First Canadian Graphite advances high-grade graphite system at Lac Guéret South

First Canadian Graphite Advances Potential For Large-Scale, High-Grade North American Graphite System at Lac Guéret South

Expanded airborne EM, preliminary metallurgy and fall drilling program designed to evaluate the scale and continuity of the 3.3-km Zone 13 discovery

MONTREAL, QC / ACCESS Newswire / August 20, 2026 / First Canadian Graphite (TSXV:FCI)(OTCQB:GRAPF) ("FC graphite" or the "Company") announces an exploration update from its Lac Guéret South Project, located in the Manicouagan region of Québec, Canada, where recent work at Zone 13 is highlighting the potential for a large-scale, high-grade North American graphite system.

Zone 13 has rapidly emerged as the Company's highest-priority exploration target following the discovery of high-grade graphite mineralization associated with an extensive electromagnetic ("EM") anomaly. Surface and near-surface graphite mineralization has now been confirmed along approximately 3.3 kilometres of strike and across widths exceeding 150 metres, with 46 samples returning assays of up to 43.4% graphitic carbon ("Cg"). Refer to the Company's press releases dated July 7, 2026 and July 30, 2026.

Importantly, portions of the conductive system extend beyond the limits of the Company's original airborne survey. FC graphite is therefore expanding its exploration program to determine the potential extent of the conductive system while simultaneously advancing metallurgical testing, access development, trenching and preparations for first-pass diamond drilling planned for fall 2026.

Zone 13 - Testing the Scale of the System
The dimensions identified at Zone 13 distinguish it from the more localized graphite occurrences historically explored on the property. Graphite-bearing outcrops and near-surface occurrences have now been confirmed over approximately 3.3 kilometres, associated with a large and intense conductive trend.

The Company's original 2026 airborne survey was relatively limited because available historical exploration information did not indicate conductive anomalies of the magnitude and intensity subsequently discovered. Several conductors identified by the survey extend to, or are cut off by, the survey boundaries.

As a result, FC Graphite has engaged Gatineau-based Prospectair to undertake supplementary magnetic-electromagnetic ("Mag-EM") coverage across the Boudrias-Esbec option to the north and surrounding the currently defined Zone 13 discovery. The expanded survey is designed to establish whether the Zone 13 conductive system continues beyond the area currently mapped and to identify additional conductors for ground follow-up.

If additional graphite-bearing conductors are confirmed, the work could significantly expand the prospective footprint of Zone 13 and further support the Company's emerging district-scale exploration model for Lac Guéret South. Prospectair has confirmed the survey will begin in late August or early September.

High-Grade Graphite Across a Kilometre-Scale Target
The potential scale of Zone 13 is particularly significant when considered alongside the grades encountered to date. Recent prospecting returned 46 graphite-bearing samples grading up to 43.4% Cg, confirming very high-grade graphite at multiple surface and near-surface locations.

The Company's exploration strategy is now shifting from identifying graphite occurrences to determining their continuity, geometry, thickness and extent at depth. Additional Beep Mat prospecting will be conducted across areas where access is currently being restored and over anomalies identified by the forthcoming heliborne Mag-EM survey. The results will be integrated with geological mapping, sampling and trenching to prioritize targets for the Company's first diamond drilling at Zone 13.

The historical estimates noted herein are not considered a current mineral resource or mineral reserve, and sufficient work has not been completed by the Qualified Person to classify the historical estimate as a current mineral resource or mineral reserve, if such is the case under National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The Company has never updated this estimate and has no plan to do so in the future, potential for additional resources is believed to be limited along strike and depth.

Previous management filed a NI 43-101 Technical Report dated June 19 2019, with a detailed Mineral Resource Estimate for the Lac Guéret South Project (formerly known as the Berkwood Project) completed by independent experts Edward Lyons (Tekhne Resources), Florent Baril (Bumigeme), and Claude Duplessis (Goldminds Geoservices). For the full report and updates visit https://FCGraphite.com or under the Company's profile at the SEDAR website at https://SedarPlus.ca.

