Preferred Hydro-Quebec connection strategy advances federally supported infrastructure planning and could reduce future Lac Knife capex requirements
Ottawa, Ontario -
Newsfile Corp. - August 21, 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 highlight the Government of Canada's recognition of infrastructure supporting the Company's 100%-owned Lac Knife Graphite Project ("
Lac Knife" or the "
Project") in Prime Minister Mark Carney's August 17, 2026 announcement advancing clean-energy and critical-minerals infrastructure across the Labrador Trough
1. The Government of Canada identified Focus Graphite's Lac Knife infrastructure initiative among four strategic pre-development projects supported and funded through Natural Resources Canada's ("
NRCan") First and Last Mile Fund ("
FLMF"), describing the planned road and electrical connection as supporting the development of battery and energy-storage technologies required by Canada and its allies. The recognition follows Focus's June 3, 2026 announcement that it secured C$1,378,700 in non-repayable federal funding to advance engineering, environmental, permitting, Indigenous engagement and feasibility activities for Lac Knife's road and electrical infrastructure
2. The funding represents approximately 50% of eligible project costs. Focus has now completed an independent electrical infrastructure desktop study (the "
Study") prepared by Norda Stelo Inc. ("
Norda Stelo"), identifying a preferred pathway for connecting Lac Knife to Quebec's hydroelectric grid. "Lac Knife's recognition within the Prime Minister's announcement reinforces the strategic importance of bringing Canadian critical mineral projects and their enabling infrastructure forward," said Dean Hanisch, Chief Executive Officer of Focus Graphite. "We are already turning that support into tangible progress. With both our access-road and electrical desktop studies now complete, we are identifying meaningful infrastructure efficiencies relative to the 2023 Feasibility Study. The preferred electrical strategy provides a pathway to significantly reduce power-related capital requirements while connecting Lac Knife to Quebec's clean hydroelectric grid. We are grateful for Canada's continued support." "Infrastructure and access to power remain key constraints for mine development, with direct implications for capital, execution and timelines," said Jason Latkowcer, Vice President, Corporate Development of Focus Graphite. "Canada's investment in energy and critical-mineral infrastructure is helping define a clearer development pathway for Lac Knife. Advancing that work reduces development uncertainty and provides a stronger basis for future capital allocation and evaluation by potential strategic, financing and other investment partners." "Critical minerals are essential to Canada's economic prosperity, security, and sustainability, and we are proud to advance Canadian mineral supply chains as a part of the historic Churchill Falls and Labrador Trough announcement," said the Honourable Tim Hodgson, Minister of Energy and Natural Resources. "As a part of this nation-building initiative, through our First and Last Mile Fund, Canada is advancing the infrastructure we need to unlock projects like Lac Knife and strengthen Canada's critical minerals value chain. This is how your federal government is working with industry to build a stronger, more competitive critical minerals sector; create opportunities for Indigenous and local communities; and deliver minerals Canada and our allies need for clean technologies, advanced manufacturing and defence applications."
Preferred Hydro-Quebec Connection Strategy Norda Stelo evaluated seven potential electrical supply scenarios against technical feasibility, constructability, cost, environmental considerations and execution requirements. The Study identified a direct connection to Hydro-Quebec's three-phase, 34.5-kV distribution grid as the preferred solution, with the connection extending across public lands to the Lac Knife property. The preferred configuration would require approximately 30.7 kilometres of electrical infrastructure, consisting of the upgrade of approximately 3.17 kilometres of existing single-phase line to three-phase service and the construction of approximately 27.5 kilometres of new three-phase distribution line extending to the Project. The new distribution line would largely follow established corridors, including the Hydro-Quebec transmission corridor, Highway 389 and the Project's planned access-road corridor. Under this approach, Hydro-Quebec would construct the principal distribution infrastructure on behalf of Focus, reducing the Company's direct construction and coordination requirements while also placing responsibility for associated...
