Alabama Graphite Expands 2015 Summer Diamond Drilling Program at Coosa Graphite Project

Alabama Graphite Corp. ("AGC" or the "Company") is pleased to announce the expansion of the 2015 summer diamond drilling program at the Company's 100%-owned flagship Coosa Graphite Project, located in Coosa County, east-central Alabama. AGC completed the planned 2015 drill program under budget and has decided to commence a supplemental, concurrent drill program to target additional areas showing increased quantities of large-size flake graphite.

Highlights

• The goal of the expanded drill program is to target "Roscoe Ridge" which is located approximately 600 feet southeast and parallel to the established resource grid, and the "Holy Schist" trench. Metallurgical work from trenching in both areas yielded 28.2% and 30.5% large flake (+ 80 mesh) respectively. (NOTE: To view the Alabama Graphite Corp. Coosa Graphite Project Summer 2015 Drilling Program Map, please visit the following link: http://media3.marketwire.com/docs/alp0723map.pdf).
• Four (4) 100-foot drill holes at Roscoe Ridge will be drilled to the southeast of the current resource grid and added to the Coosa Graphite Project's updated NI 43-101 Resource Estimate, which is currently underway by Metal Mining Consultants Inc. (Highlands Ranch, Colorado) and is scheduled for completion by September 2015. With the addition of these new drill holes, a total of 37 drill holes and 5,672 feet (1,729 meters) of core will be used to update the Company's Resource Estimate.
• In addition, a small exploration drill program consisting of five (5) drill holes, comprising a combined total 800 feet (244 meters) of core, will be used to test the Holy Schist target, which was discovered during the Fall 2014 trenching program at Coosa. Trench AGC-14-TR14D was 350 feet in length and averaged 3.54% C(g), yielding 30.3% large flake (+80 mesh). SGS Mineral Services (Lakefield, Ontario) conducted a preliminary flake beneficiation test from bulk material collected along the trench and determined 30.5% large flake (+80 mesh) was present in the weathered material. Given a successful drill program, this target could be potentially upgraded to an additional resource area in the near future, with continued exploration.

Don Baxter, Co-Chief Executive Officer of AGC commented, "With graphite, large flake commands higher prices than smaller flake sizes of equal purity. The purpose of AGC's expanded 2015 drilling program at Coosa is to target areas that have been tested and indicate a higher percentage of large flake than we have seen in the southern portion of the current resource. These additional drill targets show the potential to increase both the overall grade and large flake percentage of the existing resource.

"We are very fortunate with the Coosa property as the weathered, soft oxide material provides more flexibility for test pitting and trenching than other hard-rock graphite deposits; a unique characteristic that differentiates AGC from other flake graphite deposits in North America," Mr. Baxter said. "We are aggressively exploring with intent to develop the Coosa Graphite Project - the premiere flake graphite project in the continental United States of America. As announced on April 21, 2015, AGC remains on schedule to publish the Company's inaugural NI 43-101 Preliminary Economic Assessment ("PEA") in Q4 this year."

Rick Keevil, P. Geo., Vice President of Project Development, is a Qualified Person as defined by National Instrument (NI) 43-101, and has approved the disclosure of the scientific or technical information concerning the Coosa Property contained in this press release.