http://www.focusmetals.ca/english/news/presentation-and-speeches/dec72011

Good morning, my name is Gary Economo and I’m President and CEO of Focus Metals and I hold the same title with Grafoid Inc., our graphene development joint venture.

Focus Metals is the lead partner in Grafoid which is a private company incorporated in Canada.

On Monday, December 5th, we announced our Lac Knife graphite 43-101 compliant resource calculation. It confirmed two things.

1. Our property holds the highest-grade in the world with the lowest cost of production of any graphite source, and;

2. It validated our reasons to pursue our mine-to-market-to graphene application business agenda.

Bob Dylan was right, the times they are a-changin, and no more so than in the graphite industry.

Last week I spoke at the Industrial Minerals Round-table in Amsterdam about the evolutionary and revolutionary changes taking place in the graphite sector and how we needed to “up our game” in the industry by providing the leadership needed in the coming graphene revolution.

Focus Metals is striding – not walking – in that direction.

Management Knowledge and Vision

Eighteen months ago, Focus Metals listed on the TSX-Venture Exchange.

We did so with a strategic business understanding that simply being a supplier of graphite to the technology sector would cause us to miss the boat, so-to-speak, on the potential future opportunities springing up around us from graphene.

Our management has a history of success in taking start-up companies from green field opportunities to profitability. We also had a strong relationship and history with you – the graphite industry.

In the spring of 2011, Focus Chairman Jeffrey York and I formed a joint venture partnership with Dr. Gordon Chiu, which we incorporated as Grafoid Inc., in September this year.

After a site visit to Lac Knife this past summer, we loaded our backpacks full of graphite ore from a number of outcrops, loaded them on a helicopter and then put those samples under a scanning electron microscope.

Dr. Chiu, Grafoid’s Vice President and Chief Scientist made two important discoveries.

The first was the quality of our graphite; the second was the ease of extraction of graphene from the ore and the purity of structure of that graphene.

To us, quality is everything and our quality graphite produces quality graphene.

More importantly, the graphene produced in the lab was electrically conductive, unlike vapor chemical deposition.

And those factors contributed in part, to our development of a scalable model for mass producing graphene in single and multiple layers using a simple, environmentally friendly process.

Let me repeat that: And those factors contributed in part, to our development of a scalable model for mass producing graphene in single and multiple layers using a simple, environmentally friendly process

Graphene is the thinnest two-dimensional substance known to science. It is graphite unfolded.

We saw value in graphene because every major scientific institution in the world was involved in some form of research that was tied to a refined graphite source.

What tipped the scale for us was Gordon’s report indicating the particular qualities of our Lac Knife ore.

Without going into detail, I can say this:

Our raw graphite ore is superior to the refined lab graphite used by the scientific community for its graphene research.

In today’s peer-to-peer environment, the news of Gordon’s discovery is the topic of some discussion among some highly respected graphene researchers – including graphene’s discoverers.

Grafoid’s entrance onto the graphene stage was unforeseen – much as Focus Metals was some 18 months ago when we acquired our Lac Knife property from IAMGOLD.

As a business, we saw long-term profit potential from an investment that was coincidental to the possibility of dwarfing the future economic potential of our Lac Knife graphite deposit.

On December 1, Grafoid Inc. and Rutgers University signed a Memorandum of Understanding to jointly develop polymer and non-polymer applications from graphene extracted from our Lac Knife, Quebec, graphite deposit.

For us, the MOU elevates our joint venture and our graphene into the scientific community in a search for profitable, practical uses in all industrial sectors.

More, however, Rutgers-MIPP is one of the foremost developer of advanced polymers in the world.

We see these two events as significant breakthroughs for Grafoid Inc., for Focus Metals, for our shareholders and for the graphene community.

We are the only publicly-traded junior mining development company in the world engaged in full-scale development of graphene mass production and, the development of hybrid polymer and other applications using our own high technology graphite.

Moving into the Mainsteam Graphene Industry

Because of our application research and development venture with Rutgers University, we see no end in sight to the financial potential that practical applications of our graphene bring on an industrial scale.

So what does this mean for Focus Metals and our shareholders?

To us, it means everything.

It validates our mine-to-market-to technology business model and, it extends our corporate reach into emerging graphene communities.

Our research agenda is targeted. We chose those industrial and infrastructural sectors holding the best opportunities for the quickest to market – quickest return on our investments based on demand.

They include:

The steel rebar industry: This sector is high on our list of research projects.

Rebar made from polymers with graphene would create a new, lighter yet stronger building component that would open new doors for architects and builders. Our rebar will never rust.

Imagine a stackable farm more that 100 floors tall reinforced with graphene, powered by graphene solar panels that can produce fresh produce for an entire city.

The Military: A small percentage of graphene added to plastics and fibreglass provides a new material used for armour plating military vehicles such as tanks, helicopters, un-manned drones and armoured personnel carriers.

A quarter-inch of this material will replace a seven inch steel sheet.

Logistics industries: Graphene-polymer hybrid pallets for the global inter-modal cargo industry would create a lighter, stronger hybrid plastic pallet that contributes to fuel cost savings, saves trees, and would have an indefinite, re-usable lifespan.

Residential Construction and Disaster Relief: Modular housing using graphene-infused polymers could withstand hurricanes and earthquakes and could replace existing structures in both developed and developing countries – especially in those regions susceptible to natural disasters and events.

