésienne de Concertation Minière (TJCM) representatives was set up in November to oversee the environmental review process, to plan the work needed to answer the second series of MDDELCC questions and to identify and award contracts to specialized external service providers. IOS completed its independent review of the ESlA and of Series II MDDELCC questions in February 2018 and submitted its findings and recommendations to the Company on March 9, 2018, together with an itemized action plan as well as a budget sorted by priorities in terms of costs, deadlines and specialized external resources needed to perform various ESIA-related investigations.

On March 31, 2018, IOS estimated having prepared or received responses to 24% of Series II MDDELCC questions on the Lac Knife project ESIA. The remaining questions will require either laboratory test work, numerical modelling or field investigations to be performed during the summer 2018 field season.

On April 4, 2018, Focus met with MDDELCC officials in Québec City to introduce the ESIA technical committee comprised of Focus, IOS, TJCM and Services Géoscientifiques Labtem representatives, present the Company’s strategy, budget and timeline to answer the second series of questions and subquestions on the ESIA, to review the environmental discharge objectives (OER) set by the government for the project and to enquire about new requirements, legislation and environmental testing rules pertaining to the newly modified Loi sur la Qualité de l'Environnement (LQE).

Subsequent to the reporting period, in July 2018, the Lac Knife ESIA technical committee approved the award of the following mandates to specialized Québec-based service providers:

Wood – Solutions en Environnement & Infrastructure of Montréal, a division of Wood Canada Ltd: Trade-off study on mill tailings and waste rock management concepts for the Lac Knife project
BBA of Montréal (in conjunction with McGill University): Self-heating tests on pyrrhotite-rich drill core ore pulp composites and pilot plant tailings (oxidized and fresh)
Groupe Hémispheres of Québec-City: Inventory of special-status and invasive alien plant species and of Chiroptera fauna
Services Géoscientifiques Labtem of Notre-Dame-de-l'Île-Perrot, Québec: Environmental geochemistry and static and kinetic tests (humidity cells) to evaluate the performance of alkaline material for passive treatment of acid mine drainage; and soil survey design & interpretation (in conjunction with IOS Services Géoscientifiques)
Richelieu Hydrogéologie of Richelieu in conjunction with Wood – Solutions en environnement & infrastructure of Montréal: Revised hydrogeological model for the Lac Knife mine and positioning of new hydrological testing wells
Forages Rouillier of Amos: Deep resource drilling ang geotechnical drilling
IOS Services Géoscientifiques of Saguenay: Deep resource drilling and geotechnical drilling program management; target-specific exploration work; underground and surface water sampling; and soil survey design and implementation following the latest MDDELCC guidelines on the physicochemical characterization of initial soil state prior to the establishment of an industrial project

Fieldwork commenced at Lac Knife on July 3, 2018, under the leadership of IOS

Update for the Three Months Period Ended September 30, 2018

During the quarter ended June 30, 2018, Focus completed the following exploration or ESIA-related investigations, surveys and activities at the Lac Knife project:

Mechanical stripping, channel sampling, mapping and Phase 1 core drilling of the Montagne-aux-Bouleaux dolomitic marble occurrence by IOS. Six (6) holes were drilled, totalling 951 m of core with 841 m earmarked for detailed logging and splitting at IOS laboratory facilities in Saguenay, Québec (296 samples) and subsequent major and trace element analysis at a certified analytical services facility. The Montagne-aux-Bouleaux dolomite occurrence is being investigated by Focus as a potential local source of alkaline material for passive treatment of acid mine drainage;
Deep core drilling of the lac Knife graphite deposit to test the extension of the mineralization below the conceptual pit floor established in the 2014 Lac Knife project feasibility study. Ten (10) holes were drilled totalling 3,126 m of core with 499 m earmarked for detailed logging and splitting at IOS laboratory facilities in Saguenay, Québec (360 samples) and subsequent graphitic carbon and total sulfur analysis at COREM, in Québec-City;
Self-heating tests on pyrrhotite-rich drill core composite samples and pilot plant tailings material (oxidized and fresh) by BBA of Montréal (in conjunction with McGill University). The preliminary findings from the investigation were reported to Focus on October 4. The final technical report by BBA is pending.
Start of kinetic (humidity cell) tests on Lac Knife pilot plant residue treated with dolomitic marble from the Montagne-aux-Bouleaux occurrence by Services Géoscientifiques Labtem. As the reporting date, the kinetic tests at reached the 12-week mark.
Phase 1 soil sampling (manual pitting) by IOS within the perimeter covering mine and mill complex and the tailings management system. A total of 72 sites were sampled with 350 soils samples collected in preparation for environmental testing (multi-element, organic carbon, NO2-NO3, and hydrocarbon analyses).

Update for the Three Months Period Ended December 31, 2018

During the quarter ended December 31, 2018, Focus completed the following exploration or ESIArelated investigations, surveys, and activities at the Lac Knife project:

Splitting and sampling by IOS of 338 core samples from the Phase 1 drilling program which targeted the Montagne-aux-Bouleaux dolomitic marble occurrence (6 holes for a total of 951 m drilled) and expediting of the split core samples to selected certified laboratory facilities for major and trace element analysis, As of the reporting date all assay results have been received and are being compiled and analyzed by IOS. IOS’ technical report on the summer 2018 Montagne-aux-Bouleaux claim block exploration program is expected during the next reporting period;
Splitting and sampling by IOS of 360 core samples from the fall 2018 deep exploration drilling program targeting the Lac Knife graphite deposit (10 holes for a total of 3,126 m drilled) and expediting of the split core samples to selected certified laboratory facilities for major and trace element analysis, As of the reporting date all assay results have been received and are being compiled and analyzed by IOS. IOS’ technical report on the fall 2018 Lac Knife graphite deposit deep exploration drilling program is expected during the next reporting period;
Completion by IOS in October 2018, of Phase 2 soil sampling (mechanical trenching and shallow overburden drilling) within the perimeter covering mine and mill complex and the tailings management system. A total of). A total of 88 sites were sampled during Phases 1 and 2 of the soil sampling programs with 513 soils samples collected in preparation for environmental testing (multi-element, organic carbon, NO2-NO3, and hydrocarbon analyses). As of the reporting date, IOS had received 1,001 soil assay results from Eurofins Environmental Testing Canada Inc. and was compiling and analyzing the data;
Completion, under the supervision of IOS, of 15 shallow bore holes for geotechnical and hydrogeological characterization work, of which six were twinned, for a total of 21 holes;
Completion by IOS in October 2018 of a targeted surface water, groundwater and lake bottom sediment survey of the Lac Knife property. A total of 20 surface water samples, 205 lake bottom sediment samples and 64 ground water samples were collected in preparation for environmental testing. As of the reporting date, IOS had received all ground water geochemistry results from Maxxam Analytique of Ville Saint-Laurent, Québec. IOS will be processing the lake bottom sediment geochemical analysis results as they come in over the next reporting period, while Richelieu Hydrogéologie will be processing and interpreting the water quality data; Continuation of kinetic (humidity cell) tests on Lac Knife pilot plant residue treated with dolomitic marble from the Montagne-aux-Bouleaux occurrence by Services Géoscientifiques Labtem.
Completion of the trade-off study on mill tailings and waste rock management concepts for the Lac Knife project by Wood – Solutions en Environnement & Infrastructure of Montréal, Québec. Focus received the final technical report by Wood on November 6, 2018;
Inventory of special-status and invasive alien plant species and of Chiroptera fauna by Groupe Hémispheres of Québec-City. Focus received the first of a series of technical reports

Groupe Hémispheres on November 20, 2018. The remaining technical reports have been received.

Filing with the Ministère de l'Environnement et de la Lutte contre les Changements Climatiques (MELCC; formerly MDDELCC) in Québec-City on December 19, 2018 of a first block of answers to MELCC Series II questions on the 2014 Lac Knife ESIA study report. Focus submitted answers to 70% of the MELCC’s questions.

Update for the Three Months Period Ended March 31, 2019

Throughout the quarter ended March 31, 2019, IOS continued compiling and processing the massive amount of data collected during the summer-fall 2018 exploration program and ESIA-related surveys and investigations at the Lac Knife property. The technical reports on the Montagne-aux-Bouleaux dolomitic marble shallow drilling program and

Update for the Three Months Period Ended June 30, 2019

Throughout the quarter ended June 30, 2019, IOS continued processing and analyzing geological and geochemical data collected during the summer the summer-fall 2018 exploration program and ESIArelated surveys and investigations. The technical reports on the Montagne-aux-Bouleaux dolomitic marble occurrence shallow drilling program and on the Lac Knife graphite deposit deep drilling program, together the technical reports on the targeted soil geochemical survey and on the surface ang groundwater hydrogeochemical surveys, which were expected during the quarter, were still underway by IOS as of the reporting date.

The process to answer the final set of Series II questions on the 2014 Lac Knife ESIA study report was put on hold after filing of the first set of answers with the MELCC in Québec-City on December 19, 2018. Additional financing will be required to complete or conduct the final investigations required to answer the remaining questions.

Update for the Three Months Period Ended September 30, 2019

No work was performed on the Lac Knife project during the three months period ended September 30, 2019.

On July 9, 2019, the Company received confirmation from the Québec MERN of renewal for an additional two-year period of eight CDC claims at the Lac Knife property that were schedules to lapse in September and November 2019.

Update for the Three Months Period Ended December 31, 2019

On November 8, 2019, the Company received IOS’ technical report for the outcrop stripping and channel sampling program and follow-up core drilling program (six holes; total: 951 m) that were completed at the Montagne-aux-Bouleaux dolomitic marble occurrence during the summer of 2018. The principle objective of the work was to test the width, continuity, and carbonate grade of the dolomitic marble unit.

Update for the Three Months Period Ended March 31, 2020

No work was performed on the Lac Knife project during the three months period ended March 31, 2020.

Update for the Three Months Period Ended June 30, 2020

claims forming the Lac Knife claims block are thus in good standing until December 2022. All 12 CDC claims forming the Montagne-aux-Bouleaux claims block were successfully renewed during the reporting period are now in good standing until February 26, 2022.

Subsequent to the quarter ended June 30, 2020, on July 8, 2020, Focus resumed environmental studies at the Lac Knife property with the launch by IOS of a first phase of one year long groundwater and surface lake water quality survey (multi-element, organic carbon, NO2-NO3, and hydrocarbon grades). IOS also initiated a second phase of lake bottom sediment sampling on the property (the first phase was completed in 2018). The new environmental water and sediment quality surveys were requested by the MELCC as part of their series II questions on the 2014 Lac Knife ESIA study and follow new rules and regulations set under the new (2018) Québec Environment Quality Act. On July 16, IOS informed Focus that the first batch of ground water and surface lake water samples had arrived at a laboratory facility certified to perform water quality testing. IOS also reported that the shutdown on March 23, 2020 of all non-essential businesses in the province of Québec due to the COVID-19 pandemic as resulted in a significant backlog of samples to be processed at the designated analytical facility so that the Company should expects delays in analytical turnaround time. Furthermore, IOS reported delays up to two weeks to obtain the specialized water and sediment sampling containers needed for groundwater and surface lake water sampling.

Focus also approved IOS’ proposal to contract Groupe Hémispheres of Québec-City to complete the Inventory of special-status and invasive alien plant species and of Chiroptera fauna of the Lac Knife property began in 2018 by covering the site proposed for the new tailings and waste rock management system proposed by Wood – Solutions en Environnement & Infrastructure in 2018. This final survey of special-status and invasive alien plant species and of Chiroptera fauna is expected to be completed by August 31.

Update for the Three Months Period Ended September 30, 2020

During the quarter ended September 30, 2020, IOS completed a second phase of one-year long groundwater and surface lake water quality survey at the Lac Knife property (multi-element, organic carbon, NO2-NO3, and hydrocarbon grades). IOS also received analytical results from the first phase of sampling carried out in June 2020 and is currently processing the geochemical data. IOS received the technical report from Services Géoscientifiques Labtem Inc. on the 2018-2019 kinetic (humidity cell) tests on Lac Knife pilot plant residue treated with dolomitic marble from the Montagne-aux-Bouleaux occurrence. Finally, IOS advised the Company that Groupe Hémispheres of Québec-City completed the Inventory of special-status and invasive alien plant species and of Chiroptera fauna of the Lac Knife property, Delivery of Groupe Hémispheres’ technical report was pending as of the reporting date.

Update for the Three Months Period Ended December 31, 2020

During the quarter ended December 31, 2020, the Company continued collecting and processing environmental data required to answer the remaining Series II questions by the Québec MELCC on the ESIA study for the Lac Knife project. IOS completed the third and fourth phases of one-year long groundwater and surface lake water quality survey at the Lac Knife property and received the analytical results from Bureau Veritas Canada Inc. Laboratories (multi-element, organic carbon, NO2-NO3 content; hydrocarbon grades). Phases 5 and 6 sampling will be performed during the summer of 2021. The Company also received the final reports by Groupe Hémispheres on their summer 2018 and 2020 Inventory of special-status and invasive alien plant species and of Chiroptera fauna of the Lac Knife property. The findings of these latest environmental investigations will be incorporated in the revised ESIA report for the Lac Knife project to be completed by Focus by year-end 2021.

