Northern Graphite Comments on Market Activity and Provides Corporate Update

Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) (the "Company") announces that it is not aware of any reason for the recent rise in the Company's share price. There are no undisclosed material changes in the affairs of the Company that might have caused an increase.

Gregory Bowes, CEO, commented that; "recent Chinese restrictions on new and existing graphite producers, positive comments by industry analysts and the end of year end tax loss selling may all have had some effect." He added that: "the next few months will be very busy and we anticipate being in a position to make announcements on:

--  approval of the Mine Closure Plan which is the major permit needed to
    commence construction 

--  equipment financing 

--  the commencement of detailed engineering and design 

--  results from a review of assay procedures and the reasons for a
    potential grade understatement 

--  results of the 2012 drill campaign 

--  a new resource estimate with the objective of upgrading inferred
    resources to indicated 

--  guidance on the capital and operating costs of an upgrading facility to
    produce high purity and spherical graphite 

--  an update on the bankable feasibility study economics based on the new
    resource model 

Discussions with respect to strategic partnerships and offtake agreements are ongoing.