Focus Graphite Chairman Converts C$200,000 Loan to Equity, Strengthening Balance Sheet Ahead of Key Milestones

September 08, 2025 at 05:00 AM EDT

Jeff York converts $200,000 of his longstanding private loan into equity as part of a plan to gradually eliminate debt, reinforce financial flexibility, and advance the Company's strategic priorities.

Ottawa, Ontario--(Newsfile Corp. - September 8, 2025) - Focus Graphite Inc. (TSXV: FMS) (OTCQB: FCSMF) (FSE: FKC0) ("Focus" or the "Company"), a leading Canadian graphite developer advancing high-grade projects in Quebec, today announced that Chairman Jeff York has initiated the conversion of his longstanding private loan into equity. This step marks the beginning of a Board-led plan to gradually eliminate the loan, strengthen the balance sheet, and position the Company to advance its projects toward production while enhancing its attractiveness for future financing opportunities.

Over the years, Mr. York, through his holding company JJJY Holdings Inc., has provided C$1,535,000 in private financing, underscoring his long-term commitment to Focus Graphite. As part of this ongoing support, he has now converted C$200,000 of his loan into 571,428 shares at C$0.35 per share. To comply with TSX Venture Exchange Policy 4.1, which caps individual ownership at twenty percent (20%), Mr. York recently sold 488,000 shares for C$161,831.20. While the sale was required for compliance, the conversion represented a larger amount of capital than was sold, resulting in a net increase to his overall position in the Company.

"This step is about supporting Focus Graphite for the long term," said Mr. York. "By reducing debt and increasing equity, I'm reinforcing my confidence in the Company's direction under new leadership. Focus Graphite has the potential to supply environmentally responsible graphite essential to Canada and its allies. With important milestones ahead as we advance Lac Knife and Lac Tetepisca, I'm proud to continue supporting the Company's progress on its mission."

The Company intends to work with Mr. York to further reduce and ultimately eliminate the loan through additional conversions, executed responsibly to protect shareholder value. This proactive approach avoids resolving the entire loan at once and preserves financial flexibility. To the extent that share sales are required for compliance, they will be limited, carefully timed, and managed in a manner intended to minimize any impact on the share price.

With some of the highest-grade flake graphite resources in North America, a strengthened balance sheet, and a growing network of partnerships, Focus Graphite is advancing its Lac Knife and Lac Tetepisca projects toward production, positioning itself to serve clean energy, defense, and specialty markets with sustainable graphite solutions.

About Focus Graphite Advanced Materials Inc.

Focus Graphite Advanced Materials is redefining the future of critical minerals with two 100% owned world-class graphite projects and cutting-edge battery technology. Our flagship Lac Knife project stands as one of the most advanced high-purity graphite deposits in North America, with a fully completed feasibility study. Lac Knife is set to become a key supplier for the battery, defense, and advanced materials industries.

Our Lac Tetepisca project further strengthens our portfolio, with the potential to be one of the largest and highest-purity and grade graphite deposits in North America. At Focus, we go beyond mining - we are pioneering environmentally sustainable processing solutions and innovative battery technologies, including our patent-pending silicon-enhanced spheroidized graphite, designed to enhance battery performance and efficiency.

Our commitment to innovation ensures a chemical-free, eco-friendly supply chain from mine to market. Collaboration is at the core of our vision. We actively partner with industry leaders, research institutions, and government agencies to accelerate the commercialization of next-generation graphite materials. As a North American company, we are dedicated to securing a resilient, locally sourced supply of critical minerals - reducing dependence on foreign-controlled markets and driving the transition to a sustainable future.

For more information on Focus Graphite Inc. please visit http://www.focusgraphite.com

Investors Contact:

Dean Hanisch
CEO, Focus Graphite Inc.
dhanisch@focusgraphite.com
+1 (613) 612-6060

Jason Latkowcer
VP Corporate Development
jlatkowcer@focusgraphite.com

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could," "intend," "expect," "believe," "will," "projected," "estimated," and similar expressions, as well as statements relating to matters that are not historical facts, are intended to identify forward-looking information and are based on the Company's current beliefs or assumptions as to the outcome and timing of such future events.

In particular, this press release contains forward-looking information relating to, among other things, the Company's plan to gradually reduce and eliminate outstanding debt through loan-to-equity conversions, the potential impact of these actions on Focus Graphite's financial flexibility, the Company's positioning as a secure long-term supplier of specialty graphite materials, and the advancement of its Lac Knife and Lac Tetepisca projects toward permitting and production. It also includes statements regarding the potential geopolitical significance of Canadian graphite supply for Canada and its allied nations.

Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, risks related to market conditions, regulatory approvals, changes in economic conditions, the ability to raise sufficient funds on acceptable terms or at all, operational risks associated with mineral exploration and development, and other risks detailed from time to time in the Company's public disclosure documents available under its profile on SEDAR+.

The forward-looking information contained in this release is made as of the date hereof, and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties, and assumptions contained herein, investors should not place undue reliance on forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services accepts responsibility for the adequacy or accuracy of this release.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/265495

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Focus Graphite Chairman Converts C$200,000 Loan to Equity, Strengthening Balance Sheet Ahead of Key Milestones

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