Slide 1: The Essential Material for Low Carbon Economies
THE ESSENTIAL MATERIAL FOR LOW CARBON ECONOMIES Corporate Presentation — January 2018
Slide 2: Disclaimer
DISCLAIMER Forward Looking Information: 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-lookin
Slide 3: Fast Facts on Focus Graphite
FAST FACTS| ON FOCUS | GRAPHITE Trades: TSX.V: FMS OTCQX: FCSMF FSE:FKC Objective: Develop the Lac Knife Mineral Project • Focus Graphite is an advanced mining development company with the goal of becoming a low-cost producer of technology-grade graphite concentrate from its Lac Knife mineral projec
Slide 4: Fast Facts: Lac Knife Graphite Deposit
FAST FACTS| ON FOCUS | GRAPHITE Trades: TSX.V: FMS OTCQX: FCSMF FSE:FKC Lac Knife Graphite Deposit • 100% ownership • One of the highest-grade natural flake graphite mineral deposits • Mineral Reserve* of 7.9Mt @ 15% Cg (429 kt @ 23.61% Cg of Proven Mineral Reserve and 7,428 kt @ 14.64% Cg of Probab
Slide 5: Fast Facts on Focus Graphite
FAST FACTS| ON FOCUS | GRAPHITE Trades: TSX.V: FMS OTCQX: FCSMF FSE:FKC FOCUS is a leader in the graphite space and has reached an advanced level of development at its Lac Knife mine project • Lac Knife mineral project Feasibility Study completed in August 2014 • Two off-take agreements with Grafoid
Slide 6: What Is Natural Graphite
WHAT IS NATURAL GRAPHITE • One of two natural forms of natural carbon; the other is diamonds • One of the most versatile non-metallic minerals • Superior electrical and thermal conductivity • Highest natural strength and stiffness of any material • One of the lightest of all reinforcing agents • Che
Slide 7: Global Graphite Consumption
GLOBAL GRAPHITE CONSUMPTION Graphite is predominantly used in traditional refractory applications when refining steel and in industrial applications as automotive brakes, clutches, gaskets, and lubricants…; but green technologies will drive future demand for battery energy storage…) • Future demand
Slide 8: Electric Vehicle Graphite Consumption
ELECTRIC VEHICLE GRAPHITE CONSUMPTION 6 ,5 0 0 + tonne s of graphite was used by these 5 companies in 2 0 1 3 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 S
Slide 9: Global Graphite Production
GLOBAL GRAPHITE PRODUCTION US and EU Governments classified Graphite as a “ Cri t i ca l Mate rial” 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
Slide 10: Lac Knife Graphite Project
LAC KNIFE GRAPHITE PROJECT Lac Knife, Québec, Canada
Slide 11: Lac Knife Project Location
LAC KNIFE PROJECT LOCATION Lac Knife, Québec, Canada Lac Knife Lac Knife Québec
Slide 12: Lac Knife Project Location
LAC KNIFE PROJECT LOCATION • Located in northern Québec, 27 km southwest of Fermont • Large, established iron-ore mining camp and home to billion-dollar mining projects Québec is a mining including ArcelorMittal, RioTinto/IOC, Cliffs friendly jurisdiction and the city of • All infrastructure capacit
Slide 13: Lac Knife Mineral Project Feasibility Study
LAC KNIFE MINERAL PROJECT FEASIBILITY STUDY Filed August 8, 2014
Slide 14: Updated Mineral Resource Model – Jan 24th, 2017
UPDATED MINERAL RESOURCE MODEL – Jan 24th, 2017 Total 231 drill holes = 22,505 metres Lac Knife Open Pit Mine 700 metres Long 400 metres Wide 100 metres Deep Mineral resources are not mineral reserves and have not demonstrated economic viability
Slide 15: Mineral Resource Estimate Update & Open Pit Mineral Reserves
MINERAL RESOURCE ESTIMATE UPDATE & OPEN PIT MINERAL RESERVES • 2014 drilling located south of the pit is now included in MRE update • 26% Increase in Measured and Indicated Categories Lac Knife Mineral Resource Estimate – Update Jan. 24th, 2017 @ 3% Graphitic Carbon (Cg) Cut-off Grade Categories Ton
