Northern Graphite Commences Drill Program at Bissett Creek

Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) announces that it
has commenced a drill program on its Bissett Creek graphite project consisting
of approximately 3,000 meters of drilling in 65 holes. The drill program is
designed to follow up on opportunities identified in the recently completed
bankable feasibility study ("FS") to further improve the already attractive
economics of the Bissett Creek project.


The main objective of the drill program is to upgrade inferred resources both
within and outside the FS pit shell to the indicated category. The FS considers
approximately 1.5 million tonnes of inferred resources within the pit as waste
and includes the processing of a low grade stockpile that exceeds 2.5 million
tonnes. Upgrading the inferred resources within the pit to the indicated
category, and substituting higher grade material from outside of the FS pit for
the low grade stockpile, could result in an increase in grade and a further
reduction in operating costs. Of particular interest are the higher grade
inferred resources located off the eastern end of the FS pit (see figure 1:
http://media3.marketwire.com/docs/FIGURE-1.jpg). The Preliminary Economic
Assessment on the Bissett Creek project states that there is a relatively high
probability that inferred resources can be upgraded due to the thick, flat lying
and continuous nature of the mineralization. However, the inferred resources do
yet not have demonstrated economic viability and are not mineral reserves.


The Company has retained AGP Mining Consultants Inc. ("AGP") to update the
current resource and reserve estimates, mine design and economic model once the
new drilling results are available which is expected to be before year end. In
addition, AGP will review assay methodologies and procedures to investigate the
fact that graphite production, based on calculated head assays from the locked
cycle test program, was up to 12% higher than expected based on the initial
assay grade of the samples.


Gregory Bowes, CEO, stated that "The FS is based on 23 years of indicated
resources but this does not represent the best 23 years. We have an additional
50+ years of inferred resources at planned production rates. The drill program
will enable us to optimize the first 20 years and demonstrate that the project
has very solid economics even in a low graphite price environment. Operating
costs over the first five years of operation were estimated at $851/tonne of
concentrate in the FS which assumed contract mining. Owner mining is expected to
reduce them to approximately $800/tonne with further decreases possible based on
the results of the drill program and assay review."


The Graphite Market 

Graphite demand and prices have increased substantially over the past few years
due to the ongoing modernization of China and other emerging economies which has
resulted in strong demand from traditional steel and automotive markets. In
addition, new applications such as lithium ion batteries, vanadium redox
batteries, fuel cells and nuclear power have the potential to create significant
incremental demand growth. 


China currently produces 70% of the world's graphite and an export tax and a
licensing system have been instituted to restrict exports and encourage value
added processing in China. Recently, the Chinese government proposed a new set
of rules and standards for graphite mines which will make them much more
difficult to operate and build. The recent proposals on new mines are the third
major graphite supply related announcement out of China this year and follow
calls for REE type protection from the largest Chinese graphite producer and the
formation of a state owned amorphous graphite monopoly. Due to the expectation
that Chinese graphite production and exports could decline at a time when demand
is appears ready to grow rapidly, both the European Union and the United States
have declared graphite a supply critical mineral.


Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in
the Bissett Creek graphite deposit located in eastern Ontario. The completion of
the bankable Feasibility Study has established Northern as the industry leader
with a large flake, high purity, scalable deposit that is located close to
infrastructure and has very competitive operating costs. Additional information
is available under the Company's profile on SEDAR at www.sedar.com and on the
Company's website at www.northerngraphite.com.


This press release has been reviewed and approved by Don Baxter, P.Eng,
President of the Company and a non-independent "Qualified Person" under NI
43-101. 


This press release contains forward-looking statements, which can be identified
by the use of statements that include words such as "could", "potential",
"believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other
similar words or phrases. These statements are only current predictions and are
subject to known and unknown risks, uncertainties and other factors that may
cause our or our industry's actual results, levels of activity, performance or
achievements to be materially different from those anticipated by the
forward-looking statements. The Company does not intend, and does not assume any
obligation, to update forward-looking statements, whether as a result of new
information, future events or otherwise, unless otherwise required by applicable
securities laws. Readers should not place undue reliance on forward-looking
statements.