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Focus and Lara Sign Definitive Option Agreement for Caninde Graphite Project, Brazil; Shares Dip 2.6% Late Morning

Focus Graphite Inc. (FMS.V)reports that it has signed a definitive option agreement with Lara Exploration Ltd. (LRA.V) regarding Lara's wholly-owned Caninde graphite project located in Ceará State, northeastern Brazil.

Under the terms of the Agreement, Lara through its wholly-owned British Virgin Islands subsidiaries Lara (BVI) Ltd. and Pan Brazilian (BVI) Ltd. which collectively own 100% of the mineral rights to the Caninde property, has granted Focus two separate options to acquire a total 60% undivided interest in the Property, subject to an Underlying Royalty to a third party on 11 Exploration Licenses (2% of gross revenue from production sales to a lifetime maximum of R$750,000), in consideration of a staged exploration expenditure commitment over 5 years, the issuance of 500,000 common shares of Focus to Lara on or before the third anniversary of the Agreement and the reimbursement of Lara for certain claim acquisition costs. Focus will act as the Operator of the Caninde project exploration program throughout the duration of the Agreement.

Focus is down 2 cents to 75 cents late morning. Lara is unchanged at $1.19.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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