Slide 16: 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 17: High-Purity Graphite Concentrate
HIGH-PURITY GRAPHITE CONCENTRATE Flake Size & Purity SGS Lakefield Pilot Plant Tests* • 11.1% jumbo flake +48 @ 98.8% Ct • The larger the flake and the higher the purity, the greater the value • High-grade carbon graphite concentrate produced by flotation translates into higher-growth markets and hi
Slide 18: Revised General Mine Site Layout
REVISED GENERAL MINE SITE LAYOUT Waste Rock -Tailings Co-Placement Stockpile “This new design has addresses stakeholder concerns”
Slide 19: Waste Rock - Tailings Co-Placement Stockpile
Waste Rock -Tailings Co-Placement Stockpile • Preliminary Engineering completed and construction method illustrated • Ready for detailed engineering • This new design addresses stakeholder concerns The liberation or grinding size is 400 microns (0.4mm) Relatively easy to de-water and filter making t
Slide 20: Lac Knife ESIA Analysis
Lac Knife ESIA Analysis • ESIA under review by MDDELCC as part of permitting process • 1st series of answers submitted to the government in October 2016 • Includes preliminary design of the Co-Placement Waste Rock -Tailings stockpile, reducing mine site footprint • Baseline sampling and assaying of
Slide 21: Lac Knife Project Financing
LAC KNIFE PROJECT FINANCING • $166M CAPEX requirement, including $17M contingency • Combination of equity and debt may be tied to strategic partnerships based on an offtake agreement • Discussions with a 6-party consortium ongoing • Vendor Financing: Concentrator & Mine Equipment • Discussions under
Slide 22: Lac Knife Development Plan
LAC KNIFE DEVELOPMENT PLAN 2011 2013 2015-2017 Q2 Closed $15m Bought Deal Q2 Infill Drilling Program at Lac Knife • Project Financing Negotiations Commission Pilot Purification Plant • Offtake Agreement Negotiations Closed $20m Bought Deal Q3 Infill Drilling Program at Lac Knife • Next steps Detaile
Slide 23: Graphite Concentrate Transformation Plant
GRAPHITE CONCENTRATE TRANSFORMATION PLANT – SEPT-ÎLES INDUSTRIAL PROJECT Purified graphite Expanded graphite Spherical graphite
Slide 24: Transformation Plant Project
TRANSFORMATION PLANT PROJECT Ongoing DEVELOPMENT PLAN • Value-added graphite industrial transformation plant study is planned • Further refining and optimization of spherical graphite production process • Communication with the local communities is ongoing, the local communities are currently adjust
Slide 25: Transformation Plant Industrial Project
TRANSFORMATION PLANT INDUSTRIAL PROJECT Processing flake graphite concentrate into value-added products can give access to higher value markets • Exceptional battery coin cell tests of high quality coated SPG used in Li-ion batteries was In May 2014, produced using Lac Knife graphite concentrate (Ma
Slide 26: Lac Knife Flake Purification Process
LAC KNIFE FLAKE PURIFICATION PROCESS Concentrating Lac Knife Ore grading 15% graphitic carbon Concentrate from Lac Knife into a Graphite Concentrate grading 98% carbon is purified to produce value-added graphite products Flotation Concentrate Concentrate after polishing Continuous Thermal Purificati
Slide 27: Battery-Grade Graphite
BATTERY-GRADE GRAPHITE Why use « Natural Flake Graphite » rather than « Synthetic Graphite » for lithium-ion batteries? Natural Graphite SPG Facts Synthetic Graphite Facts USD$8,000 per tonne (cost benefit) USD$20,000 per tonne Battery Purification and shaping of flake graphite concentrate Graphitiz
Slide 28: Coated Spherical Graphite (SPG) from Lac Knife Concentrate
