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THE MOST ADVANCED BATTERY-GRADE GRAPHITE PROJECT IN NORTH AMERICA Corporate Presentation March 2015 DISCLAIMER This presentation contains forward-looking information within the meaning of Canadian securities legislation. All


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THE MOST ADVANCED BATTERY-GRADE GRAPHITE PROJECT IN NORTH AMERICA

Corporate Presentation — March 2015

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DISCLAIMER

This 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

  • r 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

  • f 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.

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Trades: TSX.V: FMS | OTCQX: FCSMF | FSE:FKC

FAST FACTS ON FOCUS GRAPHITE

Lac Knife Graphite Deposit

  • World-Class Metallurgy
  • One of the highest-grade graphite deposits in the world
  • 7.9Mt of 15% Cg
  • 98% Carbon Concentrate
  • 100% ownership
  • Mining friendly jurisdiction with excellent regional infrastructure and inexpensive electricity in an established

mining area

  • Low-cost producer @ $441/t

FMS is the leader in the graphite space, with no other company having reached this level of development

  • 1. Bankable Feasibility Study completed
  • 2. Succeeded in Producing Coated, Spherical Graphite for Li-ion Batteries
  • 3. Industry-fjrst Offtake Agreement
  • 4. Near-term producer with high-grade Graphite Mineral Reserves
  • 5. Expert technical team with more than a century of combined graphite experience
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Lac Knife, Québec, Canada

LAC KNIFE GRAPHITE PROJECT

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SLIDE 5

LAC KNIFE PROJECT LOCATION

W

Lac Knife

W

Lac Knife

Québec

Lac Knife, Québec, Canada

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SLIDE 6

LABRADOR TROUGH RAILWAY HYDRO ELECTRICAL STATION POWERLINE ROAD

Fermont

N F L

Churchill Falls Fermont

Wabush Labrador City

Manic 5

Q U E B E C O N T A R I O L A B R A D O R

Schefferville

LAC KNIFE

Sept-Iles Port-Cartier Gaspé

LABRADOR TROUGH

PLAN NORD

Lac Knife, Québec, Canada

LAC KNIFE PROJECT LOCATION

The Canadian province of Québec is one

  • f the top-

rated mining jurisdictions in the world. Electricity costs — a key input in mining

  • perations —

are among the lowest in North America.

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WHAT IS NATURAL GRAPHITE?

  • One of the most versatile non-metallic minerals
  • One of two natural forms of carbon; the other is diamond
  • Superior electrical and thermal conductivity
  • Highest natural strength and stiffness of any material
  • One of the lightest of all reinforcing agents
  • Chemically inert with a high resistance to corrosion
  • High natural lubricity
  • Melting point: 3,650ºC
  • Graphite is a critical mineral in continual demand

Graphite Occurs in 3 Natural Forms

Amorphous: 60 - 85% C (Low purity, low price, low growth) Flake: > 85% C (Most desirable, greatest demand) Vein: > 90% C (Very niche applications, small market, fmat growth)

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SLIDE 8

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

GLOBAL GRAPHITE CONSUMPTION

  • Flake graphite is the most sought-after form of graphite; vital to top demand markets today

and tomorrow

  • Future demand is being driven by green technologies including Li-ion Batteries, Fuel Cells,

Electronics, Construction Materials, Nuclear and the Graphene Revolution

  • Traditional industrial demand drivers are refractories, foils and batteries
  • There is 11 times more graphite than Lithium in a typical Li-ion battery
  • 20% annual growth in the Li-ion Battery Industry
  • 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

Flake Graphite Demand in Tonnes (2013)

Total: 375,000 tpa Other 10,000 Industrials 80,000 Batteries 82,000 Refractories, Foundries, Crucibles 185,000

Source: Industrial Minerals Data (2014)

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6,500+ tonnes of graphite was used by these 5 companies in 2013

ELECTRIC 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 Model S kWh 96kg Gigafactory 96 kg Launch per unit 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)

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(Battery-Ready Product)

SPHERICAL GRAPHITE (SPG)

Focus Graphite has successfully produced and tested Spherical Graphite for Li-ion batteries

  • Involves sizing, shaping, purifying, and coating Lac Knife fmake graphite
  • Battery test results have excellent performance metrics compared to

benchmark commercial SPG

  • Potential for increased margins from SPG is not included in the Lac Knife

Feasibility Study Cash Flow Model

Natural Flake Graphite vs. Synthetic Graphite

  • Natural Flake SPG: USD$8,000 per tonne
  • Synthetic Graphite: USD$20,000 per tonne (the only substitute for Natural SPG)
  • Battery manufacturers looking to ‘Ethically Source’ raw materials
  • Synthetic Graphite production process is not at all aligned with ‘Green Policies’

