OTTAWA (Aug. 20, 2012) — Focus Graphite Inc. (TSX-V: FMS; OTCQX: FCSMF; FSE: FKC) is pleased to announce that Grafoid Inc. – in which Focus Graphite holds an ownership stake – has executed a Joint Intellectual Property Development Agreement with New Jersey based CVD Equipment Corporation (NASDAQ: CVV).

(Please see the Marketwire August 20, 2012 Grafoid-CVD Joint News Release)

Focus Graphite and Grafoid President and CEO Gary Economo, said the one-year, renewable agreement utilizes both companies’ scientific expertise to develop a catalyst material using Grafoid’s graphene derivatives and carbon nanotubes.

Grafoid Inc. is a privately held Canadian corporation investing in graphene applications and an economically scalable production process for meso-graphene and its graphene derivatives from raw, unprocessed graphite ore.

Mr. Economo said the agreement represents a major developmental step forward for Grafoid as awareness of its scientific accomplishments continue to broaden within the graphene community.

“As the single largest shareholder in Grafoid and on behalf of Focus Graphite shareholders, the agreement with CVD underscores the significance of FMS management’s decision to venture into the realm of cutting edge graphene technology. The strength of Grafoid’s economically scalable mass production process provides us with our long-term business platform for growth and expansion within our industry,” Mr. Economo said.

Under the terms of the agreement, Grafoid will provide expertise to develop unique intellectual properties in partnership with CVD including the identification and feasibility for creating new combinations of graphene with carbon nanotubes as a catalyst material.

The Agreement executed is based upon a 50/50 mutual agreement providing both parties with equal rights to share in jointly created IPs and the ability to further the JV on additional terms.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. It is the owner of the NI 43-101 compliant Lac Knife graphite deposit grading 16% carbon as graphite. The company’s goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is invested in the development of graphene applications and patents through Grafoid Inc.


For more information, please contact:
Gary Economo
President and Chief Executive Officer
613-691-1091 Ext.101
geconomo@focusgraphite.com

This News Release may contain or refer to “forward-looking statements” which reflect Management’s expectations regarding the Company’s future growth, results of operations, performance and business prospects and opportunities.

These statements reflect

Management’s current beliefs at the time of this news release and are based on information currently available to Management.

All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties.

There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Management’s expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.

While the Company anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements, except in accordance with applicable securities laws. Accordingly, readers are advised not to place undue reliance on forward-looking information.

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