Northern Graphite - Bissett Creek

Corporate Overview

Nov 7, 2014

Northern Graphite Corporation is an Ottawa-based Canadian mine development company that trades on the TSX Venture Exchange under the symbol “NGC” and on the OTCQX under the symbol “NGPHF”.
Northern’s principal asset is the Bissett Creek graphite project located 100km east of North Bay, Ontario and close to major roads and infrastructure. The Company has completed an NI 43-101 bankable final Feasibility Study and received its major environmental permit making it the most advanced new graphite project.  Additional operational permits and species-at-risk permitting is required to commence operations and is expected to be received in 2015.  Northern anticipates that it will be in a position to begin construction of the mine later in 2015, subject to the availability of financing.
Bissett Creek has the best location/infrastructure, lowest capital cost and highest margin of any new graphite project.  It will have 90% large and XL flake production (no one else is at 50%) and also will have the highest percentage of battery grade production.
Graphite prices have almost tripled since 2005 due to the ongoing industrialization of China, India and other emerging economies and resultant strong demand from traditional steel and automotive markets. However, new applications such as lithium-ion batteries, fuel cells and nuclear power have the potential to create significant, incremental demand growth in the future. For example, there is 10-12 times more graphite than lithium in lithium-ion batteries, and it takes 30-40 times as much graphite to manufacture these batteries due to losses during processing. The use of li-ion batteries is growing rapidly in consumer electronics and this trend will continue with the increased use of hybrid and all electric vehicles.
China produces 70% of the world’s graphite and is seeing production and export growth leveling off, costs increasing and quality declining.  As a result, export taxes and a licensing system have been instituted and graphite and the rare earth elements now share the same ”security of supply” issues.  For these reasons, the European Union and the USA have both named 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.