BATTERY-READY NATURAL GRAPHITE

March 2015

DISCLAIMERThis presentation contains “forward-looking information” within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi)the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the resulting issuer; (xii) the risks associated with the various environmental regulations the resulting issuer is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management.

Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company’s business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

ELECTROCHEMICAL PERFORMANCE TESTS

Highlights

• LacKnifeSPGbatterytestsevaluatethreeproprietaryformulationsthatrespondedverywell to CR2016 coin cell performance testing

• Large,mediumandfinemicronsizeproducedoutstandingperformancemetrics

• Testingresultsonthepremiummediumandfinegradesexceedtheperformanceofbenchmark commercially available grades by significant percentages

TestsconfirmFocusGraphite’scapabilitytotailorLi-ionbatteryanodegradegraphiteand value-added products to meet the most stringent customer specifications

“Focus Graphite Succeeds in Producing Extremely High-Performing Coated Spherical Graphite for Lithium Ion Batteries”Independent Test Results announced May 27, 2014

of Lac Knife Flake Spherical Graphite in Lithium-ion Batteries

LAC KNIFE PROJECT LOCATION

WLac Knife

WLac Knife

Québec

Lac Knife, Québec, Canada

• LocatedinnorthernQuébec,27kmsouthwest of Fermont

• Large,establishediron-oreminingcamp and home to billion-dollar mining projects — ArcelorMittal, RioTinto’s IOC, Cliffs Natural Resources’BloomLakeandWabushMines

• Consistsof57claimscovering3,000ha/7,500acres

• ~60kmtotheWabushAirport(YWK)

• Near2railwaylinesconnectedtoPort-CartierandthePortofSept-Iles

LAC KNIFE PROJECT LOCATIONLac Knife, Québec, Canada

WHAT IS NATURAL GRAPHITE?

• Oneofthemostversatile non-metallic minerals

• Oneoftwonaturalformsofcarbon; the other is diamond

• Superiorelectrical and thermal conductivity

• Highestnaturalstrength and stiffness of any material

• Oneofthelightest of all reinforcing agents

• Chemicallyinertwithahighresistance to corrosion

• Highnaturallubricity

• Meltingpoint: 3,650ºC

• Graphiteisacritical mineral in continual demand

Graphite Occurs in 3 Natural Forms

Amorphous: 60 -85%C(Lowpurity,lowprice,lowgrowth)

Flake: > 85% C (Most desirable, greatest demand)

Vein: > 90%C(Verynicheapplications,smallmarket,flatgrowth)

Graphite is predominantly used in refractory applications when refining steel; also used in automotive brakes, clutches, gaskets, and lubricant

GLOBAL GRAPHITE CONSUMPTION

• Flakegraphiteisthemostsought-afterformofgraphite;vitaltotopdemandmarketstodayand tomorrow

• FuturedemandisbeingdrivenbygreentechnologiesincludingLi-ion Batteries, Fuel Cells, Electronics, Construction Materials, Nuclear and the Graphene Revolution

• Traditionalindustrialdemanddriversarerefractories,foilsandbatteries

• Thereis11 timesmoregraphitethanLithiuminatypicalLi-ionbattery

• 20% annual growthintheLi-ionBatteryIndustry

• 10%-30% annual growth in the Electric Vehicle Market

2020 Annual Demand

• +1 million tonnes of additional graphite needed or 25 New 40,000t Mines

Source: Industrial Minerals Data (2014)

Flake Graphite Demand in Tonnes (2013)

Total: 375,000 tpa

Other 10,000

Industrials 80,000

Batteries 82,000

Refractories, Foundries, Crucibles 185,000

6,500+ tonnes of graphite was used by these 5 companies in 2013ELECTRIC VEHICLE GRAPHITE CONSUMPTION

Brand Battery Graphite Used 16.5 Volt kWh 18kg

19 i3 kWh 21kg

24 Leaf kWh 27kg

4.4 Prius kWh 5kg

41.8 RAV4 kWh 48kg

85 ModelS kWh 96kg

Gigafactory 96 kg Launch perunit 2017

70,000 CARS SOLD

11,000 CARS SOLD

94,500 CARS SOLD

48,600 CARS SOLD

1,107 CARS SOLD

25,000 CARS SOLD

500,000 UNITS ESTIMATED

40,000 ORDERS (2014)

