Alabama Graphite Corp. Responds to Unsubstantiated Allegations in News Release

TORONTO, ONTARIO--(Marketwired - Feb. 8, 2016) - Alabama Graphite Corp. ("AGC" or the "Company") (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG) was disappointed earlier today by a press release that was issued by Northern Graphite Corporation ("NGC"), which made unsubstantiated and speculative allegations against AGC. AGC's management believes the press release was intended to bolster NGC's position within the graphite development industry and distract AGC from its objectives of commercializing its projects and completing its business plans.

NGC made the following unsubstantiated allegations in its news release entitled "Northern Graphite Advances Purification Technology": (a) the low-temperature graphite purification process referred to in AGC's Preliminary Economic Assessment for its Coosa Graphite Project, effective as of November 27, 2015 (the "PEA"), infringes upon the intellectual property rights of NGC; and (b) the reported high margins in the PEA based on production cost estimates of less than US$3,000/t are unrealistic for the purposes of coated spherical graphite projects.

With respect to the first allegation mentioned above, the Company wishes to clarify that the process that AGC's low-temperature graphite purification process is based upon has been publicly known for quite some time. The underlying process was the subject of various patents that expired decades ago.

The Company also wishes to highlight the fact that each graphite deposit has its own purification parameters that depend on characteristics specific to each deposit and end product: no two graphite deposits have the exact same purification requirements or processes. Accordingly, the particular graphite purification parameters used for one graphite deposit will never be the exact same for another graphite deposit because they are specific to each deposit. As a result, copying another company's graphite purification process would not be expected to work or be useful for AGC's purposes.

Additionally, management of the Company disagrees with the assertion that Preliminary Economic Assessments' reported high margins based on production cost estimates of less than US$3,000/t are unrealistic for the purposes of coated spherical graphite projects, and wishes to emphasize that the figures used for its PEA were reviewed and vetted by several Qualified Persons within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") who are independent from AGC.