Slide 1: The Most Advanced Battery-Grade Graphite Project in North America
THE MOST ADVANCED BATTERY-GRADE GRAPHITE PROJECT IN NORTH AMERICA Corporate Presentation — June 2015
Slide 2: Disclaimer
DISCLAIMER This presentation contains “forward-looking information” within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identifi
Slide 3: Fast Facts on Focus Graphite
FAST FACTS ON FOCUS GRAPHITE Trades: TSX.V: FMS | OTCQX: FCSMF | FSE:FKC Lac Knife Graphite Deposit • 100% ownership • One of the highest-grade graphite deposits in the world • Mineral Reserve of 7.9Mt @ 15% Cg (429 kt @ 23.61% Cg of Proven Mineral Reserve and 7,428 kt @ 14.64% Cg of Probable Minera
Slide 4: Lac Knife Graphite Project
LAC KNIFE GRAPHITE PROJECT Lac Knife, Québec, Canada
Slide 5: Lac Knife Project Location
LAC KNIFE PROJECT LOCATION Lac Knife, Québec, Canada Lac Knife W Lac Knife W Québec
Slide 6: Lac Knife Project Location
LAC KNIFE PROJECT LOCATION Lac Knife, Québec, Canada PLAN NORD LABRADOR TROUGH HYDRO ELECTRICAL STATION RAILWAY POWERLINE LABRADOR TROUGH ROAD The Canadian province of Québec is one of the top- Schefferville rated mining LAB RA D O R Labrador City jurisdictions Wabush Churchill Falls in the world. L
Slide 7: What Is Natural Graphite?
WHAT IS NATURAL GRAPHITE? • One of the most versatile non-metallic minerals • One of two natural forms of carbon; the other is diamond • Superior electrical and thermal conductivity • Highest natural strength and stiffness of any material • One of the lightest of all reinforcing agents • Chemically
Slide 8: Global Graphite Consumption
GLOBAL GRAPHITE CONSUMPTION Graphite is predominantly used in refractory applications when refining steel; also used in automotive brakes, clutches, gaskets, and lubricants… • Flake graphite is the most sought-after form of graphite; vital to top demand markets today and tomorrow • Future demand is
Slide 9: Electric Vehicle Graphite Consumption
ELECTRIC VEHICLE GRAPHITE CONSUMPTION 6,500+ tonnes of graphite was used by these 5 companies in 2013 Brand Battery Graphite Used 16.5 Volt 70,000 CARS SOLD 1,260 TONNES kWh 18kg 19 i3 11,000 CARS SOLD 231 TONNES kWh 21kg 24 Leaf 94,500 CARS SOLD 2,552 TONNES kWh 27kg 4.4 Prius 48,600 CARS SOLD 243
Slide 10: Spherical Graphite (SPG)
SPHERICAL GRAPHITE (SPG) (Battery-Grade Product) Focus Graphite has successfully produced and tested Spherical Graphite for Li-ion batteries • Involves sizing, shaping, purifying, and coating Lac Knife flake graphite • Battery test results have excellent performance metrics compared to benchmark com
Slide 11: Global Graphite Production
GLOBAL GRAPHITE PRODUCTION US and EU Governments classified Graphite as a “Critical Material” for industrial and national security purposes • China is the largest graphite producer and exporter (~70% of global output) • China has established a quota system to control graphite exports • Largest Chine
Slide 12: Graphite Price Forecast
GRAPHITE PRICE FORECAST Large Flake Graphite — 94%–97% Cg, +80 mesh (CIF, Europe) $3,000 Average USD$/tonne $2,500 $2,000 $1,500 Current Price $1,000 $500 Focus Graphite 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cost: $441/t Expected Production Source: Industrial Minerals Data (2014)
Slide 13: Feasibility Study
FEASIBILITY STUDY filed August 8, 2014
Slide 14: Project Location
PROJECT LOCATION Lac Knife, Québec, Canada • Located in northern Québec, 27 km southwest of Fermont • Large, established iron-ore mining camp and home to billion-dollar mining projects — ArcelorMittal, RioTinto’s IOC, Cliffs Natural Resources’ Bloom Lake and Wabush Mines • Consists of 57 claims cove
Slide 15: Production Costs and Market Pricing
PRODUCTION COSTS AND MARKET PRICING Low Production Costs “The days • Mining and milling costs are estimated at $441/tonne of concentrate of cheap, • Hydro-Québec electric power < 5¢/kWh abundant • Peer production costs range from $390 – $1,300+/tonne graphite • Will be able to weather economic downt
Slide 16: Mineral Resource Model
MINERAL RESOURCE MODEL Total 197 drill holes = 18,320 metres Lac Knife Open Pit Mine 700 metres Long 400 metres Wide 100 metres Deep Mineral resources which are not mineral reserves have not demonstrated economic viability
Slide 17: Mineral Resource Estimate & Open Pit Mineral Reserves
