The Graphene, Graphite and Carbon Nanotube Research Board

[clearsudden]

Focus Graphite's Proprietary Process Purifies Fine Flake Graphite to 99.99% Level for a New Generation of Lithium-Ion Batteries

OTTAWA, ONTARIO--(Marketwired - Aug. 8, 2016) - Focus Graphite (TSX VENTURE:FMS) (OTCQX:FCSMF) (FRANKFURT:FKC) (or "the Company") is pleased to announce it has successfully purified fine flake graphite - sourced at its wholly owned Lac Knife, Quebec deposit - from 95% to 99.99% purity using a proprietary energy efficient purification process.

Attaining a 99.99% purity level from fine graphite flake is significant. Focus now has the technology to economically purify low value fine flake graphite or, "fines" to a high value material needed for the production of lithium-ion batteries.

To view Figure 1. Before purification, please visit the following link: http://media3.marketwire.com/docs/fms_fig1.jpg

To view Figure 2. After purification, please visit the following link: http://media3.marketwire.com/docs/fms_fig2.jpg

Goldman Sachs Equity Research projects an emerging global low carbon economy that will produce 25 million hybrid and pure electric vehicles by 2025.

Other next generation renewable energy markets include portable electronic devices, utility scale energy storage, urban transportation, rail, marine, aviation and clean energy applications for the military.

Focus Graphite is at an advanced stage in testing high purity level graphite for use in battery and other high-tech applications.

Within the last 26 months, Focus has published the results of four successive independent test results highlighting the superior performance of Lac Knife graphite in short-term and long-term lithium-ion battery cycling. These tests are mandatory before customers can use any new materials in battery chemistry.

"We now have the technological capabilities to provide customers with a full range of battery-grade products to meet their specifications - from fine to large flake. We believe our novel process will further secure our competitive advantage in global markets," said Focus Graphite Chief Executive Officer Gary Economo.

"Given our relationships with end users and knowledge of our industry, we know of no other junior graphite developer today with a deposit capable of competitively converting their fine flake component to battery grade production," Mr. Economo said.

The traditional purification process involves heating the graphite to in excess of 2000C and essentially distilling off the impurities. There is a high-energy cost and some loss of graphite.

The Focus process reacts the graphite at a much lower temperature (less than 1200C) with gaseous chlorine compounds. The impurities are converted to chlorides which distill off at much lower temperatures, lower energy and no loss of graphite. Chemicals used are recycled and are relatively inexpensive.

The Company has invested in a long-term research program aimed at discovering the potential for transforming a fine flake graphite source to a high value material suitable for use in lithium-ion batteries.

The purpose of the Company's R&D fine flake production process program is to meet battery manufacturers needs for a novel, high-grade, high purity graphite that increases performance while reducing their input costs.

Focus Graphite's high-grade deposit's fine flake distribution is unique in that impurities are located mainly on the surface of the material, resulting in processing cost efficiencies.

Approximately one-third of the Lac Knife deposit is comprised of small and fine flakes suitable for processing to lithium-ion battery grade specifications.

"As a company currently engaged in battery testing with more than 20 potential end-users and seven universities and government laboratories, we see our latest processing breakthrough as a catalyst to encourage that industry to create new, lightweight battery designs enabled by our fine flake anode materials," said Mr. Gary Economo.

The fines that are produced during the flotation process can now be substituted for the large and medium flakes being purified for use in battery manufacturing, leaving the large and medium flakes for sale into higher value applications.

Focus Graphite has acquired an intimate understanding of both the future needs of the battery manufacturing sector and trends in that sector as a long-standing Board Member of Chicago-based NAATBatt International (the National Alliance for Advanced Transportation Batteries).

As such, holding the ability to purify Lac Knife's fine flakes expands the company's potential to sell substantially more of the graphite extracted from Lac Knife into high-value, high-tech applications instead of approximately 30 percent being sold for lower value industrial applications.

Focus Graphite will continue to explore its Lac Tetepisca, Quebec property for graphite material to fulfill the Company's "Polymer Offtake" agreement with Grafoid Inc. in addition to other potential customers.

Focus has established a recent history of technological successes by designing processes leading to superior performing coated spherical graphite for use in battery anodes.

Laboratory scale testing during the first half of 2016 involved approximately 30 trial runs using Lac Knife fine flake (-200 mesh to +400 mesh) graphite at the Grafoid Global Technology Centre in Kingston, Ontario.

The proprietary, low temperature process, developed by a Focus Graphite technical team, is believed to be more efficient than very high temperature thermal purification and is suitable for the removal of specific types of impurities found in the Lac Knife graphite deposit.

Focus' low temperature process versus conventional very high temperature purification processes obviates the use of large amounts of energy - one of the largest single cost components of graphite purification.

Customer Engagement

The path from graphite product development to the battery manufacturers' testing labs is a lengthy, multi-step process.

Staged R&D testing is a prerequisite to the sale, or offtake, of any manufactured graphite for use in lithium-ion, alkaline and lead-acid batteries in the automobile, consumer, medical equipment, tools, hand-held industrial devices and aviation manufacturing industries or with military equipment suppliers.

As a technology graphite developer, Focus is deeply engaged in R&D and development of graphite concentrate and value added products for a low carbon economy.

With some individual variations, the graphite sales process begins with the execution by the customer of a Non-Disclosure Agreement (NDA). This is followed by supplying the customer with small quantities of samples for initial testing in coin cells, followed by life cycle testing in both larger and full sized batteries, followed by the signing of offtake agreements. This process can take anywhere up to 24 months.


Read more at http://www.stockhouse.com/companies/bullboard/v.fms/focus-graphite-inc#SRhlSWUwwQPo5zbm.99