NORTHERN GRAPHITE CORPORATION – SPEC.BUY

NGC - TSX V $0.90TARGET: $2.10PROJ. RETURN: 133%VALUATION: 1.0x NAVPS

Share DataBasic Shares O/S (mm) 37.1Fully Diluted 45.6Market Cap ($mm) 33.4Enterprise Value (mm) 32.8Net Debt - WC ($mm) (0.7) Dividend N/AYield N/ANext Reporting Date November

$0.50

$0.80

$1.10

$1.40

Apr-11 Jun-11 Jul-11 Aug-11 Oct-11

Short-term Technical Target $1.40, next resistance. NGC is technically neutral in the short-term with $0.90 support.

Corporate Profile Northern Graphite Corporation is an development-stage company. The Company holds a 100% interest in the Bissett Creek graphite project. Primary focus is the development of this asset with an objective to become one of the world’s largest producers of large flake graphite.

Upcoming Events Commencement of 100 tonne pilot plant by end of November. Test results due within ~4-5 weeks thereafter.

BFS in Q1/ 2012.

NGC Warrant Exercise Update EVENT – Update on Warrant Exercise, and Other Developments NGC provided an update this morning on several fronts. To date, 6.2 million of its outstanding warrants have been exercised early resulting in proceeds to the Company of approximately $2 million.

IMPACT – Transactions to Provide Trading Liquidity, Financing The early exercise of the 6.2 million warrants is an important development for NGC as the funds provided will take the Company through completion of Feasibility Study (FS), and receipt of its Mine Closure Plan permit. Both events are expected to occur in Q1/2012. Following these events, the Company intends to proceed with a financing to allow for the start of construction at the Bissett Creek large flake graphite mine. The timing of the FS completion has been pushed out to January, 2012 from the end of this year due to delays in commissioning the pilot plant. NGC’s independent engineer, SGS, is working through an unusually high backlog of projects from other mining clients. Early next week, the pilot plant is expected to commence continuous operations, and approximately 130 tonnes of ore are to be processed over a one week period. Data will also be collected for the FS.

Mindesta owns 9.75 million common shares of NGC of which 7.3 million remain subject to an escrow agreement as part of NGC’s initial public offering. The terms of the escrow provide for early release of the shares to permit their distribution to Mindesta shareholders, subject to TSX Venture approval. Mindesta has applied for the early release of the shares from escrow to facilitate this distribution. We believe this approval may take place within the next few weeks.

ACTION – NGC Continues to Offer Premier Exposure to Graphite We regard today’s announcements as key positives in the advancement of NorthernGraphite Corp., and its flagship Bissett Creek large flake graphite deposit. Theactions should help alleviate a key concern regarding NGC’s limited tradingliquidity. Greater liquidity should lower the cost of capital in future financings. Theproceeds realized in the warrant exercise should help fund Bissett Creek to the startof construction. Bissett Creek is one of the most highly prized graphite development projects in theworld due to its unique metallurgy. The large flake content will allow it to realizepremium pricing. Because of this NGC should be able to sign an off-take agreementin the near future, and emerge as a leading supplier of graphite into the batterymanufacturing industry.

FYE Dec 31 Q1/10A Q2/10A Q3/10A Q4/10A 2010A Q1/11A Q2/11A Q3/11E Q4/11E 2011E 2012EProduct Revenue $ 000 - - - - - - - - - - - EBITDA $ 000 (484.2) (125.3) (1,547.9) (1,547.9) (1,547.9) (4,768.9) (6,677.1) Earnings Q1/10A Q2/10A Q3/10A Q4/10A 2010A Q1/11A Q2/11A Q3/11E Q4/11E 2011E 2012EEPS $/sh $0.00 ($0.05) $0.00 $0.00 ($0.05) ($0.00) ($0.04) ($0.04) ($0.03) ($0.11) ($0.15)P/EPS n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/aCFPS $/sh $0.00 $0.00 $0.00 $0.00 ($0.03) ($0.00) ($0.01) ($0.03) ($0.03) ($0.08) ($0.14)P/CFPS n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Matt Gowing, CFA 416.860.8675, mgowing@mackieresearch.com Raveel Afzaal, Associate 416.860.7666, rafzaal@mackieresearch.com

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.

NOVEMBER 14, 2011

www.mackieresearch.com intra-day RESEARCH ALERT – NORTHERN GRAPHITE CORPORATION Page 2

RISKS TO TARGET

Risks include events that lead to graphite price cyclicality such as actions by Chinese producers who supply up to 80% of the world’s graphite and have dumped product onto the markets in the past and pressured prices. Furthermore, 9.75mm of NGC shares are owned by Industrial Minerals Inc, a bulletin board listed Company whose value is entirely comprised of this ownership stake.

RELEVANT DISCLOSURES APPLICABLE TO: NORTHERN GRAPHITE CORPORATION None Applicable.

ANALYST CERTIFICATION

Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

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