MINERAL RESOURCE ESTIMATE & OPEN PIT MINERAL RESERVES Lac Knife Mineral Resource Estimate @ 3% Graphitic Carbon (Cg) Cut-off Grade Categories Tonnage (tonnes) Graphitic Carbon In Situ Graphite (tonnes) Measured 432,000 22.66 % 102,000 Indicated 9,144,000 14.35 % 1,312,000 Measured and Indicated 9,57
Slide 18: General Mine Site Layout
GENERAL MINE SITE LAYOUT FOCUS GRAPHITE SITE ACCESS ROAD ~ ORE STOCKPILE Ne “= CRUSHER PLANT SITE ___}- MINE ROADS WASTE ROCK PILE 5,824,000 N 720m OPEN PIT OVERBURDE! ‘STOCKPILE 5,823,500 N | i} TO TAILINGS 700m S \ o 8 * aa a FMS LISTED ON
Slide 19: High-Purity Graphite Concentrate
HIGH-PURITY GRAPHITE CONCENTRATE Flake Size & Purity SGS Lakefield Pilot Plant Tests • 11.1% large flake +48 @ 98.8% Cg • The larger the flake and the higher the purity, the greater the value • High-grade carbon by flotation translates into more high-growth, high-margin product • High-purity affords
Slide 20: General Flake Purification Process
GENERAL FLAKE PURIFICATION PROCESS Flotation Concentrate Concentrate after polishing Continuous Thermal Purification 96% Cg Crystalline Flake Graphite 98.3% Cg 99.98% Cg ROM Product $441/t
Slide 21: Battery-Grade Graphite: Synthetic vs. Natural
BATTERY-GRADE GRAPHITE Synthetic vs. Natural Natural Graphite SPG Facts Synthetic Graphite Facts Performs 10-20% better than Synthetic Graphitizing an Oil byproduct • USD$8,000 per tonne • USD$20,000 per tonne • Mining Flake Graphite Ore – Lac Knife • Devolatilization: Vacuum Gas Oil 480ºC • Typical
Slide 22: Feasibility Study
FEASIBILTY STUDY Filed August 8, 2014 Revenue Estimates Financial Results Annual Milling Capacity 323,670 tpy Initial Capital Cost $166M* Concentrate Production 44,300 tpy *Includes $17M contingency Cost Per Tonne of Concentrate $441/tonne Annual Operating Costs $20M Net Present Value (Pre-tax) Annu
Slide 23: Lac Knife Development Plan
LAC KNIFE DEVELOPMENT PLAN 2011 2013 2015 Q2 Closed $15m Bought Deal Q2 Infill Drilling Program at Lac Knife • Project Financing Negotiations Closed $20m Bought Deal Commission Pilot Purification Plant • Offtake Agreement Negotiations Q4 NI 43-101 Mineral Resource Estimate Q3 Infill Drilling Program
Slide 24: Capital Structure
CAPITAL STRUCTURE Tickers: TSX-V:FMS OTCQX:FCSMF FSE: FKC As of February 4, 2015 Recent Share Price $0.44 Market Capitalization $49.4M Shares (Issued & Outstanding) 110,942,839 Options 9,205,000 Warrants 4,201,941 Shares (Fully Diluted) 124,349,780 Management & Insider Ownership ~10% Cash (no debt;
Slide 25: Management & Technical Team
MANAGEMENT & TECHNICAL TEAM • Gary Economo, Chief Executive Officer, President and Director — Distinguished business leadership career, serving as Chief Executive Officer for a number of public and private high technology companies during the last 30 years. • Judith Mazvihwa-MacLean, CMA, MBA, MSc,
Slide 26: Board of Directors
BOARD OF DIRECTORS Jeffrey York Chairman of the Board Chief Executive Officer of Farm Boy Inc. A graduate of Princeton University, Mr. York is the former President and Chief Executive Officer of Giant Tiger Stores Limited. Gary Economo Chief Executive Officer, President and Director Distinguished bu
Slide 27: Lac Knife Milestones
LAC KNIFE MILESTONES The Most Advanced Battery-Grade Graphite Project in North America Upcoming Milestones Current Developments • Project Financing underway • Completed Feasibility Study • Negotiating Offtake Agreements • 7,857 kt of Proven and • Permitting underway Probable Mineral Reserves grading
Slide 28: Project Financing
PROJECT FINANCING • $166M CAPEX requirement, including $17M contingency • Combination of equity and debt is being discussed, and may be tied to strategic partnerships based on an offtake agreement • Discussions with strategic partners ongoing • Supply Chain Financing (SCF) based on our offtake agree
Slide 29: Thank You
THANK YOU Gary Economo President and Chief Executive Officer geconomo@focusgraphite.com Focus Graphite Inc. 130 Albert Street Suite 912 Ottawa, Ontario K1P 5G4 CANADA T +1 613-241-4040 E info@focusgraphite.com W focusgraphite.com Qualified Person The included scientific and technical information reg
Slide 30: The Most Advanced Battery-Grade Graphite Project in North America
THE MOST ADVANCED BATTERY-GRADE GRAPHITE PROJECT IN NORTH AMERICA focusgraphite.com