Metallurgical Testing Underway at Corem
While exploration is evaluating the potential physical scale of Zone 13, FC Graphite is simultaneously beginning to evaluate its metallurgical characteristics. Four approximately 20-kilogram samples have been delivered to Corem in Québec City for preliminary metallurgical testing. Two samples were collected from recently exposed occurrences within Zone 13. Additional samples were collected from the historical Esbec Graphite Showing and Zone 6.

Zone 6 has been included as a control because material from the zone was the subject of previous metallurgical testing, allowing the Company to compare the characteristics of the newly discovered Zone 13 graphite with previously evaluated material from elsewhere on Lac Guéret South.

Corem's program will include crushing and grinding followed by small-scale flotation concentration and flake classification. Testing will evaluate:

• graphite liberation;

• flake-size distribution;

• concentrate purity; and

• flotation and concentration characteristics.

Corem will also undertake detailed mineralogical studies to support future metallurgical characterization and process development. The program is intended to provide an early indication of whether the very high-grade graphite encountered at Zone 13 can be efficiently upgraded into a high-quality graphite concentrate using conventional processing techniques. Demonstrating favourable metallurgy alongside substantial scale would represent an important step in establishing the potential commercial significance of the Zone 13 discovery.

Preparing Zone 13 for First-Pass Drilling
The Company has contracted Groupe Nipi of Pessamit to re-establish access to portions of Lac Guéret South where tag alders have overgrown previously established roads. The restored access will support additional prospecting and sampling while providing access for the Company's planned trenching and diamond drilling programs in fall 2026. Fall and winter exploration programs are currently being prepared and will commence following receipt of an Authorization for Impact-Causing Exploration Work ("ATI"), to be submitted shortly.

Trenching will expose selected sections of the conductive system and assist the Company in establishing geological controls, mineralized widths and optimal drill locations. The subsequent first-pass diamond drilling program will represent the Company's first opportunity to systematically test the Zone 13 system below surface and begin establishing its true width, continuity, grade and depth potential.

Building a Large-Scale Graphite Project
Zone 13 is being evaluated within a substantially larger graphite property. Lac Guéret South already hosts a historical NI 43-101 mineral resource at Zone 1 of 1.76 million tonnes indicated grading 17% Cg and 1.53 million tonnes inferred grading 16.4% Cg. Multiple additional graphite-bearing zones and conductive anomalies occur elsewhere across the property. FC graphite's claims and optioned ground now exceed 200 km², establishing one of the most extensive land positions in the Lac Guéret Graphite District. The emerging opportunity therefore extends beyond the expansion of the historical Zone 1 resource.

The Company's broader objective is to determine whether Zone 13 and the additional conductive systems across Lac Guéret South have the potential to establish the project as a large-scale, high-grade graphite system within North America. More than $10 million has been invested in Lac Guéret South to date, while significant portions of the property remain underexplored.

A Clear Exploration Path
FC Graphite is advancing Zone 13 through a systematic exploration sequence:

Expanded airborne Mag-EM - ground prospecting - metallurgical testing - trenching - diamond drilling - potential resource definition and expansion.

Each stage is designed to reduce geological and metallurgical uncertainty while progressively testing the potential scale of the system. The expanded airborne survey will investigate the extent of the conductive footprint. Ground prospecting and trenching will determine whether additional conductors correspond with graphite mineralization. COREM's work will provide the first metallurgical characterization of the newly discovered Zone 13 material. Diamond drilling will then begin testing whether the high-grade graphite observed over the extensive surface footprint continues at depth.

Together, these programs are intended to determine whether Zone 13 represents an isolated high-grade discovery or part of a much larger graphite system.

"The significance of Zone 13 is increasingly about the combination of grade and potential scale," said John LaGourgue, President and CEO of FC graphite. " We have confirmed high-grade graphite at surface along approximately 3.3 kilometres of strike, while portions of the conductive system extend beyond the limits of our original airborne survey. That gives us a compelling reason to expand the geophysical coverage and systematically determine how large this system may ultimately be."

