Northern Graphite Receives Approval for Stock Option Grant

Northern  Graphite  Receives  Approval  for  Stock  Option  Grant    

August  17,  2017  –  Northern  Graphite  Corporation  (NGC:  TSXV,  NGPHF:OTCQX)  (“Northern”  or  the  “Corporation”)  

announces   that  it   has   received  approval  for   the   grant   of   500,000   stock   options  to  non-­‐executive   directors  as  

disclosed  in  its  press  release  dated  April  29,  2016.    The  grant  of  these  options  was  subject  to  acceptance  by  the  TSX  

Venture  Exchange  (“TSXV”)  which  was  received  on  August  14,  2017,  and  disinterested  shareholder  approval  which  

was   received   at   the   Corporation’s   annual   meeting   of   shareholders  held  on  June   5,   2017.     Accordingly,   these  

options   are   now   exercisable   in   full.    Non-­‐executive   directors  to   whom   the   options   were   granted   had   previously  

held  500,000  stock  options  of  the  Corporation  which  were  voluntarily  cancelled  in  December,  2015  and  as  a  result,    

both  TSXV  and  disinterested  shareholder  approval  were  required.  

Further  to  the  Corporation’s  press  release  dated  March  27,  2017  announcing  the  closing  of  a  non-­‐brokered  private  

placement  of  8,333,333  units  at  a  price  of  $0.30  per  unit  for  gross  proceeds  of  $2.5  million,  the  Corporation  wishes  

to  provide  supplemental  disclosure  that  two  directors  of  the  Corporation  participated  in  the  private  placement  and  

subscribed   for  223,333  units  for   gross   proceeds   of   $67,000.     Such   subscriptions   constituted   a   “related   party  

transaction”  under  Multilateral  Instrument  61-­‐101  Protection  of  Minority  Security  Holders  in  Special  Transactions  

(“MI  61-­‐101”).  The  Corporation  relied  on  exemptions  contained  in  Sections  5.5(a)  and  5.7(1)(a)  of  MI  61-­‐101  from  

the   formal   valuation   and   minority   shareholder   approval   requirements   of   MI   61 -­‐101   for   the   related   party  

transaction,  as  neither  the  fair  market  value  of  securities  issued  to  insiders  nor  the  consideration   paid  by  insiders  

exceeded  25%  of  the  Corporation’s  market  capitalization.  The  Corporation  did  not  file  a  material  change  report  21  

days  prior  to  the  closing  of  the  private  placement  as  the  details  of  the  participation  of  the  related  parties  of  the  

Corporation  had  not  been  confirmed  at  that  time.        

About  Northern  Graphite  Corporation  

Northern  Graphite  is  a  Canadian  company  that  has  a  100%  interest  in  the  Bissett  Creek  graphite  deposit  located  in  

southern  Canada  and  relatively  close  to  all  required  infrastructure.    Bissett  Creek  is  an  advanced  stage  project  that  

has   a   full   Feasibility   Study   and   its   major   environmental   permit.     Subject   to   the   completion   of   operational   and  

species  at  risk  permitting,  which  are  well  advanced,  Northern  could  commence  constructio n  in  early  2018  subject  

to   obtaining   the   required   financing.     Northern   believes   that   Bissett   Creek   has   the   best   flake   size   distribution,  

highest   margin   and   lowest   marketing   risk   of   any   new   graphite   project,   and   has   the   added   advantages   of   a   low  

capital  cost  and  realistic  production  target  relative  to  the  size  of  the  market.    

For  Additional  Information  Please  Contact:     Gregory  Bowes,  CEO  at  (613)  241-­‐9959  

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.