South Manicouagan Reservoir Area, Québec, Canada

The Lac Guinécourt graphite property is 100% owned by Focus and was acquired in 2011. It consists of seventy-four (74) map-designated mining claims covering a total of 4012 hectares and is located 20 km southwest from the Manicouagan Reservoir, about 220 km north from the city of Baie-Comeau in the Côte-Nord administrative region of Québec. The property is easily accessible year-round through a network of main logging roads starting from Highway 389, and is in close proximity to Mason Graphite’s Lac Guéret graphite deposit.

Focus announced on May 22, 2013 that the final assay results from the summer 2012 reconnaissance exploration program at Lac Guinécourt returned high-grade graphite mineralization. A total of 32 grab samples were collected from historical and new graphite-bearing outcrops related to the Graphi-Centre showing area. Twenty-one of the samples returned high-grade graphitic carbon (defined as greater than 5% Cg), with assays ranging from 6.36 per cent to a high of 45.90 per cent Cg.

The Lac Guinécourt property is located in the Grenville geological Province. Metamorphism associated with the Grenvillian orogeny has resulted in the formation of high-grade concentrations of graphite dominated by value-enhanced large flakes. Fine to coarse graphite flakes and associated sulphides make up 10 to 40 percent of the ore, with up to 40 percent being common in strongly mineralized zones.

Results of an electromagnetic (HLEM) ground geophysical survey carried out in November 2012 over the central part of the Lac Guinécourt property in the Graphi-Centre showing area outlined the presence of nine electromagnetic conductors. This was followed up in July 2013 with a comprehensive exploration program over the best HLEM anomalies delineated from the ground survey to delineate the thickness of the 2km long conductor associated with the historical Graphi-Centre showing.

Focus continues to explore options for development of this promising resource as part of its larger high-quality graphite portfolio.