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Cedar Mountain Exploration Inc. (CED)

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Cedar Mountain Exploration Options Large High-Grade Graphite Project in Alaska Clarification



Cedar Mountain Exploration Options Large High-Grade Graphite Project in Alaska Clarification


(via Thenewswire.ca)

January 17, 2012 - Vancouver, British Columbia - Cedar Mountain Exploration Inc. (CED: TSX-V) ("Cedar Mountain" or the "Company") is pleased to announce that the Company has entered into an option agreement to earn 100% interest in the Graphite Creek project, located in Alaska, USA.

The Graphite Creek project is an approximately 1,375 hectare property on the Seward Peninsula of Alaska, 65 kilometres north of Nome. Graphite Creek is characterized by an immense scale, large-flake high-grade graphite deposit. Graphite mineralization is exposed at surface and primarily hosted by a garnet biotite quartz schist interval. The coarse crystalline flake graphite occurs as disseminations and high-grade segregations and lenses in the distinctive garnet-bearing schist. The host garnet-bearing schist interval is continuous over 5 kilometres of strike length, has an approximate thickness of 100 metres, and is exposed over dip lengths of 100 to 200 metres thus indicating the potential for 150 to 250 million tonnes of graphite-bearing rock. The estimate of potential deposit tonnage is based on the Company's geological mapping in 2011. Four 2011 samples of the garnet-bearing schist contain 9.1 to 21.8% graphite. Sampling of high grade lenses within the garnet-bearing schist contains up to 56.9% graphite. A historical composite chip sample across a 16-m outcrop of garnet-bearing schist contained 8.36% graphite. Other schists in the area contain 2 to 6% disseminated graphite. The potential size and grade of the Graphite Creek deposit is conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource. The property is 3 kilometres away from intertidal waters at Windy Cove, approximately 20 kilometres away from road systems, and 3 kilometres from an airstrip to the east.

"The Graphite Creek project is an ideal fit with our goal of identifying, acquiring, and exploring large scale projects that have the potential to add significant shareholder value." stated Charles Chebry, CEO. Mr. Chebry added "Cedar Mountain's early stage work completed in 2011 corroborates with historical exploration results increasing our level of confidence that Graphite Creek will become a significant graphite deposit." Cedar Mountain plans to aggressively advance the project in 2012 with an exploration program including sampling, mapping, conductivity surveys, and diamond drilling. The Company aims to have a resource within the next two years.

Graphite & Lithium-Ion Batteries

The price of large-flake graphite has tripled over the last five years due to reductions in dependable supply and increased demand. Future increases in demand of large-flake graphite are expected from the emerging market of lithium-ion batteries. Lithium ion batteries are more powerful than traditional batteries and they are composed of 20 to 30 times more graphite than lithium. Electric and hybrid automobile batteries consume approximately 80 kilograms of graphite per vehicle. It is projected that the graphite demand for electric and hybrid automobile industry by 2020 will exceed the total of all graphite produced today. Initial testing at Graphite Creek identified a high proportion of coarse crystalline large-flake graphite ranging from 76.5% to 93.6%.

Terms of the Agreement

Cedar Mountain has an option to earn a 100% interest in the Graphite Creek Project over a three year period through exploration work totaling $1,525,000 and cash payments of $25,000 on signing, March1, 2012 - $50,000, March 1, 2013 - $100,000 and March 1, 2014 - $250,000. Upon completion of the work and cash payment provisions of the option agreement the project will be governed by a 20 year lease with automatic renewal provisions. The lease agreement allows for a 5% production royalty which can be reduced to 3% by cash payment of $2,000,000 for each one percent purchased.

The Company's disclosure of a technical or scientific nature in this press release has been prepared by Dr. Travis Hudson, registered geologist, who serves as a Qualified Person under the definition of national Instrument 43-101. The Graphite Creek project represents an early stage property and does not contain any mineral resources as defined by national Instrument 43-101.

About Cedar Mountain Exploration Inc.

CEDAR MOUNTAIN EXPLORATION INC. (CED: TSX-V) is a mineral exploration company with a clear and distinct business strategy to identify, acquire, and explore high potential projects ready for rapid advancement. The Graphite Creek Property on the Seward Peninsula of Alaska fits with the Cedar Mountain business strategy offering significant potential for the discovery of large-flake, high-grade graphite exposed at surface. Cedar Mountain has an option to earn a 100% interest in the Graphite Creek project and plans to rapidly advance the property to a NI 43-101 compliant resource.

ON BEHALF OF THE BOARD

Charles Chebry Chief Executive Officer Tel: (403) 283-0001 Email: charles@chebry.com

For more information on Cedar Mountain Exploration Inc. please visit the Company's website www.cedarmountainexp.com or contact:

Anthony Huston VP Business Development & Director Tel: (604) 697-2862 Email: anthonyh@cedarmountainexp.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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