Alabama Graphite Corp. Drills a 152.4m (410 ft) Intercept at its Coosa Graphite Project, Alabama

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 13, 2012) - Alabama Graphite Corp. (the "Company") (CNSX:ALP)(FRANKFURT:1AG)(ISIN# CA0102931080)(WKN A1J35M) is pleased to report assay results from its ongoing drilling at the Coosa Graphite Project, Alabama.

Holes AGC-12-007C and -009C are two of twelve stratigraphic holes drilled to gain an understanding of the lithologic section across the Company's mineral lease in Coosa County. Both holes were on the northeast fence of holes that will be used to guide resource development drilling within the same suite of rocks. Samples were logged and sampled at the Company's facility in Sylacauga and shipped to ALS Minerals in Elko, Nevada, for analysis. The samples were analyzed for graphitic carbon (Cg) by the LECO method.

Both holes were drilled at an azimuth of 300° and a -50 degree dip in order to intersect the graphitic schists perpendicular to foliation. In AGC-12-007C the interval from 36.58 to 83.82m (120 to 275 feet) averaged 2.87% Cg. Included in this 47.24m (155 feet) interval was 6.10 meters (20 feet) grading 4.62% Cg. In AGC-12-009C the interval from 27.43m (90 feet) to the bottom of the hole averaged 2.97% Cg. Included in this 152.4m (410 feet) interval was 9.14m (30 feet) grading 3.55% Cg and 19.81m (65 feet) grading 3.78% Cg.

Based on the stratigraphic relationships, the reported intercepts represent two separate mineralized intervals. The mineralized horizon in hole AGC-12-009C is to the northwest and stratigraphically below the horizon in Holes AGC-12-007C and remains open at depth. The ongoing drilling is currently testing the interval in hole AGC-12-009C.

Below is a table summarizing the significant results from the new drill hole:

CEO, Daniel Spine comments, "We are very pleased to report our first drill results which we consider a major milestone in our efforts to bring Alabama back into the ranks of graphite producers. Core from drill holes along strike from these holes are currently in the lab awaiting analysis. We expect to have additional assay results to report shortly."

Dana Durgin, P.Geo., a Qualified Person as defined by National Instrument 43-101 and independent consultant to the Company, has reviewed the contents of this press release.

About Alabama Graphite:

Alabama Graphite Corp., through its wholly-owned subsidiary, Alabama Graphite Company Inc., is a graphite exploration and development company whose flagship project "The Coosa Graphite Project" in Coosa County, Alabama encompasses of over 40,000 acres located in an area with significant historical production of crystalline flake graphite. For further details go to www.alabamagraphite.co.