Focus Graphite chairman converts C$835,000 loan to equity

C$0.50-per-share conversion completes longstanding Chairman loan as Focus strengthens its financial position amid growing government and industry support

Ottawa, Ontario--(Newsfile Corp. - August 18, 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 Chairman Jeff York, through his holding company JJJY Holdings Inc. (" JJJY Holdings "), has agreed to convert the final C$835,000 outstanding balance of his longstanding loan to the Company into equity at C$0.50 per share.

Under the proposed transaction, Mr. York will convert C$835,000 into 1,670,000 common shares of Focus at a deemed price of C$0.50 per share, representing an approximately 11% premium to the Company's C$0.45 closing share price on August 17, 2026.

The financing relationship dates back to 2019 and 2020, when Mr. York, through JJJY Holdings, provided significant capital to support Focus and its ongoing activities. By September 30, 2020, amounts due to JJJY Holdings had reached approximately C$3.05 million. Since that time, the balance has been progressively reduced through a series of previously disclosed settlements and equity conversions. The C$835,000 conversion announced today represents the final outstanding balance of Mr. York's longstanding shareholder loan to the Company.

The transaction removes the Company's remaining obligation under the longstanding shareholder loan without requiring a cash repayment, preserving capital for its development priorities and further strengthening its financial position.

"My decision to convert the remaining balance of my loan into equity reflects my continued confidence in Focus Graphite and the progress we are making across the business," said Jeff York, Chairman of Focus Graphite. "With the loan now fully converted into equity, I am further aligning my interests with our shareholders while strengthening the Company's financial position. Focus has made significant progress across its projects, technology and strategic partnerships, supported by growing government investment, and I remain committed to supporting the Company as we move into the next stage of development."

The conversion also follows new federal support for the Lac Knife Graphite Project (" Lac Knife " or the " Project "). On August 17, 2026, Prime Minister Mark Carney announced major clean-energy and critical-minerals investments and specifically identified Focus Graphite's Lac Knife infrastructure project among the strategic pre-development projects being supported through Natural Resources Canada's (" NRCan ") First and Last Mile Fund (" FLMF ") 1 . The federal announcement highlighted pre-construction work for a new transmission line and road connecting Lac Knife to Hydro-Québec's power grid, supporting the development of graphite supply for battery and energy-storage technologies.

The final conversion further strengthens Focus's financial profile and preserves capital for its development priorities as the Company advances its Quebec graphite assets, downstream technology and broader commercial strategy.