On December 21, 2020, the Company received IOS’ technical report for the 10-hole (total: 3,126 m) deep exploration drilling program conducted in 2018 to test the extension of graphite mineralization in the western potion of the Lac Knife deposit below the Lac Knife project conceptual pit shell.

Update for the Three Months Period Ended March 31, 2021

During the quarter ended March 31, 2021, the Company continued its efforts to answer the remaining Series II questions by the Québec MELCC on the ESIA study for the Lac Knife project. As of March 31, 2021, the following surveys and investigations were underway by IOS:

Geochemical characterizations of: o surface water quality from 14 lakes plus the Aux-Pékans River (Phases 1 to 4 have been completed).
Lacustrine (lake bottom) sediments from 28 sites (14 lakes).
Soils and overburden material, including 727 samples (143 sites) analyzed to set the local natural thresholds for metals and contaminants, including mechanized excavation of 44 trenches.
Wetland characterization plus an inventory of special-status and invasive plant species.
Inventory of Chiroptera (bat) fauna.

ESIA-related surveys and investigations to be undertaken and completed by year-end 2021 include:

Phase 5 (spring 2021) and Phase 6 (summer 2021) surface water quality monitoring.
Hydrogeochemical and ground water dispersion modelling.
Atmospheric dust dispersal modeling including greenhouse gas emissions.
Tailings dam rupture mitigation measures.
Caribou habitat characterization.
Condemnation drilling under selected planned mine infrastructure site (fall 2021).
• Updated mine closure plan).

On February 23, 2021, the Company commissioned global Engineering firm DRA Americas Inc. (DRA) to update the Company’s 2014 feasibility study for the Lac Knife project* and prepare a new technical report in accordance with the Canadian Securities Administrators’ National Instrument (NI) 43-101 – Standards of Disclosure for Mineral Projects. The new feasibility study will be executed through DRA’s offices in Montréal, Québec with input from other DRA offices across the world. Since 2014, Focus has completed or has undertaken several studies, the findings of which will serve as a basis for optimizing the potential of the Lac Knife project. The key changes to the feasibility study under consideration are:

Incorporation of additional equipment for tailings filtration for the dry stack tailings facility.
Evaluate the impact of additional bore hole data.
Incorporation of a new tailings management system concept for the project.
Update CAPEX and OPEX based on the latest 2020 equipment pricings and quotes.
Update economic model to take into consideration new graphite sales price as well as updated CAPEX and OPEX.

Subsequent to the quarter ended March 31, 2021, on May 4, 2021, the Company designated five (5) contiguous CDC claims along the east boundary of the lac Knife property. The Lac Knife property now comprises 62 CDC claims covering an area of 3,248.18 ha. All 62 claims are “active” and in good standing on GESTIM until December 12, 2022, at the earliest.

Subsequent to the quarter ended March 31, 2021, on May 6, 2021, the Company awarded two contracts to Wood – Solutions en Environnement & Infrastructure of Montréal, Québec, for ESIA-related investigations, the first to prepare a new air quality model and dust management plan for the Lac Knife project, and the second to prepare a hydrogeochemical model for the project to develop water quality estimates and water treatment approaches, to select a preferred option for mine waste management at the site, and to support regulatory review of the prefeasibility level designs.

Lac Knife Project Development Outlook

Despite the ongoing COVID-19 pandemic and the stringent measures put in place by government health authorities to contain and prevent the spread of COVID-19, Focus continues with its efforts to complete the technical studies and investigations required to answer the remaining Series II questions by the MELCC on the ESIA study for the Lac Knife project, a critical component of the Québec government environmental review process. Owing the change in the design of the tailings management systems for the Lac Knife project, the Company will have to submit the updated version of the 2014 mining feasibility study to the MELCC, together with the revised ESIA report, as part of the ongoing environmental review process.

Focus continues to communicate, meet, and listen to local communities and will be increasing these efforts over the coming months as part of the ongoing ESIA review. Focus plans to seek external expertise in community relations and sustainable development practices to assist the Company develop effective strategies to engage communities, build constructive relationships and achieve social acceptability for the Lac Knife project. Once the environmental review process is completed successfully, the next phase of the project will be detailed engineering and preparations for engineering, procurement, and construction management (EPCM).

Labrador Trough Polymetallic (Cu-Ni-PGE) Projects, Labrador Trough Region of Québec

The Labrador Trough projects, located in Nunavik, Québec, consist of four claim blocks: Minowean (14 claims), Otelnuk (12 claims), Lemming (26 claims) and Diana (17 claims), totalling 69 claims covering a surface area of 3,046.54 ha.

Previous exploration work was conducted by Focus on these projects and was limited to a geological reconnaissance program conducted in 2009 which confirmed base and precious metal showings from historical reports but did not unearth any new significant mineralization occurrences.

In the 2012 fiscal year, the Company implemented the first phase of a new program designed to reassess the base and precious metal potential of the Labrador Trough projects and to identify new targets for ground follow-up. Geotech Ltd. of Aurora, Ontario, was awarded the contract to conduct a high definition airborne TDEM and magnetic survey over all five projects. The 1,414.3 line-km airborne geophysical survey was completed in June 2012, the logistical report was submitted in July 2012, and the interpretation report was delivered in December 2012.

On September 27, 2013, the Company announced that it has entered into a letter agreement with Mincom Capital Inc. (“Mincom”), pursuant to which Focus will sell to Mincom all of its rights, titles and interest in its Romer project. On May 8, 2014, the Company announced the closing of its sale of the Romer project.

Update for the Three Months Period Ended September 30, 2018

On June 26, 2018, IOS Services Géoscientifiques (IOS), of Saguenay, Québec, applied to the Québec MERN to renew all four Labrador Trough properties, on behalf of Focus.

Subsequent to the quarter ended June 30, 2018, on July 11 to 20, 2018, IOS conducted a small reconnaissance geological mapping and ground prospecting program at the Lemming property targeting claims which required assessment work credits . Focus received IOS’ technical report for the Lemming property on September 12, 2018.

On July 12, 2018, the Company received confirmation from the MERN that all 17 Diana property claims, all 14 Minowean property claims and all 12 Otelnuk property claims have been successfully renewed for another 2 years (new claims expiry date: September 21, 2020). As of the reporting date, confirmation by the MERN of renewal for the 26 Lemming property claims is pending;

Other than minor ground reconnaissance work conducted by IOS at the Lemming property in July, no significant exploration work was conducted on the Labrador Trough project since 2013. To date, the Company has incurred exploration expenditures (net of tax credits and mining duties) totalling $243,274. In the year ended September 30, 2016, the Company wrote down the cost of the Labrador Trough properties to $Nil ($6,991 in acquisition costs and $243,274 in exploration and evaluation assets), as there has been limited exploration activity on these properties in recent years.

Update for the Three Months Period Ended December 31, 2018

No work other than minor claim maintenance was performed on the four Labrador Trough properties during the quarter ended December 31, 2018.

Update for the Three Months Periods Ended March 31, 2019 and June 30, 2019, September 30, 2019 and March 31, 2020

No work was performed on the four Labrador Trough properties during the quarters ended March 31, 2019, June 30, 2019, September 30, 2019, and December 31, 2019.

Update for the Three Months Period Ended June 30, September 30,December 31, 2020 and March 31, 2021

Resources. The current expiry date for each claim were therefore extended by 12 months. All 69 CDC claims forming the Labrador Trough project are in good standing on GESTIM until September 2021.

The Company is currently seeking a partner or buyer for the four Labrador Trough properties.

Manicouagan Reservoir Area Graphite Projects, Côte-Nord Administrative District of Québec

The Manicouagan Reservoir area graphite projects currently comprises of two contiguous properties, Lac Tétépisca (acquired in August 2011) and Lac Tétépisca Nord (staked in fiscal year 2012). Together, they form one single block of 113 map-designated claims (CDC) claims (total area: 6,090.12 ha) now collectively referred to as the Lac Tétépisca project. The Lac Tétépisca project also includes a block of two CDC claims located 10 km to the South of the Lac Tétépisca property’s southern limit (total area: 108.15 ha).

The Lac Tétépisca project is located in the north-eastern part of the Grenville geological province of Québec, in the Gagnon Group which is characterized by various gneiss and meta-sediments that were metamorphosed to the upper amphibolite and granulite facies. The graphite and iron-rich metasedimentary formations of the Gagnon Group were derived from the Paleoproterozoic Labrador Trough sedimentary basin. These projects are located within 10 to 20 km from the Lac Guéret graphite deposit held by Mason Graphite Inc.

To date, exploration expenditures on the Manicouagan Reservoir Area Graphite Project (net of tax credits and mining duties) total $6,274,413.

Lac Tétépisca Property

The Lac Tétépisca property consists of 62 contiguous CDC claims covering 3,343.12 hain the southwest Manicouagan reservoir area, 234 km north-northwest of the city of Baie-Comeau. The area is accessible year-round by logging roads which starts from Route 389 and is part of SOQUEM Inc. and Quinto Technology Inc.’s former Lac Guéret-Nord project. Focus purchased 100% of the mineral rights in the Lac Tétépisca property in August 2011 (67 CDC claims). In August to November 2013, Focus added 29 contiguous CDC to the claim block. During the year ended September 30, 2014, 6 claims were transferred from the Lac Tétépisca Nord property to the Lac Tétépisca property, increasing the number of claims to 102.

During the year ended September 30, 2015, Focus wrote down the cost of the Lac Tétépisca property by $173,414 subsequent to the Company allowing 15 claims to lapse. The results of the exploration work completed on the 15 claims were not encouraging and did not support further exploration. On September 30, 2015, the Lac Tétépisca property comprised 87 CDC claims. The property was subsequently further reduced from 87 CDC claims to the current 62 CDC claims.

Exploration Work

2012 Prospecting Program

On November 15, 2012, the Company announced the discovery of a new graphite bearing corridor. Reconnaissance bedrock sampling carried out during the summer of 2012 identified a 900 m long approximately 100 m wide graphite bearing corridor on the Lac Tétépisca property. A total of 25 mineralized grab samples were collected from the new “Manicouagan-Ouest” graphitic corridor, 17 of which host graphitic carbon (Cg) grades in excess of 5.59% Cg (range: 5.59% to 45.80% Cg). The remaining eight grab samples which delineate the graphitic trend show Cg grades below 5.00%.

The Manicouagan-Ouest graphitic corridor is hosted in meta-sedimentary rocks of the Nault Formation, which is part of the Gagnon Group. The graphite-bearing outcrops within the corridor are composed of fine to medium grained quartz-feldspar-biotite schists with local occurrences of garnet and kyanite. Fine to coarse graphite flakes and associated sulphides compose 10% to 20% of the rocks, and up to 50% in strongly mineralized zones.

2013 Airborne Geophysical Survey

In March 2013, the Company awarded a contract to Novatem Inc. of Mont Saint-Hilaire, Québec to perform an airborne Mag-TDEM geophysical survey to cover the claim block. A total of 476 line-km was surveyed with 100 to 200 m flight line spacing. The survey started on April 24, 2013 and was completed on May 2, 2013. The final report was received in May 2013 and the survey identified two important

electromagnetic conductors, one over the area of the Manicouagan-Ouest corridor and another anomaly in the southern part of the claim block.

2013 Trenching and Prospecting Programs

From July 1 to July 21, 2013, and from August 6 to August 15, 2013, the Company conducted a comprehensive follow-up exploration program over the best EM anomalies delineated from the MAGEM survey. Fieldwork consisted of prospecting using portable electromagnetic survey equipment (BeepMat™ and VLF) and grab sampling over of the Manicouagan Ouest graphitic corridor (MOGC) as well as follow-up prospecting in other areas of the claim block. Thirty-three (33) grab samples were collected from outcrops, sub crops and boulders. They were sent to ALS Minerals in Val d’Or for preparation and then to ALS in Vancouver for graphitic carbon (Cg) and total sulphides analysis using LECO induction and for 48 multi-element analysis using ICP methods. Twelve (12) of which host grades in excess of 5.00% Cg (range: 6.33% to 56.10% Cg). The remaining 21 grab samples show Cg grades below 5.00%. With respect to the QA/QC program, 10% of blanks and standards were introduced. This work helped to more accurately delineate the limits of the Manicouagan Ouest graphitic corridor which in turn facilitated the design a trenching and channel sampling program.

From September 17 to October 5, 2013, the Company completed a trenching program on the Manicouagan-Ouest graphite showing to confirm thickness and grade of the mineralized zone. Two trenches were dug on previously delineated targets and named MO-TR-01 and MO-TR-02. The contract was awarded to IOS Services Géoscientifiques Inc. of Chicoutimi, Québec and supervised on site by the Company.

The trenches, MO-TR-01 and MO-TR-02, measured 175 m and 167 m, respectively. The trenches are perpendicular to the graphitic corridor and are spaced at 225 m. A total of 104 representative 1.5 m long channel samples from the trench MO-TR-01 and 98 samples from the trench MO-TR-02 were collected and shipped to IOS facilities for sample preparation (crushing, grinding and sub-sampling). Prepared samples were sent to ALS Minerals in Vancouver for graphitic carbon (Cg) and total sulphide analysis using LECO induction. One for every three samples was also sent to ALS for a 48 multi-element analysis using ICP methods. With respect to the QA/QC program, blanks, standards and duplicates were introduced, representing roughly 15% of the analyses.

