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					FOCUS METALS
   Think 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.




2
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…


3
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.

3
    Two World Changing Elements
                         Graphite                                           Graphene

    •   In today’s world graphite is a critical         •   Has been called “the new silicon” - it will
        strategic material                                  change the way we work and live

    •   Importance will grow with green                 •   The Noble Prize in Physics for 2010 was
        technologies                                        awarded to two Russian scientists for their
                                                            work in developing graphene
    •   10-20x more graphite in a li-ion battery than
        lithium                                         •   It is an allotrope of graphite (where the
                                                            carbon atoms are similar but bonded
    •   Demand will outstrip supply                         differently). Structure is one-atom-thick
                                                            planar sheet

    •   Just for one market – EV cars – demand by
        2020 will require more than is produced         •   Its properties are revolutionary
        globally today.
                                                        •   Breaking strength 200x greater than steel
    •   Then you’ve got the electronics market,             and tensile strength of 19,000,000 psi
        nuclear energy. . . . and Graphene . . . .
                                                        •   Its applications are profound
4
    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)



5
    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
6
    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


       Sources:
       - Graphite Market Review; Merchant Research & Consulting, Ltd.; 2010
7      - AMG Advanced Metallurgical Group                                     8
       - USGS 2009
    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

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




     Sources:
     - Graphite Market Review; Merchant Research & Consulting, Ltd.; 2010
9    - Industrial Minerals (indmin.com)
     - Independent research estimates
 What Makes a Good Graphite Deposit?

     •   There are three key factors for graphite deposits:
         1) Flake size
         2) Grade
         3) 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% range
10
     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)
11
     Focus Metal Property Overview




12
     Lac Knife Property Map




13
     Lac Knife Site




14
 Lac Knife Preliminary Development Plan

                                                                        Conceptual Mine Plan
     •   Feasibility studies previously completed
         (pre NI 43-101)                                   Resource (Historical):           8 MM t @ 16.7%
         –   Mazarin (1990) and Cambior updated in         Production Start:
                                                                                                   2014
             (2000)                                                                      (potential to accelerate)
                                                           Mining Method:                        Open pit
     •   Targeting ~20,000 tonnes annual
         production (95% - 97%)                            Strip Ratio:                           <2 : 1
         –   Cash costs expected to be ~$350/t             Mine Life:                           40+ years
                  •   Versus $800 to $1,500/t for most
                      competitors                          Grade (Historical):                    16.7%
                                                                                    ~20,000 t (95% – 97% purity)
     •   Potential to add ~3,000 tpa high purity           Production:
                                                                                       ~3,000 t (99.9% purity)
         (99.99%) graphite
         –   99.9% and 99.99% purity graphite needed                                   ~$350/t (95% – 97%)
                                                           Total Cash Cost:
             for battery use                                                            ~$1,300/t (99.9%)
         –   Sells for an average of $20,000 up to                               $2,000 – $2,500/t (95% – 97%)
             $40,000 per tonne depending on customer       Selling Price:
                                                                                  $20,000 – $40,000/t (99.9%)
             specific requirements
                                                           Revenue                    $40+ MM (95% - 97%)
     •   Simple graphite ore processing                    Potential:                 plus, $60+ MM (99.9%)
         –   Crushing, flotation, screening, drying, and
             bagging                                                                  $30+ MM (95% - 97%)
                                                           EBITDA Potential:
                                                                                      plus, $55+ MM (99.9%)
     •   Pit limits extend to 125 metres depth
         –   6 metres average overburden thickness                                     ~$65 MM (95% - 97%)
                                                           Initial Capex:
                                                                                       plus, ~$10 MM (99.9%)

                                                             Source: Independent research estimates
                                                             Note: non NI 43-101 compliant
15
 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




16
 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%




17
     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 Engineering
18
     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
19
     Graphene




20
 Graphene Applications
     •   Avionics applications            Dr. Gordon Chiu - Chief Scientist
                                          Focus Metals is 50% shareholder in a new
     •   Bio Devices
                                          Joint Venture which is headed up by Dr.
     •   Anti-Bacterial Applications      Chiu
     •   Ultra Capacitors                 The JV will develop and acquire patent
                                          applications, secure Intellectual property
     •   Transistors
                                          and develop applications for Graphene
     •   Solar Cells                      used in the mentioned areas
     •   Semiconductors                   Dr. Gordon Chiu has 15 years combined
                                          experience in biomedical, chemical,
     •   Flexible and Foldable Displays   cosmetic, medical and technology industries,
     •   Military Applications            he started his career as a research
     •   Infrastructure                   scientist with Pfizer Inc. and Merck & co.
                                          B.S. Degree summa cum laude in
     •   Entertainment                    chemistry from Rensselaer Polytechnic
                                          Institute and a M.S. degree in chemistry
                                          from Seton Hall University

21
     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”
22
     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


23

				
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