Northern Graphite Corporation

(NGC:TSXV, NGPHF:OTCQX)

The New Strategic Mineral

Forward Looking Statements

This Presentation may contain forward-looking information which may include, but is not limited to, statements with respect to: timing of the receipt of governmental approvals and/or acceptances; targets, estimates and assumptions in respect of production and prices; amount and type of future capital expenditures and capital resources; mineral reserves and mineral resources; anticipated grades; recovery rates; future financial or operating performance; costs and timing of the development of new deposits; costs, timing and location of future drilling; production decisions; costs and timing of construction; operating expenditures; costs and timing of future exploration; and environmental and reclamation expenses. There can be no assurance that future required regulatory approvals will be obtained or that anticipated transactions or proposed work and construction programmes will be completed satisfactorily. Often, but not always, forwardlooking statements can be identified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates, or believes or variations (including negative variations) of such words and phrases, or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries and/or its affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forwardlooking statements contained herein are made as of the date of the applicable public record document which the information is derived from and the Company has disclaimed any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. Unless indicated otherwise, all dollar figures are in U.S. dollars.

CAUTIONARY STATEMENT REGARDING MINERAL RESOURCES

This presentation and other information released by the Company uses the terms resources, measured resources, indicated resources and inferred resources. United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Mineral resources that are not mineral reserves do not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Inferred resources are in addition to measured and indicated resources. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained herein or in other information released by the Company in the past and in the future, have been or will be prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. The requirements of NI 43101 are not the same as those of the SEC.

The Newest Strategic Mineral

Growing industrial demand from emerging economies
- Prices have more than tripled

Demand growth from new applications

- Li ion batteries, fuel cells, VRBs, nuclear power

Chinese supply concerns (70-80% of world production) EU and USA have named graphite a supply critical mineral The leading undeveloped graphite deposit
- Large flake, high purity, scalable

Located in Canada, close to infrastructure Simple mining & metallurgy BFS completed and permitting expected 4Q-2012

Graphite 101
One of two natural carbon polymers (diamonds) Highest natural strength/stiffness of any material Corrosion and heat resistant Excellent conductor of heat and electricity High lubricity Lightest weight of all reinforcements

What is Graphite Used For?

5% annual growth rate this decade
Driven by Asian steel and auto markets

Large and Growing Industrial Market

Nickel 1,770,000
(tpy)

Graphite
(50% flake, 50% amorphous)

1,019,000
250,000 124,000 98,000 72,000 60,000 50,000 34,000

Molybdenum REE (oxides) Cobalt Tungsten Vanadium Uranium Lithium

Green Energy Technologies

Four emerging technologies with potential to use

multiples of current annual production

Lithium ion batteries Fuel cells Pebble bed nuclear reactors Vanadium redox batteries

All have commercial versions now Future demand not dependent on one technology

Lithium Ion Batteries

Graphite is the anode material - no substitutes There is 12 times more graphite than Li in a Li ion battery

and it takes 30-40 times more graphite to manufacture them due to losses during processing 20-30% annually

Current Li ion battery demand 30,000 tpy and growing

- Replacement of traditional battery technologies

Li ion batteries in cars will lead to rapid demand growth

(2kg of graphite in HEV, 25-50kg in EV)

Incremental Li Carbonate Demand in 2020

(000 tonnes)
EV Market Penetration 1% HEV Market Penetration 5% 10% 15% 20% 25% 49 82 116 150 183 5% 109 143 176 210 244 10% 185 218 252 286 319 15% 260 294 328 361 395 20% 336 370 403 437 470

(Canaccord Research)

Required Annual Flake Graphite Production

(000 tonnes)
2020 EV Market Penetration 1% 5% 2020 HEV Market Penetration 10% 15% 20% 25% 286 479 678 877 1,070 5% 637 836 1,029 1,228 1,310 10% 1,082 1,274 1,473 1,672 1,865 15% 1,520 1,719 1,918 2,111 2,310 20% 1,965 2,163 2,356 2,555 2,748

Current annual flake graphite production is 500,000 tonnes

-one tonne of Li carbonate equals 0.1879 tonnes of Li metal -one tonne of Li metal requires 10.375 tonnes of graphite -3 tonnes of graphite flake required to make 1 tonne of spherical graphite for Li ion batteries -THIS CHART PREPARED BY NORTHERN GRAPHITE