The Renewable Energy Sector: Researching applications for the creation of the world’s most efficient graphene’s light-converting graphene polymer solar panels.

Aviation and the Aviation Propulsion Systems: Application research opportunities for us exist in the development of graphene laced polymers to replace aircraft structural components with non-corrosive spars and frames.

Weight-saving graphene-blended polymers as replacements for jet engine turbine blades will result in stronger, lighter, fuel-saving aircraft components.

Who knows? Some day our graphene may be used as the anode material in batteries.

And this is just the beginning of journey towards practical, revenue-producing applications.

There is no end to the benefits graphene will bring to our world.

For Focus Metals’ shareholders, it means management has done its job and lived up to its obligations to protect investors’ interests in us, through our partnership in Grafoid.

The long-term financial implications from patents and global licensing agreements have yet to be determined, but in time, we expect that Focus Metals and Grafoid will emerge as leading commercial players in the graphene revolution.

At today’s prices, graphene will play an important role in securing our long-term financial stability from sales, plus the additional long-term royalty revenues from patents and licenses from intellectual property rights.

Our Business Model

Our graphene venturing brings us and our shareholders a step closer to realizing our corporate vision based on our mine-to-market-to-technology business model, by:

1. Assuming a leading, if not dominant competitive position as a supplier of the lowest-cost to produce high technology graphite in the world and having the ability to influence market prices

2. Mass producing the highest-quality graphene in the world from our Lac Knife graphite source; developing a host of graphene applications and then owning the patent rights for those applications, and;

3. Building a long-term, sustainable revenue stream for ourselves and our shareholders built upon those value-added technology components that leave us well-positioned in the world to mitigate downturns in market cycles.

For our shareholders, in particular, and without getting too far ahead ourselves, the best is yet to come from Focus Metals’ management of its natural and intellectual property assets.

Owning our supply chain through to graphene technology patenting is critical to our corporate and commercial success.

As a mineral, graphene’s conductive properties open a new door to the imagination and practical scientific investigation.

Research is leading us towards a graphene chip computing processor with TeraHertz capabilities.

Imagine how this level of computing power when matched with a Cray supercomputer can assist in predicting the weather, as an example.

And at the other end of the commercial scale, graphene’s conductive properties could open new imaging vistas for the cinematic arts, three-dimensional holographic presentations, for example.

The Graphene Revolution and Grafoid Inc.

If graphite is Focus Metals’ bread and butter, graphene is our caviar.

We are living through and witnessing a new industrial revolution. And we’re taking a leading role in our changing environment.

Graphene now dominates research and development in all industrialized nations and in most emerging nations.

Tens of billions of dollars of public and private funding are pouring in to graphene application development in areas such as:

• flexible electronics

• transparent conductors

• high frequency devices

• digital logic and spintronics

• nano-electromechanical devices

• ultimate sensors and:

• bio-related applications.

Graphene is the pre-dominant research subject in the fields of:

• ultimate microelectronics

• energy dissipation, capture and thermal management

• advanced composites for aeronautics

• device integration, and;

• large-scale graphene production

Imagine using graphene to deliver virus killers at the individual cell level.

The discovery of graphene’s importance in genetic engineering and stem cell research is well underway and leading to breakthroughs in biotechnology.

At the other end of the industrial scale, imagine recycled plastics and composites impregnated with graphene. As a material some 200 times stronger than steel and incapable of corrosion the potential for infrastructural projects is endless.

• Petroleum tank farms

• Bridges

• Building construction materials

• Pipelines and sewage systems

Graphene can withstand 3000 degree temperatures, it is non-porous – not even gas can penetrate through its skin. It is slippery. And it would make a perfect coating
for the hulls of icebreakers and supertankers – not to mention sailing yachts and pleasure craft.

Because of its conductivity, graphene could be applied as a coating for schools and ice arenas in northern climates where an electric current could be applied to a graphene coating to melt accumulations of snow and ice. The same applies to aircraft de-icing applications.

As someone addicted to communications technology and its related applications, the novelty of wearing a voice-activated video cellphone as a watch the thickness of a sheet of paper holds some appeal to me.

The references above are just a small snapshot of some realistic possibilities for graphene applications in all industrial areas and disciplines. In fact, there are no sectors or industries where graphene could not advance our lives.

I’d like to take this opportunity to introduce Dr. Gordon Chiu to you. (Gordon, would you stand please).

Gordon is attending our conference today and is available to answer any non-proprietary questions you might have related to our Lac Knife graphite’s physical attributes and our graphene’s quality.

Summary and Conclusion

Our view and our philosophy is that it’s better to be a player in a world-changing game than a bystander.

Our corporate fortunes, and those of shareholders are built upon a world-class graphite deposit in Northern Quebec and twinned with a management strategy that adds technology value at each stage of our business operations.

Just as Saudi Arabia manages its petroleum resources, we understand full well that our mineral resource is finite. We owe it to ourselves to maximize its value to the best of our abilities.

In an evolving world, Canadian natural resource developers must shrug off the age-old stigma of being labeled as hewers of wood and drawers of water.

Stacking the deck so-to-speak, by owning your own supply chain from mine-to-market to application development from your own resource is critical for future prosperity and a recipe for others to emulate.

Grafoid’s graphene development projects are just beginning. And we see no end in sight to the rewards that come from owning the patents and the rights to those developments.

Venturing into the future creates shareholder value today.

Thank you.