Alabama Graphite Commences Fall Exploration Program at Bama Mine Project and Receives Positive Initial Channel Sample Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 1, 2014) - Alabama Graphite Corp. (the "Company") (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG)(WKN:A1J35M)(ISIN# CA0102931080) is pleased to announce that it has begun surface exploration at its Bama Mine Project in Alabama, USA. The Company is currently conducting detailed channel sampling on its recently acquired mineral leases. Of the six samples taken in total, four were taken from the existing pit wall of the prior producing Bama Mine and showed grades ranging from 2.81% to 5.24% C(g). In addition, KLM Geosciences is concurrently performing a ground-based GEM2 geophysical survey.

Exploration at the Company's flagship Coosa Project has shown that surface channel sampling and GEM2 surveys are cost effective ways of evaluating the potential for at/near surface graphite (oxidized graphite schists). Follow-up sonic drilling at the Coosa Project discovered several new occurrences outside the existing resource based on these two surveys. The Company's plan at the Bama Mine Project is to use the results of the GEM2 and surface-sample programs to guide a preliminary round of sonic drilling in the coming months.

In addition, the Company has received the results of preliminary channel samples taken at the Bama Mine. The majority of these samples were taken either across the historic workings within the Bama Mine pit or along roads around the mine. In all cases, multiple samples were taken to arrive at the composite sample width. Because no corrections were made for the dip of the compositional layering in the graphitic schists, they should be regarded as apparent rather than true widths. Samples CH-01, CH-02, CH-09 and CH-10 all came from locations along the existing pit wall and show grades ranging from 2.81% to 5.24% C(g). The other 2 samples (CH-06 & CH-08) were from outcrops surrounding the existing pit. These samples were analyzed by ActLabs in Ancaster, Ontario.

Complete channel sample results are included in the table below:

"Since our acquisition of mineral leases on the Bama Mine and surrounding properties, we have been moving quickly to evaluate its potential," commented Ron S. Roda, CEO. "Based on historical information and the results of some preliminary metallurgical testing, the Bama Mine Project is showing great promise. Perhaps the most salient fact regarding this project is that not only was the Bama Mine a former producer; it was a key supplier of coarse-flake graphite prior to the mill being destroyed by a fire in the 1930s. It is inherently easier to return a historic mine to production than to start with greenfields exploration. Indeed, it is Alabama's historic role as the United States' premier graphite producer that drew the Company's initial attention."

Rick Keevil, P. Geo., a Director of the Company and VP of Project Development, is a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this press release.

About Alabama Graphite:

Alabama Graphite Corp.'s mission is to become one of the greenest graphite producers in the world. The Company, through its wholly-owned subsidiary, Alabama Graphite Company Inc., is conducting exploration and development both at its flagship Coosa Graphite Project in Coosa County, Alabama, USA and the recently acquired Bama Project in Chilton County, Alabama, USA. These two advanced-stage projects are 100% owned by Alabama Graphite and are on private land. The two projects encompass over 43,000 acres and are located in an area with significant historical production of crystalline flake graphite. The Company has the largest NI 43-101 indicated flake graphite resource in the United States based on drilling 0.18 square miles (0.3% of the total acreage). The Alabama deposits are unique in that a significant portion of the graphite-bearing material is oxidized and has been broken down into an extremely soft rock. Both projects have in place critical infrastructure, are within close proximity to transportation routes and enjoy a hospitable climate allowing for year-round production and delivery. For further information and updates on the Company please visit www.alabamagraphite.com.

ALABAMA GRAPHITE CORP.

Ron S. Roda, President & Chief Executive Officer

Disclaimer for Forward-Looking Information

This press release contains forward-looking information under applicable Canadian securities laws ("forward-looking statements") that are based on the beliefs of management and reflect Alabama Graphite Corp.'s current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current view of Alabama Graphite Corp. with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, 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. Forward-looking statements are also based on a number of assumptions, including 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 breakdowns, 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 statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Alabama Graphite Corp. undertakes no obligation to update forward-looking statements (unless required by law) if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

Alabama Graphite Corp. cautions that the foregoing list of material factors and assumptions are not exhaustive. When relying on Alabama Graphite Corp. forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and assumptions and other uncertainties and potential events. Alabama Graphite Corp. has also assumed that the material factors and assumptions will not cause any forward-looking statements to differ materially from actual results or events. However, the list of these factors and assumptions is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

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