Alabama Graphite Announces Closing of $2.875 Million Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 2, 2015) - Alabama Graphite Corp. (the "Company") (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG)(WKN:A1J35M)(ISIN# CA0102931080) is pleased to announce the closing of its private placement (the "Private Placement") as previously announced on June 17, 2015 led by First Republic Capital Corporation ("First Republic") to raise gross proceeds of $2,875,000, which amount includes First Republic's option to have sold such number of additional units ("Additional Units") as is equal to 15% of the units (the "Units") sold under the Private Placement.

The Company issued 14,375,000 Units at a price of $0.20 per Unit to raise gross proceeds of $2,875,000. Each Unit is comprised of: (i) one common share of the Company (a "Share"); and (ii) one-half of one common share purchase warrant of the Company, with each whole common share purchase warrant (a "Warrant") entitling the holder to purchase one additional common share of the Company at an exercise price of $0.35 until June 30, 2018 (the "Warrant Expiry Date"). In the event that the closing price of the Company's common shares on the TSX Venture Exchange (or such other exchange on which the Company's common shares may become traded) is $0.75 or greater per common share during any 20 consecutive trading day period at any time subsequent to four months and one day after the closing date, the Warrants will expire, at the sole discretion of the Company, at 4:00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the holders of the Warrants.

Related parties to Company subscribed for 455,000 Units in the Private Placement which in total is less than 25% of the Company's market capitalization. The Company is therefore relying upon exemptions from the valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions.

The net proceeds from the sale of the Units will be used towards a drilling program on the Company's Coosa & Bama Graphite Projects in Alabama, USA, the preparation of an updated mineral resource estimate for the Coosa Project, metallurgical testing both at the Coosa and Bama Projects, a preliminary economic assessment on the Coosa project, value added graphite (including battery/storage applications) & graphene initiatives and for working capital.