A disseminated to semi-massive graphitic mineralization was observed in both trenches over significant widths** of 84 and 88.5 metres. Subsequent to the reporting period, on October 20, 2014, the Company announced the assay results for the two trenches (refer to the October 20, 2014, news release available at www.focusgraphite.com and on www.sedar.com ).

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**Intersections are not true thicknesses but expressed as channel sample lengths. However, the trenches crosscut the strike of the mineralized zone envelope at a high angle. Mineralized Intersections are calculated with Cg > 5% over a minimum of 6 m; maximum internal dilution was 3 m; there is no external dilution considered.

2014 Ground Geophysical Survey

On May 15, 2014, the Company awarded a contract to Abitibi Géophysique of Val-d’Or, Québec, to conduct a ground combined magnetic-time domain electromagnetic geophysical survey (MAGTDEM) with 100 m line spacing over the “Manicouagan-Ouest” graphitic corridor area with the IMAGEM system.

On September 6, 2014, Abitibi Geophysics, completed the survey that covered 47 km of grid lines over the “Manicouagan-Ouest graphitic corridor” and over its southwestern extension. This time domain IMAGEM geophysical system has a high spatial resolution to allow for a more detailed analysis of the EM conductors within the anomalous zone. The final report was received on October 8, 2014. A total of 452 EM anomalies were identified and interpreted as well as several magnetic zones mostly associated with the Manicouagan-Ouest graphitic corridor.

2014 Prospecting Programs

From July 23, 2014, to July 31, 2014, a total of five days of fieldwork consisting of prospecting using portable electromagnetic survey equipment (Beep-Mat™) and grab sampling over 4 different areas in the northern part of the claim block was completed. A conductor has been followed over 1.8 km of strike length on the opposite limb of the regional fold that contains the Manicouagan-Ouest graphitic corridor.

In February 2015, the Company received the results from assays and lithogeochemical sampling. A total of 22 samples were collected from outcrops and sub crops within the principal horizon of paragneiss (from a total of 24 outcrops and sub crops of observed paragneiss). The samples were sent to ALS Minerals in Val d’Or for preparation and then to ALS in Vancouver for graphitic carbon analysis using LECO induction (Cg; ALS internal code: C-IR18) and 48 multi-element analysis using combined ICP-AES and ICP-MS methods (ALS internal code: ME-MS61). With respect to the QA/QC program, 10% of blanks and standards were introduced.

The graphitic carbon (Cg) content of the eleven (11) outcrops and sub crops grab samples* located in the western limb of the regional fold varies from 3.86% to 54.20% with 7 of them containing over 16% Cg. These geological mapping and prospecting work enabled the recognition of the same stratigraphic units as for the Manicouagan Ouest graphitic corridor area. With the grab samples covering about 900 m in strike length within the paragneiss horizon, the western limb area of the fold appears to have potential to host significant graphitic mineralization. Moreover, the grab samples are also associated with a conductive electromagnetic zone of 20 to 120 m of thickness that has been defined using a portable electromagnetic device (Beep Mat™).

*Grab samples are selected samples collected to determine the presence or absence of mineralization and are not intended to be representative of the material sampled. Channel sampling or drilling is required to determine representative grades.

2014 Exploration Drilling Program

The exploration drilling contract was awarded to Forage Rouillier of Amos, Québec, on May 22, 2014. On July 2, 2014, the Company received a land use permit from the MERN, the industrial lease from the MERN was granted on July 7, 2014, and the certificate for camp construction from the Manicouagan MRC was issued on July 8, 2014. The temporary camp construction under the supervision of IOS Services Géoscientifiques commenced on July 14, 2014 and was completed on July 24, 2014.

From August 18 to September 11, 2014, the Company completed an exploration drilling program with one drill rig. Exploration drilling included 1875 m of drilling in 16 drill holes oriented perpendicular to the strike of the km-long EM conductor defined by a combined MAG-EM airborne geophysical survey conducted in the spring of 2013. The periphery of the zone was more accurately outlined by ground geophysics using a portable Beep Mat™ instrument in the summer of 2013 and by the MAGIMAGEM ground survey completed the following summer in 2014. Based on these geophysical survey results, 4 fences of drill holes spaced 200 m apart were positioned, covering a 600-m strike length of this new zone. The drill program was designed to test surface mineralization found in trenches down to a vertical depth of approximately 100 m. The Company supervised the drilling campaign that was performed by Forage Rouillier of Amos, Québec with the logistical support of IOS Services Géoscientifiques of Chicoutimi.

Representative core samples were selected from all holes and shipped to IOS facilities for sample preparation (cutting, crushing and grinding). Prepared samples were sent to COREM in Québec City

for graphitic carbon (Cg) and total sulphide analysis using LECO induction. For the QA/QC program, 10% of the samples will also be analyzed by COREM for total, organic, inorganic and graphitic carbon as well as for total sulphides. Around 10% of additional selected core samples were also sent to ACTLABS to be analyzed for total, organic, inorganic and graphitic carbon, total sulphides and for a 35 multi-element analysis using the ICP method. IOS introduced standards, duplicates and blank samples as part of the QA/QC program.

On October 20, 2014, the Company announced that significant widths of disseminated to semimassive graphitic mineralization ranging from 95 to 110 m in thickness* were intersected in each of the 4 fences of holes. The drill intercepts correlate very well with the EM anomalies and the mineralization previously observed in trenches. The discovery zone that was drilled has a geophysical signature that extends for more than 200 m to the northeast and over 700 m to the southwest for a total strike length of 1500 m. The mineralization is open at depth. Drilling results confirm the significant widths of mineralization observed in trenches and the potential that this new discovery may hold.

*Intersections of graphitic mineralization are expressed as core length; however, the drill holes always crosscut the envelope of the mineralized zone strike and dip at a high angle.

On August 17, 2016, the Company announced the results obtained from the 2014 drilling program (refer to the August 17, 2016, news release available at www.focusgraphite.com and on www.sedar.com). The 2014 drilling identified a significant graphitic zone 60 to 100 m wide that extends down to these intersections at depth and within the main kilometric geophysical MAG-EM anomaly known as the “Manicouagan-Ouest Graphitic Corridor”. A secondary graphitic zone is located 10 m to the northwest of the main zone and is 6-12 m wide. The encouraging initial drilling results at Lac Tétépisca further indicate that there is potential for a new, large volume − high grade graphite deposit in the South Manicouagan reservoir area. Interest for this type of deposit could come from the future graphite-based plastic polymer industry.

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*Intersections reported in Table 1 are not true thicknesses but are expressed as core lengths. However the HQ drill holes crosscut the envelope of the mineralized zone’s strike and dip at a high angle. Mineralized intersections are calculated with Cg > 5% over a minimum of 6 m.

2016 Infill and Extension Drilling Program

During the fiscal year ended September 30, 2016, the Company completed a second phase of drilling mainly designed to test the strike-length extensions of the known graphitic mineralization within the limits of the main EM anomaly. The exploration-drilling contract was awarded to Forage Chibougamau of Chibougamau, Québec, on July 8, 2016. The temporary camp construction under the supervision of IOS Services Géoscientifiques commenced on July 8, 2016 and was completed on July 13, 2016.

From July 23 to August 23, 2016, the Company completed an exploration-drilling program with one drill rig. Drilling included 2,424 m in 18 drill holes oriented perpendicular to the strike of the kilometric EM conductor anomaly. The 2016 drilling program consisted of three fences of holes, along sections spaced 200 m apart and designed to test 600 m of strike length along the southwest extension of the anomalous graphitic corridor, and another fence of holes was spaced 200 m further towards the northeast extension.

Five holes were drilled between the sections described above, were designed to drill the wider geophysical response that represents the more semi-massive portion of mineralization. The Company supervised the drilling campaign with logistical support from IOS Services Géoscientifiques.

Drill core samples were selected from all holes and shipped to IOS facilities for sample preparation (cutting, crushing and grinding). The prepared samples were sent to COREM in Québec City for graphitic carbon (Cg) and total sulphide analysis using LECO induction. For the QA/QC program, COREM will also analyze 10% of the samples for total, organic, inorganic and graphitic carbon as well as for total sulphides. Around 10% of additional selected core samples were also sent to ACTLABS to be analyzed for total, organic, inorganic and graphitic carbon, total sulphides and for a 35 multi-element analysis using the ICP method. IOS introduced standards, duplicates and blank samples as part of the QA/QC program.

In December 2016, the Company received preliminary assay results for the 2016 exploration-drilling program. The final assay results were released on January 20, 2017. Fifteen (15) holes intersected significant graphitic mineralization with grades ranging from 5.6% Graphitic Carbon (Cg[(1)] ) to 19.35% Cg over a minimum true thickness[(2)] of 6.2 m (Table 1). The best intersection[(2)] was in Hole LT-1632, drilled at -45 degrees to a depth of 159 m: 102.1 m grading 10.7% Cg (from 42.0 m to 145.15 m (core length: 103.15 m)), including 30.2 m grading 16.7% Cg (from 45.75 m to 76.25 m (core length: 30.5 m)) and 13.0 m grading 14.4% Cg (from 100.4 m to 113.5 m (core length: 13.1 m)).

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(1) Carbon analyses were performed by the Consortium de Recherche Appliquée en Traitement et Transformation des Substances Minérales ("COREM") of Québec-City, an ISO/IEC 17025:2005

certified facility using LECO high frequency combustion method with infrared measurement (code LSAM-B10) and are reported as graphitic carbon (Cg).

(2) True thicknesses are listed in this table. The drill holes have been loaded into Gemcom and the threedimensional deposit envelope has an azimuth of 210 degrees and dips at -40 degrees. HQ drill holes crosscut the envelope of the mineralized zone's strike and dip at a high angle. The conversion factor for true thickness is 0.99 of the core intersection length.

This second phase of core drilling targeting the Manicouagan-Ouest Graphitic Corridor further indicates the potential for the Lac Tétépisca project (and the Southwest Manicouagan reservoir area) to host a new large volume - high grade natural graphite deposit. Drill intercepts reveal that the highest-grade section of the Manicouagan-Ouest Graphitic Corridor is continuous over a strike length of 1 km and down to approximately 100 m depth. Graphitic grades within this section range from 10 to 13% Cg. The average thickness of the main graphitic horizon is 85 m with a higher-grade zone lying along the eastern edge, stratigraphically above a lower grade zone.

Metallurgical and Mineralogical Studies

With the aim to get a more complete picture of the mineralization, the Company awarded a contract to SGS Canada of Lakefield, Ontario in November 2013 to conduct a scoping level evaluation of one 10 kg composite graphite sample. Work included batch cleaner test and flake size fraction analysis. The final report was received on March 29, 2014. The results show a high head grade of 20.5% total carbon (Ct), a good carbon recovery of 94.2% and a very good response to concentration yielding a very good purity of 91.3% Ct for all fractions including 97.7% Ct for +80 mesh flake, a quality that is critical to the lithium ion battery market.

Notably, the combined carbon recovery into the flash and rougher concentrates was 98.1% total carbon suggesting that only a coarse primary grind is required to release the flakes. While the sample did not contain a substantial amount of large and medium flakes, the very high grades achieved in a preliminary cleaner flotation test suggests that impurities are only attached loosely at surface of the flakes and that a secondary polishing and cleaning could improve the concentrate grade. Further tests are warranted, as this gives Focus a second option to enhance the Company’s mid-term growth profile and show potential for a larger quantity of spherical graphite.

The company also granted IOS Services Géoscientifiques Inc. of Chicoutimi, Québec a mandate to conduct a petrographic study of two samples from the Lac Tétépisca trenches in the aim to characterize the in-situ content of big graphite flakes in the mineralized rocks. The final report was received on April 4, 2014. Visual observation under the microscope shows that both samples contain approximately 25% of graphite with a high proportion of large and very large flakes (> 200 microns or > 48 mesh). The important number of large flakes observed in the rocks (80% and 74% respectively) contrasts the low content of large flakes observed in the concentrate suggest again that only a coarse primary grind is likely required to release and separate the large flakes from their mineralized rocks.

In December 2016, the Company engaged SGS Metallurgical Services of Lakefield, Ontario to conduct metallurgical testing (flow sheet development and bench-scale variability). The conceptual flow sheet was developed using results from a series of 14 flotation tests and the closed-circuit performance was evaluated in a Locked Cycle flotation Test[1] (LCT). The flotation test program was completed on a 155 kg Master composite and six variability samples (total: 108 kg) originating from representative Lac Tétépisca graphite mineralization.