1,260 TONNES

231 TONNES

2,552 TONNES

243 TONNES

2,600 ORDERS (2014)53 TONNES 125 TONNES

48,000 TONNES PROJECTED

2,400 TONNES 3,800 TONNES (PROJECTED 2014)

Source: Industrial Minerals Data (2014)

Lithium-ion is the leading technology in the battery spaceUTILITY STORAGE BATTERIES

• Largerbatteriesforresidentialandutilityapplications,makingsolar/windeconomical

• Reducingthestressofpeakload

• Moresupplyiscomingonline—e.g.residential,commercialandgrid/utilityapplications,megafactories,etc.—andsignificantquantitiesofhigh-puritySPGgraphitewillberequiredtomeet future demand

• Annualrevenueofcellsalesforadvancedbatteriesforutility-scaleapplicationswillgrowfrom$221.8millionin2014to$17.8billionin2023

Source:A123Energy,LLC

A123 Energy Solutions’ Grid Battery System (GBS)

Source: Navigant Research (2014)

TESLA MOTORS’ ENERGY STORAGE PRODUCT OVERVIEW

Source: Tesla Motors (2014)

“The long term demand for stationary energy storage is extraordinary.”JB Straubel, CTOTesla Motors

200

180

160

140

120

100

80

60

40

20

02014 2015 2016 2017 2018 2019 2020 2021 2022 2023

by Application — World Markets: 2014-2023 ADVANCED BATTERIES REVENUE

$ Bi

llion

s

GWh

$60

$50

$40

$30

$20

$10

0

EVs Stationary Consumer Electronics Power Tools Other Applications Total GWh Source: Navigant Research (2014)

SPHERICAL GRAPHITE (SPG)Battery-Ready Product

Battery-Ready Product SPHERICAL GRAPHITE (SPG)

• Decreasesthesurfacearea

• Allowsmore graphite into a smaller volume

• Createsasmaller, more efficient anode product for the battery

The three key categories of anode material:

Reversible Capacity (RC)

Energystorageinthebattery(rangesfrom345to355Ah/kg)

Irreversible Capacity Loss (ICL)

Amount of lithium permanently stuck in the graphite, the objective is to getICL%aslowaspossible(standardis6-10%loss)

Surface Area

Minimalsurfacearea(Lessthan2m2/g)

Synthetic Graphite Facts

GraphitizinganOilbyproduct

• USD$20,000pertonne

• Devolatilization:VacuumGasOil480ºC

• NeedleCoke(GreenCokeUn-Calcined)

• Calcined:Removetracesofoil1,350ºC

• Micronized&Coated

• Graphitization@2,800ºCforweeks

• Oil-BasedFeedstock&EnergyIntensive

BATTERY-READY GRAPHITE

Natural Graphite SPG Facts

Performs10-20%betterthanSynthetic

• USD$8,000 per tonne

• MiningFlakeGraphiteOre–LacKnife

• Typicalprocessing(crush,grind,flotation)

• Micronized&Spheronized(onestep)

• Purificationatlowheatforminutes

• CarbonCoating

• Hydro-QuébecElectricityforwholeprocess

• Minimaltonilcarbonfootprint Synthetic Graphite Conclusion

1. LargerCarbonFootprint

2. ProductionCostsDouble

3. EnergyIntensive

4. Time Consuming

5. NotalignedwithGreenEnergyapplications

Synthetic vs. Natural

Synthetic Spherical Graphite processes are very time consuming, energy intensive and require costly furnaces.

