Alabama Graphite Announces Preliminary Metallurgical Results Showing Large Flakes in Newly Discovered Areas from its Coosa and Bama Projects in Alabama, USA

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 26, 2015) - Alabama Graphite Corp. ("Alabama Graphite" or the "Company") (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG) (WKN:A1J35M) (ISIN:CA0102931080) is pleased to announce preliminary metallurgical results from trench samples taken in late 2014 and early 2015 from its Coosa Project in Coosa County, and its Bama Project in Chilton County, Alabama. Key results indicate that high percentages of coarse flakes occur in several newly trenched areas.

Two composite samples were prepared from shallow trenches excavated to test anomalies discovered by the airborne and ground geophysical surveys east and north of the already previously defined Coosa resource estimate. Two composites were also collected from trenches near the Bama Mine. Company personnel collected bulk material across continuous 50' to 75' lengths and submitted this to SGS Labs in Lakefield, Ontario. SGS used 2 kg of blended material per sample for their analyses. 

Preliminary results are presented in the table below:

"We are excited by these results as it shows we continue to find large graphite flakes on our sizable Coosa Project and on our Bama Project. Also important is that these results are all from recent surface trenching and consist exclusively of soft oxidized material that lies on the surface. This, in our opinion, is the best material to mine graphite in a simple, cost effective and environmentally friendly manner," states Ron Roda, President and CEO of Alabama Graphite. "In addition, these trenches are in a different area from where the Coosa Project's existing resource estimate was calculated and represent exciting opportunities to significantly expand our inventory of oxidized graphitic schist. The Company is presently drilling Fixico and the Northern Strat areas on our Coosa property in Alabama, USA in order to update its resource."

Additionally, Alabama Graphite continues to work on a Preliminary Economic Assessment ("PEA") for the Coosa Project. Metal Mining Consultants (MMC) of Littleton, Colorado, has been selected to conduct the initial capital and operating expense projections. The PEA will utilize both these CapEx and OpEx estimates as well as an updated resource estimate to incorporate the results from the planned drilling.

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 approved the disclosure of the scientific or technical information concerning the Coosa and Bama Projects and 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.

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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Contact

Alabama Graphite Corp.
Ron S. Roda
President & Chief Executive Officer
(609) 785-1581
rroda@alabamagraphite.com
www.alabamagraphite.com