The Company reported initial LCT results on February 1, 2017. The LCT produced an overall graphite recovery of 92.7% at a combined concentrate grade of 96.2% Ct[2] . The flake size distribution in the concentrate that was generated in the LCT using the 2016 Master composite is presented in Table 1. A total of 17.2% of the concentrate mass reported to the “jumbo” flake category (+48 mesh). The “large” flake category (-48/+80 mesh) contained 20.5% of the concentrate mass. Another 7.9% of the mass reported to the “medium” flake size fraction (-80/+100 mesh) (Table 1). Interestingly, the finer flake size distribution classes (+400/-100 mesh) also reported carbon grades above 95% Ct.

Table 1: Lac Tétépisca concentrate flake size distribution and total carbon (Ct) grades.

Category	Size Fraction Mesh	Size Fraction	Weight	Assays	Distribution
		Microns	%	% Ct	% Ct
Jumbo	+32 mesh	+500	4.2	95.8	4.1
	+48 mesh	+300	13.0	95.6	12.9
Large	+65 mesh	+212	13.5	95.0	13.4
	+80 mesh	+180	7.0	95.0	6.9
Medium	+100 mesh	+150	7.9	96.3	7.9
Fine	+150 mesh	+106	13.0	97.8	13.2
	+200 mesh	+75	15.4	97.7	15.7
Very Fine	+325 mesh	+45	15.8	96.7	15.9
	+400 mesh	+38	3.6	95.2	3.6
	-400 mesh	-38	6.6	92.9	6.4
		Total:	100.0		100.0

A total of six variability composites ranging from low-grade disseminated material grading 3.81% graphitic carbon (Cg) to high-grade massive mineralization grading 22.3% Cg produced consistent metallurgical results when subjected to the developed flow sheet conditions. The combined concentrate grades for the six variability samples ranged from 95.4% Ct to 97.8% Ct with open circuit graphite recoveries of 84.9% to 91.6%. The mass recovery into the “large” and “jumbo” flake categories for the six variability composites ranged between 31.8% for the massive mineralization composite, to 62.0% for the low-grade disseminated composite.

1 A Locked Cycle Test (LCT) is a repetitive batch flotation test conducted to assess flow sheet design. It is the preferred method for arriving at a metallurgical projection from laboratory testing. In a LCT the intermediate products are incorporated in the following cycles, thus simulating a continuous flotation circuit on a laboratory scale.

2 All carbon analyses were performed by SGS Canada Inc. (“SGS”) and are reported as total carbon (“Ct”). The analytical methods that were used to determine the metallurgical results included total carbon analysis by Leco on the final concentrates. Total carbon assays are for the higher graphite concentrate grades, whereas graphitic carbon (“Cg”) assays are for drill core and it is a more accurate method when graphitic carbon content is lower than approximately 50% Cg.

Social Aspect

On June 3, 2014, the Company had an initial meeting with the band council of the Pessamit Innu First Nation located near Baie-Comeau, Québec. The Manicougan graphite projects of Focus lie on land designated as traditional harvesting territory. During the meeting, the representatives of Focus presented the Company and the Lac Tétépisca project and established a base for further communication. Future communication and information dissemination protocols between the parties were also established and potential business opportunities for the community in connection with the development of the Lac Tétépisca project were discussed. In line with the business opportunities for the community, the Company hired workers from the Pessamit community on July 28, 2014, and July 21, 2016, for woodcutting, access trails clearing and drill rig pad preparation.

2014 Exploration Drilling Program

On May 2, 2017, the Company received the final report of the 2014 exploration drilling campaign from IOS Services Géoscientifiques. The Company filled final report with the Québec MERN for exploration assessment credit purposes.

2016 Infill and Extension Drilling Program

As disclosed above, in December 2016, the Company received preliminary assay results for the 2016 exploration-drilling program at the Lac Tétépisca project. The final assay results were released on January 20, 2017. Fifteen (15) holes intersected significant graphitic mineralization with grades ranging from 5.6% Graphitic Carbon (Cg[(1)] ) to 19.35% Cg over a minimum true thickness[(2)] of 6.2 m (Table 1). The best intersection[(2)] is Hole LT-16-32, drilled at -45 degrees to a depth of 159 m, with returned 102.1 m grading 10.7% Cg (from 42.0 m to 145.15 m (core length: 103.15 m)), including 30.2 m grading 16.7% Cg (from 45.75 m to 76.25 m (core length: 30.5 m)) and 13.0 m grading 14.4% Cg (from 100.4 m to 113.5 m (core length: 13.1 m)).

On August 11, 2017, the Company received the final report of the 2016 exploration drilling campaign at Lac Tétépisca from IOS Services Géoscientifiques.

2017 Infill and Extension Drilling Program

During the quarter ended December 31, 2017, the Company completed a third phase of infill and extension drilling targeting the Manicouagan-Ouest Graphitic Corridor (MOGC) at the Lac Tétépisca project. The fall 2017 exploration at Lac Tétépisca was designed and operated by IOS Services Géoscientifiques of Chicoutimi, Québec, under the supervision of the Table Jamésienne de Concertation Minière (TJCM) of Chibougamau, Québec. The drilling contract was awarded to Forages Chibougamau Ltd of Chibougamau, Québec. The budget for the fall exploration program was set at $1.35 million.

Drilling commenced at Lac Tétépisca on November 17, 2017, using two drills rigs and ended on December 16. In all, forty-two (42) HQ-diameter holes were drilled for a total of 6,725 m. Phase III drilling was designed to further test the continuity, thickness and grade of the main graphitic mineralization within the MOGC at a 50-m hole spacing over a segment of 0.9 km and down to a vertical depth of 150 m. The large diameter drilling was also designed to provide additional graphite mineralization material to continue with pilot plant metallurgical testwork.

All core holes were shipped from the field to IOS’s laboratory facilities in Chicoutimi in December in preparation for logging and sampling; for core sample preparation (crushing and grinding) and for shipping to certified external analytical services providers for assaying. As of the reporting date, 4,366 m of core have been targeted by IOS for assaying for a total of 3,332 samples. Graphitic carbon assaying will be provided by the Consortium de Recherche en Traitement de Minerais (COREM) of Québec City. All core samples will be assayed for graphitic carbon and total sulfur, with an additional 10% of all samples to be assayed for total carbon, inorganic carbon, organic carbon and metallic trace elements. Quality control, monitored by an IOS chemist, will consist of 15% reference materials, including blank samples, certified and internal reference material, as well as 10% duplicates to be assayed by Activation Laboratories of Ancaster, Ontario.

Update for the Three Months Period Ended September 30, 2018

Throughout the reporting period, the company continued to receive drill core assay results from the fall 2017 infill and extension drilling program at Lac Tétépisca from COREM.

Update for the Three Months Period Ended December 31, 2018

On May 18, 2018, the Company commissioned IOS Services Géoscientifiques Inc. (IOS) of Saguenay, Québec to design and implement, under the supervision of the Table Jamésienne de Concertation Minière (TJCM), a fourth round of infill and extension drilling targeting the Manicouagan-Ouest Graphitic Corridor (MOGC) at the Lac Tétépisca project. Between 10 and 15 drill holes were planned for a total of 2,000 m. In late November 2018, Focus elected to postpone the fourth round of infill and extension drilling at Lac Tétépisca to 2019.

On November 1, 2018, Focus received the final drill core analytical dataset from IOS for the fall 2017 infill and extension drilling program (total: 42 drill holes). All 42 drill holes returned significant graphitic carbon intercepts and sub-intercepts grading a minimum of 6.1% Cg over a minimum true thickness of 5.12 m. Furthermore, eight of 42 holes drilled intersected graphitic carbon grades of between 10.05% Cg to 13.27% Cg over a minimum true thickness of 100 m (Table 1).

Table 1. Summary of the most significant graphitic carbon intercepts (minimum 100 m true thickess) from the fall 2017 infill and extension drilling at the Lac Tétépisca property’s Manicouagan-Ouest Graphitic Corridor[1,2] .

Drill hole ID	Grid Line/Station	Azimuth (DGPS) (degrees)	Hole length (m)	Significant Intercepts	From (m)	To (m)	Core Intersection length (m)	True Thickness (m)	Cg (%)
LT-17-37	L04+60S	299	204	Intersection	94,10	197,10	103,00	101,97	10,96
				_Including _	101,80	125,80	24,00	23,76	18,08
LT-17-39	L04+20S	301	207	Intersection	100,80	202,45	101,65	100,63	10,27
				_Including _	104,40	127,80	23,40	23,17	19,28
LT-17-40	L04+60S	298	150	Intersection	32,05	139,30	107,25	106,18	11,61
				Including	37,40	64,55	27,15	26,88	20,00
LT-17-41	L03+55S	301	207	Intersection	92,60	195,25	102,65	101,62	10,27
				Including	92,60	117,65	25,05	24,80	18,38
LT-17-44	L03+50S	300	156	Intersection	36,00	149,30	113,30	112,17	10,05
				Including	38,10	48,05	9,95	9,85	18,38
				Including	52,30	71,55	19,25	19,06	18,49
LT-17-49	L06+50S	305	204	Intersection	78,70	181,35	102,65	101,62	12,46
				Including	92,90	126,80	33,90	33,56	19,73
				_Including _	132,70	143,20	10,50	10,40	19,74
LT-17-51	L02+50S	308	153	Intersection	31,95	140,10	108,15	107,07	10,31
				Including	49,20	60,20	11,00	10,89	19,51
LT-17-60	L07+50S	301	150	Intersection	24,00	130,90	106,90	105,83	13,27
				Including	53,00	68,50	15,50	15,35	17,87
				Including	72,00	83,00	11,00	10,89	18,75
				_Including _	100,40	120,00	19,60	19,40	18,88

(1) Carbon analyses were performed by the Consortium de Recherche Appliquée en Traitement et Transformation des Substances Minérales ("COREM") of Québec-City, an ISO/IEC 17025:2005 certified facility using LECO high frequency combustion method with infrared measurement (code LSA-M-B10) and are reported as graphitic carbon (Cg).

(2) True thicknesses are listed in this table. The drill holes have been loaded into Gemcom and the three-dimensional deposit envelope has an azimuth of 210 degrees and dips at -40 degrees. HQ drill holes crosscut the envelope of the mineralized zone's strike and dip at a high angle. The conversion factor for true thickness is 0.99 of the core intersection length.

On November 19, 2018, Focus received IOS’ technical report for the fall 2017 infill and extension drilling program at Lac Tétépisca.

Update for the Three Months Periods Ended March 31, 2019 and June 30, 2019.

No work other than preliminary 3-D modelling of drilling data by IOS was performed on the on the Lac Tétépisca project during the three months periods ended March 31, 2019 and June 30, 2019.

On June 18, 2019, the Company applied to the Québec MERN to renew 32 out of 38 CDC claims scheduled for biennial renewal in August 2019. The other six claims, all located at the South end of the Lac Tétépisca property were allowed to lapse.

Update for the Three Months Period Ended September 30, 2019

No work was performed on the Lac Tétépisca property during the three months period ended September 30, 2019.

Update for the Three Months Period Ended December 31, 2019

During the quarter ended December 31, 2019, Focus commissioned IOS Services Géoscientifiques Inc. (IOS) of Saguenay, Québec to design and implement a third round of infill and extension core drilling on the and extension drilling targeting the Manicouagan-Ouest Graphitic Corridor (MOGC) at the Lac Tétépisca project. IOS’ design called for 19 additional shallow drill holes for an estimated total meterage of 7,638 m. The Company subsequently postponed its plan to conduct further infill and extension drilling and prepare an initial Mineral Resource Estimate on the highest-grade section of the MOCG, pending the availability of new financing.

In addition, one CDC claim located at the South end of the Lac Tétépisca claims block was allowed to lapse as it did not have sufficient banked assessment work credits to renew this claim.

Update for the Three Months Period Ended March 31, 2020

No work was performed on the Lac Tétépisca property during the three months period ended March 31, 2020.

Due to the exceptional circumstances surrounding the COVID-19 pandemic, on March 12, 2020, the Québec government suspended all mineral exploration activities in the province. Eleven (11) days later, on

March 23, 2020, all non-essential businesses in the province of Québec were instructed to suspend all activities and close their offices. IOS thus suspended all activities and closed its Saguenay offices and laboratory facilities. Furthermore, the border to the Côte-Nord administrative region where the Lac Tétépisca graphite property is located has been closed to non-residents.

Update for the Three Months Period Ended June 30, 2020

No work was performed on the Lac Tétépisca property during the three months period ended March 31, 2020. IOS offices and laboratory facilities remained closed until the week of May 18, 2020 when nonessential businesses in Québec could reopen.

On April 9, 2020, the Québec Minister of Energy and Natural Resources (MERN), Mr. Jonathan Julien, announced the term suspension of all mineral exploration claims currently in force in the province for a 12-month period effective immediately. This extraordinary measure taken to support claim holders is applied pursuant to article 63 of the Mining Act and under the discretionary power of the Minister of Energy and Natural Resources. The current expiry date for the 61 CDC claims forming the Lac Tétépisca property have therefore been extended by 12 months. The Lac Tétépisca property claims are in good standing on e-GESTIM until December 2021, at the earliest.

On May 11, 2020, the Québec government announced that mineral exploration activities could resume across the province under specific conditions. Travel restrictions to the Côte-Nord administrative region remain in place for non-residents until June 1, 2020. Update for the Three Months Period Ended September 30, 2020

No work was conducted at the Lac Tétépisca property during the quarter ended September 30, 2020.

