Mr. Spiro Kletas reports

BIG NORTH PROVIDES CORPORATE UPDATE

Big North Graphite Corp. has provided a corporate update on the company's recent activities, including the company's recently announced financing, and specifically its plans to restart the El Tejon flake graphite mine and mill.

The company's board of directors believe that the company's flagship project, the El Tejon project, presents an opportunity for the company to achieve a significant position in the rapidly expanding world graphite market and, as such, will focus the company's resources on moving the El Tejon project toward restarting production. The 500-hectare El Tejon property is located adjacent to the town of San Francisco Telixtlahuaca, approximately 38 kilometres northwest of Oaxaca in the state of Oaxaca, Mexico, and comprises a complete processing plant as well as a developed open pit flake graphite mine. The mine and mill were built in 1980 and operated by the government of Mexico until 1988 and privately until 2002 when it closed due to low graphite prices. El Tejon, Mexico's only flake graphite mine, produced a premium quality product from a dual processing line that crushed, milled, floated, dried, screened and packed a final product.

The company's management and TetraTech, its consultant, have carefully reviewed the mine and mill site and have determined that one processing line of the operation can be restarted in a six-month period at an estimated cost of $2.5-million (U.S.) (see news release of Aug. 14, 2014). The project appears to have the shortest time frame to production and lowest start-up costs and capital expenditure of any such flake graphite project in the world. The second processing line would be restarted in an orderly manner in line with initial operating experience. The company believes that a skilled work force, including many former employees of El Tejon, can be recruited from the near vicinity of the operation.

In recognition of the vital importance of off-take agreements in the industrial minerals industry, the company has initiated the process of securing such agreements. A quantity of final bagged graphite product from the previous operation remains on the El Tejon site and, at their request, is being submitted to two potential off-take candidates for evaluation and quality assurance purposes. Discussions also continue with several other potential users. It is important to note that the world graphite market has expanded in recent years and the demand for flake graphite continues to grow, driven in part by new, green technologies, including lithium ion batteries that are being used in hybrid and fully electric vehicles that are gaining both in efficiencies and in marketplace acceptance.

The company's board of directors and management will vigorously pursue all options for financing and restarting the El Tejon project in order to achieve the best outcome for its shareholders and will announce developments as they move the project forward.

The company has not established mineral resources and has not completed a valid mining study (as defined by National Instrument 43-101 -- standards of disclosure for mineral projects) to support a production decision at the El Tejon project. Historically, a production decision under these circumstances results in much higher economic or technical risk. Furthermore, without a prefeasibility or feasibility study and a graphite reserve, there can be no assurance that any future operations at El Tejon will be profitable.

Sonora amorphous project

In line with the company's strategy to focus on the El Tejon property, Big North has put its Sonora, Mexico, amorphous graphite operation on hold. Previously, Big North was processing and reselling amorphous graphite to customers in Mexico. In order to focus the company's resources, Big North has put this operation into care and maintenance. Further, Big North recently sold equipment that the company had at the company's plant in Sonora, generating $58,000 (U.S.). Further, Big North sold the remaining stockpiled graphite to a customer in Mexico.

Griffiths/Brougham project -- Ontario

In February and March of 2015, the company allowed the majority of the Griffiths/Brougham claims to lapse. The board of directors and management did not intend to complete further exploration, and deemed the Griffiths/Brougham properties to be non-core assets that would not bring value to the shareholders and did not warrant the additional holding costs. As such, the claims lapsed. Big North currently holds one claim in each of the Griffiths and Brougham claim groups. The company does not plan to spend its resources on these properties as the board wants to focus on the company's most advanced asset which is the El Tejon property in Oaxaca, Mexico.

Shares for debt

An application has been made to the TSX Venture Exchange for the conversion of $80,000 (U.S.) of debt to be converted to shares of the company at five cents per share, representing a 150-per-cent premium to the current share price. The debt to be settled is held by one of the property vendors of the El Tejon project. The debt settlement is subject to the acceptance of the exchange and all securities issued in connection therewith is subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

Financing

Further to its news releases of Jan. 29 and March 20, 2015, the company has closed on a total of 1.5 million common shares at two cents per share for aggregate gross proceeds of $30,000, pursuant to a discretionary waiver of the five-cent minimum pricing requirement granted by the exchange.

All securities issued in connection with the second tranche of the offering will be subject to a four-month hold period expiring on Aug. 8, 2015, in accordance with applicable Canadian securities laws. Net proceeds from the offering will be applied toward general working capital purposes. The offering remains subject to final acceptance by the TSX Venture Exchange.

We seek Safe Harbor.