Alabama Graphite Announces Grant of Incentive Stock Options and Issuance of Finder's Fee

September 3, 2013 - VANCOUVER, Canada - Alabama Graphite Corp. (the "Company") (CNSX:ALP) (OTC:ABGPF) (FRANKFURT: 1AG.F WKN: A1J35M) (ISIN# CA0102931080) announces that it has granted incentive stock options to purchase a total of 900,000 common shares at an exercise price of $0.35 per share for a period of five years to certain of its directors, officers and consultants in accordance with the provisions of its stock option plan.

Dan Spine commented, "The above-market option exercise price represents the confidence that management and the Board of Directors have in the Company's ability to successfully execute its plan to become the first graphite producing entity in the United States in more than two generations. Management believes that the Company has the key elements in place to make that happen: temperate climate, on-property access to power, roads, available labor, accommodative state permitting, local support and, above all, a property located in a region in which a significant amount of graphite has been discovered and produced."

The Company also announces that, further to its news release of August 23, 2013, the Company has agreed to issue 150,000 common shares to Danny Gravelle at a deemed price of $0.20 per share as a finder's fee, pursuant to the closing of the acquisition of the Hearst Graphite Project. The shares are subject to a 4-month hold period in Canada.

About Alabama Graphite:

Alabama Graphite Corp., through its wholly-owned subsidiary, Alabama Graphite Company Inc., is a graphite exploration and development company whose flagship project "The Coosa Graphite Project" in Coosa County, Alabama is located in an area with significant historical production of crystalline flake graphite. For further details go to www.alabamagraphite.co.

ALABAMA GRAPHITE CORP.

Daniel Spine, CEO
(404) 661-6254

Ron S. Roda, President
(609) 785-1581

ir@alabamagraphite.co
www.alabamagraphite.co

THE CANADIAN NATIONAL STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Forward looking information

This release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking information include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's business, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.

Often, but not always, forward-looking information can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate" or "belief" or describes a "goal" or variation 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 information is based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of graphite; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. 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 information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

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