Subsequent to the quarter ended September 30, on October 8, 2020, IOS Services Géoscientifiques Inc, (IOS) of Saguenay, Québec, resumed infill and extension drilling at the main MOGC graphite prospect at the Lac Knife property. The drilling had been suspended in January 2020, just before the onset of the COVID-19 pandemic. As of November 12, 2020, IOS had completed 18 HQ-diameter holes for a total of 2,745 m drilled. Focus plans to complete 5,000 m of drilling at Lac Tétépisca by December 31, 2020.

Update for the Three Months Period Ended December 31, 2020

On November 9, 2020, Focus commissioned Engineering firm Met-Chem/DRA of Montréal, Québec, to prepare a Mineral Resource Estimate (MRE) and NI 43-101 Technical Report for the Lac Tétépisca flake graphite project. The MRE, to be prepared during the first semester of 2021 will be based on the results of the three drilling programs performed on the main MOGC graphite occurrence between 2014 and 2018 (76 holes drilled; total 11,024 m) and may include the results of the 2020 drilling if the Company receives the complete set of analytical results by June 30, 2021.

IOS completed the fall 2020 infill and extension drilling at the main MOGC graphite prospect at the Lac Tétépisca property on December 4, 2020. The drilling program comprised of 30 HQ-diameter holes (total: 5,437 m).

Update for the Three Months Period Ended March 31, 2021

During the quarter ended March 31, 2021, IOS Services Géoscientifiques Inc. (IOS) commenced core splitting, logging, sampling, and sample preparation activities at its Saguenay, Québec, laboratory facility as well as core sample shipments to COREM Laboratories in Québec City for graphitic carbon (Cg) and sulfur analysis. As of May 13, 2021, COREM had received all drill core samples for the 30 holes and analytical results were pending for all but five drill holes.

Subsequent to the quarter ended March 31, 2021, on April 27, 2021, Focus reported the highlights from the first five holes from the fall 2021 infill and extension core drilling program at the Manicouagan-Ouest Graphitic Corridor:

Best intersection[1] : Hole LT-20-80, drilled at -45o to a depth of 201.0 m on Line 1+00 North, intersected 92.6 m grading 12.7% Cg (from 44.2 m to 136.8 m; Table 1), including: o 49.4 m grading 16.2% Cg (from 81.3 m to 130.7m; Table 1); and o 11.45 m grading 16.1% Cg (from 59.45 m to 70.9 m; Table 1).

Table 1. Highlights for the first five drill holes from the fall 2020 infill and extension core drilling program targeting the Manicouagan-Ouest Graphitic Corridor (MOCG), Lac Tétépisca property, Lac Tétépisca project.

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Notes:

True thicknesses are approximately equal to core lengths and are reported as such in this news release. Core descriptions, sampling information and analytical results were captured in Geotic™ core logging software, and then exported to Surpac™ software for three-dimensional (3-D) rendering. The 3-D mineralization envelope has an azimuth of approximately NO35[o] and dips at -50[o ] to the southeast. The drill holes crosscut the envelope of the main mineralized zone’s strike and dips at near right angle.
“Best intercepts” and “significant mineralization” are defined as Cg grading a minimum of 5.0% over a minimum 6.0 m with internal dilution set at a maximum of 6.0 m and no external dilution. “Best sub-intercepts” are defined as Cg grading a minimum of 10.0% over 6.0 m. The 5% cg and 10% Cg cut-offs are used solely to delineate the extent of the mineralized envelopes corresponding to “Best intercepts” and “Best sub-intercepts”, respectively. Economic cut-offs based on geological, metallurgical, mining, and economic factors, parameters and considerations will be determined as part of the maiden mineral resource estimate planned for the Lac Tétépisca project later in 2021 and through subsequent technical studies.
Analyses were performed by COREM of Québec City, an ISO/IEC 17025:2005 certified facility using LECO combustion in induction furnace and infrared spectrometry (code LSA-M-B10) and are reported as graphitic carbon (Cg) and total sulphur.
QA/QC program: IOS introduced 10% reference samples, including certified and internal reference materials, duplicates, and blank samples. Ten percent of the drill core samples were also analyzed by COREM for total, organic and inorganic, carbon. An additional 10% of the drill core samples were sent to ACTLABS Laboratories of Ancaster, Ontario (ISO/IEC 17025:2005 with CAN-P-1579) where they were analyzed for graphitic carbon, total sulphur and for trace metals by ICP-MS after aqua-regia digestion.

The Company expects to receive the analytical results for the remaining 25 drill holes from COREM by June 30, 2021. Once compiled and verified by IOS Services Géoscientifiques, the analytical results and related drill hole information will be sent to Met-Chem/DRA who will the prepare the maiden mineral resource estimate for the Lac Tétépisca project.

Exploration and Development Outlook

Focus will reevaluate its going-forward strategy for the Lac Tétépisca project once the Company receives the results of the maiden mineral resource estimate from Met-Chem/DRA.

Lac Tétépisca Nord Property

The Lac Tétépisca Nord graphite property consists of 51 contiguous CDC claims covering 2,747.00 ha located 5 km to the north of the Company’s Lac Tétépisca property. The Lac Tétépisca Nord claim block was map-staked during the fall of 2012 following the publication of a new government airborne geophysical survey data, which identified graphite, and iron-rich meta-sedimentary formations similar to those encountered at Lac Tétépisca and Lac Guinécourt. During the year ended September 30, 2014, six claims were transferred from Lac Tétépisca project to the Lac Tétépisca Nord project, decreasing the number of the claims to 51.

2013 Prospecting Program

From July 1 to July 21, 2013, and from August 6 to August 15, 2013, the Company conducted an initial geological reconnaissance field program on the Lac Tétépisca-Nord property. Fieldwork comprised ground geophysical prospecting using portable electromagnetic equipment (Beep-Mat™ and VLF) and grab sampling. A total of 25 grab samples were collected from outcrops, subcrops and boulders. They were sent to ALS Minerals in Val d’Or for preparation and then to ALS in Vancouver for graphitic carbon (Cg) and total sulphide analysis using LECO induction and a 48 multi-element analysis using ICP methods. Fourteen (14) of which host graphitic carbon (Cg) grades in excess of 5.00% (range: 5.09% to 29.20% Cg). The remaining 11 grab samples show Cg grades below 5.00%. In regard to QA/QC program, 10% of blanks and standard were introduced.

2014 Ground Geophysical Survey

On May 15, 2014, the Company awarded a contract to Abitibi Géophysique of Val-d’Or, Québec to conduct a ground combined magnetic-time domain electromagnetic geophysical survey (MAG-TDEM) with 100 m line spacing over the previously defined graphitic horizon with the IMAGEM system. The survey was completed on August 24, 2014, and the final report was received on September 19, 2014. A total of 288 EM anomalies and several magnetic zones are interpreted. The EM survey results were used to design a trenching and channel sampling program to test the lateral continuity, the thickness and the grade of the graphitic mineralization outlined by the previous 2013 ground prospecting program.

2014 Trenching Program

On July 11, 2014, the Company received the land use permit for trenching from the MERN. The same temporary camp under the supervision of IOS Services Géoscientifiques as for the Lac Tétépisca project was used for the Lac Tétépisca Nord Project 2014 field work. The trenching program was under the supervision of the Company with the logistic support of IOS Services Géoscientifiques of Chicoutimi. One trench was dug over a length of 84 m from September 24 to September 27, 2014. Channel sampling and geological mapping were completed on September 30, 2014. Disseminated to semi-massive large to fine graphite flakes were observed. A total of 49 channel samples that vary in length from 0.5 to 1.5 m for a total of 53 samples were taken for assaying. Representative samples were taken with a rock saw and put in a bag with identification tag and shipped to IOS’ facilities in Chicoutimi for sample preparation (cutting, crushing and grinding). Prepared samples were then sent to ALS Minerals in Val d’Or and Vancouver for graphitic carbon (Cg) and total sulphide analysis using LECO induction, and for 48 multi-element analyses using combined ICP-AES and ICP MS methods. IOS introduced standards, duplicates and blank samples as part of the QA/QC program. Two rock saw duplicates were also sampled in the trench for the QA/QC program.

On August 24, 2016, the Company announced the results of a trenching program conducted in 2014. The highlights are:

A single 86.8 m long trench was excavated at the Project in September 2014. Trench No. TN-TR-01 was positioned perpendicular to the trend of a 2.4 km long by 80 m wide magnetic (MAG) - electromagnetic (EM) anomaly identified by ground geophysical surveys conducted in August 2014;
Best channel section: Trench No. TN-TR-01 intersected 67.2 m[1] grading 6.75% graphitic carbon (Cg[2] ) (from 19.6 to 86.8 m), including: 24.5 m grading 11.72% Cg (from 19.6 to 44.1 m)
The initial channel sampling results indicate the potential for a second new significant graphitic corridor in the southwest Manicouagan reservoir area, in addition to the Company’s “Manicouagan-Ouest Graphitic Corridor” at its nearby Lac Tétépisca project (refer to Focus news release dated August 17, 2016, available at www.focusgraphite.com and at www.sedar.com ).

1 Reported channel sample sections are not true thickness but expressed as channel sample lengths. However, the trench crosscut the mineralized zone strike at a high angle.

2 All carbon analyses were performed by ALS Minerals (“ALS”) in North Vancouver, an ISO/IEC 17025:2005 certified facility, using LECO high frequency combustion method with infrared measurement (code C-IR18) and are reported as graphitic carbon (Cg).

2016 Exploration Drilling Program

During the fiscal year ended September 30, 2016, the Company completed a maiden core drilling campaign designed to test the subsurface graphite mineralization in areas with the strongest MAGEM response down to a vertical depth of approximately 100 m. This drilling program was completed during the drilling campaign at its Lac Tétépisca project.

From August 8 to August 15, 2016, the Company completed an exploration drilling program with one drill rig. Exploration drilling included 786 m of drilling in 6 drill holes oriented perpendicular to the strike of the km-long EM conductor. This drilling will also provide mineralized samples for initial metallurgical testing. The Company supervised the drilling campaign with the logistical support of IOS Services Géoscientifiques of Saguenay. Core was shipped to IOS facilities for logging, sample preparation (cutting, crushing and grinding) and storage.

During the three months period ended December 31, 2016, logging and sample preparation were completed. All prepared samples were sent to COREM in Québec City for graphitic carbon (Cg) and total sulphide analysis using LECO induction. For the QA/QC program, 10% of the samples will also be analyzed by COREM for total, organic, inorganic and graphitic carbon as well as for total sulphides. Around 10% of additional selected core samples were also sent to ACTLABS to be analyzed for total, organic, inorganic and graphitic carbon, total sulphides and for a 35 multi-element analysis using the ICP method. IOS introduced standards, duplicates and blank samples as part of the QA/QC program.

On August 11, 2017, the Company received the final report of the 2016 exploration drilling campaign at Lac Tétépisca Nord from IOS Services Géoscientifiques.

No work was conducted on the Lac Tétépisca Nord property during the quarters ended December 31, 2018, March 31, 2019, June 30, 2019, September 30, 2019, and December 31, 2019.

Update for the Three Months Period Ended March 31, 2020

No work was conducted on the Lac Tétépisca Nord property during the quarter ended March 31, 2020.

Update for the Three Months Periods Ended June 30, 2020, September 30, 2020, December 31, 2020, and March 31, 2021

No work was conducted on the Lac Tétépisca Nord property during the quartesr ended June 30, 2020, September 30, 2020, December 31, 2020, and March 31, 2021.

on April 9, 2020, the Québec Minister of Energy and Natural Resources (MERN), Mr. Jonathan Julien, announced the term suspension of all mineral exploration claims currently in force in the province for a 12-month period effective immediately. This extraordinary measure taken to support claim holders is applied pursuant to article 63 of the Mining Act and under the discretionary power of the Minister of Energy and Natural Resources. The current expiry date for the 51 CDC claims forming the Lac Tétépisca Nord property have therefore been extended by 12 months. The Lac Tétépisca Nord property claims are in good standing on GESTIM until December 2, 2021.

Focus plans to conduct additional work at the Lac Tétépisca Nord property in 2021 and is working on the design of an exploration program with the aid of IOS Services Géoscientiques Inc.

Eastmain-Léran/Alta Option and Eastmain-Léran/Staked Polymetallic (Cu-Au-Zn) Projects, Eeyou Istchee James Bay Territory, Québec

On October 12, 2012, the Company secured the exclusive rights to exercise a purchase option to acquire a 100% interest in the Eastmain-Léran property from Ressources Minières Alta Inc. (“Alta”). On October 16, 2013, the Company entered into a claims title acquisition agreement with Alta to purchase 100% interest of the Eastmain-Léran/Alta Option property. ln consideration for the purchase of the 100% interest in the project, the Company paid the Vendor a total of $50,000 in cash and issued 689,655 common shares. The Company granted a 2% net smelter return (NSR) royalty that can be purchased at any time by paying $500,000 to the vendor.