$2 million: the cost of a furnace to graphitize 1 tonne of synthetic graphite

GENERAL FLAKE PURIFICATION PROCESS

Flotation Concentrate 96% Cg Crystalline Flake Graphite

ConcentrateafterPolishing 98.3% Cg

ContinuousThermalPurification 99.98%+ Cg

98% Cg Graphite ConcentrateSCANNING ELECTRON MICROGRAPH (SEM)

• Althoughthe+65meshgraphiteconcentrateisveryhighincarbon content, there are still some impurities present, which can be seen as white specs on the graphite flake surfaces and edges

SEMof98%Cg(+65mesh)LacKnifegraphiteconcetrate

99.98% Cg Purif ied Graphite SCANNING ELECTRON MICROGRAPH (SEM)

• ThisSEMshowsthatessentiallyallofthewhitespecs (impurities) were removed by thermal purification — low carbon footprint process — environmentally sustainable

SEMof99.98%CgpurifiedLacKnifegraphite

99.98% Cg Uncoated Medium-Grade Purif ied Spherical GraphiteSCANNING ELECTRON MICROGRAPH (SEM)

• SEMshowsflakegraphitehasbeensuccessfullyprocessedtoproducesphericalparticles(SPG)

• SPGwascoatedwithcarbontoreducetheSpecificSurface Area (SSA) to make it suitable for use in Lithium-ionBatteries

• Coatingalsohastheeffectofreducingreactivity with the electrolyte further reducing the irreversible capacity loss

SEMof99.98%Cgmedium-gradeuncoatedsphericalLacKnifegraphite

All electrochemical tests were run on CR2016 coin cellsCROSS SECTION OF CR2016 COIN CELL

• Valuesofreversiblecapacity(RC)andirreversiblecapacities(ICL)at C/20 cycling were determined and the first cycle irreversible capacity loss was calculated by dividing the reversible capacity by the irreversible capacity

• Theelectrolyteis1.0MLiPF6inFEC/EMC(30:70vol%)for8mmthickelectrodeswithacompositionof90wt%graphiteand10wt%supportingadditives,includingaPVDF-basedbinders

+

–

ANODE CAP

LI FOIL

SEPARATOR

BOTTOM CAN

GRAPHITE

20mm

1.6mm

Electrochemical Tests on Lac Knife Lithium-ion-Grade GraphiteSPG TEST RESULTS FROM CR2016 COIN CELLS

• SPGbatterytestresultshaveexcellentperformancemetricswhencomparedtocurrentbenchmarkcommercialSPGgrades

• StandardCarbonCoatedMediumandFineGradesofLithium-ion-GradeSphericalGraphiteareidentifiedbelow

• NotetheveryhighReversibleCapacitiesof363.7and365.1Ah/kgandverylowIrreversibleCapacityLosses(ICL)of1.44and1.01%

• BenchmarkmaterialhasanICLrangeof6-10%,using8%asanaverage,thesetwotestsshowa82-87%decreaseinICL

Focus Graphite Coin Cell Test Samples Reversible Capacity (Ah/kg) Irreversible Capacity Loss (%) Surface Area (m2/g)

MediumCarbonCoatedSPGGrade(D50=24um) 363.7 1.44 0.48

FineCarbonCoatedSPGGrade(D50=17um) 365.1 1.01 1.14

Comparing Focus Graphite’s Natural SPG vs. commercial ly available synthetic graphite

FOCUS GRAPHITE’S SPHERICAL GRAPHITEVS. SPHERICAL SYNTHETIC GRAPHITE

Focus Graphite’s Natural SPG vs. Synthetic SPG Reversible Capacity (Ah/kg) Irreversible Capacity Loss (%) Surface Area (m2/g)

StandardCarbonCoatedSPGGrade(D50=24μm) 363.7 1.44 0.48

SyntheticCarbonCoatedSPGGrade(D50=22μm) 330 9.00 1.00

Focus Graphite’s Natural SPG vs. Synthetic SPG Reversible Capacity (Ah/kg) Irreversible Capacity Loss (%) Surface Area (m2/g)

FineCarbonCoatedSPG(D50=17μm) 365.1 1.01 1.14

FineSyntheticCarbonCoatedSPG(D50=16.5μm) 320 9.00 1.50

1.8

1.5

1.2

0.9

0.6

0.3

00 100 200 300 400 500

Fine Grade (D50 = 17μm)INITIAL GALVANOSTATIC CHARGE – DISCHARGE CURVES

365.08

368.79

1stCycleLoss–1.01%

Cell #705. CR2016, counter: Li; Graphite: Fine Grade Surface Coated SPG; Rate: C/20; Elotrolyte 1M LiPF6 in FEC/EMC (30:70 vol%)

