Matt Gowing of Makie Research Capital Corporation reports on Northern Graphite Corporation.

1. NOVEMBER 14, 2011
NORTHERN GRAPHITE CORPORATION – SPEC.BUY
NGC - TSX V $0.90
NGC Warrant Exercise Update
TARGET: $2.10
PROJ. RETURN: 133% EVENT – Update on Warrant Exercise, and Other Developments
VALUATION: 1.0x NAVPS NGC provided an update this morning on several fronts. To date, 6.2 million of its
outstanding warrants have been exercised early resulting in proceeds to the
Share Data Company of approximately $2 million.
Basic Shares O/S (mm) 37.1
Fully Diluted 45.6 IMPACT – Transactions to Provide Trading Liquidity, Financing
Market Cap ($mm) 33.4
Enterprise Value (mm) 32.8 The early exercise of the 6.2 million warrants is an important development for NGC
Net Debt - WC ($mm) (0.7) as the funds provided will take the Company through completion of Feasibility
Dividend N/A Study (FS), and receipt of its Mine Closure Plan permit. Both events are expected to
Yield N/A occur in Q1/2012. Following these events, the Company intends to proceed with a
Next Reporting Date November
financing to allow for the start of construction at the Bissett Creek large flake
graphite mine. The timing of the FS completion has been pushed out to January,
$1.40
2012 from the end of this year due to delays in commissioning the pilot plant. NGC’s
$1.10 independent engineer, SGS, is working through an unusually high backlog of
$0.80 projects from other mining clients. Early next week, the pilot plant is expected to
$0.50 commence continuous operations, and approximately 130 tonnes of ore are to be
Apr-11 Jun-11 Jul-11 Aug-11 Oct-11 processed over a one week period. Data will also be collected for the FS.
Mindesta owns 9.75 million common shares of NGC of which 7.3 million remain
subject to an escrow agreement as part of NGC’s initial public offering. The terms of
Short-term Technical Target the escrow provide for early release of the shares to permit their distribution to
$1.40, next resistance. NGC is technically Mindesta shareholders, subject to TSX Venture approval. Mindesta has applied for
neutral in the short-term with $0.90 support. the early release of the shares from escrow to facilitate this distribution. We believe
this approval may take place within the next few weeks.
Corporate Profile
Northern Graphite Corporation is an ACTION – NGC Continues to Offer Premier Exposure to Graphite
development-stage company. The Company We regard today’s announcements as key positives in the advancement of Northern
holds a 100% interest in the Bissett Creek
Graphite Corp., and its flagship Bissett Creek large flake graphite deposit. The
graphite project. Primary focus is the
development of this asset with an objective to
actions should help alleviate a key concern regarding NGC’s limited trading
become one of the world’s largest producers of liquidity. Greater liquidity should lower the cost of capital in future financings. The
large flake graphite. proceeds realized in the warrant exercise should help fund Bissett Creek to the start
of construction.
Bissett Creek is one of the most highly prized graphite development projects in the
Upcoming Events world due to its unique metallurgy. The large flake content will allow it to realize
Commencement of 100 tonne pilot plant by premium pricing. Because of this NGC should be able to sign an off-take agreement
end of November. Test results due within ~4-
in the near future, and emerge as a leading supplier of graphite into the battery
5 weeks thereafter.
manufacturing industry.
BFS in Q1/ 2012.
FYE Dec 31 Q1/10A Q2/10A Q3/10A Q4/10A 2010A Q1/11A Q2/11A Q3/11E Q4/11E 2011E 2012E
Product Revenue $ 000 - - - - - - - - - - -
EBITDA $ 000 (484.2) (125.3) (1,547.9) (1,547.9) (1,547.9) (4,768.9) (6,677.1)
Earnings Q1/10A Q2/10A Q3/10A Q4/10A 2010A Q1/11A Q2/11A Q3/11E Q4/11E 2011E 2012E
EPS $/sh $0.00 ($0.05) $0.00 $0.00 ($0.05) ($0.00) ($0.04) ($0.04) ($0.03) ($0.11) ($0.15)
P/EPS n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
CFPS $/sh $0.00 $0.00 $0.00 $0.00 ($0.03) ($0.00) ($0.01) ($0.03) ($0.03) ($0.08) ($0.14)
P/CFPS n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Matt Gowing, CFA 416.860.8675, mgowing@mackieresearch.com
Raveel Afzaal, Associate 416.860.7666, rafzaal@mackieresearch.com
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.

2. www.mackieresearch.com intra-day RESEARCH ALERT – NORTHERN GRAPHITE CORPORATION Page 2
RISKS TO TARGET
Risks include events that lead to graphite price cyclicality such as actions by Chinese producers who supply up to 80% of the
world’s graphite and have dumped product onto the markets in the past and pressured prices. Furthermore, 9.75mm of NGC
shares are owned by Industrial Minerals Inc, a bulletin board listed Company whose value is entirely comprised of this ownership
stake.
RELEVANT DISCLOSURES APPLICABLE TO: NORTHERN GRAPHITE CORPORATION
None Applicable.
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