The Eastmain-Léran/Alta Option property consists of 32 mineral claims covering an area of 1,678.81 ha. The copper-gold project is located 25 km north-east of the Otish Mountains, directly north of the Eastmain River in James Bay Territory, northern Quebec. The project is 10 km east of the new Otish Mountains access road (HWY 167 extension), which link Chibougamau and Mistissini to Stornoway’s Renard diamond project.

In October 2012, following the signing of the letter agreement with Alta, the Company staked an additional 241 contiguous CDC claims covering 12,625.49 ha along the northeast extension of the Eastmain-Léran/Alta Option claims. This new claim block constitutes the Eastmain-Léran/Staked property. In March 2017, the Company designated and acquired interest in six CDC claims, covering 314.58 ha, within the actual perimeter of the Eastmain-Léran\Staked property. The property grew in size to 247 claims covering an area of 12,940.07 ha.

In February 2018, the Company designated and acquired interest in an additional block of 245 CDC claims covering an area of 12,816 ha starting from the East boundary of the Eastmain-Léran property. Referred to as the Eastmain-Léran East Extension (ELEE) claims block, the ELEE block covers the easternmost segment of the Wahemen volcano-sedimentary greenstone belt which traverses NTS sheet 23D-12 onto sheet 23D-11.

In June 2018, the Company secured two CDC claims located within the perimeter of the EastmainLéran\Staked property that had recently expired. The MERN awarded the two claims to Focus on July 4, 2018. As of December 31, 2018, the Eastmain-Leran/ Staked property comprised of 493 contiguous CDC claims covering an area of 25,811 ha.

To date, exploration expenditures (net of tax credits and mining duties) total $2,411,696.

Both the Eastmain-Léran/Alta Option property and the Eastmain-Léran\Staked property have the potential to host volcanogenic polymetallic targets and precious metal mineralization as well as the potential to host kimberlite pipes that host diamond mineralization. The claim blocks host several copper-gold occurrences in quartz veins (i.e. Norducan showing: 6.8 g/t Au and 2% Cu; Freewest and Fancamp Resources, 1993, GM 52249) or are associated to sulphide-rich horizons such as the main Alta Eastmain copper showing (1.72% Cu/7.62 m; Nethery, W.A., 1959, GM 09871-A). The Eastmain-Léran/Alta Option and Eastmain-Léran\Staked properties are part of the Wahemen volcano-sedimentary greenstone belt traceable over a distance of 60 km and having a width of about

6 to 10 km. The mafic, ultramafic and felsic volcanic rocks are intercalated with arkose, greywacke and quartzite. The former Eastmain Gold mine, currently owned by Eastmain Resources Inc., is located about 30 km south of the two projects and Stornoway’s Renard diamond mine is located about 38 km north towards the North.

On November 7, 2013, the Company awarded a contract to Geotech of Toronto to perform an airborne Mag-VTEM-PLus™ geophysical survey over the Eastmain-Léran/Alta Option and Eastmain-Léran\Staked properties. The survey was designed using 50-m line spacing. A total of 3,361 line-kms covering both projects were surveyed from November 10 to December 7, 2013. The final report was received in February 2014. Based on the geophysical results obtained, several anomalous electromagnetic (EM) zones typical of polymetallic massive sulphides as well as structural NE-SW conductors have been identified on both projects.

Update for the Quarter Ended March 31, 2018

Following strong indications during the first half of 2017 of a resurgence in industry and investor interest for underexplored greenstone belts across Québec and for emerging polymetallic projects, on September 15, 2017, the Company awarded a mandate to IOS Services Géoscientifiques Inc. of Saguenay , Québec, to undertake the Company’s first field exploration program targeting the Eastmain-Léran\Alta Option and Eastmain-Léran\Staked Polymetallic properties (together referred to as the “Eastmain-Léran project”). The principal objectives of the fall 2017 field exploration program were to re-sample known historical polymetallic showings, to investigate priority Mag-EM targets and to survey the overall precious and base metal potential of the project through property-scale till sampling and till sample multi-element analysis. The budget for the field exploration program was set at $750,000. The Eastmain-Léran exploration program was designed by IOS under the supervision of the Table Jamésienne de Concertation Minière, of Chibougamau, Québec.

The helicopter-supported exploration program at Eastmain- Léran commenced on September 18, 2017, subsequent to the fiscal year ended September 30, 2017, and was completed on October 18 using an IOS field crew of 12-14 people. Fieldwork started from the southeast project border and moved progressively across the property in a northeasterly direction. By the demobilization date, the majority of priority Mag-EM targets located in the southwest half of the Project had been surveyed through systematic prospecting and outcrop sampling while only a select group of priority Mag-EM targets from the northeast half were surveyed. In all, 296 rock samples, 290 till samples, 9 esker samples and 334 soil samples were collected; and one priority target (the historical Alta-Eastmain showing) was stripped using a mini-excavator and then channel sampled (total: 32 samples). All rock, soil and till samples were transported from the field to IOS’ laboratory facilities in Chicoutimi, Québec, for sample processing in preparation for external assaying or for in-house mineralogical analysis using proprietary IOS ARTGold™ SEM-based technology. As of March 31, 2018, the Company had received final multielement analytical results for rock samples but only partial geochemical and mineralogical analysis results from the till and soil surveys. The findings from the fall 2017 prospecting, trenching and outcrop sampling program are summarized in IOS’ technical report submitted to Focus on April 4, 2018.

Update for the Quarter Ended June 30, 2018

Mineralogical determinations for gold, platinum group metals (PGM) and other heavy mineral indicators of precious and base metal mineralization in till samples collected at the Eastmain-Léran project in 2017 continued throughout the reporting period at IOS Services Géoscientifiques’ Laboratory facilities located in Saguenay, Québec.

Subsequent to the quarter ended June 30, 2018, on August 10, 2018, the Company received final results for gold and PGM particle determinations. Focus is currently reviewing the raw data. IOS’ technical report for the 2017 project scale till survey is expected to be completed by September 30, 2018. Update for the Quarter Ended September 30, 2018

On May 18, 2018, the Company commissioned IOS Services Géoscientifiques (IOS) to design and implement, under the supervision of the Table Jamésienne de Concertation Minière (TJCM), a new exploration program focusing primarily on the recently staked East Extension block of the EastmainLéran property.

On September 4, 2018, Focus received the final mineralogical dataset from IOS for the fall 2017 till sampling program (total: 304 samples) on the Eastmain-Léran project (particulate gold and platinumgroup metal chemical compositions obtained from IOS’s proprietary RTMin™ automated SEM-EDSSDD analysis technology). The final technical report by IOS on the fall 2017 till sampling program is pending.

The fall 2018 helicopter-supported exploration program, commenced on the Eastmain-Léran project on September 3, 2018 and ended the last week of October, subsequent to the quarter ended Sept. 30, 2018. The exploration program comprised airborne geophysical surveying (Mag-EM), ground geological mapping and prospecting along with systematic soil and till sampling (maximum: 200 samples. Select high-priority targets identified at the Eastmain-Léran\Alta Option property and within the “central block” of the Eastmain-Léran property as a result of exploration work carried out in 2017 were also be investigated. A small excavator was airlifted to the project on September 14, 2018 for this purpose.

IOS expects analytical results from the fall 2018 prospecting and till sampling programs to come in starting mid to late December 2018.

Update for the Quarter Ended December 31, 2018

IOS completed the fall 2018 helicopter-supported reconnaissance exploration program at the Eastmain-Léran\Staked property’s East Extension claims block on October 25, 2018. A total of 318 rock samples were collected and sent to a certified laboratory facility for precious metal, base metal and trace element analysis while 161 till samples were collected and then sent to IOS’ laboratory facilities in Saguenay, Québec for particulate gold abundance determinations using their proprietary ARTGold™ process and for heavy mineral fraction mineralogical studies including ARTMin™ automated quantitative SEM-EDS analyses.

As of the reporting date, IOS has received the results from the fall 2018 airborne geophysical (MagEM) survey of the Eastmain-Léran\Staked property’s East Extension claims block by GDS Data Solutions Inc. of Laval, Québec along with the assay results for all 318 rock samples and it has competed the processing of all 161 till samples for particulate gold abundance determinations. As of the reporting date, IOS was writing its technical report on the fall 2018 reconnaissance exploration program at the Eastmain-Léran\Staked property. All 249 claims forming the Eastmain-Léran\Staked properties Central claims block are in good standing until October 2020 while all 244 claims forming the Eastmain-Léran\Staked East Extension claims block are in good standing until December 27, 2019. In total, the Eastmain-Léran\Staked property currently comprises 493 claims.

Subsequent to the quarter’s end, on January 14, 2019, Focus designated and acquired interest in 11 CDC claims that recently became open for staking within the perimeter of the EastmainLéran\Staked property’s Central claims block. As of the reporting date, confirmation of successful claims designation by the MERN was pending.

All 32 CDC claims forming the Eastmain-Léran\Alta Option property are in good standing until May 13, 2020.

Update for the Quarter Ended March 31, 2019

Subsequent to the quarter ended March 31, 2019, on April 9, 2019, IOS submitted its technical report on the fall 2018 prospecting, outcrop trenching and sampling and reconnaissance mapping program on the Eastmain-Léran Central and East-Extension property blocks. The technical report detailing the results of the fall 2018 till sampling program covering the Central and East-Extension property blocks is expected from IOS during the next quarter.

Update for the Quarter Ended June 30, 2019

Subsequent to the quarter ended June 30, 2019, on August 14, 2019, the Company received IOS’ technical report detailing the results of the particulate gold (ArtMin™) component of the fall 2017 and fall 2018 till heavy mineral survey covering the Eastmain-Léran\Alta Option and EastmainLéran\Staked properties (Central and East-Extension blocks). The technical report for the nonprecious metal heavy mineral component of the project scale till survey was still underway by IOS as of the reporting date.

Update for the Quarter Ended September 30, 2019

No work was performed on the Eastmain-Léran project during the three-months period ended on September 30, 2019.

Update for the Quarters Ended December 31, 2019,March 31, 2020, and June 30, 2020

No work was performed on the Eastmain-Léran project during the three-months periods ended on December 31, 2019,March 31, 2020, and June 30, 2020.

Due to the exceptional circumstances surrounding the COVID-19 pandemic, on April 9, 2020, the Québec Minister of Energy and Natural Resources (MERN), Mr. Jonathan Julien, announced the term suspension of all mineral exploration claims currently in force in the province for a 12-month period effective immediately. This extraordinary measure taken to support claim holders is applied pursuant to article 63 of the Mining Act and under the discretionary power of the Minister of Energy and Natural Resources. The current expiry date for the CDC claims forming the Eastmain-Léran project have therefore been extended by 12 months. All 32 CDC claims forming the EastmainLéran/Alta Option property are now in good standing on e-GESTIM until July 2021 while the 505 CDC claims forming the remainder of the Eastmain-Léran project (Eastmain-Léran/Staked and Eastmain-Léran/East Extension claims blocks) are in good standing until October 2021, at the earliest.

Subsequent to the Quarter ended on June 30, 2020, on July 22, 2020, Focus announced it had signed a definitive asset purchase agreement for the sale of its 100% interest in the Eastmain-Léran project to a third party (“the Purchaser”). The terms of the definitive asset purchase agreement (“the Agreement”) are as follows:

The Purchaser will acquire from Focus Graphite, a one hundred percent (100%) interest in the Eastmain-Léran Project in consideration of: (a) a payment of $500,000.00 in cash at Closing (payment received on July 16, 2020); (b) a second payment of $500,000.00 in cash by December 1, 2021; (c) a third payment of $500,000.00 in cash by December 1, 2022; and (d) a final payment of $800,000.00 in cash by December 1, 2023.
The Purchaser shall have the right to elect to pay a portion of the Post-Closing Instalment in the form of shares (the "Share Consideration"), to a maximum of fifty percent (50%) of such Post-Closing Instalment.
Upon the Purchaser meeting all its obligations under the Agreement by December 1, 2023, Focus Graphite will transfer all mineral titles to the Purchaser and upon competition of the transfer, Focus will retain a 0.5% NSR on the Eastmain-Léran/Alta Option property which can be purchased at any time by the Purchaser for $125,000, along with a 2.5% NSR on the Eastmain-Léran/Staked property which can be purchased at any time by the Purchaser for $625,000.
Between January 16, 2020 (the Closing date) and the Transfer Date (the date when Focus will have received the final payment by the Purchaser), the Purchaser agrees to maintain in good standing all mineral claims (map-designated cells) comprised in the EastmainLéran Project.

Update for the Quarters Ended September 30, 2020,December 31, 2020, and March 31, 2021

No work was conducted at the Eastmain-Léran project during the quarters ended September 30, 2020, December 31, 2020 and March 31, 2021.

On October 27, 2020, Focus received IOS Services Géoscientifiques’ final technical report on the 2017 and 2018 till heavy mineral concentrate survey of the Eastmain-Léran project.

