NRCan Funding of Up to C$1.38 Million Through Canada's First and Last Mile Fund Will Advance Road and Power Infrastructure Planning for the Lac Knife Graphite Project in Quebec

Ottawa, Ontario - Newsfile Corp. - June 3, 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 it has executed a non-repayable Contribution Agreement (the "Agreement") with Natural Resources Canada ("NRCan") under the Government of Canada's newly established First and Last Mile Fund ("FLMF"), formerly the Critical Minerals Infrastructure Fund, securing up to $1,378,700 in non-dilutive federal funding (the "Funding") to advance critical transportation and energy infrastructure planning under the Project Titled Lac Knife Graphite Mine Access Road and Hydro Connection (the "Project") for the Company's flagship Lac Knife Graphite Project ("Lac Knife") in northeastern Quebec. The Funding will support engineering, environmental, permitting, community engagement and feasibility activities required to advance the planned all-season access road and Hydro-Quebec grid connection toward a construction-ready, shovel-ready stage. Once completed, these pre-development activities are expected to materially de-risk future infrastructure development and significantly advance Lac Knife's pathway toward future construction, development financing, strategic partnerships and operation. The Funding forms part of the Government of Canada's recently announced C$3.6 billion Critical Minerals Investment Package, unveiled at the 2026 Prospectors & Developers Association of Canada (PDAC) Convention by the Honourable Tim Hodgson, Minister of Energy and Natural Resources. A cornerstone of the package is the C$1.5 billion FLMF, established to advance enabling infrastructure that moves strategic critical mineral projects toward construction readiness while strengthening domestic supply chains and supporting Canada's economic, defence and national security objectives. "We are honoured to receive this support from the Government of Canada, which recognizes the strategic importance of the Lac Knife project to the North American critical minerals supply chain," said Dean Hanisch, Chief Executive Officer of Focus Graphite. "As we advance toward permitting and development, this funding is a strong endorsement of Focus Graphite's role in helping build a secure domestic supply of high-grade graphite. We are also fortunate to have existing road and power infrastructure, providing a significant advantage as we move closer to production." Lac Knife hosts one of North America's highest-grade natural graphite deposits and represents a strategically important source of natural graphite for North American and allied supply chains. Natural graphite is a foundational material for lithium-ion batteries, advanced manufacturing, energy storage systems, and a growing range of defence and dual-use technologies, making secure domestic supply increasingly important to Canada and its allies. "The objective is simple: advance Lac Knife, reduce risk and preserve shareholder capital," said Jason Latkowcer, Vice President of Corporate Development of Focus Graphite. "Around the world, governments and industry are moving quickly to secure critical mineral supply chains. We've heard that message directly from allies and strategic stakeholders. There isn't time to waste. This funding helps move Lac Knife from planning toward execution. Early technical work has already identified opportunities to improve access, and we expect further optimization as engineering and infrastructure planning advances. This is another tangible step toward building a strategic graphite asset for Canada and its allies." A key component of the program includes collaboration with Indigenous communities, including the Innu Takuaikan Uashat mak Mani-Utenam ("ITUM"). The Project includes the establishment of joint technical and steering committees, Indigenous workforce participation initiatives, skills development programs, community consultation activities and support for Indigenous participation in the future development and operation of the planned infrastructure. These activities align with the objectives of the First and Last Mile Fund to advance Indigenous leadership, engagement and participation throughout the development of strategic critical mineral infrastructure. "The development of Lac Knife is a perfect example of Canada's new mining era: a strategic project, developed to benefit local economies, sustainably, and in partnership with Indigenous Peoples, along with advancing Canada's role as a reliable global supplier of critical minerals," said the Honourable Tim Hodgson, Minister of Energy and Natural Resources. "By investing in the infrastructure and early work needed to advance this...