Volta

ge, V

Specific Capacity, Ah/kg

98.99% Efficient

ADDRESSING OEM SUPPLIERS’ NEEDS Focus Graphite Competitive Advantages

• Low carbon footprint:LacKnifenaturalflakegraphiteconcentrateandsphericalgraphitewillhaveaverylowcarbonfootprintbecausebothuselow-costhydro-electricpowerfromHydro-Québec

• Low-costbenefitsalsoaresultofH-Qgridpower

• CR2016coin-cellperformancetests:2of3testsshowan85% reduction in Irreversible Capacity Loss vs.existingcommercialSPGbenchmarks

• 1tonneofLacKnifesphericalgraphite@~$8,000/tonnevs.syntheticgraphite@~$20,000/tonne

• Costsavings:$12,000/tX48,000t=$576M per yearfor500,000unitsor$1,152 per unit

• SyntheticGraphiteisproducedfrompetroleumcokeandgraphitizedinanenergy-intensiveprocess;notatall aligned with ‘Green Energy’ initiatives

• FocusGraphiteproductionplantswillbeISO 9000 Certified

MANAGEMENT & TECHNICAL TEAM

• Donald Baxter,P.Eng.,PresidentandChiefOperatingOfficer—Morethan20yearsofmining experience including, operational experience in graphite mining and metallurgical flowsheetoptimization

• Judith Mazvihwa-MacLean, CMA, MBA, MSc, BSc, Chief Financial Officer — Nearly two decades of experience in mineral exploration, mining, management, and corporate finance

• Jeff Hussey,P.Geo.,BSc,VicePresident,ProjectDevelopment—30yearsminingoperation experience in open pit and underground mine operations, and more recently, as a mining project developer

• Dr. Ann Lamontagne,P.Eng.,EnvironmentalDirector—Morethan25yearsexperiencein the environmental aspects of the mining industry including, mine closures

• Dr. Benoit Lafrance,P.Geo.,MSc,BSc,Vice-President,ExplorationandQP—Morethan12 years of experience in mineral exploration, scientific research and geological survey

• Dr. Joseph Doninger, MSc, BSc, Director of Manufacturing and Technology — Developer and co-developer of a number of U.S., European and Canadian patents related to carbon processing methodologies and processing equipment

• George C. Hawley, BSc (Chemisty), Senior Technical Advisor — International graphite expert,specializinginthedevelopmentandmarketingofgraphiteandvalue-addedgraphite products

More than 100 years of combined Graphite Mining , Processing and Value-Added Product Experience

BOARD OF DIRECTORSJeffrey York Chairman of the Board

ChiefExecutiveOfficerofFarmBoyInc.AgraduateofPrincetonUniversity,Mr.YorkistheformerPresidentandChiefExecutiveOfficerofGiantTigerStoresLimited.

Gary Economo Chief Executive Officer and Director

Distinguished business leadership career, serving as Chief Executive Officer for a number of public and private hightechnologycompaniesduringthelast30years.

Chester Burtt Director

PresidentofChesterBurtt&AssociatesLtd.(CBAL),acorporateandpublicaffairsadvisoryfirm,specializinginconnecting private and public companies with domestic and international opportunities.

Francis Pomerleau Director

ServesasSeniorVicePresidentofOntario&WesternCanadaatPomerleauInc.aswellasPresidentofPomerleauOntario.HeservedasVicePresidentofConstructionofPomerleauInc.

Marc-André Bernier Director

Mr.Bernierspecializesinexplorationgeochemistryinsupportofregionalandinternationalmineraldevelopment initiatives. Mr. Bernier has directed or managed mining development projects in Canada, the Caribbean, Africa, and South America.

THANK YOU

Donald Baxter, P.Eng.

PresidentandChiefOperatingOfficer

T +1705-787-5942

E dbaxter@focusgraphite.com

Focus Graphite Inc.

130AlbertStreet

Suite 912

Ottawa,OntarioK1P5G4

CANADA

T +1613-241-4040

E info@focusgraphite.com

W focusgraphite.com

THE MOST ADVANCED BATTERY-GRADE GRAPHITE PROJECT IN NORTH AMERICA

focusgraphite.com