During the quarter ended March 31, 2021 Focus renewed All 537 CDC claims forming the EastmainLéran project for additional 24-month period on e-GESTIM. The 32 CDC claims forming the Eastmain-Léran/Alta Option property are now in good standing on GESTIM until June 2023 while the 505 CDC claims forming the remainder of the Eastmain-Léran project (Eastmain-Léran/Staked and Eastmain-Léran/East Extension claims blocks) are in good standing until October 2023, at the earliest.

Subsequent to the quarter ended March 31, 2021, on May 10, 2021, Focus signed a new agreement (Assignment Agreement) with the private company with whom it had concluded a definitive Asset Purchase Agreement for the sale of its 100% interest in the Eastmain-Léran project in July 2020. Under the terms of the Assignment Agreement, Focus (the “Seller”) and the private company (the “Purchaser”) each acknowledge and agree that, in accordance with and for the purposes of Section 30 of the 2020 Asset Purchase Agreement, the Purchaser has incorporated a special purpose vehicle company (“SPV Co.”) which will hold the Purchaser’s rights under the Asset Purchase Agreement. The Assignment Agreement further states (Section 4) that SPV Co. will be bound by and will observe all the Purchaser’s obligations under the Asst Purchase Agreement and the Seller releases the Purchaser from all its obligations under the Asset Purchase Agreement arising on and from the Effective Date of the Assignment Agreement.

Qualified Person

The above scientific and technical information regarding exploration activities as defined in National Instrument (NI) 43-101 s. 1.1, was either prepared or reviewed and was approved by Marc-André Bernier, géo. (Québec), P.Geo. (Ontario), M.Sc., a consultant to the Company, and a Qualified Person under National Instrument (NI) 43-101 Standards of Disclosure for Mineral Projects.

Financial Information

The following selected financial data is derived from the interim unaudited financial statements of the Company, which were prepared in accordance with IFRS.

Selected Financial Information

	T hree mo nths	T hree mo nths	Six mo nths	Six mo nths
	ended	ended	ended	ended
	March 31, 2021	March 31, 2020	March 31, 2021	March 31, 2020
	$	$	$	$
Statements o fC o mprehensive
Inco me
LossfromOperations	(714,692)	(855,146)	(1,590,175)	(1,813,250)
InterestIncome	2,350	200	760,652	141,540
TotalComprehensiveLoss	(712,342)	(854,946)	(829,523)	(1,671,730)

Basic andDilutedNetLoss perCommonShare	(0.0015)	(0.0023)	(0.0018)	(0.0045)
Basic andDilutedWeighted-Average
NumberofCommonShares Outstanding	463,202,514	373,936,340	463,202,514	373,936,340

Statements o fC ash F lo ws
Net CashUsedinOperatingActivities	(563,759)	(1,008,624)	(721,384)	(2,358,494)
Net CashUsedin InvestingActivities	(1,325,371)	-	(1,942,021)	(827,936)
Net Cash Provided byFinancingActivities	4,336,248	1,202,810	5,431,248	3,405,310
Increase (Decrease)inCash	2,447,118	194,186	2,767,843	218,880

As at	March 31, 2021	September 30, 2020	September 30, 2019
	$	$	$
Statements o f F inancial
Po sitio n
Cash	3,645,728	877,886	109
M ineral Exploration Properties	939,629	931,679	1,363,977
ExplorationandEvaluation Assets	26,141,687	23,821,556	32,153,145
M ineral AssetHeldForSale	1,616,805	1,616,805	-
Total Liabilities	5,289,384	6,469,039	6,969,428
Shareholders' Equity	28,011,718	22,251,878	27,721,372
Total Assets	33,301,101	28,720,918	34,690,800

Dividend Payment

Since its incorporation, the Company has not paid any cash dividends on its outstanding common shares. Any future dividend payment will depend on the Company`s financial needs to fund its exploration and development programs, future growth, and any other factors the board may deem necessary to consider. It is highly unlikely that any dividends will be paid in the near future.

Net Losses For The Three and Six Month Periods Ended March 31, 2021

During the three and six month periods ended March 31, 2021, the Company realized net losses of $712,342 and $829,523 respectively (compared to $854,946 and $1,671,730 for the three and six month periods ended March 31, 2020). The decrease in net loss in the six month period ended March 31, 2021 was attributed to other income of $754,168 recognised, in the three month period ended December 31, 2020, following the reversal of director fees previously accrued.

Operating Expenses

During the three and six month periods ended March 31, 2021, the Company’s losses from operations were $714,692 and $1,590,175 respectively ($855,146 and $1,813,250 for the three and six month periods ended March 31, 2020). This decrease in operating expenses is partially attributed to the Company temporarily slowing down its operations in response to the COVID-19 pandemic.

The decrease was also attributed to the Company reducing the marketing and product development services required from Grafoid, thus reducing the monthly consulting expense of $200,000 per month. This subsequently reduced the management and consulting fees for the three and six month periods ended March 31, 2021 to $154,489 and $807,446 respectively (compared to $740,097 and $1,476,593 for the three and six month periods ended March 31, 2020).

This decrease in the Company’s operating expenses were offset by the recognition of stock based compensation in the three and six month periods ended March 31, 2021 of $404,650 and $428,116 respectively (compared to $Nil and $Nil for the three and six month periods ended March 31, 2020). This expense was recognised in the quarter following 5% of the 30,000,000 options, granted to employees, consultants, directors, and officers, at an exercise price of $0.12 per share over a 5 year period, that vested on the date of grant.

Quarterly Information

The following summarized financial data has been prepared in accordance with IFRS.

Quarter Ended	Other	Net Earnings	Earnings (Loss)
	Income	(Loss)	per Share
	(Loss)
31/03/21	2,350	(712,342)	(0.0015)
31/12/20	758,301	(117,182)	(0.0003)
30/09/20	(2,240,946)	(3,240,299)	(0.01)
30/06/20	444,759	(694,959)	(0.002)
31/03/20	200	(854,946)	(0.002)
31/12/19	141,320	(816,784)	(0.002)
30/09/19	119,133	(1,518,209)	(0.01)
30/06/19	30,552	(981,933)	(0.003)
31/03/19	-	(920,758)	(0.003)
31/12/18	17,811	(1,075,940)	(0.003)
30/09/18	(149,514)	1,945,957	(0.01)
30/06/18	3,110,401	1,933,031	(0.006)

During the period ended September 30, 2020, the Company recognized net loss of $2,240,946. This was partially attributed the Company’s estimated liability relating to not spending the CEE by December 31, 2019 to meet the flow through obligation and recorded an estimated total provision of $1,170,000 and includes Part XII.6 tax and Québec equivalent tax as well as estimated investor indemnification exposure. The liability is attributed to the flow-through private placements that closed in December 2018 for gross proceeds of $1,275,000. In February 2019, the related tax deductions were renounced to investors under the “look-back” rule with an effective date of December 31, 2018. By December 31, 2019 (the due date), the Company had not spent the required Canadian exploration expenses (“CEE”). The relating CEE was only incurred in October and November 2020.

The Company also recorded an impairment of $739,000 following the sale of its interest in the Eastmain Leran for proceeds of $2,300,000 to be paid in installments over three years with the first installment of $500,000 paid at closing. As at September 30, 2020, payment received of $500,000 was applied against the carrying amount of the mineral assets. The Company subsequently determination that the carrying amount of this property exceeded its recoverable amount, being the fair value less costs of disposal. Consequently, the Company recorded an impairment of $739,000.

During the period ending June 30, 2018, Grafoid repaid Focus the $3,092,739 loan. As a result, the amount due from Grafoid ($360,000) classified under due from related parties was reclassified to be included in the net investment of Grafoid. Since there was no change in the determination by management that the recoverable amount of the net investment in Grafoid to be $Nil (please see discussion above), a partial impairment reversal was recognized resulting in the recognition of net earnings in the amount of $1,933,031 for the quarter.

Liquidity and Capital Resources

As at March 31, 2021, the Company had a working capital deficiency of $737,627, including $3,645,728 in cash and current liabilities totalling $5,230,609. The Company will require additional financing, through various means including but not limited to equity financing, to continue exploring, evaluating, and developing its projects. There is no assurance that the Company will be successful in raising the additional required funds, refer to the ‘Going Concern Assumption’ section of the MD&A for more detail.

During the quarter ended March 31, 2021, the Company had options and warrants exercised, raising total proceeds of $5,125,546 attributed to;

$1,372,500 from the exercise of 27,450,000 options at $0.05 per share by optionees including officers and directors of the Company
$3,753,046 from the exercise of 37,530,460 warrants at $0.10 per share by various third parties.

Commitment and Proposed Transactions

As of March 31, 2021, and as of the date of this report, the Company did not have any commitments outstanding other than the offtake agreements previously disclosed. There are no undisclosed pending proposed transactions that would materially affect the performance or operation of the Company.

Contractual Obligations and Off-Balance Sheet Arrangements

As of March 31, 2021, and as of the date of this report, the Company had no off-balance sheet arrangements and contractual obligations other than the offtake agreements previously disclosed in the ‘Exploration Activities and Technical’ sections of the MD&A.

Changes in Accounting Policies Including Initial Adoption

Refer to Note 3 Summary of Significant Accounting Policies, Standards, Amendments and Interpretations of the audited annual financial statement for the year ended September 30, 2020.

Judgments, Estimates and Assumptions

When preparing the financial statements, Management makes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. Refer to Note 3(b) for a summary of the Judgments, Estimates, and Assumptions of the audited annual financial statement for the year ended September 30, 2020.

Transactions with Related Parties

Related parties include the Board of Directors and key management personnel, as well as, close family members and enterprises that are controlled by these individuals as well as certain persons performing similar functions.

		March 31,	March 31,	September 30,
		2021		2020
		$		$
Included in Prepaid expenses and Other:
JAG PropertyHoldings -prepaid rent		4,624		4,624
		4,624		4,624

Included in Amounts due from relatedparties
Braille EneregySystems Inc.		23,158		23,158
9174893 Canada Inc.		10,894		8,084
Previous employee		160		160
JAG PropertyHoldings		2,164		2,164
Alcereco		640		640
GGTC Inc		7,332		7,332
JAG SkyInc.		186		186
9176055 Canada Inc.		6,536		6,536
Mistura BeautySolutions		1,361		1,361
Stria		8,111		8,111
		60,542		57,733

Included in Accountspayable
9174893 Canada Inc.		-		33,839
GGTC		15,674		62,696
Grafoid		-		-
CFO		-		585
Director Fees(Note a)		-		754,168
		15,674		851,288
March 31, September 30, 2021 2,020 Included in Amounts due to relatedparties A companycontrolled bya director of the Company (1) 2,415,000 3,165,000 Alcereco - whollyowned subsidiaryof Grafoid Inc. 45,000 45,000 9174893 Canada Inc - a company controlled by a director of the Company 2,810 2,810 BESI 2,500 2,500 2,465,310 3,215,310
	March 31,		September 30,
	2021		2,020

Included in Amounts due to relatedparties
A companycontrolled bya director of the Company (1)	2,415,000		3,165,000
Alcereco - whollyowned subsidiaryof Grafoid Inc.	45,000		45,000
9174893 Canada Inc - a company controlled by a director of the Company	2,810		2,810
BESI	2,500		2,500
	2,465,310		3,215,310

(1) During the three months ended March 31, 2021 the Company borrowed and repaid from a company controlled by a director of the Company and the following amounts bearing no interest at a lender fee of 10%.

Advances and repayments of loans from companies controlled by directors of the Company during the year are as follows:

A companycontrolled bya director of the Company
	Amount	Date borrowed	Date Due
	300,000	01-Oct-19	01-Apr-20
	300,000	18-Oct-19	18-Apr-20
	300,000	21-Nov-19	21-May-20
	500,000	29-Nov-19	29-May-20
	500,000	02-Dec-19	15-May-20
	300,000	17-Dec-19	17-Jun-20
	300,000	20-Jan-20	20-Jul-20
	150,000	10-Feb-19	10-Aug-20
	150,000	25-Feb-19	25-Aug-20
	300,000	25-Mar-20	25-Sep-20
	300,000	01-Jan-20	01-Jul-20
	3,400,000

Director of the Company
	Amount	Date borrowed	Date Due
	500,000	29-Nov-19	29-May-20
	300,000	01-Jan-20	01-Jul-20

Repaid	Amount	Date
	3,000,000	25-May-20
	685,000	27-May-20
	92,500	29-May-20
	750,000	26-Mar-21
	4,527,500


9174893 Canada Inc(3)	Amount	Date borrowed	Date Due
	35,000	02-Apr-19	01-May-19
	20,000	29-Apr-19	30-May-19
	2,810	12-Mar-20	12-Apr-20

Transactions with relatedparties
	March 31,	September 30,
	2021	2020
Rent (1)	13,871	55,484
Rent (2)	-	6,000
Consulting services-Grafoid (3)	60,000	2,400,000

(1) Under a lease agreement between the Company and GGTC Inc.(“GGTC”) (Note 17), a privately-held company owned by two directors of the Company, the Company leases laboratory space in Kingston, Ontario. The lease was previously with JAG Property Holdings Inc. (formerly 2390540 Ontario Inc.), a privately-held company owned by two directors of the Company, however it was transferred to GGTC upon GGTC’s acquisition of the building. During the three months ended March 31, 2021, the Company was charged a total of $13,871 (September 30, 2020 $ 55,484) for rent. Since the lease is short-term, the IFRS 16 capitalization criteria was not applied. Refer to Note 3 of the audited financial statements for the year ended September 30, 2020.
(2) During the year ended September 30, 2020, the Company was charged $6,000 for rent. Since the lease is short-term, the IFRS 16 capitalization criteria was not applied. Refer to Note 3 of the audited financial statements for the year ended September 30, 2020.
(3) During the year ended September 30, 2020, the Company was charged $2,400,000 by Grafoid for consulting services which consists of marketing, product development and auxiliary services for Focus. On October 1, 2017, the Company entered into an agreement with Grafoid under which Grafoid will provide an array of services to the benefit of the Company for a monthly fee of $200,000. The agreement has no termination date. Either party may terminate the agreement upon 30 days’ written notice. During three months ended March 31, 2021, the Company was charged $60,000 by Grafoid for consulting services which consists of marketing, product development and auxiliary services for Focus.