"At the same time, we are advancing metallurgy with COREM, restoring access with Groupe Nipi and preparing for trenching and first-pass diamond drilling. These programs are designed to answer the key questions of continuity, thickness, depth and metallurgical performance. Our objective is to determine whether Zone 13, together with the historical resource and additional graphite-bearing targets across our more than 200-square-kilometre land position, has the potential to establish Lac Guéret South as a large-scale, high-grade North American graphite project."

Strategically Located in the Lac Guéret Graphite District
Lac Guéret South, formerly known as the Berkwood Project, is located in Québec's Côte-Nord region in the southwest Manicouagan Reservoir area, approximately 234 kilometres north-northwest of Baie-Comeau, on the Nitassinan (ancestral territory) of the Pessamit Innu.

The property borders Nouveau Monde Graphite's Uatnan graphite project, placing FC Graphite within an established graphite district that hosts significant known graphite mineralization.

With high-grade graphite already demonstrated at Zone 1, the extensive new Zone 13 discovery, multiple additional graphite-bearing targets and a land position exceeding 200 km², the Company believes Lac Guéret South warrants systematic evaluation as a potentially significant North American graphite asset.

About Corem:
Corem is a globally recognized centre of expertise and innovation in mineral processing. With the largest concentration of mineral processing R&D resources in Canada, Corem develops innovative solutions in collaboration with its members, clients, and partners to enhance the performance of the mining industry while reducing its environmental footprint. Its infrastructure, including a pilot plant and state-of-the-art laboratories in mineral processing, mineralogy, and hydrometallurgy, enables Corem to support the industry in advancing more efficient and sustainable practices.

About FC graphite
FC graphite is engaged in the exploration of critical minerals and is committed to advancing its Lac Guéret South high-grade graphite property to support applications in energy transition and advanced technologies.

The Lac Guéret South Project (formerly the Berkwood Project) borders Nouveau Monde Graphite's Uatnan graphite project in the southwest Manicouagan reservoir area, approximately 234 km north-northwest of Baie-Comeau in Québec's Côte-Nord region, on the Nitassinan (ancestral territory) of the Pessamit Innu.

Recent work at Zone 13 has outlined a significant new high-grade graphite-bearing anomaly with a confirmed strike length of 3.3 km and widths exceeding 150 m. Prospecting on this discovery has returned surface and near-surface high-grade graphite, with 46 samples assaying up to 43.4% graphitic carbon (Cg). Refer to the Company's press release dated July 30, 2026.

The Project also hosts a historical NI 43-101 mineral resource at Zone 1 of 1.76 million tonnes indicated at 17% Cg and 1.53 million tonnes inferred at 16.4% Cg (NI 43-101 Technical Report Mineral Resource Estimate). Multiple additional zones with surface graphite mineralization provide further strong exploration potential.

The Company's land claims and optioned ground now exceed 200 km², establishing one of the most extensive claim portfolios in the Lac Guéret Graphite District. With more than $10 million invested to date and significant exploration upside remaining, First Canadian Graphite is focused on expanding resources and advancing the project toward a Preliminary Economic Assessment (PEA). The Company has sufficient funding to continue advancing Lac Guéret South through 2026.

The historical estimates noted herein are not considered a current mineral resource or mineral reserve, and sufficient work has not been completed by the Qualified Person to classify the historical estimate as a current mineral resource or mineral reserve, if such is the case under National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Previous management filed a NI 43-101 Technical Report with a detailed Mineral Resource Estimate for the Lac Guéret South Project (formerly known as the Berkwood Project) completed by independent experts Edward Lyons (Tekhne Resources), Florent Baril (Bumigeme), and Claude Duplessis (Goldminds Geoservices). For the full report and updates visit https://FCGraphite.com or under the Company's profile at the SEDAR website at https://SedarPlus.ca.

