Northern Graphite : Metallurgical Testing Indicates Potential to Reduce Capital and Operating Costs

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MetallurgicalTestingIndicatesPotentialtoReduceCapitalandOperatingCosts

May 8, 2018 - Northern Graphite Corporation (NGC:TSXV, NGPHF:OTCQX) ("Northern" or the "Company") announces that ongoing metallurgical testing being carried out by SGS Lakefield ("SGS") has identified a very promising opportunity to simplify the process plant design and reduce capital and operating costs for the BissettCreekProject.ThetestworkispartoftheCompany'splannedupdateofitsFeasibilityStudy("FS")and issubjecttofurtherevaluation,testingandcost/benefitanalysis.

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SGS evaluated a number of crushing and grinding options with the objective of creating a simpler, lower cost flow sheet that maximizes the recovery of high value, large and XL flake graphite and maintains concentrate puritylevels,whilesacrificingtherecoveryofsomelowervalue,smallerflakematerial.Theoriginalflowsheet intheFSconsistedofSAGmilling,flashflotation,regrindingfollowedbyrougherflotation,andthenpolishing and cleaning which lead to overall recoveries of up to 95 per cent.  Testing to date indicates that SAG milling alone,followedbyflotation,polishingandcleaning,canachieverecoveriesofupto90percentwithalmostno loss of large and XL flake production.  This creates the potential to remove a large regrind ball mill and the rougherflotationcircuitfromtheprocessplant. 

Ore from the Bissett Creek deposit is not "hard" compared to many conventional mining operations and it fractures easily along cleavage planes where the graphite flakes are located.  As a result, the graphite is liberated relatively easily with a minimum of crushing and grinding and little degradation of the large and XL flakes.  The Company intends to test the new approach on a number of samples from across the deposit to ensureresultsareconsistent.WhilethistestingprogramhasdelayedprogressontheCompany'sFSupdate,it couldleadtoameaningfulreductionincapitalandoperatingcosts.

 GregoryBowes,CEOcommentedthat:"AsignificantcompetitiveadvantageoftheBissettCreekProjectisthat it has one of the simplest flow sheets in the industry which contributes to it also having among the lowest processingcostspertonneofore.Recenttestresultshavecreatedthepotentialtoimproveprojecteconomics whicharealreadyattractiveatcurrent,relativelylowgraphiteprices."

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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.

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AboutNorthernGraphite

Northern Graphite is a Canadian development company with a 100% interest in the Bissett Creek graphite deposit, which is located in southeastern Ontario and relatively close to all required infrastructure.  The Company has completed a full FS, a PEA which includes a Phase 2 expansion, and has secured its major environmentalpermit.TheCompanybelievesBissettCreekhasthebestattributesrequiredofanewgraphite projectincludinglowinitialcapitalcosts,ahighprofitmarginandlowmarketingriskresultingfromaveryhigh percentage of large and XL flake and a realistic production level that can easily be expanded when market conditionswarrant. 

Foradditionalinformation,please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forwardlooking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; the FS, the PEA, graphite prices, project economics, permitting, the developmenttimelineandthegraphitemarket.

 Allsuchforwardlookingstatementsarebasedoncertainassumptionsandanalysesmadebymanagementinlightoftheir experience and perception of historical trends, current conditions and expected future developments, as well as other factorsmanagementbelieveareappropriateinthecircumstances.Thesestatements,however,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 intheforwardlookingstatements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,thefailureofexplorationprograms,includingdrilling programs,todeliveranticipatedresults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.

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Although the forwardlooking statements contained in this news release are based upon what management of the Companybelievesarereasonableassumptions,theCompanycannotassureinvestorsthatactualresultswillbeconsistent with these forwardlooking statements. 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.

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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.