Focus Graphite and SOQUEM Commence Their 2012 Kwyjibo Exploration Program-4,000m Drilling Planned

OTTAWA, ONTARIO -- (Marketwire) -- 08/28/12 -- Focus Graphite Inc. ("Focus" or the "Company") (TSX VENTURE: FMS)(OTCQX: FCSMF)(FRANKFURT: FKC) and partner SOQUEM Inc. ("SOQUEM") are pleased to announce the start of their 2012 exploration program at the Kwyjibo Polymetallic Property (the "Property"), located in the Grenville geological region of northeastern Quebec.

Some 4,000 meters of exploration drilling is planned with the aim of validating grades, thickness and continuity of the REE-Fe-Cu mineralization in the vicinity of the Josette horizon, where the best drilling intersections were obtained in 2011 such as;

--  Hole 10885-11-57; 2.40% TREO over 48.8 m
--  Hole 10885-11-60; 3.61% TREO over 33.1 m

The Company intends to incorporate the results of the 2012 exploration program into a National Instrument 43-101 compliant resource estimate at the end of the program.

Other work on the property includes line cutting, ground time-domain electromagnetic (TDEM) geophysical surveying, a borehole Pulse-EM survey, and a metallurgical sampling and testing program on different showings.

"Focus Graphite and SOQUEM believe we have made remarkable progress during the last two years at Kwyjibo," said Focus Graphite President and CEO Gary Economo.

"The indication of higher value heavy rare earths leads us to believe this year's exploration program will clear the way for subsequent, expanded drilling at key targets at Kwyjibo," Mr. Economo said.

Focus Graphite Vice President, Exploration, Mr. Tony Brisson, is the Qualified Person, as defined by National Instrument 43-101 and has approved this news release.

Property Location

The Kwyjibo polymetallic Iron-Rare Earth Elements-Copper-(Gold) (Fe-REE-Cu-(Au)) property, totalling 118 mining titles and covering 6,278 hectares, is located several kilometers north of Manitou Lake and 125 km northeast of Sept-Iles, in the Cote-Nord administrative district of Quebec. The property is also located 25 km east of the Quebec North Shore and Labrador railway line and is accessible by air from Sept-Iles.

Terms of the Agreement

On August 3, 2010, the Company announced the signing of an option agreement with SOQUEM Inc. to acquire a 50% interest in the Kwyjibo property.

Under the terms of the agreement, Focus may acquire a 50% interest in the Kwyjibo property, by spending up to $3 million in exploration work on the property over a period of 5 years of which $1 million must be spent during the first 2 years.

SOQUEM will act as the operator for all exploration work carried out on the property for the first two years of the option period or until the first $1 million in exploration work expenditures have been spent. Focus will then have the option to become operator by paying $50,000 in cash or issuing a block of common shares valued at $50,000.

As of July 31, 2012, Focus has spent approximately $2.98 million on the Kwyjibo project.

About Focus Graphite Inc.

Focus Graphite Inc. is an emerging mid-tier junior mining company, a technology solution supplier and a business innovator. It is the owner of one of the highest-grade (16%) technology graphite resources in the world. The company's goal is to assume a dominant industry leadership position by becoming the lowest-cost producer of technology-grade graphite. As a technology-orientated enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is invested in the development of graphene applications and patents through Grafoid Inc.

About SOQUEM

SOQUEM is a wholly-owned subsidiary of Ressources Quebec. Ressources Quebec, a new Investissement Quebec subsidiary, specializing in the mining and hydrocarbon industries; it will consolidate and spur government investment in projects carried out by mining companies and the hydrocarbon sector.

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.

Contacts:

Mr. Gary Economo

President and Chief Executive Officer

613-691-1091, ext. 101
geconomo@focusgraphite.com
www.focusgraphite.com