Data Sources and Current Resource Estimation Methods
Data Sources

• Drilling & Trenching: 45 diamond drillholes (6,232.49 m; 1,194 core samples) and 2 trenches (77 m; 28 samples).

Block Model & Estimation

• Software & Supervision: Prepared by Claude Duplessis, P.Eng. (GoldMinds Geoservices) using Genesis© software.

• Block Dimensions & Density: Block size of 3 m × 3 m × 3 m (27 m³) with a bulk density of 2.9 g/cm³.

• Grade Interpolation: Carbon grade (% Cgr) was estimated using inverse distance weighting constrained strictly to 3,015 composites inside the mineralized envelopes. A variable-direction search ellipsoid was applied to accommodate folding.

Estimation Runs & Classification

• Main Envelope (Indicated & Inferred):

  • Run 1: 3 to 9 composites (maximum 2 per drillhole).

  • Run 2: 3 to 9 composites (no drillhole limit).

• Layers 01, A, and B (Inferred): 1 run using 3 to 9 composites (maximum 2 per drillhole).

Pit Optimization & Metallurgy

• Pit Shells: Constrained in MineSight using regional economic parameters and Met-Solve Laboratories metallurgical test work (conservative 90% recovery applied).

Quality Assurance / Quality Control (QA/QC)

• Blanks inserted every 20th sample returned consistently low grades.

• Quarter-core duplicates and 50 coarse-reject check assays analyzed at ALS Laboratory showed close correlation with primary MS Analytical results.

Qualified Person
The technical information in this news release has been reviewed and approved by Antoine Fournier, M.Sc., géo, Vice President Exploration for FC graphite and a Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Pessamit Innu First Nation Engagement
FC graphite formally acknowledges that the Lac Guéret South Project is situated within the Nitassinan (ancestral territory) of the Pessamit Innu First Nation. The Company remains dedicated to cultivating respectful, transparent, and cooperative relationships with local Indigenous communities at every stage of the project's development.

On Behalf of the Board of Directors
First Canadian Graphite Inc.

Signed:
John LaGourgue, CEO & Director

For more information, contact:
info@FCGraphite.com
(604) 838-3376
https://fcgraphite.com/

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the Company; and any other information herein that is not a historical fact may be "forward-looking information" ("FLI"). All statements, other than statements of historical fact, are FLI and can be identified by the use of statements that include words such as "anticipates", "plans", "continues", "estimates", "expects", "may", "will", "projects", "predicts", "proposes", "potential", "target", "implement", "scheduled", "intends", "could", "might", "should", "believe" and similar words or expressions. FLI in this new release includes, but is not limited to the Company's ability to successfully fund, or remain fully funded for the implementation of its business strategy and for exploration of any of its projects (including from the capital markets), and the expected timing of announcements in this regard. FLI involves known and unknown risks, assumptions and other factors that may cause actual results or performance to differ materially.

The FLI in this news release reflects the Company's current views about future events, and while considered reasonable by the Company at this time are inherently subject to significant uncertainties and contingencies. Accordingly, there can be no certainty that they will accurately reflect actual results. Assumptions upon which such FLI is based include, without limitation: the Company's, ability to implement its overall business strategy and to fund, explore, advance and develop each of its projects, including results therefrom and timing thereof, the impact of increasing competition in the mineral exploration business, including the Company's competitive position in the industry, and general economic conditions, including in relation to currency controls and interest rate fluctuations.

The FLI contained in this news release are expressly qualified in their entirety by this cautionary statement, the "Forward-Looking Statements" section contained in the Company's most recent management's discussion and analysis (MD&A), which is available on SEDAR plus at www.sedarplus.ca. All FLI in this news release are made as of the date of this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such forward-looking information.

The Company does not undertake to update or revise any forward-looking information contained herein to reflect new events or circumstances, except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this News Release.

SOURCE: First Canadian Graphite Inc.

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