Northern Graphite Announces Metallurgical Testing, Confirms High Value Concentrates

Northern Graphite Announces Metallurgical

Testing, Confirms High Value Concentrates

Ottawa, Ontario--(Newsfile Corp. - February 22, 2021) - Northern Graphite Corporation

(TSXV:

NGC)

(OTCQB:

NGPHF

)

(the "Company" or "Northern") is pleased to announce that ongoing

metallurgical testing continues to confirm the high percentage of valuable, large flake concentrates that

will be produced from its Bissett Creek deposit.

Recent tests have averaged 22 per cent +32 mesh

(XXL) flake and 46 per cent +48 mesh (XL) flake.

Cumulatively, 95 per cent of concentrates produced

are expected to be greater than 80 mesh which is the cut-off for large flake

1

.

All figures are believed to

be the highest large flake yields reported from any worldwide graphite project.

Few deposits contain any appreciable amounts of XXL flake material.

As a result, the market is under

supplied and prices exceed US$2,000/tonne.

Currently, XL flake graphite sells for approximately

US$1,750/t, large flake for US$1,020/t and small flake for only US$600/tonne

2

.

The Company expects

that its concentrates will sell for a weighted average price of US$1,600/t in the current market.

Most

graphite deposits contain high percentages of smaller flake sizes and will realize US$1,000/t or less.

Larger flake sizes are used in high value, high margin industrial markets including the manufacture of

bipolar plates for fuel cells and vanadium redox batteries as well as primary batteries, thermal

management in consumer electronics, fire retardants, insulation products, ceramics, lubricants and many

other applications.

A recent independent study estimated that the Bissett Creek deposit will have the highest operating

margin of any current or proposed graphite mine.

This is due to its exceptional flake size distribution,

simple metallurgy and very favorable location with ready access to equipment, supplies, labor and

markets.

Gregory Bowes CEO commented that: "Northern already has a project with good economics based on

current prices and a realistic production level relative to the current size of the market.

The economics for

most projects are being presented using prices well above the current market and/or with high

production rates that would actually cause market prices to decline."

He added that: "Multiple new

graphite mines will ultimately be required to satisfy the projected growth in LiB/EV markets and to

provide secure, transparent, ethical sources of supply that are not dominated by the Chinese.

Increasing

demand is expected to lead to the higher prices required to stimulate such development."

SGS Lakefield previously carried out metallurgical testing to validate a simplified flow sheet with lower

capital and operating costs for the Bissett Creek Project.

Testing confirmed that the new flow sheet

could produce high purity concentrates albeit with a small decline in recoveries and large flake yields

compared to the original Feasibility Study.

While the net effect was positive in terms of the estimated

concentrate sales price, the lower large flake yield was unexplained.

Possibilities included the effect of

sample aging and a loss of material during multiple stages of core splitting, sampling and handling.

According, the Company recently drilled four twin/test holes and subjected both the new core and the

adjacent old core to flotation testing, the only accurate method of determining flake size distribution in a

sample.

To date, the twin holes have returned high and consistent +32 mesh yields that are as good or better

than testing completed during the feasibility study. The XXL flake yield from fresh, whole core samples

was also approximately 10 per cent higher than from comparable older, weathered samples.

This

indicates that flake loss likely does occur during sampling and handling and that the composites used in

the previous testing may have been compromised in some way.

1.

Based on industry standard of 80% meeting size specification

2.

CIF Europe

About Northern Graphite

Northern Graphite is a mineral development and technology company focussed on developing its Bissett

Creek graphite deposit and upgrading mine concentrates into high value components used in lithium-ion

batteries, electric vehicles, fuel cells, graphene and other advanced technologies.

An independent study

estimates that Bissett Creek will have the highest margin of any existing or proposed graphite deposit

due to its very favorable location, simple metallurgy and the high quality of its concentrates which

provides the Company with a competitive advantage in manufacturing products that enable the green

economy.

Bissett Creek is an advanced stage project with a full Feasibility Study and its major mining permit which

puts the Company in position to make a construction decision, subject to financing.

The Project is

located in the southern part of Canada between the cities of North Bay and Ottawa and close to the

Trans-Canada highway providing ready access to labour, supplies, equipment, natural gas and markets.

Investor Relations Consultant

Subject to the approval of the TSX Venture Exchange (the "TSXV"), the Company has entered into a

consulting contract with the Pretium Capital Group and Mr. Sherman Dahl to provide media and investor

relations services in compliance with the policies and guidelines of the TSXV and other applicable

legislation. The Agreement has an initial term of six months, provides for a monthly retainer of $5,000

and the Company has granted Mr. Dahl 200,000 incentive stock options exercisable at a price of $0.50

per share for a period of two years.

The options will vest as to 25 per cent at the end of each three month

period from the date hereof.

Mr. Dahl was previously a Vice President and an Investment Advisor with a

leading Canadian Investment dealer and is currently an independent, arms length investor relations and

financial professional based in Vernon, B.C.

He owns 650,000 shares of the Company as of the date

hereof and may purchase additional securities from time to time for investment purposes.

Qualified Person

Gregory Bowes, B.Sc. MBA, P. Geo., a Qualified Person as defined under National Instrument 43-101,

has reviewed and is responsible for the technical information in this news release.

For additional information

Please visit the Company's website at

http://www.northerngraphite.com/investors/presentation/

, the

Company's profile on

www.sedar.com

, or contact

Gregory Bowes, CEO (613) 241-9959.

This news release contains certain "forward-looking statements" within the meaning of applicable

Canadian securities laws. Forward-looking statements and information are frequently characterized by

words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential",

"possible" and other similar words, or statements that certain events or conditions "may", "will",

"could", or "should" occur. Forward-looking statements in this release include statements regarding,

among others; economic and technical studies, graphite prices, project economics, permitting, the

development timeline and the graphite market.

All such forward-looking statements are based on

assumptions and analyses made by management based on their experience and perception of

historical trends, current conditions and expected future developments, as well as other factors they

believe are appropriate in the circumstances. However, these statements are subject to a variety of

risks and uncertainties and other factors that could cause actual events or results to differ materially

from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or

their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or

labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and

the failure of ongoing and contemplated studies to deliver anticipated results or results that would

justify and support continued studies, development or operations. Readers are cautioned not to place

undue reliance on forward-looking information or statements.

Although the forward-looking statements contained in this news release are based on what

management believes are reasonable assumptions, the Company cannot assure investors that

actual results will be consistent with them. These forward-looking statements are made as of the date

of this news release and are expressly qualified in their entirety by this cautionary statement. Subject

to applicable securities laws, the Company does not assume any obligation to update or revise the

forward-looking statements contained herein to reflect events or circumstances occurring after the

date of this news release.

Neither the 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.

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/75064