FOCUS METALSThink Graphite Today

Think Graphene Tomorrow

Disclaimer

This presentation 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 Metals disclaims any intention or obligation to revise or update such statements.

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Introduction

Gary Economo

President and CEO of Focus Metals.

• What we are doing and why we are committing our resources and energy to developing the company

• Why stakeholders are investing in us . .. and what that means in the future for investors, partners and customers

• We are involved in the development of two world-changing elements from a single source…

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Graphite Introduction Key Points

• Rapidly improving pricing environment for Graphite, due to China supply constraints and increasing demand

• 100% owner of the Lac Knife Graphite Deposit, Quebec– Highest known grade, large flake, graphite deposit known globally

• Excellent infrastructure in great jurisdiction

• Potential for accelerated development and low cost production

• Upcoming NI 43-101 resource and updated scoping study (End 2011)

• Ongoing off-take agreement discussions

• Graphene joint venture – patents, new discoveries and I/P, develop and commercialize graphene applications.

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Two World Changing ElementsGraphite

• In today’s world graphite is a critical strategic material

• Importance will grow with green technologies

• 10-20x more graphite in a li-ion battery than lithium

• Demand will outstrip supply

• Just for one market – EV cars – demand by 2020 will require more than is produced globally today.

• Then you’ve got the electronics market, nuclear energy. . . . and Graphene . . . .

Graphene

• Has been called “the new silicon” - it will change the way we work and live

• The Noble Prize in Physics for 2010 was awarded to two Russian scientists for their work in developing graphene

• It is an allotrope of graphite (where the carbon atoms are similar but bonded differently). Structure is one-atom-thick planar sheet

• Its properties are revolutionary

• Breaking strength 200x greater than steel and tensile strength of 19,000,000 psi

• Its applications are profound

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The Company

• Focus Metals was formed in early 2010 and market listed in July 2010• Trades on the TSX:V as FMS and in the US through the OTCQX as FCSMF• Began trading at $0.06, reached a high of $1.78 in March 2011,• In April 2011 raised $20m in a bought deal offering • Focus has three properties in its portfolio: our crown jewel - Lac Knife

graphite property, Kwyjibo (REE-neodymium + Copper) and our Labrador Trough properties (IOGC)

• Lac Knife – currently evaluating an expanded drilling program • An updated NI 43-101 will be completed Q4 and scoping study Q1 2012• Kwyjibo – we are embarking on a drilling program after confirming historical

REE results which were published in February (2.4% TREO over 30, 20% Nd)

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Lac Knife property has a proven history

• Project was discovered nearly 25 years ago in a JV between Mazarin Inc. and the town of Fermont, Que

• Drilling program in 1990 confirmed 8.1m/t grading 16.7% graphite. Two feasibility studies were conducted for mine development

• Commodity prices went into recession and the project lay dormant for 10 years

• In 2001, Graftech and Ballard Power Systems were looking for graphite for fuel cell batteries in a JV they had established

• Strathcona Mineral Services did a worldwide search on their behalf and selected Lac Knife as having the best source of graphite for fuel cell technology

• Again the project sat dormant for a number of years: both Ballard and Graftech suffered corporate set-backs and Mazarin was purchased by IAMGOLD

• In 2010, Focus Metals acquired Lac Knife from IAMGOLD and began development

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Graphite Production

1.1 MM tonnes global graphite consumption (2009)

~50% natural (mined) graphite~50% synthetic (manufactured) graphite

Synthetic graphite 4 – 5x more expensive than natural graphite

Only substitutable in certain applications

China is the largest producer of graphite globally

Majority of production is small flake, low grade (2% - 6%) and high cost

China71%

India12%

Brazil7%

Korea3%

Canada2%

Norway1%

Others4%

Sources: - Graphite Market Review; Merchant Research & Consulting, Ltd.; 2010 - AMG Advanced Metallurgical Group - USGS 2009

