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FS First Star Resources

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0.00 (0.00%)
Share Name Share Symbol Market Type
First Star Resources TSXV:FS TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Northern Graphite Receives Major Permit Approval and Mining Lease

26/08/2013 1:45pm

Marketwired Canada


Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) announces that the
Ministry of Northern Development and Mines ("MNDM") has accepted the Company's
Mine Closure Plan ("MCP") for filing and that the Company has been granted a
mining lease for the Bissett Creek project. This effectively means the Company
can start construction, subject to the availability of financing.


The MCP is an all-encompassing document that describes the nature of the
operations that will be carried out, current baseline environmental conditions,
potential effects on the environment together with appropriate mitigation
measures, and the Company's plan for rehabilitating the site to its natural
state at the end of operations. A number of other permits relating to air,
noise, water, species at risk, etc. are required prior to the commencement of
production and will follow in the normal course now that the MCP has been filed.
Most of these issues are already addressed in the MCP.


Gregory Bowes, CEO commented that: "We look forward to getting on with the next
phase of a project that has the potential to generate substantial benefits for
local and First Nation communities and the people and province of Ontario, as
well as the Company's shareholders. It is unfortunate that it took the Ontario
government 10 months to approve the MCP when it is represented as a 45 day
process."


Revised Feasibility Study Economics

The economics in the existing bankable Feasibility Study ("FS") are being
revised to incorporate a new and much larger resource as well as lower graphite
prices and a number of modifications to the original capital and operating cost
assumptions. Contract mining will be replaced by owner mining which is expected
to reduce operating costs by over $100 per tonne of concentrate. Approximately
$7 million in capital will be added for mining equipment but will be largely
offset by a number of reductions including the removal of costs for detailed
engineering which is already underway, modifications to the SAG mill drive and
discharge, use of a mobile crusher and removal of a redundant mill circuit. The
revised economics are expected to be completed within a couple weeks.


The Company has also initiated a Preliminary Economic Assessment to show the
economics of doubling production in three or four years to meet the anticipated
growth in graphite demand. The potential mine life is currently over 80 years
based on measured and indicated resources only. Due to the flat lying nature of
the deposit, production can be expanding without a significant increase in the
stripping ratio and capital or operating costs.


Northern Graphite Corporation 

Northern Graphite is a Canadian company that has a 100% interest in the Bissett
Creek graphite deposit located in eastern Ontario and is well positioned to
benefit from the favourable supply/demand outlook for graphite. Northern
Graphite is the only graphite company to have completed a bankable Feasibility
Study and be permitted for construction. Bissett Creek is a large flake, high
purity deposit with low engineering, technical and political risk, reasonable
capital costs and 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.


Marc Leduc, P.Eng, a "Qualified Person" under National Instrument 43-101, is
responsible for and has reviewed and approved the technical content of this
press release. 


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. 


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Northern Graphite Corporation
Gregory Bowes
CEO
(613) 241-9959


Northern Graphite Corporation
Stephen Thompson
CFO
(613) 241-9959
www.northerngraphite.com

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