Northern Graphite Successfully Produces and Tests Spherical Graphite for Use in Lithium Ion Batteries

Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to
announce that the Company has successfully manufactured test quantities of
spherical graphite from graphite concentrate produced from the Company's 100%
owned Bissett Creek deposit. The spherical graphite has been evaluated in
Lithium/graphite battery test cells and the performance of these cells
demonstrated that it meets or exceeds current commercial performance
requirements and that Bissett Creek graphite does not contain any impurities
that negatively affect cell performance. Further test cycles are on-going. The
cells were made and testing carried out in a highly qualified, independent
laboratory. 


Gregory Bowes, Chief Executive Officer, commented that: "Value added processing
such as the manufacture of spherical graphite is a big part of Northern Graphite
strategy to create value for shareholders." He added that: "As a result of work
that has been completed over the last two years we can now provide potential
strategic and offtake partners with representative test samples of graphite
concentrate produced using the same flow sheet that will be employed in a full
scale mine, and spherical graphite based on that concentrate."


About Spherical Graphite 

Spherical graphite is used to make the anodes in Li ion batteries and is
manufactured from the flake concentrate produced by graphite mining operations.
The upgrading process consists of micronizing the graphite flakes, rounding them
to create a spherical or "potato" shape, and purifying them to increase the
carbon content to 99.95%. Northern Graphite micronized and rounded its Bissett
Creek graphite to basic industry specifications and can modify it to meet the
requirements of various products and manufacturers. Spherical graphite sells for
much higher prices than run of mine graphite concentrates and could further
enhance the economics of the Bissett Creek Project.


Currently, almost all spherical graphite is produced from small flake
concentrates (-100 to +150 mesh) and 70% of the graphite is destroyed in the
process. As a result, it takes three tonnes of small flake graphite to make one
tonne of spherical graphite. These losses are the single largest cost in the
manufacturing of spherical graphite. However, Northern Graphite has achieved
spherical graphite yields from its large flake concentrate as high as 70% which
will substantially reduce production costs. The large flake nature of the
Bissett Creek deposit provides the Company with the flexibility to sell its
concentrates into high value, large flake markets or produce spherical graphite
at competitive costs for the Li ion battery market.


Almost all spherical graphite is currently produced in China and purified using
strong acids which results in large volumes of acidic and toxic waste. This
method is not environmentally sustainable as the demand for, and production of,
Li ion batteries increases. It is also inconsistent with the green energy
objectives of the hybrid and all electric car industry. The high quality and
purity of graphite from Bissett Creek has enabled the Company to develop a
proprietary purification technology that is environmentally friendly and
sustainable. The technology works at much lower temperatures than traditional
thermal purification techniques and will result in lower capital and operating
costs.


Value Added Processing 

Based on the positive test results, the Company will commence engineering and
design work to define the capital and operating costs of a facility to upgrade
Bissett Creek graphite concentrate into spherical graphite. The objective is to
provide Li ion battery manufacturers with a stable, secure source of supply that
is produced in an environmentally acceptable manner. This facility will
initially be based on the approximately 20% of Bissett Creek production that is
-80 mesh with the ability to scale it to larger volumes in the future.


Don Baxter, P.Eng, President of the Company and a "Qualified Person" under
43-101, is responsible for and has reviewed and approved the technical content
of this press release. 


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.


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.