COATED SPHERICAL GRAPHITE (SPG) FROM LAC KNIFE CONCENTRATE The coated SPG (Battery-Grade Product) produced from Focus Graphite's Coated Spherical Graphite shows superior electrochemical performance Lac Knife metrics when compared with commercial grades of synthetic graphite for lithium ion batteries
Slide 29: Coated Spherical Graphite (SPG) from Lac Knife Concentrate
COATED SPHERICAL GRAPHITE (SPG) FROM LAC KNIFE CONCENTRATE (Battery-Grade Product) Focus Graphite has successfully produced and tested coated Spherical Graphite for lithium ion batteries* • Process involves purification , sizing, shaping and coating the Lac Knife flake graphite concentrate • Test re
Slide 30: Extended Long Term Cycling Performance of Lac Knife Graphite
Fig. 4 EXTENDED LONG TERM CYCLING PERFORMANCE OF LAC KNIFE GRAPHITE COMPARED WITH TWO COMMERCIAL GRADES OF COATED SPHERICAL GRAPHITE Lac Knife Charge Capacity Lac Knife Discharge Capacity Supplier Discharge Capacity #1 Reversible Capacity mAh/g Supplier Discharge Capacity #2 4.5% Coin cells were cyc
Slide 31: Resistivities of Lac Knife and Commercial Graphites
Fig. 5 RESISTIVITIES OF LAC KNIFE AND COMMERCIAL GRAPHITES IN Li ION CATHODE MATRIX LiNiMnCoO2 Premium Quality Synthe)c Graphite, D50 = 3.5 μ Commercial Flake Graphite, D50 = 6 μ Lac Knife Expanded Graphite, D50 = 15.8 μ Lac Knife Expanded Graphite, D50 = 3.5 μ Lowest Resis)vity/Highest Conduc)vity
Slide 32: Advantages of Using Lac Knife Graphite in Batteries
ADVANTAGES OF USING LAC KNIFE GRAPHITE IN BATTERIES Key Properties: End User Advantages: • Near Theoretical • Higher Capacity Reversible Capacity • Low Irreversible • Increased Power Capacity Loss • Reduced Capacity Fade • Longer Battery Life during Long-term Cycling • High Electrical Conductivity •
Slide 33: Other Projects
OTHER PROJECTS
Slide 34: Lac Tetepisca Deposit
2014,2016 & 2017 Drill Lac TetepiscaDeposit Programs Total 34 drill holes = 4,298 metres Best intersection: • LT-16-32: 102.1 m @ 10.7% Cg • Drill Tested MAG-EM Anomaly 1000m • length X 85 m avg. width Down to 100 • m depth Lac • See Jan 20th News Release Tetepisca • Nov 2017 drill program included
Slide 35: Kwyjibo Heavy REE Project
Kwyjibo Heavy REE Project • Relatively easy metallurgy (See news release Nov 21st 2016) • Focus Graphite and SOQUEM will be launching Preliminary Economic Assessment (see Oct.2, 2017 news release) 50-50 • MetChem has been selected to conduct the study Partnership with SOQUEM Relatively simple REE Me
Slide 36: Capital Structure
CAPITAL STRUCTURE Tickers: TSX-V:FMS OTCQX:FCSMF FSE: FKC As of December 27th 2017 Recent Share Price $0.08 Market Capitalization $27.9M Shares (Issued & Outstanding) 348,436,342 Options 6,635,000 150,178,127 Warrants 505,249,469 Shares (Fully Diluted) *Currency is Canadian dollars (CAD$)
Slide 37: 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 38: 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 39: Fast Facts: Value-Added Transformation Plant
FAST FACTS| ON FOCUS | GRAPHITE Trades: TSX.V: FMS OTCQX: FCSMF FSE:FKC Industrial Project: Value-Added Transformation Plant • Focus plans to complete an industrial project economic study for a graphite concentrate transformation plant that would produce value-added graphite products • Anticipated v
Slide 40: Lac Knife Production Costs
LAC KNIFE PRODUCTION COSTS “The days of cheap, Low Production Costs abundant graphite • Mining and milling costs are estimated at $441/tonne of concentrate from China • Hydro-Québec electric power < 5¢/kWh are over” • Peer production costs range from $390 – $1,300+ / tonne • Potential to weather eco
Slide 41: Thank You!
THANK YOU! Gary Economo President and Chief Executive Officer geconomo@focusgraphite.com Focus Graphite Inc. 945 Princess Street, Kingston, Ontario K7L 0E9 CANADA T +1 613-241-4040 E info@focusgraphite.com W focusgraphite.com