<h4>C$0.50-per-share conversion completes longstanding Chairman loan as Focus strengthens its financial position amid growing government and industry support</h4>Ottawa, Ontario - <a href="https://www.newsfilecorp.com/">Newsfile Corp.</a> - August 18, 2026 - Focus Graphite Inc. (TSXV: FMS) (OTCQB: FCSMF) (FSE: FKC0) ("Focus" or the "Company"), a Canadian developer of high-grade flake graphite deposits and advanced graphite materials for battery, defence and industrial applications, is pleased to announce that Chairman Jeff York, through his holding company JJJY Holdings Inc. ("JJJY Holdings"), has agreed to convert the final C$835,000 outstanding balance of his longstanding loan to the Company into equity at C$0.50 per share. <img src="https://api.newsfilecorp.com/newsinfo/310208/332"> Under the proposed transaction, Mr. York will convert C$835,000 into 1,670,000 common shares of Focus at a deemed price of C$0.50 per share, representing an approximately 11% premium to the Company's C$0.45 closing share price on August 17, 2026. The financing relationship dates back to 2019 and 2020, when Mr. York, through JJJY Holdings, provided significant capital to support Focus and its ongoing activities. By September 30, 2020, amounts due to JJJY Holdings had reached approximately C$3.05 million. Since that time, the balance has been progressively reduced through a series of previously disclosed settlements and equity conversions. The C$835,000 conversion announced today represents the final outstanding balance of Mr. York's longstanding shareholder loan to the Company. The transaction removes the Company's remaining obligation under the longstanding shareholder loan without requiring a cash repayment, preserving capital for its development priorities and further strengthening its financial position. "My decision to convert the remaining balance of my loan into equity reflects my continued confidence in Focus Graphite and the progress we are making across the business," said Jeff York, Chairman of Focus Graphite. "With the loan now fully converted into equity, I am further aligning my interests with our shareholders while strengthening the Company's financial position. Focus has made significant progress across its projects, technology and strategic partnerships, supported by growing government investment, and I remain committed to supporting the Company as we move into the next stage of development." The conversion also follows new federal support for the Lac Knife Graphite Project ("Lac Knife" or the "Project"). On August 17, 2026, Prime Minister Mark Carney announced major clean-energy and critical-minerals investments and specifically identified Focus Graphite's Lac Knife infrastructure project among the strategic pre-development projects being supported through Natural Resources Canada's ("NRCan") First and Last Mile Fund ("FLMF") 1. The federal announcement highlighted pre-construction work for a new transmission line and road connecting Lac Knife to Hydro-Québec's power grid, supporting the development of graphite supply for battery and energy-storage technologies. The final conversion further strengthens Focus's financial profile and preserves capital for its development priorities as the Company advances its Quebec graphite assets, downstream technology and broader commercial strategy. Focus continues to advance Lac Knife, its downstream advanced-materials initiatives and broader commercial strategy amid growing government and industry support for secure, resilient North American critical-mineral supply chains. The shares-for-debt transaction remains subject to approval by the TSX Venture Exchange. About Focus Graphite Advanced Materials Inc. Focus Graphite is building an integrated graphite platform to supply the industries shaping the future. Through the development of world-class graphite resources, advanced processing technologies and higher-value advanced materials, the Company is positioning itself to support battery, defence, advanced manufacturing and other strategic industries across North America and allied markets. The platform is anchored by the Company's two 100%-owned graphite assets in Quebec. Lac Knife is one of North America's highest-grade feasibility-stage graphite deposits, while Lac Tetepisca is one of the largest identified graphite resources globally. Together with strategic technology partnerships and government-supported innovation initiatives, these assets provide the foundation for a secure, scalable and increasingly integrated graphite supply chain. For more information on Focus Graphite Inc. please visit <a href="https://api.newsfilecorp.com/redirect/ejr7OtQPJm">http://www.focusgraphite.com</a> LinkedIn: <a href="https://api.newsfilecorp.com/redirect/87B2qImrGZ">https://www.linkedin.com/company/focus-graphite/</a> Facebook: <a href="https://api.newsfilecorp.com/redirect/y4Y2Auy21e">https://www.facebook.com/focusgraphite</a> X: <a href="https://api.newsfilecorp.com/redirect/1Kj2qIQ2r2">https://x.com/focusgraphite</a> Investors Contact: Dean Hanisch CEO, Focus Graphite Inc. <a href="mailto:dhanisch@focusgraphite.com">dhanisch@focusgraphite.com</a> +1 (613) 612-6060 Jason Latkowcer VP Corporate Development <a href="mailto:jlatkowcer@focusgraphite.com">jlatkowcer@focusgraphite.com</a> 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 regarding, among other things, the proposed shares-for-debt transaction involving the conversion of the remaining C$835,000 balance of the longstanding shareholder loan into 1,670,000 common shares of the Company at a deemed price of C$0.50 per share; the anticipated completion of the transaction and receipt of TSX Venture Exchange approval; the expected impact of the transaction on the Company's financial position, capital structure and financial flexibility; the anticipated preservation of capital for the Company's development priorities; the continued advancement and future development of the Lac Knife Graphite Project and the Company's other Quebec graphite assets; the advancement of the Company's downstream processing, purification and advanced-materials initiatives; the Company's broader commercial strategy and potential future commercial opportunities; the continued development of strategic partnerships and government and industry collaboration; the potential benefits of government-supported infrastructure initiatives for the Lac Knife Graphite Project; and the Company's strategy to contribute to the development of secure and resilient North American critical-mineral and advanced graphite supply chains. 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. <hr> 1 <a href="https://api.newsfilecorp.com/redirect/A8YR7tXJyP">https://www.pm.gc.ca/en/news/news-releases/2026/08/17/prime-minister-carney-announces-largest-clean-energy-investment-north</a> The issuer is solely responsible for the content of this announcement.<img src="//track.media-outreach.com/index.php/WebView/481630/44375" alt="" width="1" height="1" style="width:1px;height:1px;">

Focus Graphite Inc.

Focus Graphite Chairman Converts Final C$835,000 Loan to Equity at a Premium to Market

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