Focus Graphite Reports Final Locked Cycle Test Results From Lac Knife: Global Concentrate Grade of 96.4% C; 92.5% Flake Recovery and 35% to 58% Yield of Large High-Purity Flakes (+ 80 mesh)

OTTAWA, ONTARIO--(Marketwired - Jul 9, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Corporation") is pleased to report that the final Phase II Locked Cycle Test* (LCT) metallurgical results performed at SGS Canada Inc., in Lakefield, Ontario, continue to confirm an average concentrate grade of 96.4% C and a high average flake graphite recovery of 92.5% for its Lac Knife high-grade graphite deposit located near Fermont, Québec.

SGS Canada Inc. ("SGS") has completed all six (6) Phase II locked cycle tests (LCTs) on composite core samples comprised of low-grade, semi-massive, and massive graphite mineralization with a head grade ranging between 6.0% C and 25.0% C.

Highlights of these test results are as follows:

• The carbon content of graphite concentrates produced from the six (6) composites averaged 96.4% C, 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 four (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: six (6) graphite concentrate samples) ranges between 35% and 58%;

• The Phase II LCT program produced consistent results for all of the composite samples that were tested representing the mineralization types, which confirms the suitability of the proposed concentrator flow sheet to process these different types of mineralization within the Lac Knife deposit, namely the low-grade, semi-massive, and massive graphite mineralization;

• A series of comminution tests generally characterized the seven (7) composite samples (six (6) mineralization and one (1) waste host rock) that represent the deposit, to require a low consumption of energy per tonne processed (kWhr/t). Further testing will establish this more precisely which will be favourable for the crushing and grinding circuit design and operational costs per tonne;

• Detailed chemical analysis of the final concentrates did not identify any impurities that are normally considered deleterious.

• In addition, a LCT was completed on a composite sample of the deposit's host rock grading 1% C. The concentrate grade obtained was also very good at 96%C 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.

"These metallurgical test results were incorporated into the flow sheet design for the pilot plant tests that were completed in early May. The final pilot plant results are now pending and we hope to communicate this soon." said Dr. Joseph Doninger, Director of Manufacturing and Technology for Focus Graphite.

The purpose of the pilot plant is to confirm the results obtained following the LCT test program and also to produce marketing samples of graphite flake for end user evaluations and generate graphite raw materials for second transformation testing. Pilot plant test results are pending.

Focus President and CEO Gary Economo said: "These latest results continue to confirm that Lac Knife is an exceptional flake graphite deposit. These increased recovery levels are resulting in a very high carbon content for all of the concentrates produced, even for the finest (-200 mesh) graphite flake concentrate which could provide a low cost raw material that can potentially be upgraded further to meet the specification limits of high purity carbon that the lithium-ion battery manufacturers require. This will further our discussions with potential end users for off-take agreements. It supports our focus on the lithium-ion battery market for high technology transportation and energy applications which is an objective of the Quebec Government. This will also allow us to use the much higher-priced large graphite flakes for other high-technology applications."

All carbon analyses were performed by SGS and are reported as total carbon (C). The analytical methods that were used to determine the metallurgical results on the final concentrates included double loss on ignition analysis (double LOI) and total carbon analysis by Leco. The lower grade tailings products were analyzed by the graphitic carbon method to discount the organic carbon and carbonate carbon in the samples.

About SGS Metallurgical Services (Lakefield)

SGS Canada Inc. ("SGS") is recognized as a world leader in the development of flow sheets and pilot plant testing programs. SGS' Metallurgical Services division was founded over half a century ago. Its metallurgists, hydro-metallurgists and chemical engineers are experienced in all the major physical and chemical separation processes utilized in the recovery of metals and minerals contained in resource properties around the world.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus' goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29^th, 2012 the Company released the results of a Preliminary Economic Analysis ("PEA") of the Lac Knife project which demonstrates that the project has an excellent potential to become a producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus invests in the development of graphene applications and patents through Grafoid Inc.

The information pertaining to the metallurgical test program completed by SGS that is presented in this news release has been reviewed and approved by Mr. Oliver Peters, M.Sc., P.Eng, MBA, SGS Canada Inc. Consulting Metallurgist. Mr. Peters has extensive experience in the development of metallurgical processes and has managed the majority of the graphite testing programs conducted at SGS in recent years.

This news release has been reviewed and approved by Mr. Jeff Hussey, P.Geo. (Québec), he is the VP Project Development for Focus Graphite and a Qualified Person under National Instrument 43-101 guidelines.

Forward Looking Statements - Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.