Mineral resource Estimate for ALPVANCOUVER, BRITISH COLUMBIA (October 13, 2015) Alabama Graphite Corp. (AGC or the Company) (TSX V:ALP) (OTCQX:ABGPF) (FRANKFURT:1AG) is pleased to announce the completion of an updated mineral resource estimate for the Companys 100%-owned Coosa Graphite Project, located in Coosa County, east-central Alabama, USA, consisting of 78,488,000 tons in the Indicated Resource category grading 2.39% graphitic carbon (Cg), and 79,443,000 tons in the Inferred Resource category grading 2.56% Cg, utilizing a 1% cutoff grade (the Updated Mineral Resource Estimate). The Updated Mineral Resource Estimate is based on both the 2012 and 2014-15 exploration and drilling programs, consisting of a total of 109 drill holes totaling 25,905 feet of drilling (including 40 new holes totaling 5,665.5 feet) plus 11 new trenches totaling 3,425 feet of sampling, which were treated as drill holes, as of October 2, 2015. The Updated Mineral Resource Estimate was prepared by Metal Mining Consultants Inc. of Highlands Ranch, Colorado, who also prepared an initial mineral resource estimate for the Coosa Graphite Project in 2013. (Note: to view the Alabama Graphite Corp. Coosa Graphite Project 2012 and 2014-15 Drill Hill Hole and Trench Map, please visit the following link: https://www.alabamagraphite.com/wp-content/images/oct122015/Map1-AGC-Oct122015.pdf) HIGHLIGHTS Highlights of the Updated Mineral Resource Estimate include: Indicated Mineral Resource of 78,488,000 tons, grading 2.39% Cg at a 1% cutoff grade, for a total of 1,876,000 tons contained/in-situ graphite the largest graphite Indicated Resource in the United States of America Inferred Mineral Resource of 79,443,000 tons, grading at 2.56% Cg at a 1% cutoff grade, for a total of 2,034,000 tons contained/in-situ graphite AGCs 2015 drill program further substantiates the positive continuity of near-surface, oxidized higher-grade graphitic material, within a simple geological setting, successfully upgrading a significant amount of the previous Inferred resource to the Indicated resource category The drilling campaign successfully increased the amount of oxide material in the Mineral Resource Estimate AGC will utilize the Updated Mineral Resource Estimate to prepare its maiden Preliminary Economic Assessment (PEA) for the Coosa Graphite Project, currently underway and scheduled for publication in Q4 2015 UPDATED MINERAL RESOURCE ESTIMATE The 2015 Coosa Graphite Project drilling program results successfully upgraded a significant portion of the previously released initial mineral resource estimate (announced on September 3, 2013 and filed on SEDAR at www.sedar.com) (the Initial Mineral Resource Estimate) from the Inferred to the Indicated resource categories and sizably increased the Inferred resource category. These results, in conjunction with the results from the Companys pilot plant, currently underway at SGS Mineral Services in Lakefield Ontario (see September 15, 2015 news release), will provide the foundation for the Companys Preliminary Economic Assessment (PEA), currently being prepared by AGP Mining Consultants Inc. (announced July 27, 2015) and scheduled for completion in Q4 2015. This Updated Mineral Resource Estimate replaces the Companys Initial Mineral Resource Estimate which consisted of 38,159,000 tons in the Indicated Resource category grading 2.60% Cg, and 26,992,000 tons in the Inferred Resource category grading 2.87% Cg, utilizing a 2% cutoff grade, as opposed to a 1% cutoff grade utilized for the Updated Mineral Resource Estimate. Table 1. Coosa Graphite Project Mineral Resource Estimate @ 1.0% Cg Cutoff (effective date: October 2, 2015) Resource Category Tonnage (Tons) Graphitic Carbon (Cg %) In-situ/Contained Graphite (Tons) Indicated 78,488,000 2.39 1,876,000 Inferred 79,433,000 2.56 2,034,000 *Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve. INDICATED MINERAL RESOURCE Table 2. Coosa Graphite Project Indicated Mineral Resource Cutoff Grade Variability Cutoff Grade (%) Tonnage (Tons) Graphitic Carbon (Cg %) In-situ/Contained Graphite (Tons) 0.5 85,112,000 2.27 1,932,000 1.0 78,488,000 2.39 1,876,000 1.5 69,842,000 2.53 1,767,000 2.0 54,436,000 2.74 1,491,000 *Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve. INFERRED MINERAL RESOURCE Table 3. Coosa Graphite Project Inferred Mineral Resource Cutoff Grade Variability Cutoff Grade (%) Tonnage (Tons) Graphitic Carbon (Cg %) In-situ/Contained Graphite (Tons) 0.5 93,223,000 2.30 2,144,000 1.0 79,443,000 2.56 2,034,000 1.5 70,283,000 2.74 1,926,000 2.0 58,207,000 2.94 1,711,000 *Inferred Mineral Resources represent material that is considered too speculative to be included in economic evaluations. Additional trenching and/or drilling will be required to convert Inferred Mineral Resources to Measured or Indicated Mineral Resources. