FMS Focus Graphite Inc

The Board of Directors of Focus Graphite Inc., (TSX VENTURE:FMS) (OTCQX:FCSMF)
(FRANKFURT:FKC) (the "Company" or "Corporation") announced today its approval to
convert CAN$1,500,000 in financing to Grafoid Inc. ("Grafoid") to 3,000,000
common shares in Grafoid at $0.50 per share.


On May 3rd 2012, at the Corporation's annual meeting, disinterested shareholders
of the Corporation passed a resolution to approve the participation of the
Corporation in Grafoid Inc. enabling the Corporation to fulfill its commitment
to provide Grafoid with CAN$1,500,000 funding.


Grafoid recently closed an overallotment financing with Blackwall Capital
Markets Inc. at U.S$0.50 per share and a "Friends and Family" private placement
at CAN$0.50 per share in Canada. The equity financings set the fair value of the
shares for the conversion of the loan into Grafoid shares.


The Board deemed the conversion to be in the best interest of the Corporation's
shareholders considering Grafoid's near term prospects.


Related Parties

Corporation Chairman Jeffrey York and Chief Executive Officer Gary Economo are
related parties to the transaction and as such, declared their conflict of
interest and were excluded from participation in the Board's decision.


About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a
technology solutions supplier and a business innovator. Focus is the owner of
the Lac Knife graphite deposit located in the Cote-Nord region of northeastern
Quebec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated
Mineral Resource Estimate of 9.6 million tonnes grading 14.77% graphitic carbon
with an additional Inferred Resource of 3.1 million tonnes grading at 13.25 %
crystalline graphite. Focus' goal is to assume an industry leadership position
by becoming a low-cost producer of technology-grade graphite. On October 29th,
2012 the Company released the results of a Preliminary Economic Assessment
("PEA") of the Lac Knife Project which indicated that the project has a very
good potential to become a graphite producer. As a technology-oriented
enterprise with a view to building long-term, sustainable shareholder value,
Focus also invests in the development of graphene applications and patents
through Grafoid Inc.


Qualified Persons

Don Baxter, P. Eng., Focus President & Chief Operating Officer, a Qualified
Person as defined by NI 43-101 guidelines, has reviewed and approved the
technical content of this news release.


About Grafoid Inc.

Grafoid Inc. is a privately held Canadian corporation investing in graphene
applications and processes for the economically scalable production of
high-energy density and high-purity bilayer and trilayer MesoGraf(TM) graphene
and MesoGraf(TM) derivatives from raw, unprocessed, graphite ore. Grafoid's
global platform, its facilities in Canada, the United States and elsewhere and
its key industrial development partners contribute to its aims of assuming an
industry leadership position in graphene's commercialization. Focus Graphite
Inc. (TSX VENTURE:FMS) (OTCQX:FCSMF) (FRANKFURT:FKC) holds an interest in
Grafoid on behalf of its shareholders.


Forward Looking Statement

This news release contains "forward-looking information" within the meaning of
Canadian securities legislation. All information contained herein that is not
clearly historical in nature may constitute forward-looking information.
Generally, such forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including but not
limited to: (i) volatile stock price; (ii) the general global markets and
economic conditions; (iii) the possibility of write-downs and impairments; (iv)
the risk associated with exploration, development and operations of mineral
deposits; (v) the risk associated with establishing title to mineral properties
and assets; (vi)the risks associated with entering into joint ventures; (vii)
fluctuations in commodity prices; (viii) the risks associated with uninsurable
risks arising during the course of exploration, development and production; (ix)
competition faced by the resulting Company in securing experienced personnel and
financing; (x) access to adequate infrastructure to support mining, processing,
development and exploration activities; (xi) the risks associated with changes
in the mining regulatory regime governing the resulting Company; (xii) the risks
associated with the various environmental regulations the resulting Company is
subject to; (xiii) risks related to regulatory and permitting delays; (xiv)
risks related to potential conflicts of interest; (xv) the reliance on key
personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through
the issue of common shares; (xviii) the Company does not anticipate declaring
dividends in the near term; (xix) the risk of litigation; and (xx) risk
management. Forward-looking information is based on assumptions management
believes to be reasonable at the time such statements are made, including but
not limited to, continued exploration activities, no material adverse change in
metal prices, exploration and development plans proceeding in accordance with
plans and such plans achieving their stated expected outcomes, receipt of
required regulatory approvals, and such other assumptions and factors as set out
herein. 


Although the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in the
forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that such
forward-looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
forward-looking information. Such forward-looking information has been provided
for the purpose of assisting investors in understanding the Company's business,
operations and exploration plans and may not be appropriate for other purposes.
Accordingly, readers should not place undue reliance on forward-looking
information. Forward-looking information is made as of the date of this news
release, and the Company does not undertake to update such forward-looking
information except in accordance with applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Focus Graphite Inc.
Chester Burtt
Director
613-691-1091
cburtt@focusgraphite.com
www.focusgraphite.com

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