Focus Graphite Inc V.FMS.WT

Primary Symbol: V.FMS Alternate Symbol(s): FCSMF

Focus Graphite Inc. is a Canada-based advanced exploration company, which is focused on developing high grade flake graphite deposits to supply battery grade graphite. The Company's projects include Lac Knife and Lac Tetepisca. Its flagship Lac Knife Project is a 100% owned, high-grade crystalline flake graphite deposit located in northeastern Quebec, about 27 kilometers (kms) south of Fermont. The Lac Knife project is comprised of the Lac Knife property plus an isolated block of 12 CDC claims located 11 kms to the north of the Lac Knife property on NTS sheet 23B-11 (Montagne-aux-Bouleaux property). Its 100%-owned Lac Tetepisca Graphite Project is located in the Southwest Manicouagan reservoir area of the Cote-Nord region of Quebec, one of North America's leading emerging flake graphite districts. It comprises two contiguous properties, Lac Tetepisca and Lac Tetepisca Nord. Together, the two properties form a block of approximately 126 map-designated claims (total area: 6,785.14 ha).

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Focus Graphite Inc

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Post by Panison Jun 25, 2014 11:12am

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Post# 22693249

BFS

https://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=68643685&cp=off&webmasterId=101442

Highlights: $383 Million NPV; 30.1% IRR; Operating Costs of $441 Per Tonne

OTTAWA, ONTARIO--(Marketwired - June 25, 2014) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Company") is pleased to report the results of its Feasibility Study ("FS") for the Lac Knife Project performed by Met-Chem Canada Inc.

The study was based on a 25-year mine life that produced a Pre-tax Net Present Value ("NPV") of $383 million calculated at a discounted cash flow ("DCF") rate of 8% Pre-tax, the financial model has an Internal Rate of Return ("IRR") of 30.1% and a capital payback period of 3.0 years.

The after tax financial model has an NPV of $224 million calculated at a DCF rate of 8%, and with an IRR of 24.1% and a capital payback of 3.2 years. A National Instrument 43-101 technical FS report will be filed on SEDAR within 45 days of this news release.

"Lac Knife is a remarkable property by any Canadian or international standard," Gary Economo, Focus' Chief Executive Officer said. "As we have already demonstrated, Lac Knife provides us, and our shareholders, with a significant advantage. And that is: The ability to meet our customers' needs for quality products at competitive prices."

Don Baxter, Focus's President and COO said: "We are very pleased to have reached this significant milestone in the development of the Lac Knife Project. With the Feasibility Study in hand, an offtake with an end-user signed as well as battery tested spherical graphite, Focus has positioned itself as a leader in the graphite space, with no other company having reached this level of development."


Table 1
Lac Knife Feasibility Results (Pre-Tax)	Base Case	2016 Forecast	Units
Average Price / Tonne of Concentrate:	$1,713	$2,256	US$
Internal Rate of Return (IRR)	30.1	41.8	%
Net Present Value @ 6% Discounted Cash Flow	510	809	$ million
Net Present Value @ 8% Discounted Cash Flow	383	624	$ million
Net Present Value @ 10% Discounted Cash Flow	291	488	$ million
Payback Period	3.0	2.1	Years
Lac Knife Feasibility Results (After-Tax)	Base Case	2016 Forecast	Units
Internal Rate of Return (IRR)	24.1	32.8	%
Net Present Value @ 6% Discounted Cash Flow	304	476	$ million
Net Present Value @ 8% Discounted Cash Flow	224	364	$ million
Net Present Value @ 10% Discounted Cash Flow	165	280	$ million
Payback Period	3.2	2.4	Years
All monetary values are in Canadian Dollars ("CDN") except where specified otherwise