OTTAWA, ONTARIO--(Marketwire - Aug. 3, 2010) - Focus Metals Inc. (TSX VENTURE:FMS) ("Focus" or the "Corporation") is pleased to announce the signing of an option agreement (the "Agreement") with SOQUEM Inc. (a wholly owned subsidiary of the Société générale de financement du Québec), to acquire a 50% interest in the Kwyjibo property (the "Property"), located 125 kilometers northeast of Sept-Îles, Quebec. The Property, located in the Grenville Geological Province (please see figure at www.focusmetals.ca), hosts a Mesoproterozoic Fe-Cu-REE-(Au) deposit considered as the best iron oxide copper gold ("IOCG") exploration target in Quebec. IOCG type mineralization had already been traced over at least 4 kilometers on the Property. Best drilling intersections in the deposit have returned: 1.6% REE (including 0.5% Nd), 0.2% Cu and 0.2% Y over 31.2 meters and best channel samples have returned 1.0% REE, 1.8% Cu and 0.2 g/t Au over 9.5 meters.

"We are very enthusiastic about this new partnership with SOQUEM to advance the Kwyjibo IOCG property" stated Marco Gagnon, President of Focus Metals. "We believe the Kwyjibo Property has a very strong potential for the discovery of a world class IOCG orebody in the short term. Exploration work, including mapping & prospecting, metallurgical testing, diamond drilling, and a 43-101 technical report will be carried out on the Property within 18 months" added Mr. Gagnon.

The Agreement

Under the terms of the Agreement, Focus Metals may acquire a 50% interest in SOQUEM's Kwyjibo REE-Cu property, by spending up to $3M in exploration work on the property over a period of five (5) years of which $1M must be spent during the first two (2) years.

SOQUEM will act as the operator for all exploration carried out on the property for the first two years of the option period or until the first $1M in exploration work expenditures have been spent. Focus will then have the option to become operator by paying $50,000 in cash or issuing a block of common shares valued at $50,000.

The Kwyjibo Property

The Property, totalling 118 mining titles and covering 6,278 hectares, is located a few kilometres north of Manitou Lake, Quebec North Shore Area. The property is also located 25 kilometers east of the Quebec North Shore and Labrador railway line and is accessible by air from Sept-Îles. The Kwyjibo Fe-Cu-REE-(Au) mineralization system was discovered in 1993 during a follow-up of regional geochemical lake sediment anomalies. On surface, more than ten polymetallic showings, including Josette and Malachite, were found over a strike length of 4 kilometers at that time. Most of the showings found on the Property consist of massive magnetite mineralized with copper and REE. The mineralized zones consist of a variety of minerals including magnetite, chalcopyrite, pyrite, pyrrhotite, bornite, molybdenite, apatite, and fluorite. The dominant REE-bearing minerals are allanite and apatite. Less abundant REE-bearing minerals, but of economic interest, include britholite and kainosite. With cerium (Ce) and lanthanium (La), neodymium (Nd) is the most prominent REE and represents a 1/3 of the total REE content. Since 1993, airborne and ground geophysics (Mag,VTEM, IP and radiometry), stream and soil sediments geochemical surveys, prospecting and mapping, and 39 shallow drill holes totalling 5,807 meters have been done on the mineralized zones of the Property. The Kwyjibo Fe-Cu-REE-(Au) mineralized system is still open in many directions and some geophysical anomalies (VTEM conductors) were not drill tested.

What Are The Rare Earth Metals?

The rare earth metals (REM) or rare earth elements (REE) are a group of 15 chemically similar elements (grouped separately in the periodic table) known as lanthanides. Commercially, the rare earth grouping usually also includes scandium and yttrium, both of which are actually elements above lanthanum in the periodic table.

The unique properties (catalytic, chemical, electrical, metallurgical, magnetic and optical) of the REM, and, in particular, both their specificity and versatility, have led to their being used for a wide variety of purposes. From relative obscurity, they are now important economically, environmentally and technologically. The range of applications in which they are used is extraordinarily wide, from the everyday (automotive catalysts and petroleum cracking catalysts, flints for lighters, pigments for glass and ceramics and compounds for polishing glass) to the highly specialized (miniature batteries, lasers repeaters, superconductors and miniature magnets). REM are now especially important, and used extensively, in the defence industry. Some of their specific defence applications include: anti-missile defence, aircraft parts, communications systems, electronic countermeasures, jet engines, rockets, underwater mine detection, missile guidance systems and space-based satellite power. It is interesting to note that even though rare earth metals are classified as critical minerals in the U.S. National Academies, "criticality matrix," the U.S. National Defence Stockpile at present contains none.

Uses of Neodymium

Cutting edge laser technology is currently being developed by using neodymium in solid-state lasers. One of the most significant uses of neodymium is in magnets. Neodymium magnets are extremely powerful and light-weight. Owing to this dual advantage, it is used in the production and manufacture of generator-driven wind turbines and in hybrid cars that run on electric motors, and is also used in many devices like metal detectors, loudspeakers, water softening units; old demagnetized magnets can be re-magnetized using this rare earth element.

Profile

Focus Metals Inc. is an emerging mid-tier junior mining exploration company with excellent discovery stage base metals and industrial minerals opportunities in Quebec. The Corporation intends also to acquire advance stage industrial minerals exploration properties in its portfolio in the future. The Corporation is led by a determined management and technical team with extensive exploration and mine production experience. This press release was prepared by Marco Gagnon P.Geo. and Qualified Person as defined by NI 43-101.

SOQUEM is a wholly-owned subsidiary of Société générale de financement du Québec ("SGF"). SGF, is the Québec government's main industrial and financial development corporation. Its mission is to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Québec.

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.