Alabama Graphite Commences Development and Testing of Valued Added Graphite Products for use in Lithium Ion Batteries

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 25, 2015) - Alabama Graphite Corp. ("Alabama Graphite" or the "Company") (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG) WKN: A1J35M) (ISIN# CA0102931080) is pleased to announce that it has commenced work on production of coated spherical graphite (CSPG) for the use in anodes for Lithium Ion Batteries.

Although there are a large number of uses for graphite currently, the main interest has come from Lithium Ion Batteries. There is approximately 10 times more graphite in a lithium ion battery than lithium. In fact the supply critical material for a lithium ion battery is graphite, not lithium. The United States Government and the European Union have identified graphite as a supply critical material. China produces 75% of the flake graphite consumed today, and approximately 90% of spherical graphite (SPG) used in batteries. Industrial Minerals Magazine and Benchmark Mineral Intelligence estimate that 60,000 tonnes per year of graphite is consumed in the manufacture of anodes for Lithium Ion Batteries, and that figure is broken down to approximately 35,000 tonnes of natural graphite and 25,000 tonnes of synthetic graphite. It is widely recognized that the SPG manufactured in China is not the result of environmentally sustainable processes. Synthetic graphite is made from a by-product of refining oil, in an energy intensive process, resulting in a very large carbon dioxide footprint. Both sources are not compatible with Western environmental standards of manufacturing. Companies making electric vehicles and other green energy products are understandably being held accountable for the environmental footprint of their input materials. This trend is growing, as is the market, opening the door for environmentally sustainable production of graphite in the West, namely Alabama, USA. Alabama Graphite has the potential to be the first and only graphite producer in the continental United States. The current world consumption of flake graphite is 400,000 tonnes per year. The market for batteries alone, beyond 2020, is estimated to be 1.7 million tonnes.

Don Baxter, P.Eng., Co-Chief Executive Officer stated: "One of my first tasks upon joining Alabama Graphite was to initiate and fast track work on battery ready graphite. This market has been identified as the one with the largest growth potential while providing the potential for much higher margins. Alabama Graphite is now one of very few companies with management that has actual graphite experience, including mining, processing operations and now value-added graphite production.

The Company intends to produce and test anode ready graphite from both Coosa and Bama properties to compare results and ensure compatibility. Preliminary indications from the graphite concentrate produced from both the Coosa and Bama properties show promise for battery applications due to the high grade of all the size fractions. This is a key indicator that the graphite layers or "pathways" are clear and will allow lithium ions to flow without restriction. The ongoing work will define a scalable process and ultimately determine the CAPEX and OPEX of a large scale production facility. The process will involve sizing, shaping, purification and coating the graphite. The unique aspect of this process is that it can also produce more than one value added graphite product. Additional products could include micronized graphite for powder metals and composite materials, purified large flake for high value applications. Alabama Graphite won't be tied to just one product if markets demand growth in other areas. The intention will be to value add as much of the production as possible.

Don Baxter, P.Eng.,Co-CEO and a Director of the Company, who is a Qualified Person as defined by National Instrument 43-101, has approved the disclosure of the scientific or technical information contained in 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 Mine Project in Chilton County, Alabama, USA. Alabama Graphite holds a 100% interest in the mining leases in respect of these two advanced-stage projects, both of which 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.

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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Contact

Alabama Graphite Corp.
Don K. Baxter
Co-Chief Executive Officer
(705) 789-9706
dbaxter@alabamagraphite.com
Alabama Graphite Corp.
Ron S. Roda
President & Co-Chief Executive Officer
(609) 785-1581
rroda@alabamagraphite.com
www.alabamagraphite.com