Mr. Chris Bogart reports

STANDARD GRAPHITE AMENDS MOUSSEAU OPTION AGREEMENT

Standard Graphite Corp. has amended the terms of its option agreement to acquire up to 100 per cent of the Mousseau East deposit located about 40 kilometres northeast of the town of Mont-Laurier in northwestern Quebec. Please see the company's news release dated June 25, 2012, for a full description of the original terms.

A summary of the amendments include:

Revising the $200,000 cash payment and $200,000 in common shares due on July 20, 2014, as follows:

Cash:

• $10,000 within 30 days of execution of the amending agreement;
• $15,000 within 90 days of execution of the amending agreement;
• $25,000 within 180 days of execution of the amending agreement;
• $50,000 within 30 days from the commencement of an approved drill program;
• $100,000 within 180 days from commencement of an approved drill program and no later than 18 months from execution of the amending agreement.

Shares:

• Within five business days from execution of the amending agreement, such number of common shares equal to $25,000 divided by the volume-weighted average price of the common shares;
• Within 30 business days from execution of the amending agreement, such number of common shares equal to $25,000 divided by the VWAP of the common shares;
• On or before 12 months from the execution of the amending agreement, such number of common shares equal to $50,000 divided by the VWAP of the common shares;
• Within 180 business days from the execution of this amending agreement, such number of common shares equal to $100,000 divided by the VWAP of the common shares.

All other terms and conditions of the agreement remain unchanged.

We seek Safe Harbor.