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Graphite Consumption

• Graphite is largely used in steel refining, foundries, and lubricants

• Other uses of graphite include:– Batteries

• 20x more graphite than lithium in a lithium battery

• ~37,000 tonnes consumed in 2010• ~170,000 tonnes forecast in 2015

– Electronics• Used for heat dissipation in

electronics• One IPAD consumes 4 sheets of

graphite

– Latest generation nuclear reactors• Graphite coolant replacing water

based designs

Refractory24%

Other58%

Lubricants3%

Brake Linings7%

Foundry8%

Sources: - Graphite Market Review; Merchant Research & Consulting, Ltd.; 2010 - AMG Advanced Metallurgical Group - USGS 2009

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Graphite Prices

Sources: - Graphite Market Review; Merchant Research & Consulting, Ltd.; 2010 - Industrial Minerals (indmin.com) - Independent research estimates

Types of Natural Graphite Average Price ($/tonne March 2011)

Small Flake (94 – 97%) $1,800

Medium Flake (94 – 97%) $1,800 - $2,300

Large Flake (94 – 97%) $2,000 - $2,500

Large Flake (99.9%) $20,000 - $40,000

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What Makes a Good Graphite Deposit?

• There are three key factors for graphite deposits:1) Flake size2) Grade3) Purity

• Flake graphite is a naturally occurring form of graphite that is typically found as discrete flakes ranging in size small, medium and large mesh– Large flake size is needed for high purity graphite

• The Lac Knife deposit has a good distribution of large flake graphite at an average grade of 16.7% (non NI 43-101 compliant)– Highest known graphite deposit grade in the world– Other known global deposits are below 10% and are typically in the 2 - 6%

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Lac Knife Graphite Deposit

• 8.1 million tonnes grading 16.7% graphite, historical resource (non NI 43-101 compliant)– Highest known graphite deposit grade in the world

• High value, large flake deposit– Flake size distribution is 41% 35 -100 mesh, 35% 150 -200 mesh and 24% is 200+ mesh

• 7,600 metres exploration drilling completed historically– Deposit extends over 600 metres in length, strikes north-south and dips steeply to the west

• Averages 20 metres width but may reach up to 100 metres in the nose of folds

– The deposit remains open to the south and at depth

• Excellent infrastructure– Quebec grid power - ~$0.05 per kWh– Near rail, port, and over 12,000 people in neighbouring towns

• Wealth of mining talent and infrastructure located in the region– Fermont, Wabush, and Labrador City serve as a base of operation for three iron-ore miners (Quebec Cartier

Mining, the Iron Ore Co. of Canada and Wabush Mines)12

Focus Metal Property Overview

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Lac Knife Property Map

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Lac Knife Site

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Lac Knife Preliminary Development Plan

• Feasibility studies previously completed (pre NI 43-101)– Mazarin (1990) and Cambior updated in

(2000)

• Targeting ~20,000 tonnes annual production (95% - 97%) – Cash costs expected to be ~$350/t

• Versus $800 to $1,500/t for most competitors

• Potential to add ~3,000 tpa high purity (99.99%) graphite– 99.9% and 99.99% purity graphite

needed for battery use– Sells for an average of $20,000 up to

$40,000 per tonne depending on customer specific requirements

• Simple graphite ore processing– Crushing, flotation, screening, drying,

and bagging

• Pit limits extend to 125 metres depth – 6 metres average overburden thickness

Resource (Historical): 8 MM t @ 16.7%

Production Start:2014

(potential to accelerate)

Mining Method: Open pit

Strip Ratio: <2 : 1

Mine Life: 40+ years

Grade (Historical): 16.7%

Production:~20,000 t (95% – 97% purity)

~3,000 t (99.9% purity)

Total Cash Cost:~$350/t (95% – 97%)

~$1,300/t (99.9%)

Selling Price:$2,000 – $2,500/t (95% – 97%)

$20,000 – $40,000/t (99.9%)

Revenue Potential:

$40+ MM (95% - 97%)plus, $60+ MM (99.9%)