Note:

a) The Company’s directors and former directors agreed to cancel the accrued directors fees of $754,168 which were accrued in previous years such that these fees will not be payable anymore. Other Income has been used to cancel the liability.

Mining Property Book Value

At the end of each reporting period, management reviews the carrying values of its resource properties and intangible assets to determine whether any write-downs are necessary. Following this analysis, management determined that no write-downs were required for the three and six month period ended March 31, 2021.

Financial Instruments

The Company's financial instruments consist of cash, amounts due from related parties, accounts payable and accrued liabilities, other current and long-term liabilities. The fair value of the Company’s financial instruments approximates their carrying value due to their short-term nature.

The classification of financial instruments is as follows:

	March 31,	September 30,
	2021	2020
		$
Financial assets
Loans and receivables
Cash	3,645,728	877,886
Amounts due from relatedparties(Note 17)	60,543	57,733
Total financial assets	3,706,271	935,619
Financial liabilities
Measured at amortized cost
Accounts payable and accrued liabilities	1,721,823	1,930,242
Long-term Liabilities	41,011	24,601
Other Current Liabilities (Note 8)	929,397	1,170,000
Amounts due to relatedparties(Note 17)	2,465,310	3,215,310
Total financial liabilities	5,157,542	6,340,153

Outstanding Share Data

Common shares and convertible securities outstanding at May 26, 2021, consist of the following:

Securities	Expiry Date	Range of Price	Number of Securities Outstanding
Common shares	-	-	482,553,681
Warrants	Up to December 2024	$0.055 to $0.12	97,161,251
Options	Up to February 2026	$0.05 - $0.12	68,355,000

Subsequent Event

Focus Announces Non-Brokered Private Placements of Flow-Through Shares

Refer to ‘Corporate Development Highlights’

Focus Closes First Tranche of Non-Brokered Flow-Through Offering

Refer to ‘Corporate Development Highlights’

Focus Signs MOU With Australian Battery Casing Technology Company Vaulta and Lithium Battery Manufacturer Braille Energy Systems Inc.

Refer to ‘Corporate Development Highlights’

Risk Exposure and Management

The Company is exposed to a certain amount of risks at different levels. The type of risk and the way the exposure is managed are described hereafter.

Market Risk

Market risk is the risk that changes in market prices, such as interest rates, foreign exchange rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The COVID-19 pandemic continues to have an extenuating impact on the economy and financial markets.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

Credit, Liquidity, Interest Rate, and Price Risk

The Company thoroughly examines the various financial risks to which it is exposed and assesses the impact and likelihood of those risks. These risks include credit risk, liquidity risk and interest rate risk. Where material, these risks are reviewed and monitored by the Board of Directors.

Credit Risk

Credit risk is the risk of an unexpected loss if a party to its financial instruments fails to meet its contractual obligations. The Company’s financial assets exposed to credit risk are primarily composed of cash and amounts due from related parties and maximum exposure is equal to the carrying values of these assets, totalling $60,543 at March 31, 2021 (2020 - $57,733). The Company’s cash is held at several reputable financial institutions with high external credit ratings. The exposure to credit risk for the Company’s receivables is considered immaterial. It is Management’s opinion that the Company is not exposed to significant credit risk.

None of the Company’s financial assets are secured by collateral or other credit enhancements.

Management considers that all the above financial assets that are not impaired or past due for each of the reporting dates are of good credit quality There are no financial assets that are past due but not impaired for the periods presented.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages its liquidity needs by carefully monitoring cash outflows due in day-to-day business. As at March 31, 2021, the Company had a working capital deficit of $737,627. During the three months ended,

March 31, 2021, the Company had negative cash flows from operations of $563,759. The Company’s ability to realize its assets and discharge its liabilities in the normal course of business, meet its corporate administrative expenses and continue its exploration activities, is dependent upon Management’s ability to obtain additional financing, through various means including but not limited to equity financing. No assurance can be given that any such additional financing will be available, or that it can be obtained on terms favorable to the Company.

The Company has $5,271,619 in financial liabilities comprised as below:

Carrying Value	Maturity Analysis
	Less than 1 year Greater than 1 year Total
Accounts payable 1,721,823 Amount due to related parties (Note 17) 2,465,310 Other current liabilities (Note 8) 1,043,475 Long-term liability (Note 10) 41,011	1,721,823 - 1,721,823 2,465,310 - 2,465,310 1,043,475 1,043,475 41,011 41,011
5,271,619	5,230,609 41,011 5,271,619

Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has limited exposure to financial risk arising from fluctuations in foreign exchange rates given that its transactions are carried out primarily in Canadian dollars.

Interest Rate Risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s financial assets exposed to interest rate risk include cash held in investment savings accounts bearing variable interest rates. The Company has not entered into any derivative contracts to manage this risk. The Company’s policy as it relates to its cash balances is to invest excess cash in highly liquid, low-risk, short-term interest-bearing investments with maturities of 360 days or less from the original date of acquisition. As at March 31, 2021, the Company had cash balances of $3,645,728 ($877,886 as at September 30, 2020) and interest income derived from these investments during the three month ended March 31, 2021 was $Nil ($236 as at September 30, 2020). Loan received of $60,000 (as per Note 9) is an interest-free loan if repaid within required timeframe so there is no interest on the same.

The Company has limited exposure to financial risk arising from fluctuations in variable interest rates earned on cash given the low interest rates currently in effect and the low volatility of these rates.

Other Price Risk

The Company holds publicly listed shares of a company in the mineral exploration industry. The Company is exposed to other price risk regarding these shares as unfavorable market conditions could result in the disposal ended at less than their value.

Capital Management

The Company manages its capital to ensure its ability to continue as a going concern and to provide an adequate return to its shareholders as well as ensuring that all flow-through monies obtained are utilized in exploration activities and spent by the required deadline. In the management of capital, the Company includes the components of shareholders’ equity. As long as the Company is in the exploration stage of its mining properties, it is not the intention of the Company to contract additional debt obligations to finance its work programs. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares. When financing conditions are not optimal, the Company may enter into option agreements or find other solutions to continue its activities or may slow its activities until conditions improve. While the Company is not subject to any external capital requirements, neither regulatory nor contractual, funds from flow-through financings to be spent on the Company’s exploration properties are restricted for this use. In order to facilitate the management of its capital requirements, the Company prepares annual budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions.

Properties Titles

According of exploration expenditures and pay to the Quebec government a rent per claim for every 2 year renewal period. To ensure the Company’s mineral claims are kept in good standing, the Company engaged the services of a third to the mining law and regulations of the Province of Quebec, the

Company, to renew its claims, must do a minimum party professional mineral claim management entity to manage the renewal of its mineral claims.

Additional Financing

The Company requires additional funds to finance the exploration or development work on the Company’s properties, to pay for the renewal of the claims forming the properties and to cover the costs of managing the Company. The main sources of funds available to the Company are the issuance of additional shares or the sale of interests in its properties. There can be no assurance that the Company will be successful in its efforts to arrange additional financing on terms satisfactory to the Company. Refer to the ‘Going Concern Assumption’ section of the MD&A.

Conditions of the Industry in General

The exploration and development of mineral resources involves significant risks. Although the discovery of a deposit can prove extremely lucrative, few properties where exploration and development work are conducted progress to producing mines. Significant expenditures are necessary to find and establish ore reserves, out the metallurgical processes and build the processing plant and mining operations. It is not possible to provide assurance that the exploration and development programs contemplated by the Company will generate a profitable mine.

Economic viability of a deposit depends on many factors, of which some are due to the particular characteristics of the deposit, in particular its size, its average grade, and its proximity to infrastructures as well as the cyclic character of the prices of metals as well as governmental regulations, royalties, limits of production, import and export of minerals and protection of the environment. The impact of these factors cannot be evaluated in a precise way, but their effect can negatively impact the project’s potential profitability.

Mining activities comprise high risks. The activities of the Company are subject to all the dangers and the risks usually dependent on the exploration and the development, including the unusual and unforeseen geological formations, explosions, collapses, floods and other situations which can occur during drilling and the removal of material and of which any could cause physical or material or environmental injuries and, possibly, legal responsibility.

Government Regulation

The activities of the Company are subject to, among others, various federal, provincial and local laws, which relate to the exploration and development, tax, standard of work, disease and occupational safety, the safety in mines, toxic substances, and protection of the environment.

The exploration and development activities are subject to legislative measures mandated by federal, provincial and local governments to the protection of the environment. These laws impose high standards on the mining industry, in order to control the waste material from the exploration, development, production, and processing related activities on projects and reduce or eliminate possible environmental impacts.

Risks of Lawsuits and No Insurable Risks

The Company could be held responsible for pollution or for other risks against which it could not be insured or against which it could choose not to be insured, being given the high cost of the premiums or for other reasons. The payment of sums in this respect could involve the loss of the assets of the Company.

Conflicts of Interests

Some of the directors and officers of the Company are also engaged as directors or officers of other company’s involved in the exploration and development of mineral resources. Such engagement could result in conflicts of interest. When a conflict of interest exists, the affected directors and/or officers declare their interest and abstain to vote on any resolution in which they have a conflict of interest.

Permits, Licences, and Authorizations

The activities of the Company require obtaining and maintaining permits and licences from various governmental authorities. The Company considers that it holds all the permits and licences required for

its exploration activities; it currently carries on, in accordance with the relevant laws and by-laws. Changes brought to the by-laws could affect these permits and licence. Nothing guarantees that the Company can obtain all the permits and all the necessary licences in order to continue its exploration and development activities, to build mines and processing plants and exploit any future reserves.

Moreover, if the Company begins the exploitation of a project, it will have to obtain the necessary mine permits and licences and to conform to all the required obligations concerning the use of water, removal of waste etc. It cannot be guaranteed that the Company will be able to obtain these permits and licences, nor that it will be able to conform to their requirements. Dependence on the Management

The Company is dependent on its management team. The loss of i t s services could have an unfavorable impact on the Company.

Price of Graphite

The price of the Company’s common shares, its financial results, and its future exploration and development activities may be negatively impacted by a fall of the price of graphite. This may also impact the Company’s ability to finance its activities on favorable terms. The Company has no control over the fluctuation of graphite prices which may be affected by the sale or the purchase of graphite and graphite end products by end users, brokers, central banks and financial institutions, interest rates, foreign exchange rates, the rates of inflation, of deflation, the fluctuations in the value of the Canadian dollar and the currencies, the regional and global supply and demand of graphite, regional and global economic policies, particularly in China and other countries that produce graphite.

Environmental Risk

The Company is subject to various environmental incidents that can occur during exploration work. The Company maintains an environmental management system including operational plans and practices.

Pandemic Risk

The outbreak and spread of COVID-19, declared a pandemic by the World Health Organization, has already had significant human, political, and economic consequences around the world. COVID-19 is still evolving, and its full impact remains to be determined. However, its effects include financial market volatility, interest rate cuts, disrupted movement of people and diminished consumer confidence. The effects of the coronavirus may be difficult to assess or predict with meaningful precision both generally and as an industry- or issuer-specific basis. This is an uncertain issue where actual effects will depend on many factors beyond the control of the Company.

Disclosure Controls and Procedures and Internal Controls over Financial Reporting

Disclosure controls and procedures (“DC&P”) are intended to provide reasonable assurance that material information is gathered and reported to senior management to permit timely decisions regarding public disclosure. Internal controls over financial reporting (“ICFR”) are intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with Canadian generally accepted accounting principles.

TSX Venture-listed companies are not required to provide representations in their annual and interim filings relating to the establishment and maintenance of DC&P and ICFR, as defined in Multinational Instrument MI 52-109. In particular, the CEO and CFO certifying officers do not make any representations relating to the establishment and maintenance of (a) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation, and (b) processes to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with the issuer’s GAAP.

Additional Information and Continuous Disclosure

This Management's Discussion and Analysis has been prepared as of May 26, 2021. Additional information on the Company is available through regular filings on SEDAR ( www.sedar.com) .

(s) Marc Roy Chief Executive Officer

(s) Judith T. Mazvihwa-MacLean

Chief Financial Officer

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Focus Graphite Inc. — Interim / Quarterly Report 2021

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