Focus Graphite Coin Cell Test Results Reversible Capacity Irreversible Capacity Loss Surface Area

Large Carbon coated SPG Grade (D90=42µm) 362.1 6.80 0.64 Medium Carbon coated SPG Grade (D50=24µm) 363.7 1.44 0.48 Fine Carbon coated SPG Grade (D50=17µm) 365.1 1.01 1.14

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GLOBAL GRAPHITE PRODUCTION

US and EU Governments classified Graphite as a “Critical Material” for industrial and national security purposes

  • China is the largest graphite producer and exporter (~70% of global output)
  • China has established a quota system to control graphite exports
  • Largest Chinese producer calling for state-imposed controls similar to REE’s — restricting

supply and consolidating production

  • Objective is to better manage resources, labor and environment

USA — No Graphite Mines

  • The United States Imports 70,000 tonnes per year

Graphite Supply Squeeze

  • All fmake sizes are in demand
  • Strong long-term and increasing demand for graphite, driven by Li-ion batteries

China 76% South America 11% Asia 6% Europe 3% North America 2% Other 1% Source: Industrial Minerals

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GRAPHITE PRICE FORECAST

Large Flake Graphite — 94%–97% Cg, +80 mesh (CIF, Europe) $3,000 $2,500 $2,000 $1,500 $1,000 $500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Expected Production

Focus Graphite Cost: $441/t Current Price Average USD$/tonne

Source: Industrial Minerals Data (2014)

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NI 43-101 FEASIBILITY STUDY

fjled August 8, 2014

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  • Located in northern Québec, 27 km

southwest of Fermont

  • Large, established iron-ore mining

camp and home to billion-dollar mining projects — ArcelorMittal, RioTinto’s IOC, Cliffs Natural Resources’ Bloom Lake and Wabush Mines

  • Consists of 57 claims covering 3,000

ha/7,500 acres

  • 500 km north of Baie-Comeau along

all-season Highway 389

  • ~60 km to the Wabush Airport (YWK)
  • Near 2 railway lines connected to

Port-Cartier and the Port of Sept-Iles

PROJECT LOCATION

Lac Knife, Québec, Canada

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PRODUCTION COSTS AND MARKET PRICING

Low Production Costs

  • Mining and milling costs are estimated at $441/tonne of concentrate
  • Hydro-Québec electric power < 5¢/kWh
  • Peer production costs range from $390 – $1,300+/tonne
  • Will be able to weather economic downturns as a sustainable producer
  • The selling price used for the Feasibility Study Cash Flow Summary is USD$1,713/tonne of concentrate

Market Prices

  • Some softness in the market — prices determined by negotiated contract
  • Coated Spherical Graphite (Battery grade) USD$6,000 to USD$10,000/tonne
  • Large size, high-grade carbon content USD$1,450/tonne
  • Fine size, high-grade carbon content USD$800/tonne

“The days

  • f cheap,

abundant graphite from China are over” – Industrial Minerals Magazine, (May 2011)

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MINERAL RESOURCE MODEL

Mineral resources which are not mineral reserves have not demonstrated economic viability

Total 197 drill holes = 18,320 metres

Lac Knife Open Pit Mine

700 metres Long 400 metres Wide 100 metres Deep

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MINERAL RESOURCE ESTIMATE & OPEN PIT MINERAL RESERVES

Lac Knife Mineral Resource Estimate @ 3% Graphitic Carbon (Cg) Cut-off Grade

Categories

Tonnage (tonnes) Graphitic Carbon In Situ Graphite (tonnes) Measured 432,000 22.66 % 102,000 Indicated 9,144,000 14.35 % 1,312,000 Measured and Indicated 9,576,000 14.77 % 1,414,000 Inferred 3,102,000 13.25 % 411,000

Lac Knife Open Pit Mineral Reserves

@ 3% Graphitic Carbon (Cg) Cut-off Grade

Categories

Tonnage (tonnes) Graphitic Carbon In Situ Graphite (tonnes) Proven 429,000 23.61 % 101,000 Probable 7,428,000 14.64 % 1,088,000 Proven and Probable 7,857,000 15.13 % 1,189,000

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GENERAL MINE SITE LAYOUT

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HIGH-PURITY GRAPHITE CONCENTRATE

