Northern Graphite Files Bankable Feasibility Study

Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to
announce that the bankable feasibility study ("FS") for its 100% owned Bissett
Creek graphite deposit has been filed on SEDAR and is available on the Company's
website. The FS was prepared by GMining Services Inc. with contributions from
SGS Canada Inc. (Lakefield-metallurgy), Geostat-resource modelling), Knight
Piesold Ltd. (environmental, permitting, tailings management and road
infrastructure) and Met-Chem Canada Inc.(process engineering).


The FS concludes that "based on all the engineering studies, cost estimates,
price scenarios and economic analyses performed as part of this Feasibility
Study, we believe that the financial returns are sufficiently robust to justify
the required investment to bring the Bissett Creek Project to commercial
production. Its production level, when compared to the total market, should
enable its successful introduction in the supply of large and extra-large
graphite flake products, without impacting the supply-demand relationship and
resulting prices. When well established as a reliable supplier of quality
products, Northern Graphite should be in excellent position to pursue a
production expansion on the basis of its large resources at Bissett Creek."


Gregory Bowes, CEO, stated that "There are very few development stage graphite
companies and Northern is the only one that has disclosed complete independent,
bankable feasibility level confirmation of reserves and resources, capital and
operating costs, metallurgy, flake size distribution, carbon content of
concentrates, etc." He added that "While economies in the US, European and
Chinese have slowed, the FS has identified a number of immediate, low risk
opportunities to increase production and further reduce costs which we believe
will offset the effect of softer graphite prices."


Project Description

The proposed development of the Bissett Creek graphite deposit includes the
construction of an open pit mine and a 2,500tpd processing plant. The processing
plant will consist of conventional crushing, grinding and flotation circuits
followed by concentrate drying and screening and is based on proven methods and
equipment that are widely used in the mineral industry. The Company plans to
build a natural gas pipeline to the site from the main Trans Canada line,
approximately 15 kms away, to fuel five 1.0 MW-generators that will produce
electrical power. Waste heat from the generators will be used to dry the
concentrate resulting in low overall energy costs of $0.079/kWh. Infrastructure
includes upgrading the last 5 kms of access road, site preparation, and tailings
facilities. Approximately 97% of the tailings will be non-acid generating.


Over the first five full years of operation a total of 4.2 million tonnes of ore
will be processed at an average head grade of 2.22% Cg to produce an average of
18,600 tonnes of graphite concentrate at 94.5% Cg per year. Approximately 80% of
production will be +80 mesh large flake and 50% will be XL (+50 mesh) and XXL
(+32 mesh) flake. Cash operating costs will average CDN$851 per tonne of
concentrate over the first five years. Capital costs are estimated at $102.9
million including a $9.4 million contingency but excluding any financial
assurance relating to reclamation obligations. The FS does not include any
upgrading to value added products such as spherical graphite for Li ion
batteries which sell for significantly higher prices than those used in the FS.


Project Opportunities

The FS has identified a number of significant, low risk opportunities to further
enhance project returns including upgrading some inferred resources to
indicated, both within and outside the proposed pit, which will increase the
grade and production, and further reduce operating costs. In addition, actual
graphite production from the pilot plant was approximately 4% higher, and
graphite production from eight locked cycle tests was approximately 12% higher,
than assayed head grades indicating that the reserve grade is conservative and
potentially understated. The Company is planning a review of assay procedures to
identify the reasons for the understatement. The Company's objective is to
achieve operating costs of less than $800/tonne.


Qualified Persons

The FS was prepared in accordance with NI 43-101 standards by G Mining Services
Inc. Louis Gignac, ing., Nicolas Menard, ing., Antoine Champagne, ing., Ahmed
Bouajila, ing., Robert Menard, ing., and Robert Marchand, ing. are the
independent "qualified persons" under NI 43-101 who were responsible for
preparing the FS on behalf of GMining Services Inc.


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.


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 has proposed a set of
new rules relating to the size, operational performance, quality and
environmental standards for new graphite mines which will make them much more
difficult to build. Also, existing Chinese production is expected to decline due
to the effects of many years of high grading, the consolidation or elimination
of smaller producers, and improvements in labor and environmental standards. 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. As a result of the supply/demand situation for
graphite, 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 has
established itself as an 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 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.