Focus Metals Completes the Acquisition of Lac Knife Graphite Project

OTTAWA, ONTARIO, Oct. 05, 2010 - Focus Metals Inc. ("Focus Metals" or "Corporation")is pleased to announce the closing of the acquisition of all of the issued and outstanding shares of 3765351 Canada Inc., a subsidiary of IAMGOLD and registered owner of the Lac Knife graphite property, in exchange for (i) a cash payment of $250,000 and (ii) the issuance of 3,956,466 common shares and 1,978,233 warrants of the Corporation, each warrant entitling IAMGOLD to acquire an additional Common Share of Focus at $0.10 until October 4, 2012. Focus Metals has also executed an indemnity agreement in favour of IAMGOLD.
Commenting on the deal, the President and CEO of Focus Metals, Gary Economo, said: "With the acquisition of Lac Knife, Focus Metals now holds properties with two strategically important minerals - graphite at Lac Knife and neodymium at Kwyjibo. Market applications and supply conditions will favour the company in the coming years. These two minerals will be in increasing demand in a high-tech and green economy, where current production and supply are controlled outside of North America. We'll be looking to develop the properties, alone or in partnership, to unlock the value for our shareholders."
Focus Metals is also pleased to announce the closing of a non-brokered private placement (the "Placement") for gross proceeds of $289,500. The Placement consists of the issuance of 2,895,000 units at a price of $0.10 per unit. Each Unit is comprised of one common share and one-half of a warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of $0.15 until October 1, 2012. The securities issued in connection with the Placement are subject to a four-month holding period expiring on February 2, 2011. The proceeds from the Placement will be used to cover the acquisition costs of the Lac Knife project and the Corporation's expenses related thereto. One insider has participated to this private placement for an amount of $25,000.
Focus Metals Inc. is an emerging mid-tier junior mining exploration company with excellent discovery stage base metals and industrial minerals opportunities in Quebec. A determined management team with extensive mining business experience lead the Corporation.