Northern Graphite Corporation (NGC:TSXV, NGPHF:OTCQX) The New Strategic Mineral

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, forward-looking 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. Forward-looking 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.

Forward Looking Statements

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 43-101 are not the same as those of the SEC.

CAUTIONARY STATEMENT REGARDING MINERAL RESOURCES

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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

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• 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

Graphite 101

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

What is Graphite Used For?

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Nickel 1,770,000

Graphite 1,019,000 (50% flake, 50% amorphous)

Molybdenum 250,000 REE (oxides) 124,000 Cobalt 98,000 Tungsten 72,000 Vanadium 60,000 Uranium 50,000 Lithium 34,000

(tpy)

Large and Growing Industrial Market

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• 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

Green Energy Technologies

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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

• Current Li ion battery demand 30,000 tpy and growing 20-30% annually

- 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)

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Incremental Li Carbonate Demand in 2020

1% 5% 10% 15% 20%

5% 49 109 185 260 336

10% 82 143 218 294 370

15% 116 176 252 328 403

20% 150 210 286 361 437

25% 183 244 319 395 470

EV Market Penetration

HEV Market Penetration

(000 tonnes)

(Canaccord Research)

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Required Annual Flake Graphite Production

1% 5% 10% 15% 20%

5% 286 637 1,082 1,520 1,965

10% 479 836 1,274 1,719 2,163

15% 678 1,029 1,473 1,918 2,356

20% 877 1,228 1,672 2,111 2,555

25% 1,070 1,310 1,865 2,310 2,748

2020 EV Market Penetration

2020 HEV Market Penetration

(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

Current annual flake graphite production is 500,000 tonnes

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• All major car companies are working on fuel cell vehicles (which contain 80kg of graphite)

• “Toyota sees a clear path to commercial introduction of fuel cell vehicles by 2015”

• Dr. Yucong Wang, Manager, Department of Materials Technology, GM believes that fuel cells will play a major role in vehicles…April, 2012

• Walmart uses fuel cells to generate power at 17 of its California retail sites, as well as operating fuel cell-powered forklifts at several warehouses

• “Large-scale fuel-cell applications are being developed that could consume as much graphite as all other uses combined” – USGS, 2009

Fuel Cell Demand

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• 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

Vanadium Redox Batteries

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• 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

Pebble Bed Nuclear Reactors

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• 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

Chinese Production/Exports to Decline

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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

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Demand growth combined with supply concerns have led to 78% price increase over the past 4 years

Source: Industrial Minerals Magazine

Graphite Prices

$0$250$500$750

$1,000$1,250$1,500$1,750$2,000$2,250$2,500$2,750$3,000$3,250

Low High

Price Range for +80 mesh, 94-97%C graphite

2004 2005 2006 2007 2008 2009 2010 2011 20

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80-85% C 90% C 94-97% C

Extra Large (+50) - - +$2,200

Large (-50 +80) - $1,400-2,000 $1,800-2,200

Medium (-80 +100) - $1,150-1,450 $1,300-1,900

Fine (-100) - $1,100-1,400 $1,200-1,800

Amorphous powder $600-800 - -

Source: Industrial Minerals Magazine

Premium Price for Size/Purity (US$/tonne)

Bissett Creek

Concentrate Purity

Flake Size

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• Even if some mines increase their production, this will not solve the persisting supply problem for large flake crystalline graphite . Technographit, Feb/2009

• Consumption of flake graphite is growing at the expense of amorphous graphite and there is a potential mismatch between supply and demand for flake graphite .Roskill Aug/2009

• Presently, large flake graphite supply is very tight due to decreased production capacity of Chinese mines … Technographit, Mar. 2010

• The days of cheap, abundant graphite from China are over…. Industrial Minerals Magazine May, 2011

Large Flake, High Purity Deposit

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• 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

Spherical Graphite – Value Added Processing

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• 100km east of North Bay, Ontario

• Easily accessible, 17km from Trans-Canada hwy, close to infrastructure

• Close proximity to major North American steel and automotive markets

• Freight cost advantage

100 km

Bissett Creek Project

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•Full feasibility study in 1989 (including P&P reserve*) •2010 NI 43-101 Preliminary Economic Assessment** •2011 Resource expansion** •2012 bankable Feasibility Study

Large Scalable Graphite Resource

*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.

2011 Updated Mineral Resources (Diluted)**

Indicated Inferred

%Cg Cut-off

Tonnage (metric tons)

Cg(%) by LECO

In Situ Graphite (metric tons)

Tonnage (metric tons)

Cg(%) by LECO

In Situ Graphite (metric tons)

0.986 25,983,000 1.81 470,300 55,038,000 1.57 864,100

1.227 24,588,000 1.85 454,900 50,472,000 1.62 817,600

1.50 19,954,000 1.99 397,100 33,672,000 1.81 609,500

1.75 16,031,000 2.34 375,100 21,417,000 2.21 473,300

2.0 11,921,000 2.50 298,000 14,584,000 2.37 345,600

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Expansion Potential

Limit of surface outcrop

Limit of inferred resources

BFS pit (indicated resources)

500 meters

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

Typical cross-section of Bissett Creek orebody

Simple Mining

100m

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• 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

Simple Metallurgy

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Bissett Creek Production

• 20% +32 mesh XXL flake 98%C

• 35% +50 mesh XL flake 97%C

• 35% +80 mesh large flake 96%C

• 10% +150 mesh medium/fine flake 94%C

Large Flake, High Purity Concentrate

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• 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

BFS Parameters

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Approval of Mine Closure Plan 4Q-2012

Financing 4Q-2012

Start Construction 4Q-2012

Commercial Production 1Q-2014

Timeline to Production

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Graphite Price (US$/t) $2,800 $2,100

Pre-tax

Average annual cash flow (1st 5 yrs) $34.0M $21.3M

IRR 25.9% 15.6%

NPV @8% ($ millions) $182.8 $71.7

After-tax

Average annual cash flow (1st 5 yrs) $30.8M $21.3M

IRR 22.4% 13.7%

NPV @8% ($ millions) $125.0 $46.9

High Price Leverage

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• 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

Upside Potential

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Northern Graphite Share Structure

Shares Outstanding 46,873,138

Warrants 2,279,623

Options 3,500,000

Fully-Diluted 52,652,761

Management & Insiders 10%

Geologic Fund 10%

Sprott Global 6%

- $10 million in cash, no debt

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Gregory Bowes B.Sc (geology), MBA CEO and Director Formerly Senior VP, Orezone Gold Corporation

Don Baxter P. Eng President Formerly President, Ontario Graphite Corporation

Stephen Thompson CA CPA (Illinois) Chief Financial Officer Formerly Vice President Finance, Ottawa Hydro Limited

Ron Little P. Eng Director President and CEO, Orezone Gold Corporation (ORE:TSX) Iain Scarr B.Sc (geology), MBA Director Former Commercial Director, Rio Tinto industrial minerals division, VP Corporate Development, Lithium One

Jay Chmelauskas MBA Director President/Director, Westerm Lithium Corp.

K. Sethu Raman PhD Director Independent Mining Consultant

Don Christie CA Director Former CFO, Continental Gold

George Hawley Technical Advisor 40 years of experience in industrial minerals R&D, market analysis and development

Experienced Management & Board

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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

Value Proposition

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• Permitting

• Value added processing

• Strategic partners/offtake agreements

• Financing/Construction/Production

• Mine expansion

What’s Next?