USA Graphite Inc. Acquires the Gordon Creek Graphite Property

USA Graphite Inc. Acquires the Gordon Creek Graphite Property 
LAS VEGAS, NV -- (Marketwire) -- 12/07/12 --   USA GRAPHITE INC.
(OTCQB: USGT) is pleased to announce it has issued 2,000,000 shares
of the Company's common stock in order to exercise the Company's
initial option relating to the acquisition of the Gordon Creek
Graphite Property. This property consists of 10 lode claims in Elko
County, Nevada, covering an area of 206 acres. The area is a newly
discovered graphite occurrence with flake graphite present and
visible at surface.  
Elko County is a well-known mining district with world-class
companies such as Barrick Gold and Newmont Mining operating in the
area. The Property lies within the Eastern Humbolt Range, a
Cordilleran metamorphic core complex. This area of high-grade
metamorphism has both graphitic marble and graphitic gneiss. Direct
access to infrastructure, transportation and mining crews are also
very beneficial to the Company.  
The geological unit encompasses rusty-weathering graphitic paragneiss
interlayered with graphitic marble common at the stratigraphic base
of the unit. Further geological work will quantify the scale and size
of the graphite resource.  
The terms of the transaction are as follows: 
The financial terms of the transaction consists of approximately
$1,200,000 in cash and stock and $500,000 work program commitment. As
well, to pay a production Net Smelter Royalty (the "NSR") to NV
Minerals equal to two percent (2%) of the net smelter returns, per
the terms and conditions of the Option Agreement. The Company shall
have a one-time right to purchase fifty percent (50%) of the NSR in
the Property for five hundred thousand dollars ($500,000). All shares
issued under this transaction will be subject to an 18 month sales
restriction period.  
Mr. Wayne Y. Yamamoto, President and CEO of USA Graphite, said, "We
are excited to add the Gordon Creek Property to our graphite
portfolio. Encountering flake graphite at surface on the Gordon Creek
Property further confirms our commitment to own high quality graphite
projects in the USA."  
About Graphite:  

--  Graphite is used in refractories -- used to line high-temperature
    equipment; pencils; lithium-ion batteries -- used in consumer
    electronics and electric vehicles, including the Nissan Leaf, Tesla
    Model S and others; fuel cells; and Pebble Bed nuclear reactors. It is
    used in foundries, lubricants and brake linings.
--  Graphite is also used to produce graphene, a tightly packed single
    layer of carbon atoms that can be used to make inexpensive solar
    panels, powerful transistors, and even a wafer-thin tablet that could
    be the next-generation iPad* or iPod*.
--  Graphene, extremely light and strong, has been called the world's next
    wonder material.
--  The closure of graphite mines in China, which produces 75% of the
    world's graphite, has resulted in a fall in global graphite production
    to 1.3 million tonnes per annum in 2011. Like rare earths, China is
    restricting the export of graphite to protect its own domestic
    industries. The second largest producer is India, followed by Brazil,
    North Korea, Austria and Canada.

*trademarks of Apple Inc. 
About USA Graphite:  
USA Graphite is a publicly traded US exploration company focused on
the acquisition, exploration and development of world-class graphite
properties in North America. USA Graphite intends to become a
domestic (US) graphite supplier. The USGS has reported that the USA
has been a 100% net importer of graphite over the last 5 years,
sending billions of dollars out of America. USA Graphite has holdings
in Nevada, offering considerable potential for the discovery and
development of large flake, high-grade graphite, whereby
mineralization is exposed at surface and clearly evident at economic
depths. For additional information please visit  
"Safe Harbor" Statement:  
Under The Private Securities Litigation Reform Act of 1995: The
statements in the press release that relate to the Company's
expectations with regard to the future impact on the Company's
results from new products in development are forward-looking
statements, within the meaning of the Private Securities Litigation
Reform Act of 1995. Notice Regarding Forward-Looking Statements -
This press release includes forward-looking statements that involve a
number of risks and uncertainties, including the success of the
programs it is commercializing and developing. Further, the risks
involve the ability of the Company to raise capital to fund its
operations and the capital requirements for the development and
marketing of its products. Investors are encouraged to review the
risk factors listed or described from time to time in the Company's
filings (10K, 10Q's, S-1 and others) with the Securities and Exchange
USA Graphite Inc. 
Toll Free 1(888)603-3330 
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