Northern Graphite Announces Strategic Partnership With Panacis Inc.

Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to
announce that it has entered into a Strategic Cooperation Agreement with Panacis
Inc. whereby the parties will assist in developing and promoting each other's
Canadian products and services with respect to Lithium ion batteries.


Panacis is an Ottawa, Ontario based company that is a global leader in
intelligent, high performance Lithium Polymer battery based energy storage
systems. It is a trusted supplier to the military, telecommunications, medical
and renewable energy markets for mission critical applications where "off the
shelf" commoditized solutions cannot compete. Panacis is familiar with most Li
ion battery manufacturers, selects the best rechargeable battery technology for
its applications and tunes its performance to meet demanding requirements.
Panacis has comprehensive engineering capabilities that include battery systems
engineering and integration expertise, power electronics, electromechanical
design, rapid prototyping, and manufacturing and has over 20 patents/patents
pending.


"Value added processing including the manufacturing of spherical graphite for
the Li ion battery market is a big part of our strategy moving forward" said
Gregory Bowes, Chief Executive Officer of Northern Graphite. "We have already
successfully made and tested spherical graphite from the Bissett Creek deposit
and want to establish ourselves as a secure, reliable supplier of a high
quality, Canadian made spherical graphite that has been produced in an
environmentally friendly manner. Panacis has a great deal of knowledge and
expertise with respect to the manufacture and testing of Li ion batteries and
has established relationships with most manufacturers. This provides us with a
very important window into the Li ion battery world."


Steve Carkner, Chief Technology Officer of Panacis commented that: "It is very
important that we offer customers with sensitive and critical applications a
secure, reliable Canadian made solution and it is to our advantage to encourage
and promote the use of Canadian made spherical graphite in the Li ion batteries
that we buy. We look forward to working with Northern Graphite to achieve this
objective."


The Graphite Market

Graphite prices have increased substantially 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. The
manufacturing of Li ion batteries requires up to 30 times more graphite than
lithium and their use in the growing EV/HEV market is expected to require
significant increases in graphite production. However, graphite production and
exports from China, which produces 70% of the world's supply, are expected to
decline and an export tax and a licensing system have been instituted. As a
result, 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. Northern Graphite
is well positioned to benefit from this compelling supply/demand dynamic with a
high purity, large flake, scalable deposit that is located close to
infrastructure. A bankable Final Feasibility Study ("FS") and permitting are
expected to be completed in the first half of 2012, following which mine
construction could commence, subject to the results of the FS and financing.
Additional information on Northern Graphite can be found under the Company's
profile on SEDAR at www.sedar.com and on the Company's website at
www.northerngraphite.com.


Panacis Inc.

Panacis is a global developer and producer of safe, reliable and scalable
battery systems for telecommunication, defense and renewable energy
applications. Panacis uses smart energy management technology to provide
flexible and clean power that turns energy storage into a viable and unique
competitive advantage for our customers. Unlike conventional technologies,
Panacis provides lighter, smarter and more efficient energy storage products
with complete local and remote management capabilities. Our systems deliver a
reduced total cost of ownership that is unsurpassed in the industry today. For
more information, please visit www.panacis.com


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.