Flake Size & Purity

SGS Lakefjeld Pilot Plant Tests

  • 11.1% large fmake +48 @ 98.8% Cg
  • The larger the fmake and the higher the purity, the greater the value
  • High-grade carbon by fmotation translates into more high-growth,

high-margin product

  • High-purity affords low-cost Value-Added Products — as a result of

very cost-effective purification processes

Size Distribution Total Carbon Grade

Coarse (+80 mesh) 33.5% 98.3% Medium and fjne (-80 to +150 mesh) 29.8% 98.2%

  • 150 to +200 mesh

16.6% 98.0% Average of all sizes (+200 mesh) 98.1%

  • 200 mesh

20% 91.1%

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GENERAL FLAKE PURIFICATION PROCESS

Flotation Concentrate 96% Cg Crystalline Flake Graphite Concentrate after polishing 98.3% Cg Continuous Thermal Purification 99.98% Cg

ROM Product $441/t

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Synthetic Graphite Facts

Graphitizing an Oil byproduct

  • USD$20,000 per tonne
  • Devolatilization: Vacuum Gas Oil 480ºC
  • Needle Coke (Green Coke Un-Calcined)
  • Calcined: Remove traces of oil 1,350ºC
  • Micronized & Coated
  • Graphitization @ 2,800ºC for weeks
  • Oil-Based Feedstock & Energy Intensive

BATTERY-READY GRAPHITE

Natural Graphite SPG Facts

Performs 10-20% better than Synthetic

  • USD$8,000 per tonne
  • Mining Flake Graphite Ore – Lac Knife
  • Typical processing (crush, grind, fmotation)
  • Micronized & Spheronized (one step)
  • Purifjcation at low heat for minutes
  • Carbon Coating
  • Hydro-Québec Electricity for whole process

Synthetic Graphite Conclusion

  • 1. Larger Carbon Footprint
  • 2. Production Costs Double
  • 3. Energy Intensive
  • 4. Time Consuming
  • 5. Not aligned with Green Energy applications

Synthetic vs. Natural

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COMPARISON CHART

Graphite Leaderboard

Company Feasibility Study Completed Offtake Agreement

  • Avg. Selling

Price (USD$) Production Costs (CAD$) Head Grade Flake Distribution Yes Yes $1,713 $441 15.13% Cg 34% (+80) at 98% Cg 30% (+150) at 98% Cg 16% (+200) at 98% Cg 20% (-200) at 91% Cg Northern Graphite Yes No $1,800 $795 1.89% Cg 76% (+80) at 95% Cg 5% (+100) at 97% Cg 19% (-100) at 95% Cg Flinders Resources No Yes $1,199 $662 10.3% Cg 40% (+80) at 95% Cg 28% (+140) at 92% Cg 32% (-140) at 88% Cg Mason Graphite No No $1,525 $390 17.8% Cg 29% (+80) at 96% Cg 14% (+150) at 92% Cg 57% (-150) at 91% Cg Energizer Resources Yes No $1,689 $535 7.04% Cg 46% (+80) at 97% Cg 22% (+150) at 97% Cg 10% (+200) at 98% Cg 22% (-200) at 97% Cg

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BANKABLE FEASIBILTY STUDY

Revenue Estimates

Annual Milling Capacity 323,670 tpy Concentrate Production 44,300 tpy Cost Per Tonne of Concentrate $441/tonne Annual Operating Costs $20M Annual Operating Margin $56M Selling Price Average USD$1,713/tonne Strip Ratio First 5 years 1.26:1 Life-of-Mine (LOM) average 1.7:1

Revenue Breakdown

Large Flake $26M Medium Flake $9M Fine Flake $41M Total: $76M

Financial Results

Initial Capital Cost $166M* *Includes $17M contingency Net Present Value 8% discount rate $383M 10% discount rate $291M Pre-Tax IRR 30.1% Post-Tax IRR 24.1% Payback Period 3 years

Filed August 8, 2014

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LAC KNIFE DEVELOPMENT PLAN

2011

Q2 Closed $15m Bought Deal Closed $20m Bought Deal Q4 NI 43-101 Mineral Resource Estimate

2012

Q1 Closed $10m Bought Deal Q2 Infjll Drilling and Exploratory Drilling Program at Lac Knife: Total: 5,638 m Q4 Preliminary Economic Assessment Federal and Provincial Environmental Permitting Begins

2013

Q2 Infjll Drilling Program at Lac Knife Commission Pilot Purification Plant Q3 Infjll Drilling Program at Lac Knife Pilot Plant Results Q4 Updated NI 43-101 Preliminary Economic Assessment Industry-fjrst Offtake Agreement

2014

Q1 Updated NI 43-101 Mineral Resource Estimate Q2 Successfully Produced and Tested Coated SPG Graphite for Li-ion Batteries Q3 NI 43-101 Feasibility Study Filed Q4 Pre-Development Agreement with the Uashat Mak Mani-Utenam First Nation ESIA (Environmental and Social Impact Assessment) Filed

