Northern Graphite Corporation
TSX VENTURE : NGC
OTCQX : NGPHF

Northern Graphite Corporation

January 31, 2012 16:05 ET

Northern Graphite Announces Completion of Distribution of Northern Graphite Shares by Mindesta

OTTAWA, ONTARIO--(Marketwire - Jan. 31, 2012) -

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

Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) ("Northern" or the "Company") announces that Mindesta Inc. (OTCBB:MDST) ("Mindesta") has completed the previously announced distribution of Northern shares to its shareholders. Under the distribution, which was completed effective at the close of trading on January 25, 2012, Mindesta distributed a total of 9,413,581 Northern shares owned by it to its shareholders as a dividend-in-kind on the basis of one share of Northern for each share of Mindesta held. Mindesta has mailed to all shareholders entitled to receive the dividend an instruction letter which they are required to complete and return to Mindesta's transfer agent in order to effect delivery of the share certificates representing their Northern Shares.

Prior to the completion of the distribution, Mindesta held a total of 9,750,000 common shares of Northern, of which 7,312,500 shares remained in escrow under escrow arrangements established in connection with the initial public offering of Northern completed in April 2010. In order to effect the distribution, 6,976,081 of the shares held in escrow were released from escrow, while 2,437,500 shares had been previously released from escrow in accordance with the terms of escrow. Following the completion of the distribution, Mindesta now holds a total of 336,419 common shares of Northern, of which 252,314 shares remain in escrow. In addition, certain principals of Mindesta, as shareholders of Mindesta, received shares of Northern under the distribution and certain of these shares were placed in escrow in accordance with the terms of escrow. Following the completion of the distribution, a total of 2,087,325 shares of Northern remain in escrow, as well as 803,574 Northern common share purchase warrants and 926,437 shares of Mindesta, all of which are scheduled to be released in five equal amounts every six months with the next release date being April 19, 2012.

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 (TSX VENTURE:NGC) is a Canadian company that has a 100% interest in the Bissett Creek graphite project which is located 17kms from the Trans Canada highway between Ottawa and North Bay, Ontario. The Company has completed a preliminary assessment on the project and is in the process of completing a pre-feasibility study and permitting with the objective of initiating construction, subject to the results of the study and the availability of financing, in the first part of 2012.

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. However, production and exports from China, which produces 70% of the world's graphite, 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. With limited worldwide exploration and few potential development projects on the horizon, the Company is well positioned to benefit from the continued improvement in graphite demand and prices. High growth, high value graphite applications require large flake and/or high purity graphite which will represent 100% of Bissett Creek production.

Additional information on Northern Graphite Corporation 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.

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.

Contact Information

  • Gregory Bowes,
    CEO
    (613) 241-9959

    Don Baxter,
    President
    (705) 789-9706