Fuel Cell Demand

All major car companies are working on fuel cell vehicles

(which contain 80kg of graphite) fuel cell vehicles by 2015

Toyota sees a clear path to commercial introduction of Dr. Yucong Wang, Manager, Department of Materials

Technology, GM believes that fuel cells will play a major role in vehiclesApril, 2012 California retail sites, as well as operating fuel cellpowered forklifts at several warehouses could consume as much graphite as all other uses combined USGS, 2009
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Walmart uses fuel cells to generate power at 17 of its

Large-scale fuel-cell applications are being developed that

Vanadium Redox Batteries

leading energy storage system for renewable energy sources such as wind/solar virtually unlimited storage capacity, long battery life, low maintenance requirements, nominal environmental footprint. 300 tonnes of graphite per 1,000MW VRB

Pebble Bed Nuclear Reactors

Smaller, safer, less costly to permit, build and operate Fuel is uranium embedded in graphite balls
-3,000t of graphite to start, 600-1,000 tpy per 1,000MW

China has operating prototype, and state-owned Huaneg

Group is building two pebble-bed reactors of 200MW each

-One of top 16 priorities in 2006-2020 Plan -30 planned by 2020

Chinese Production/Exports to Decline

70% of global production from China
-Mainly low carbon, low value powder or small flake

Near surface, low cost oxide deposits being depleted

-Mines deeper, higher cost, lower quality

Modernization and consolidation of industry

-Increasing labor & environmental standards

Emphasis on value added processing Export taxes, VAT and export licenses imposed
- Producers ask for rare earth type protection - Amorphous graphite monopoly already created - Strict standards proposed for new graphite mines

A Compelling Supply/Demand Story

Growing demand from traditional uses Growing demand from new industrial applications Growing demand from green energy technologies Market dependence on Chinese Chinese supply issues Lack of exploration, investment and new projects

Graphite Prices
Price Range for +80 mesh, 94-97%C graphite $3,250 $3,000

Demand growth combined with supply concerns have $2,750 $2,500 led to 78% price increase over the past 4 years
$2,250 $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $0 2004 2005 2006 2007 2008 2009 2010 2011 20

Source: Industrial Minerals Magazine

Low

High
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Premium Price for Size/Purity

Concentrate Purity

(US$/tonne)

80-85% C Extra Large (+50) $600-800

90% C $1,400-2,000 $1,150-1,450 $1,100-1,400 -

94-97% C +$2,200 $1,800-2,200 $1,300-1,900 $1,200-1,800 Bissett Creek

Flake Size

Large (-50 +80) Medium (-80 +100) Fine (-100) Amorphous powder

Source: Industrial Minerals Magazine

Large Flake, High Purity Deposit

Even if some mines increase their production, this will not solve

the persisting supply problem for large flake crystalline graphite . Technographit, Feb/2009 amorphous graphite and there is a potential mismatch between supply and demand for flake graphite .Roskill Aug/2009 decreased production capacity of Chinese mines Technographit, Mar. 2010 Industrial Minerals Magazine May, 2011

Consumption of flake graphite is growing at the expense of

Presently, large flake graphite supply is very tight due to

The days of cheap, abundant graphite from China are over.

Spherical Graphite Value Added Processing

Used to make the anodes in Li ion batteries Made from concentrate produced by mine Concentrate must be micronized, rounded and

purified to 99.95%C

NGC is developing proprietary process and has successfully

upgraded its graphite to spherical and tested in batteries

Spherical graphite sells for $6-8,000 per tonne Objective is to provide Li ion battery manufacturers with a stable,

secure source of supply that is produced in an environmentally acceptable manner

Bissett Creek Project

100km east of North Bay,

Ontario

Easily accessible, 17km

from Trans-Canada hwy, close to infrastructure North American steel and automotive markets

Close proximity to major

Freight cost advantage

100 km

Large Scalable Graphite Resource

Full feasibility study in 1989 (including P&P reserve*) 2010 NI 43-101 Preliminary Economic Assessment** 2011 Resource expansion** 2012 bankable Feasibility Study
2011 Updated Mineral Resources (Diluted)**
Indicated Inferred

%Cg Cut-off
0.986 1.227 1.50 1.75 2.0

Tonnage (metric tons)

25,983,000 24,588,000 19,954,000 16,031,000 11,921,000

Cg(%) by LECO
1.81 1.85 1.99 2.34 2.50

In Situ Graphite (metric tons)

