Alabama Graphite Corp (fka CSPGF)

[$UPERMAN]

August 23, 2013 – Vancouver, BC: Further to its news release dated August 16, 2013, Alabama Graphite Corp. (CNSX:ALP) (Frankfurt:1AG.F WKN A1J35M) (“Alabama Graphite”) is pleased to announce that it has closed the Asset Purchase and Sale and Royalty Agreement (the “Agreement”) entered into with Benton Resources Inc. (TSXV:BEX) (“Benton Resources”) wherein Alabama Graphite acquired a 100% interest in the Hearst Graphite Project (the “Hearst Project”) staked by Benton Resources near Zenyatta Ventures Ltd.’s (“Zenyatta”) Albany hydrothermal graphite discovery in Northern Ontario. The 16 claim units comprising the Hearst Project are located just east of Zenyatta’s deposit in Albany and measure 1.6KM by 1.6KM in area.

Alabama Graphite paid $8,000 in cash and issued 2,000,000 of its common shares (the “Shares”) at a deemed price of $0.20 per Share to Benton Resources in exchange for the Hearst Project. All of the Shares issued pursuant to the transaction are subject to a four-month hold period expiring on December 23, 2013. As well and pursuant to the terms of the Agreement, 500,000 of the Shares issued to Benton Resources are further subject to a 10-month trading restriction expiring on June 22, 2014, another 500,000 Shares are subject to a 16-month trading restriction expiring on December 22, 2014 and 500,000 Shares are additionally subject to a 22-month trading restriction expiring on June 22, 2015.

Benton Resources will also hold a 2% Net Smelter Royalty (“NSR”) interest from all ore production at the Hearst Project, subject to the right of Alabama Graphite under the Agreement to “buy back” 50% of Benton Resources’ NSR interest for $1,000,000.

http://alabamagraphite.co/alabama-graphite-co/alabama-graphite-announces-closing-of-acquisition-of-hearst-graphite-project/