First Graphite Announces Option Agreement for Henry Graphite Property, New Board Appointment and $1.4 Million Financing

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS
AGENCIES


First Graphite Corp. (TSX VENTURE:FGR) (the "Company" or "First Graphite") is
pleased to announce that it has entered into an option agreement (the "Option
Agreement") dated April 5, 2012, with Zimtu Capital Corp. and 877384 Alberta
Ltd. (together, the "Optionors"), pursuant to which the Optionors have granted
the Company an option (the "Option") to acquire a 100% interest in the Henry
Graphite Property (the "Property") in north-east Saskatchewan.


The Property consists of six mineral claims, covering approximately 22,853
hectares and is located approximately 150 kilometres northeast of the community
of La Ronge, Saskatchewan and approximately 10 kilometres west of the community
of Southend, Saskatchewan. The Property is transected by highways 102 and 905.


The Property is noted for its potential to host a near-surface graphite deposit
comprised of scarce, large-flake, high-purity graphite and is situated within
high-grade metamorphic rocks of a sedimentary origin which is an ideal setting
for the development of these types of deposits.


The Property was explored by Hudson Bay Exploration and Development Company Ltd.
(HBEDC) in 1974 looking for base metal mineralization. At that time, airborne
and ground electromagnetic (EM) surveys were conducted in the project area.
Following the EM surveys, the targets which had the best potential for
base-metal mineralization were drill tested. Many of the conductive targets were
not drill tested due to the low potential for base-metal mineralization, which
was attributed to a high graphite-to-sulphide ratio observed in outcrop. The
historic EM surveys and ground-checking indicate that there are several long (up
to 10 km), sub-parallel conductive horizons on the Property, indicating the
potential for multiple zones of graphite mineralization.


In total, the HBEDC drilled 20 holes on the Property. This drilling intersected
graphitic gneisses in several holes on the Property, despite the targeting
efforts to avoid graphite. Graphite is described in the historic drill logs over
intervals of up to 30 metres.


The Property is located 20 kilometres southwest of the Deep Bay Graphite Mine,
which is currently being advanced towards production and is host to a historic
non-NI 43-101 compliant resource of "1.8 million tons grading 10.32% C to a
depth of 60 metres" (Saskatchewan Mineral Deposit Index Report #0480). The
geologic setting of parts of the Henry Property appear similar to the Deep Bay
Mine's deposit where recent graphite testing achieved greater than 95% carbon
content for all flake sizes +32+50+80+100 and -100. Further treatment was able
to achieve greater than 99% purity (Noble Bay Mining Development Inc.).


The technical information in this news release has been reviewed on behalf of
the Company by Neil McCallum, of Dahrouge Geological Consulting Ltd., a
Qualified Person pursuant to National Instrument 43-101.


In consideration of the grant of the Option, the Company paid to the Optionors
an aggregate of $77,500 upon signing the Option Agreement. In order to maintain
and exercise the Option, the Company must: (i) within five business days of the
date that the TSX Venture Exchange issues its approval of the agreement (the
"Approval Date"), pay an additional $77,500 to the Optionors and issue to the
Optionors an aggregate 700,000 common shares of the Company; (ii) by the
six-month anniversary of the Approval Date, issue to the Optionors an aggregate
of an additional 300,000 common shares of the Company; (iii) by the first
anniversary of the Approval Date, issue to the Optionors an aggregate of an
additional 500,000 common shares of the Company; and (iv) by the second
anniversary of the Approval Date, issue to the Optionors an aggregate of an
additional an aggregate 500,000 common shares of the Company. The Optionors will
retain a 2% Net Smelter Returns royalty on the Property.


The Company would also like to announce that Mr. Vince Sorace has been appointed
President and Chief Executive Officer and a director of the Company. Mr. Sorace
currently holds other public company director and/or officer positions including
President and CEO of Providence Resources Corp. Mr. Sorace has been involved in
the public markets for over 20 years and has helped manage and finance numerous
public and private entities. Mr. Sorace is experienced in operations, strategic
planning, corporate development and the capital markets.


Mr Kyle Stevenson has resigned as interim CEO, and will remain a director of the
Company. Mr. Andrew Mugridge has resigned as President and will remain as Vice
President of Corporate Development. Mr. Brian Morrison has resigned as a
director of the Company. The Company thanks Messrs. Stevenson, Mugridge and
Morrison for their services as directors and officers of the Company.


The Company also announces that it will conduct a non-brokered private placement
of up to 3,500,000 units of the Company (the "Units") at a price of $0.40 per
Unit for aggregate proceeds of up to $1,400,000. Each Unit will consist of one
common share in the capital of the Company and one-half of one non-transferable
share purchase warrant, each warrant entitling the holder to purchase one
additional common share at a price of $0.50 for 18 months from the closing of
the offering. Shares acquired by the placees, and shares which may be acquired
upon the exercise of the share purchase warrants, will be subject to a hold
period of four months plus one day from the date of completion of the financing
in accordance with applicable securities legislation. Funds raised by this
private placement will be used for payments under the Option Agreement,
exploration of the Property, engaging a third party consultant to carry out
exploration on the Property and for general corporate purposes. Finders' fees in
amounts to determined may be payable to arms' length third parties who introduce
the Company to investors.


Graphite

Graphite is a polymer of carbon that comes in three naturally occurring forms -
flake, amorphous, and lump. All three are found in metamorphic as well as
igneous rocks, varying by grade, particle (mesh) size and moisture content.
Graphite exhibits a number of characteristics, which make it a high value
industrial mineral with a broad range of applications: it is an excellent
conductor of heat and electricity, is resistant to strong acids and thermal
shock, is a lubricant, is refractive and has the highest natural strength and
stiffness of any known material.


The total worldwide graphite market is currently estimated to be US$12 billion.
At present, the largest end use markets for graphite are the steel and
automotive industries. However in recent years, emerging markets, including
green energy development (fuel cells, solar energy and nuclear power) and
batteries (lithium-ion and vanadium-redox) are creating the potential for
incremental increases in demand. Meanwhile, the closure of a number of natural
graphite mines in China, the world's largest producer, is reducing world-wide
supply.


About First Graphite

First Graphite Corp. is a Vancouver-based mineral exploration company focused on
the development of graphite projects in Canada. The company currently has three
graphite properties led by its flag ship project, the Henry Graphite property,
located near the Deep Bay Graphite Mine in north-eastern Saskatchewan, Canada.


This news release contains certain statements that may be deemed
"forward-looking statements. Forward looking statements are statements that are
not historical facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although First Graphite Corp.
believes the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results or realities may differ materially from those in
forward looking statements. Forward looking statements are based on the beliefs,
estimates and opinions of First Graphite Corp.'s management on the date the
statements are made. Except as required by law, First Graphite Corp. undertakes
no obligation to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors, should change.


THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES,
AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL
ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES
HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT
THEREFROM.