NGC Northern Graphite Corp

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES 

Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) announces that it
plans to complete a non-brokered private placement of up to 5,882,353 common
shares at a price of C$1.70 per share for gross proceeds of up to C$10 million.
The shares issued under the placement will be subject to a four month hold
period from the date of closing. The placement is subject to the approval of the
TSX Venture Exchange. An affiliate of the Sprott Group of Companies and Geologic
Resource Partners LLC have agreed to subscribe for C$7.5 million of the
placement.


The net proceeds of the placement will be used to finance the completion of the
bankable feasibility study and permitting with respect to the Company's Bissett
Creek graphite project and for working capital and general corporate purposes,
as well as detailed engineering and design and the acquisition of long lead time
equipment upon the positive completion of the feasibility study. 


This press release is for information purposes only and shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall there be any sale
of the securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful.


About Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in
the Bissett Creek graphite project located in 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, vanadium redox 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 lithium 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 large flake, scalable deposit that is located close
to infrastructure. The Company expects to complete a bankable feasibility study
and full permitting in the first half of 2012, following which it could begin
construction, subject to the results of the study 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.

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