Northern Graphite Receives Major Permit Approval and Mining Lease

Northern Graphite Receives Major Permit Approval and Mining Lease 
TORONTO, ONTARIO -- (Marketwired) -- 08/26/13 -- Northern Graphite
Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) announces that the
Ministry of Northern Development and Mines ("MNDM") has accepted the
Company's Mine Closure Plan ("MCP") for filing and that the Company
has been granted a mining lease for the Bissett Creek project. This
effectively means the Company can start construction, subject to the
availability of financing. 
The MCP is an all-encompassing document that describes the nature of
the operations that will be carried out, current baseline
environmental conditions, potential effects on the environment
together with appropriate mitigation measures, and the Company's plan
for rehabilitating the site to its natural state at the end of
operations. A number of other permits relating to air, noise, water,
species at risk, etc. are required prior to the commencement of
production and will follow in the normal course now that the MCP has
been filed. Most of these issues are already addressed in the MCP. 
Gregory Bowes, CEO commented that: "We look forward to getting on
with the next phase of a project that has the potential to generate
substantial benefits for local and First Nation communities and the
people and province of Ontario, as well as the Company's
shareholders. It is unfortunate that it took the Ontario government
10 months to approve the MCP when it is represented as a 45 day
process." 
Revised Feasibility Study Economics 
The economics in the existing bankable Feasibility Study ("FS") are
being revised to incorporate a new and much larger resource as well
as lower graphite prices and a number of modifications to the
original capital and operating cost assumptions. Contract mining will
be replaced by owner mining which is expected to reduce operating
costs by over $100 per tonne of concentrate. Approximately $7 million
in capital will be added for mining equipment but will be largely
offset by a number of reductions including the removal of costs for
detailed engineering which is already underway, modifications to the
SAG mill drive and discharge, use of a mobile crusher and removal of
a redundant mill circuit. The revised economics are expected to be
completed within a couple weeks. 
The Company has also initiated a Preliminary Economic Assessment to
show the economics of doubling production in three or four years to
meet the anticipated growth in graphite demand. The potential mine
life is currently over 80 years based on measured and indicated
resources only. Due to the flat lying nature of the deposit,
production can be expanding without a significant increase in the
stripping ratio and capital or operating costs. 
Northern Graphite Corporation  
Northern Graphite is a Canadian company that has a 100% interest in
the Bissett Creek graphite deposit located in eastern Ontario and is
well positioned to benefit from the favourable supply/demand outlook
for graphite. Northern Graphite is the only graphite company to have
completed a bankable Feasibility Study and be permitted for
construction. Bissett Creek is a large flake, high purity deposit
with low engineering, technical and political risk, reasonable
capital costs and 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. 
Marc Leduc, P.Eng, a "Qualified Person" under National Instrument
43-101, is responsible for and has reviewed and approved the
technical content of this press release.  
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.  
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Northern Graphite Corporation
Gregory Bowes
CEO
(613) 241-9959 
Northern Graphite Corporation
Stephen Thompson
CFO
(613) 241-9959
www.northerngraphite.com