Northern Graphite Reports Large Increase in Resources

Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to
announce a significant increase in estimated resources on its Bissett Creek
graphite project based on the results from a 51 hole, 2,927 meter drilling
program. 


The updated base case mineral resource for the Bissett Creek deposit, using a
cut off of 0.986% graphitic carbon ("Cg"), now totals 25,983,000 tonnes grading
1.81% Cg in the indicated category (470,300 tonnes of contained graphite) while
inferred resources total 55,038,000 tonnes grading 1.57% Cg (864,100 tonnes of
contained graphite). Grades are minable and diluted. In order to establish a
reasonable prospect of economic extraction in an open-pit context, mineral
resources were limited to an optimized whittle pit shell using an average
graphite price of US$2,000 per tonne and operating and capital costs were
updated from the NI 43-101 Preliminary Economic Assessment ("PEA"). (Mineral
resources are not mineral reserves and do not have demonstrated economic
viability)


The new resource represents a 44% increase in contained graphite within the
indicated category and a 117% increase in contained graphite within the inferred
category over undiluted resources previously reported in the PEA which used an
average price of US$1,700/tonne and a base case cut off of 1.5%. The 1% cut off
used in the new base case is now more appropriate given higher graphite prices.
The deposit remains open along strike to the north and south, and down dip to
the east.  The drilling program and resource estimate confirm that near surface
graphite mineralization exists in an area that is now over one square kilometer
in size. The deposit is also flat and tabular with good continuity between holes
and there is a high probability that inferred resources can be upgraded with
additional drilling. The waste to ore ratio for the new resource is 0.27. 


Gregory Bowes, Chief Executive Officer, commented that "The new resource
estimate strongly demonstrates that future production could be scaled to much
higher levels to meet anticipated demand growth from current uses as well as Li
ion batteries and other new applications. We also have the option of designing a
20 or 30 year pit with much higher grades as the new resource has a potential
mine life in excess of 90 years." He added that "We believe the size, the
scalability and the very high percentage of large flake graphite in the Bissett
Creek deposit makes it unique in the world."




                    Bissett Creek Flake Graphite Deposit                    
                  2011 Updated Mineral Resources (Diluted)                  
----------------------------------------------------------------------------
                        Indicated                       Inferred            
----------------------------------------------------------------------------
%Cg Cut-off                          In Situ                         In Situ
             Tonnage(i)           Graphite(i Tonnage(i)           Graphite(i
                 (metric    Cg(%) i) (metric     (metric    Cg(%) i) (metric
                   tons)   by LECO     tons)       tons)   by LECO     tons)
----------------------------------------------------------------------------
0.986         25,983,000      1.81   470,300  55,038,000      1.57   864,100
----------------------------------------------------------------------------
1.227         24,588,000      1.85   454,900  50,472,000      1.62   817,600
----------------------------------------------------------------------------
1.50          19,954,000      1.99   397,100  33,672,000      1.81   609,500
----------------------------------------------------------------------------
1.75          16,031,000      2.34   375,100  21,417,000      2.21   473,300
----------------------------------------------------------------------------
2.0           11,921,000      2.50   298,000  14,584,000      2.37   345,600
----------------------------------------------------------------------------
  Relative density 2.63t/m3, 10% dilution, 90% mine recovery, (i)rounded to 
                   nearest 1k, (ii)rounded to nearest .1k                   
                        Effective September 12, 2011                        



The Company is currently completing a bankable Feasibility Study ("FS") which
will be based on indicated resources only. The FS is expected to be completed
and filed on Sedar by year end. All mine permitting is expected to be completed
in the first quarter of 2012 at which time the Company will be in a position to
initiate construction subject to positive results from the FS and the
availability of financing.


The new mineral resource estimate was prepared by Francois Thibert, M.Sc. P.
Geo. from SGS Canada Inc. (Geostat), independent Qualified Person under NI
43-101, using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and Reserves, Definitions and Guidelines. Don
Baxter, P.Eng, President of the Company and a "Qualified Person" under NI
43-101, is responsible for and has reviewed and approved the technical content
of this press release.


The mineral resources were estimated using analytical data from 50 recent
surface drill holes and 162 historical surface drill holes for which 2,745
samples were assayed for Cg using the LECO analytical method. The deposit was
historically drilled on an approximately 64m x 46m drill pattern with one area
drilled on a 25m x 25m grid. Recent drilling was carried out on a wider 100m x
100m grid. Interpretation on 25m spaced N68 degrees  sections and modeling of a
3D wireframe envelope was completed to outline the mineralized graphitic
horizon. A block model of 10 m (E-W) by 10 m (N-S) by 6 m (vertical) was
interpolated using geostatistical methods (ordinary kriging) within the
mineralized envelope. It covers a strike length of approximately 1,300m and it
reaches a maximal depth of 100m below surface. Spatial continuity of the Cg
composites was assessed by variography and it showed good continuity of grade in
almost all directions within the horizontal plane but very limited continuity
within the vertical plane. An anisotropic search ellipsoid was selected for the
grade interpolation process based on the analysis of the spatial continuity of
Cg composites. 6m bench composites were used to reflect an assumed bench height
of 6m. No capping was applied to composites Cg grades.


About Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in
the Bissett Creek graphite project, located 17kms from the Trans Canada highway
between Ottawa and North Bay, Ontario. 


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, fuel cells and nuclear power have the potential to create
significant incremental demand growth. It takes 20 to 30 times as much graphite
as lithium to make a Li ion battery 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. Both the European Union and the United States have declared
graphite a supply critical mineral. 


Northern Graphite is well positioned to benefit from this compelling
supply/demand dynamic with a near term development project located in Canada and
close to infrastructure. Almost 100% of Bissett Creek production will be large
flake, high purity graphite which is required for high value, high growth
applications. Additional information on Northern Graphite Corporation can be
found under the Company's profile on SEDAR at www.sedar.com and on the Company's
website at www.northern graphite.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.