Resource World Magazine

Mi NiNg Northern Graphite – capitalizing on a growing global demand for graphite by Brandon Larson Reports say that over 5 million iPhone 5s were sold the first weekend they were available. Five million! Each of these iPhone's contains a lithium (Li) ion battery and each of those batteries contains graphite. Other products that also include Li ion batteries are laptops, portable music players and digital cameras, to name a few. Additionally, graphite is present in the Li ion batteries that are used in the ever growing hybrid and all electric vehicle industry, in fact, Northern Graphite Corp. [NGC-TSXV] reports that "there is more than 10 times as much graphite as lithium, in a Li ion battery and that it actually takes 30 to 40 times as much graphite to manufacture these batteries due to losses in the process." Over 70% of the worlds graphite supply is produced in China and almost all Li ion batteries are manufactured in Asia. Any graphite that isn't used domestically in China and is exported is subject to a 20% export duty, a 17% VAT (value added tax) along with the requirement of an export license. Taking into account all of these considerations, both the European Union and the United States have declared graphite a supply critical metal. Northern Graphite is focused on mining graphite in Canada where they own a 100% interest in the Bissett Creek mining lease. With their head office in Ottawa, Ontario, they are able to keep a pretty close eye on their project which is two hours west by car and close to the TransCanada Highway. The proposed project involves the construction of an open pit mine, a processing plant and a natural gas fueled power generating plant consisting of five 1.0 MW-generators. The natural gas will be piped 15 km from an existing Trans Canada pipeline. The company recently completed a bankable feasibility study (BFS) that was NOVEMBER 2012 released on July 9, 2012. "The BFS confirms the technical and financial viability of constructing and operating an open pit mine and a 2,300 tpd processing plant on the Bissett Creek property and establishes Northern Graphite as an industry leader with a large flake, high purity, scalable deposit that is located close to infrastructure and has very competitive operating costs," says Chief Executive Drilling program on Bissett Creek property. Officer, Gregory Bowes. Bowes added photo courtesy of Northern graphite. "This is a conservative and realistic study that indicates the project has attractive economics and that there are a number of effect of softer graphite prices." Accordingly, the company recently immediate, low risk opportunities to furannounced that it had commenced a 3,000ther enhance project returns." metre drill program to bring some higher Results of the feasibility study were as grade inferred resources into the BFS pit rather than processing a lower grade stockfollows: pile. Also, AGP Mining Consultants has Probable reserves (tonnes) 18,977,000 been retained to review assay procedures Grade (graphitic carbon) 1.89% to investigate why graphite production Waste to ore ratio 0.50:1 from pilot plant and locked cycle testing Processing rate 2,300 tpd was up to 12% higher than expected, indi(92% availability) cating the grade is potentially understated. Mine life 23 years AGP will update the current resource Mill recovery 94.7% (years 3 to 23) and reserve estimates, mine design and Average annual production 18,600t economic model once the new drilling (first 5 years) (tonnes of graphite concentrate at 94.5% C) program and assay review are completed which is expected to be before year end. Environmental and mine permitting Bowes has further stated the "there are very few development stage graph- are expected to be completed by Q4 2012 ite companies and Northern [Graphite] is and as long as the required financing is in the only one that has disclosed complete place, construction of the mine can begin. independent, bankable feasibility level Construction is expected to last approxiconfirmation of reserves and resources, mately one year. CEO, Gregory Bowes, has over 30 years capital and operating costs, metallurgy, flake size distribution, carbon content of of experience in the resource and engiconcentrates, etc." He added that "While neering industries. He holds an MBA economies in the US, Europe and China from Queens University and an Honours have slowed, the BFS has identified a num- B.Sc., Geology degree from the University ber of immediate, low risk opportunities of Waterloo. Bowes was previously with to increase production and further reduce Orezone Gold Corp. most recently as Senior costs which we believe will offset the Vice President. n www.resourceworld.com 37

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