470,300 454,900 397,100 375,100 298,000

Tonnage (metric tons)

55,038,000 50,472,000 33,672,000 21,417,000 14,584,000

Cg(%) by LECO
1.57 1.62 1.81 2.21 2.37

In Situ Graphite (metric tons)

864,100 817,600 609,500 473,300 345,600

*Historical information is presented for information purposes only. The Feasibility Study and Reserve estimates were not completed in accordance with NI 43-101 and therefore should not be relied upon. ** Mineral resources are not mineral reserves and do not have demonstrated economic viability. ***The 43-101 Preliminary Assessment includes inferred mineral resources which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the results projected in the Preliminary Assessment will be realized and actual results may vary substantially.

Expansion Potential

Limit of surface outcrop Limit of inferred resources BFS pit (indicated resources)

500 meters

Simple Mining
Deposit at surface, no overburden Continuously mineralized throughout Low waste-to-ore ratio Conventional open pit mining

100m

Typical cross-section of Bissett Creek orebody

Simple Metallurgy
Bulk sampling, pilot plant testing, and extensive lab work previously completed by Cominco/Kilborn/BD Conventional flotation processing (92-95% recoveries) Confirmed by independent tests in 2007 and 2011 including bulk sample and pilot plant tests Low crushing and grinding costs High recovery of large flakes High purity concentrate
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Large Flake, High Purity Concentrate

Bissett Creek Production
20% 35% 35% 10%

+32 mesh XXL flake +50 mesh XL flake +80 mesh large flake +150 mesh medium/fine flake

98%C 97%C 96%C 94%C

BFS Parameters
C$102.9M capital cost (incl. $9.2M contingency) 2,500 tpd plant capacity 19,000 tpy of graphite production (1st five years) 0.50 waste-to-ore ratio Cash cost of $851/t of concentrate (1st five years) 23 year life-of-mine with expansion potential

Timeline to Production
Approval of Mine Closure Plan Financing Start Construction Commercial Production 4Q-2012 4Q-2012 4Q-2012 1Q-2014

High Price Leverage

Graphite Price (US$/t) Pre-tax Average annual cash flow (1st 5 yrs) IRR NPV @8% ($ millions) After-tax Average annual cash flow (1st 5 yrs) IRR NPV @8% ($ millions) $30.8M 22.4% $125.0 $21.3M 13.7% $46.9 $34.0M 25.9% $182.8 $21.3M 15.6% $71.7 $2,800 $2,100

Upside Potential
Upgrading inferred to indicated (higher grade and
production, lower costs and longer mine life than BFS)

Owner vs contract mining will reduce costs to $800/t Metallurgy indicates grade understated by 4-12% Capital cost savings Value added processing (spherical graphite) Higher graphite prices (economic growth, supply
disruptions)

Mine expansion
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Northern Graphite Share Structure

Shares Outstanding Warrants Options Fully-Diluted Management & Insiders Geologic Fund Sprott Global 46,873,138 2,279,623 3,500,000 52,652,761 10% 10% 6%

- $10 million in cash, no debt

Experienced Management & Board

Formerly Senior VP, Orezone Gold Corporation

Gregory Bowes B.Sc (geology), MBA

CEO and Director President Chief Financial Officer Director Director

Don Baxter P. Eng

Formerly President, Ontario Graphite Corporation

Stephen Thompson CA CPA (Illinois) Ron Little P. Eng

Formerly Vice President Finance, Ottawa Hydro Limited President and CEO, Orezone Gold Corporation (ORE:TSX)

Iain Scarr B.Sc (geology), MBA Jay Chmelauskas MBA K. Sethu Raman PhD Don Christie CA George Hawley

Former Commercial Director, Rio Tinto industrial minerals division, VP Corporate Development, Lithium One President/Director, Westerm Lithium Corp. Independent Mining Consultant Former CFO, Continental Gold

Director Director Director Technical Advisor

40 years of experience in industrial minerals R&D, market analysis and development

Value Proposition
Large, growing industrial market Demand growth from emerging applications Supply concerns with China Highest percentage of large flake production Highest revenue & margin/tonne of concentrate Only mine with 3-4x scalable production Close to infrastructure/markets/transportation Simple mining & metallurgy BFS completed, full permitting by late 2012 One year to build mine
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Whats Next?
Permitting Value added processing Strategic partners/offtake agreements Financing/Construction/Production Mine expansion