2015

  • Project Financing Negotiations
  • Offtake Agreement Negotiations
  • Commencement of detailed

engineering (FEED)

  • Feasibility level design of Focus

Graphite’s value-added graphite plant and further refjning and optimization of its spherical graphite process

  • Hydro-Québec’s power line detailed

engineering and build-out to the Lac Knife mine site

  • Submission of Mine Closure Plan &

mining leases

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SLIDE 25

Tickers: TSX-V:FMS OTCQX:FCSMF FSE: FKC

As of February 4, 2015 Recent Share Price $0.44 Market Capitalization $49.4M Shares (Issued & Outstanding) 110,942,839 Options 9,205,000 Warrants 4,201,941 Shares (Fully Diluted) 124,349,780 Management & Insider Ownership ~10% Cash (no debt; as of September 30, 2014) ~$2.2M *Currency is Canadian dollars (CAD$)

CAPITAL STRUCTURE

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MANAGEMENT & TECHNICAL TEAM

  • Donald Baxter, P.Eng., President and Chief Operating Offjcer — More than 20 years
  • f mining experience including, operational experience in graphite mining and

metallurgical fmow sheet optimization

  • Judith Mazvihwa-MacLean, CMA, MBA, MSc, BSc, Chief Financial Offjcer — Nearly

two decades of experience in mineral exploration, mining, management, and corporate finance

  • Jeff Hussey, P.Geo., BSc, Vice-President, Project Development — 30 years mining
  • peration experience in open pit and underground mine operations, and more recently,

as a mining project developer

  • Dr. Ann Lamontagne, P.Eng., Environmental Director — More than 25 years

experience in the environmental aspects of the mining industry including, mine closures

  • Dr. Benoit Lafrance, P.Geo, MSc, BSc, Vice-President, Exploration and QP — More than

12 years of experience in mineral exploration, scientifjc 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, specializing in the development and marketing of graphite and value-added graphite products

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

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BOARD OF DIRECTORS

Jeffrey York Chairman of the Board Chief Executive Offjcer of Farm Boy Inc. A graduate of Princeton University, Mr. York is the former President and Chief Executive Offjcer of Giant Tiger Stores Limited. Gary Economo Chief Executive Officer and Director Distinguished business leadership career, serving as Chief Executive Offjcer for a number of public and private high technology companies during the last 30 years. Chester Burtt Director President of Chester Burtt & Associates Ltd. (CBAL), a corporate and public affairs advisory fjrm, specializing in connecting private and public companies with domestic and international opportunities. Francis Pomerleau Director Serves as Senior Vice President of Ontario & Western Canada at Pomerleau Inc. as well as President of Pomerleau Ontario. He served as Vice President of Construction of Pomerleau Inc. Marc-André Bernier Director

  • Mr. Bernier specializes in exploration geochemistry in support of regional and international mineral

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

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LAC KNIFE MILESTONES

Upcoming Milestones

  • Project Financing underway
  • Negotiating Offtake Agreements
  • Permitting underway
  • Detailed Engineering:
  • Hydro-Québec

electricity connection

  • Access road upgrade
  • Purifjcation facilities

Current Developments

  • Completed Feasibility Study
  • 7,857 kt of Proven and

Probable Mineral Reserves grading 15%Cg

  • Reduced operating costs from

$458/t of concentrate to $441/t

  • NI 43-101 Mineral Resource Estimate

updated January 2014

  • Achieved excellent test results from our

spherical graphite product for Lithium ion battery market

The Most Advanced Battery-Grade Graphite Project in North America

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PROJECT FINANCING

  • $166M CAPEX requirement, including $17M contingency
  • Combination of equity and debt is being discussed, and may be

tied to strategic partnerships based on an offtake agreement

  • Discussions with strategic partners ongoing
  • Supply Chain Financing (SCF) based on our offtake agreement
  • Vendor Financing: Concentrator & Mine Equipment
  • Announced potential $20M fjnancing arrangements with CAT

Financial Services Corporation

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THANK YOU

Donald Baxter, P.Eng. President and Chief Operating Offjcer T +1 705-787-5942 E dbaxter@focusgraphite.com Focus Graphite Inc. 130 Albert Street Suite 912 Ottawa, Ontario K1P 5G4 CANADA T +1 613-241-4040 E info@focusgraphite.com W focusgraphite.com

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THE MOST ADVANCED BATTERY-GRADE GRAPHITE PROJECT IN NORTH AMERICA

focusgraphite.com