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NorthernGraphiteAwardsDetailedEngineeringandDesignContractforBissettCreek

CompanyimplementsfirstphaseofbankableFeasibilityStudy

January18,2013 NorthernGraphiteCorporation (NGC:TSX-V,NGPHF:OTCQX)ispleasedtoannouncethat

followingacompetitivebiddingprocessinvolvingfiveengineeringfirms,ithasawardeda$3.5millioncontract

forthedetailedengineeringanddesignoftheBissettCreekgraphiteprojecttoPES-BECMA.PES-BECMA,a

jointeffortbetweenPorcupineEngineeringServicesInc.andBECMALtd.,willberesponsible forthefrontend

engineeringanddesign(FEED)ofthe2,500tonneperdayprocessingfacility,andrelatedinfrastructure,that

willproduceapproximately20,000tonnesoflargeflake,highpuritygraphiteperyear.

GregoryBowes, Chief ExecutiveOfficer, commented that: We are very pleased tobe initiating the FEED

processwhichisthefirststepinimplementingthebankablefeasibilitystudy(FS).Itenablesustocontinue

advancingandde-riskingtheprojectwhilemaintainingthetimelinetoproduction,andtosolidifyourleading

positionintheindustry.WhilethegraphitemarkethassoftenedinlinewithslowergrowthinChinaandweak

economies in the US and Europe, the Company well positioned to benefit from a recovery with thecommencementofproductionscheduledforlate2014.

Thedetailedengineeringanddesignphaseisexpectedtotakesevenmonthstocompleteandcost$3.5million.

Itispartoftheestimatedcapitalcostsfortheprojectof$102.9million(includinga$9.4millioncontingency).

TheworkwillbefinancedoutoftheCompanyscurrentcashposition.

NorthernGraphiteCorporation

NorthernGraphiteCorporationisaCanadiancompanythathasa100%interestintheBissettCreekgraphite

deposit located in eastern Ontario. Northern Graphite is well positioned to benefit from the compelling

supply/demanddynamicthathasdevelopedin thegraphiteindustrywith ahighpurity,largeflake, scalable

depositthatislocatedclosetoinfrastructure.Permittingforconstructionisexpectedtobecompletedinthe

first quarter of 2013. Additional information on Northern Graphite Corporation can be found under the

CompanysprofileonSEDARatwww.sedar.comandontheCompanyswebsiteatwww.northerngraphite.com.

PorcupineEngineeringServicesInc.

Porcupine Engineering Services Inc. (PES) is a multi-disciplined engineering firm (mechanical, structural,

electrical and instrumentation) specializing in engineering and design work for the mining and mineral

processingindustry.PESismadeupofdisciplinedengineeringresourcesthat areaccustomedto supporting

mineralprocessingclientsfromfeasibilitytothedetailedengineeringlevelandthroughtoconstruction.PES

recently completeddetailed engineeringand designworkwith respectto a$100millionmillupgrade fora

Canadiangoldminer,andalsoparticipatedinandsupportedprocurementandconstructionmanagementfor

theproject.AdditionalinformationcanbefoundontheCompanyswebsiteatwww.pes-inc.ca.

BECMALtd.

BECMALtd. isa well-establishedCanadianengineeringcompany specializinginmaterialhandlingsystemsin

themetallurgicalandminingfieldsandhaspastandongoingEPCMexperienceinthegraphiteindustry.

DonBaxter,P.Eng,PresidentoftheCompanyandaQualifiedPersonunder43-101,isresponsibleforandhas

reviewedandapprovedthetechnicalcontentofthispressrelease.

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Thispressreleasedoesnotconstituteanoffertosellorthesolicitationofanoffertobuysecuritiesinany

jurisdiction.

Foradditionalinformation,pleasecontact:

GregoryBowes,CEOorStephenThompsonCFOat(613)241-9959

DonBaxterP.Eng,President(705)789-9706

This press releasecontains forward-lookingstatements,which canbe identifiedby theuse of statements that include

wordssuchas"could","potential","believe","expect","anticipate","intend","plan","likely","will"orothersimilarwords

orphrases.Thesestatementsareonlycurrentpredictionsandaresubjecttoknownandunknownrisks,uncertaintiesand

other factorsthatmaycauseourorourindustry'sactualresults, levelsof activity,performanceorachievementstobe

materiallydifferentfromthoseanticipatedbytheforward-lookingstatements .TheCompanydoesnotintend,anddoes

notassumeanyobligation,toupdateforward-lookingstatements,whetherasaresultofnewinformation,futureevents

or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on

forward-lookingstatements.

NeitherTSXVentureExchangenoritsRegulationServicesProvider(asthattermisdefinedinthepoliciesoftheTSX

VentureExchange)acceptsresponsibilityfortheadequacyoraccuracyofthisrelease.