Northern Graphite Corporation announced that as part of its ongoing review of the economics of the Bissett Creek graphite project (the "Project"), G Mining Services Inc. ("G Mining") has completed an analysis which indicates that increasing annual concentrate production by at least 20% can be achieved with a relatively modest 6% increase in capital costs for the first phase of development. Higher production would also reduce unit operating costs and is expected to have a very positive effect on the Project's net present value ("NPV") and internal rate of return ("IRR"). Accordingly, the Company intends to integrate an initial production rate of approximately 25,000 tonnes per year into its development plans. The first phase of development, for which a NI 43-101 Feasibility Study ("FS") has previously been filed, contemplated producing 20,800 tonnes of graphite concentrate per year with a capital cost of $101.6 million. Phase 2 involves a future doubling of production, based on measured and indicated resources only, to meet the expected growth in graphite demand. A Preliminary Economic Assessment ("PEA") encompassing both Phase 1 and 2 is available on Sedar and is the current NI 43-101 report on the Project. The sensitivity analysis estimated a pre-tax IRR of 30.1% (25.0% after tax) and a pre-tax NPV of $304.9 million ($198.2 million after tax) using an 8% discount rate. The Company anticipates that the higher production level and lower unit costs contemplated in the latest analysis will result in a meaningful increase in the Project NPV and IRR for both Phase 1 and Phase 2. The disclosure herein relating to Project economics is supported only by the sensitivity analysis within the PEA and does not reflect the PEA base case economic analysis. The PEA is based on Measured and Indicated resources only. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature and there is no certainty that the results of the preliminary economic assessment will be realized. A comprehensive metallurgical test program is currently underway at SGS Lakefield to confirm graphite recoveries, concentrate purity and flake size yield under a new simplified flow sheet and to bring testing up to feasibility level standards. Once these results are available, the Company will determine if it is necessary or beneficial to prepare and file a new NI 43-101 report.