EBITDA Potential:$30+ MM (95% - 97%)plus, $55+ MM (99.9%)

Initial Capex:~$65 MM (95% - 97%)

plus, ~$10 MM (99.9%)

Source: Independent research estimates

Note: non NI 43-101 compliant

Conceptual Mine Plan

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Lac Knife Development Timeline

• Fast track permitting potential– Biodegradable commodity and relatively benign milling process;– Located in a mining friendly jurisdiction

• Potential to skip feasibility study– Two feasibility studies historically completed– Simple mining and processing requirements

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Capitalization

Ticker: TSXV:FMS

Basic Shares Outstanding: 87 MM

Options Outstanding: 3 MM

Warrants Outstanding: 12 MM($0.35/share, 2012 expiry)

Market Capitalization (F/D): ~C$87 MM

Cash & Equivalents: ~C$22 MM

Debt: $0

Enterprise Value (F/D)): ~C$100 MM

Insider Ownership ~25%

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Key Management & Board

• Jeffrey York, • Chairman of the Board• Former President and COO of Giant Tiger stores• Gary Economo, • President, CEO, Director• Over 30 years high tech experience, including as President and CEO of SPI technologies selling graphite products• Marco Gagnon, • VP Exploration, Director• Former President of Quebec Mining Association• President of Adventure Gold• Francis Pomerleau, • Director• Senior VP of Pomerleau Inc. a Quebec based construction company that builds many of the infrastructure projects in

Northern Quebec• Judith Mazvihwa-MacLean,

CFO• CMA and geologist with eight years accounting experience in the mining sector• Tony Brisson• Senior Geologist• 25 years geology experience, heavily focused in Quebec and extensive work with graphite deposits

• TBA – VP Exploration and Engineering19

Potential Upside

Graphene• Occurs naturally in graphite, has unique physical properties and

might be one of the strongest substances known– 200x stronger than steel and so thin that it is transparent

• The process of separating it from graphite will require some technological development before it is economically feasible to use it in industrial processes– Focus is a 50% shareholder in a new Joint Venture to develop and

acquire patent applications, secure intellectual property and develop graphene applications

Kwyjibo Project• Rare Earth Elements and Iron Oxide, Copper, Gold (IOCG) Deposits

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Graphene

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Graphene Applications

• Avionics applications• Bio Devices• Anti-Bacterial Applications• Ultra Capacitors• Transistors• Solar Cells• Semiconductors• Flexible and Foldable Displays• Military Applications• Infrastructure• Entertainment

Dr. Gordon Chiu - Chief ScientistFocus Metals is 50% shareholder in a new Joint Venture which is headed up by Dr. ChiuThe JV will develop and acquire patent applications, secure Intellectual property and develop applications for Graphene used in the mentioned areasDr. Gordon Chiu has 15 years combined experience in biomedical, chemical, cosmetic, medical and technology industries, he started his career as a research scientist with Pfizer Inc. and Merck & co. B.S. Degree summa cum laude in chemistry from Rensselaer Polytechnic Institute and a M.S. degree in chemistry from Seton Hall University

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Summary

To take advantage of the situation:

• We hold a world class graphite property• We hold another property with significant copper potential and one

of the two needed REEs• We’ve no debt, money in the bank, and financing options for mine

development• We’re in a mine friendly jurisdiction and the Government is our

partner• Technological innovation is moving our way• Strategic global forces favor our advancement• And the economics couldn’t be more attractive

• Rising demand and prices• Low production costs because of “Factor 17”

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Conclusion

I indicated at the start that Focus was not a normal mining company because we were involved in the development of two world changing elements

Graphite and graphene . . . . and we are also bring neodymium and copper to the table

Our key focus at the moment is our Lac Knife property development, but we are looking at ways to unlock the potential of Kwyjibo and moving that project forward as well

We look forward to the challenge before us and hope you will join us in our journey. Thank you.

Gary Economo gary@focumetals.ca Tel: 613-691-1091 Ext. 101

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