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve. The Coosa Graphite Project resource pit measures 3,200 feet in a north-east direction and 1,900 feet in a south-east direction, with a maximum depth of 475 feet. The reported resource was constrained by a geologic model and by an optimized GEOVIA Whittle pit in order to identify the portion of the mineral deposit that may meet the reasonable prospects of eventual economic extraction. The pit extents were derived by using a net graphite selling price of USD$5,761.05 per ton for both primary- and secondary-processed final graphite product. Mining costs were calculated at USD$3.65 per ton. Processing (primary and secondary) costs were USD$14.56 per ton of processed material, with additional general and administrative costs of USD$4.54 per ton processed. Combined processing recoveries of the primary- and secondary-processed final graphite product were 82.8%. The Updated Mineral Resource Estimate will form the basis for an additional program of cost-effective infill trenching, which the Company anticipates will further upgrade the mineral resources to the Measured and Indicated categories. (Note: to view the Alabama Graphite Corp. Coosa Graphite Project Isometric Resource Model Sections Indicated and Inferred Mineralization, please visit the following link: https://www.alabamagraphite.com/wp-content/images/oct122015/Map2-AGC-Oct122015.jpg) In the Companys Initial Mineral Resource Estimate, based on the results of a 69-hole, 20,239.4-foot drill program, the selling price for primary processed, run-of-mine production was assumed to be USD$1,450 per ton of graphite. Mining, milling and processing costs were estimated at USD$2.00 per ton for mining and USD$10.00 per ton for processing, based on publicly available graphite mining costs. Graphite recoveries for primary processed, run-of-mine production were assumed to be 90% for primary processed graphite product. The difference in graphite selling price per ton and graphite recoveries between the Initial Mineral Resource Estimate and the Updated Mineral Resource Estimate reflects managements strategic intent pending publication of a positive PEA of exclusively targeting the oxide portion of the Coosa Graphite Projects mineral resource and, subsequently, to divert all graphite production to secondary-processed, specialty high-purity graphite (see September 29, 2015 news release, regarding the Companys preliminary graphite purification trials at one of North Americas premier and completely independent of the Company metallurgical laboratories), which will be outlined in the forthcoming PEA. Donald Baxter, P.Eng., Co-Chief Executive Officer of Alabama Graphite Corp. commented, The release of our updated, independent Mineral Resource Estimate for the Coosa Graphite Project represents a major milestone for Alabama Graphite and its shareholders. We are very pleased with the results. Our rapid progress at Coosa can be attributed to the projects demonstrated ease of extraction of our oxide material, an at-surface deposit (resulting in minimal strip ratio) and simple geology. Combined, these factors have allowed us to significantly increase the Indicated and Inferred Resources as a result of our 2015 expanded drilling program. This updated Mineral Resource Estimate, coupled with the results from our 200-ton pilot plant, will provide us with a solid foundation to develop AGCs Preliminary Economic Assessment, scheduled to be released later this year. The PEA will be based on a strategy not to sell conventional, run-of-mine graphite, but to further process the run-of-mine graphite into a secondary, specialty graphite in particular, coated spherical graphite (or CSPG) for use in Lithium-ion batteries, said Mr. Baxter. I believe our successfully updated Mineral Resource Estimate further demonstrates the importance of having a knowledgeable and highly experienced graphite mining team when attempting to advance a graphite project. Because the AGC team embodies those traits, we have been able to accelerate our progress effectively to complete this latest milestone. The update has further increased our knowledge and confidence in the Coosa mineral deposit, which will be very helpful in identifying further optimization opportunities as we develop the PEA for the project, stated Ron Roda, President and Co-Chief Executive Officer of Alabama Graphite Corp. We look forward to the release of the PEA, pilot plant results and reporting further on specialty graphite developments. Mineral resources were estimated in conformance with the CIM Mineral Resource definitions referred to in National Instrument 43-101 Standards of Disclosure for Mineral Projects. An independent technical report that supports the Updated Mineral Resource Estimate will be filed by the Company on SEDAR (www.sedar.com) within 45 days of publication of this news release. Alabama Graphite Corp. remains on schedule to publish the Coosa Graphite Projects PEA in Q4 2015 (see July 27, 2015 announcement) incorporating the Company's drill results from 2012 to summer 2015. QUALIFIED PERSON Scott E. Wilson, C.P.G., President of Metal Mining Consultants Inc., a Qualified Person as defined by National Instrument 43-101 guidelines and an independent consultant to the Company, has reviewed and approved of the contents of this press release. # # #