OTTAWA, ONTARIO--(Marketwire - Sept. 10, 2012) - As a result of a review by the staff of the Ontario Securities Commission (the "OSC"), Focus Graphite Inc. ("Focus" or the "Company") (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) is issuing the following news release regarding its disclosure on the Lac Knife Project (the "Project"). Indeed, the Company has been notified by the OSC of its recent selection for a review of its continuous disclosure record, the whole conducted under Section 20.1 of the Securities Act (Ontario).
The OSC has advised the Company that it is of the view that Focus has disclosed, in numerous documents, the outcomes on a study that includes the economic analysis of the potential viability of mineral resources on the Project that is not supported by a technical report as required by National Instrument in 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The OSC is therefore of the opinion that the Company is in default of filing the required technical report triggered by the disclosure made by the Company on the Project.
The disclosure referred to in the OSC comment letter is found on the Company's website (namely in the section containing information on the Project), and in various other documents such as an investor / broker update, presentations and speeches and the corporate presentation of the Company, all of which are available on the Company's website. Such documents contained, among other, information on the Project's capital cost, mine life, estimates on yearly production, production costs per ton and revenue potential. Most of this information was taken from historical reports prepared by previous owners of the Project before the introduction of NI 43-101 and should not be relied upon.
In January 18, 2012, the Company filed on SEDAR an NI 43-101 compliant technical report prepared by Roche Ltd. - consulting group, Tekhne Research and Bumigene Inc., which contained an updated resource calculation on the Project.
In light of the comments and concerns raised by the OSC, in light of the current resource estimate filed by the Company in January 2012 and considering that the Company is scheduled to file a Preliminary Economic Assessment on the Project within the next few weeks, the Company has reviewed its disclosure documents relating to the Project and has removed the technical information on the Project which is presently not supported by a current NI 43-101 compliant technical report. The Company will conduct a further review and update of these documents upon release of its Preliminary Economic Assessment on the Project.
Focus Graphite Vice President, Exploration, Mr. Tony Brisson, is the Qualified Person, as defined by National Instrument 43-101 and has reviewed this news release.
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.
Forward Looking Statements - Disclaimer
This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.