Mr. Paul Gorman reports

GREAT LAKES GRAPHITE PUTS LOCHABER PROJECT ON PRODUCTION FAST TRACK

Great Lakes Graphite Inc. has initiated a program to fast-track the Lochaber graphite property toward production. The first phase of this program includes detailed fieldwork, laboratory work and the completion of a National Instrument 43-101-compliant resource estimate.

Great Lakes chief executive officer Paul Gorman said: "Our business plan requires advancing the company along multiple parallel tracks to achieve our goal of entering production within three years. Our recently completed fieldwork that also included an initial bulk sample is providing the material we will use to begin identifying our best target markets and to advance discussions with prospective customers. By engaging with potential customers now, we are positioning the company to ultimately secure the offtake agreements that will be the key to obtaining production financing."

Fieldwork update

The company's field crew partners at Wolf Exploration recently concluded the initial phase of fieldwork at Lochaber. The main objectives of this phase, completed successfully, consisted of mapping and verifying the location of each of the 100-plus drill holes drilled by the previous operators and collecting a mini-bulk sample. The drill hole data collected are being used for the resource estimate and to refine a 3-D model. The field team also secured the drill core from the 7,000-metre program that was conducted in 2012.

Lab work update

A bulk sample consisting of approximately 300 kilograms of graphite material recently gathered near the historical Plumbago mine on the Lochaber graphite property has been delivered to Process Research ORTECH, a metallurgical facility specializing in graphite processing in Mississauga, Ont. This sample is the first of a continuing series, enhancing the company's understanding of the Lochaber resource. Tests run on the ore will include: metallurgical studies, particle size distribution analysis, purity analysis and grade analysis. Assays for carbon as graphite content will be conducted by an independent third party.

The material for the initial sample was visually selected from waste piles at the historical Plumbago mine site, located on the Lochaber property with the objective of retrieving high-grade material and is in no way intended to be broadly representative of the mineralization that is the target of the continuing resource estimate.

Senior vice-president John Carter said: "Testing of the material in this sample will provide invaluable data on the percentage of large flake, for example, and will provide answers of what we need to begin the development of a PFD (process flowsheet diagram) or mill design. Metallurgical tests will confirm whether this graphite can be upgraded to the purity levels required for lithium-ion batteries."

Resource calculation update

Commencement of the resource calculation was announced on Aug. 5 and is proceeding on schedule. The estimate is being prepared by geologists Jamie Levine, PGeo, and Martin Ethier, PGeo, and the company anticipates completion by early November. Great Lakes is targeting near-surface high-grade lenses within the resource with the goal of defining a resource that is consistent with a small footprint/low CAPEX development plan.

Please visit the image gallery on the company's website for images related to this news release. This press release has been reviewed for its technical content by John M. Siriunas, PEng, a qualified person and vice-president of exploration for Great Lakes.