Mr. Spiro Kletas reports

BIG NORTH DEBT SETTLEMENT COMPLETED

Big North Graphite Corp. has settled accrued debts aggregating in the amount of $200,094.05 by the issuance of 4,001,881 common shares in total at a deemed price of five cents per share. The company's choice to settle outstanding indebtedness with the issuance of common shares will preserve its funds for forward operations. The issuance of common shares received approval from the TSX Venture Exchange and is subject to a four-month hold period expiring on Dec. 26, 2016.

Included in the total share issuance of 4,001,881 common shares, as set out in the paragraph above, the company settled accounts payable to two insiders by the issuance of 2.09 million common shares. As a result of the insider debt settlement, Spiro Kletas, president and chief executive officer of the company, received 1.89 million common shares and Andrew H. Rees, a director of the company, received 200,000 common shares. The insider debt settlement is considered to be a related party transaction as defined under Multilateral Instrument 61-101. The company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in connection with such issuance.