Focus Graphite Announces the Closing of a $3 Million Bought Deal Flow-Through Share Private Placement

OTTAWA, ONTARIO--(Marketwire - Jan. 31, 2013) -

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Focus Graphite Inc. ("Focus Graphite" or the "Company") (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) announces the closing of a $3 million bought deal flow-through private placement (the "Offering") previously announced on January 16, 2013. The Offering was completed by Cormark Securities Inc. ( the "Underwriter").

Pursuant to the Offering, the Company issued a total of 3,300,000 flow-through shares of the Company (the "Flow-Through Shares") at a price of $0.91 per Flow-Through Share, for total gross proceeds to the Company of $3,003,000.

The proceeds of the Offering will be used to incur eligible Canadian Exploration Expenses, as defined under the Income Tax Act (Canada), on the Corporation's Lac Knife Graphite Project, and will be renounced in favour of the purchasers with an effective date of no later than December 31, 2013.

"The closing of this offering leaves our company well-positioned to meet our planned 2013 infill and exploration drilling programs at our Lac Knife, Quebec property," Focus Graphite President and CEO Gary Economo said.

"Again, the market has demonstrated its continuing support for our company's resources, our management and our business objectives as we move towards anticipated production at Lac Knife," Mr. Economo added.

In connection with the Offering, the Company paid the Underwriter a fee equal to 6% of the proceeds and issued to the Underwriter a total of 198,000 non transferable broker warrants, each broker warrant entitling the holder thereof to acquire one common share of the Company at a price of $0.91 per share until January 31, 2015.