Focus Graphite Reports an Adjustment to the Measured and Indicated Mineral Resources at its Lac Knife Flake Graphite Project, Québec

OTTAWA, ONTARIO–(Marketwired – March 9, 2017) –Focus Graphite Inc. (TSXV:FMS,OTCQX:FCSMF,FWB:FKC) announces a rectification to the Measured and Indicated mineral resources statement released by the Company on January 24, 2017(1) for its 100%-owned Lac Knife flake graphite project, located 27 km south of Fermont, in the Côte-Nord administrative region of northeastern Québec.
On February 5, 2017, Focus was informed by AGP Mining Consultants that a correction was applied to the classification model which affected the south portion of the resource estimate announced on January 24, 2017. The correction only affected the internal distribution of the Inferred and Indicated resources in the area covered by the latest infill drilling. The grade estimation was not affected by the change.
The 2014 infill drilling program successfully upgraded Inferred resources to the Indicated and Measured categories. The upgraded resources are located to the south and outside of the open pit shell that was used for the 2014 Lac Knife project feasibility study(2) (“FEAS”). In the current FEAS mine plan, any additional tonnage located outside of the FEAS open pit shell design would only be mined and processed after the 25-year mine life.
Following the adjustment made by AGP Mining Consultants, using a 3.0% graphitic carbon (Cg) cut-off, the revised Measured and Indicated resources at Lac Knife now stand at 13.56 million tonnes grading 14.95% Cg (Table 1). This represents a 42% increase in Measured and Indicated resources compared to the 9.576 million tonnes grading 14.77% Cg reported in the 2014 FEAS (Table 2). The adjustment also translates into a 43% increase in graphite tonnes, from 1.414 million tonnes to 2.027 million tonnes (Table 1). Additionally, there are 840,000 tonnes of Inferred resources grading 13.90% Cg (Table 1).
Table 1. Revised Lac Knife Mineral Resource Estimate @ 3.0% Cg cut-off

• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
• There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
• The rounding of tonnes as required by NI 43-101 reporting guidelines may result in apparent differences between tonnes, grade and contained graphite.

Table 2: Revised Sensitivity to cut-off change and comparison to the 2014 feasibility study

• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
• There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
• The rounding of tonnes as required by NI43-101 reporting guidelines may result in apparent differences between tonnes, grade and contained graphite.

Compared to the model announced on January 24, 2017, the revised model improves the Measured and Indicated resources tonnage by 12% and it contains 14% more graphite tonnes (Table 3). The improvement to the Measured and Indicated resources category is offset by a reduction in the Inferred category amounting to 63% in tonnages and 69% in graphite tonnes.
Table 3: Revised model compared to the previous announcement on January 24, 2017

While the grade for the estimated blocks was not affected by the change, there is an apparent minor variation to the average grade of the combined Measured and Indicated categories at the 3% cut-off due to the redistribution of the higher grade Inferred blocks that were converted to Indicated resources.
The updated mineral resource is based on 231 core drill holes totalling 22,505 metres of historic and recent drilling from 2014. This includes 149 surface drill holes totalling 12,041 metres completed since 2010. Mineral Resources have been reported within a constraining pit shell at a cut-off grade of 3.0% Cg.
Details on the Mineral Resource Estimation procedures are given in the Company’s news release dated January 24^th, 2017, available at www.focusgraphite.com and at www.sedar.com.
Lac Knife Project
The Lac Knife project comprises 57 map-designated claims covering 2,986.31 ha located in Esmanville Township (NTS map sheet 23B/11), 27 km south-southwest of the iron-mining town of Fermont, in the Côte-Nord administrative region of Québec. Focus acquired a 100% interest in the project in October 2010. A map showing the location of the Lac Knife project is available on the company’s website at www.focusgraphite.com.
The mineralization at Lac Knife is hosted in biotite-quartz-feldspar paragneiss and schist of the Nault Formation, in association with iron formations of the Wabush Formation. These are equivalent to the lower Proterozoic Labrador Trough rocks affected by the late Proterozoic Grenvillian orogeny. High grade metamorphism and folding associated with the Grenvillian orogeny has resulted in the formation of important concentrations of graphite dominated by value-enhanced large flakes.
The Lac Knife project hosts a Measured and Indicated mineral resource* of 13.56 million tonnes grading 14.95% Cg (447,000 tonnes Measured @ 21.45% Cg and 13,112,000 tonnes Indicated @ 14.73% Cg) as natural flake graphite with an additional Inferred mineral resource* of 840,000 tonnes grading 13.90% Cg. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite concentrate.
The Feasibility Study filed with SEDAR (www.sedar.com) on August 8, 2014 for the Lac Knife Project indicates the project is economically viable and has the potential to become a low-cost graphite concentrate producer based on 7.86 million tonnes of Proven and Probable Mineral Reserves** grading 15.13% Cg included in the Mineral Resource (429,000 tonnes Proven @ 23.61% Cg and 7,428,000 tonnes Probable @ 14.64% Cg).
* Mineral resources are not mineral reserves and do not have demonstrated economic viability.
** The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserve. The reference point for the Mineral Reserve Estimate is the mill feed.