MONTREAL, Oct. 2, 2013 /CNW/ - Mason Graphite Inc. ("Mason Graphite" or the "Company") (TSX.V: LLG) is pleased to provide an update on its recent corporate developments.

Recent and Upcoming Milestones

Since acquiring the Lac Guéret project in April 2012, Mason Graphite has achieved the following important milestones that are critical to advancing the project towards the development of a mine.

The Company expects to complete a number of important de-risking events in the upcoming months, including the initiation of a definitive Feasibility Study and piloting program. Mason Graphite also intends to initiate the permitting process for the Lac Guéret project by filing an environmental baseline study. Expected upcoming milestones are listed in the table below:

Benoît Gascon, President and CEO of Mason Graphite, commented, "The recent developments at our Lac Guéret project have all either met or exceeded our expectations. This is very encouraging to us and the speed at which we have been able to advance the project speaks to the quality of our asset and of our experienced team members. We believe that our project has world-class potential and we will continue to work diligently to advance the project and achieve our objective of becoming a graphite producer as quickly as possible."

Extension of October 2013 Warrants

Mason Graphite has applied to the TSX Venture Exchange to extend the term of 12,614,989 common share purchase warrants (the "Warrants") previously set to expire on October 30, 2013 to October 30, 2014. Each Warrant is exercisable for one common share in the capital of the Company for an exercise price of $1.00. Under the amended terms of the warrants, if at any time after October 30, 2013 the common shares of the Company trade at or above $1.40 per share (on a volume weighted adjusted basis) for a period of 30 consecutive days, the Company will have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise this acceleration right.

Investor Relations Engagement

Mason Graphite has engaged Proactiveinvestors to provide investor relations services to the Company. Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Perth, Toronto, Calgary, Vancouver and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, commentary and analysis on hundreds of listed companies across the globe daily. The Company has agreed to pay Proactiveinvestors $1,250 per month for a period of 12 months. The agreement is subject to the approval of the TSX Venture Exchange.

Non-brokered Private Placement

Mason Graphite has launched a non-brokered private placement financing of 155,000 common shares of the Company at a price of $0.40 for total gross proceeds equal to $62,000 (the "Financing"). The common shares issued pursuant to the Financing will be subject to a hold period of four months and one day. The Financing is fully subscribed for, but remains subject to the approval of the TSX Venture Exchange. The proceeds of the Financing will be used for general corporate purposes.

Qualified Person

Jean L'Heureux, Eng., Mason Graphite's Executive Vice-President of Process Development and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical content of this press release.

About Mason Graphite

Mason Graphite is a Canadian mining company focused on the exploration and development of its 100% owned Lac Guéret graphite property, which is located in northeastern Québec near the main service center of Baie-Comeau. The Lac Guéret property currently hosts a National Instrument 43-101 compliant Mineral Resource (see news release issued on July 16, 2012), based only on 17% of the known mineralized zone. Excellent potential exists for mineral growth. The Company has also completed a Preliminary Economic Assessment study which features 22 years of production at 27.4% Cg and a pre-tax internal rate of return of 33.7% (see technical report issued by the Company on June 6, 2013). The Company's senior management team possesses significant graphite expertise from their experience at Timcal/Imerys; including Benoit Gascon, CPA, CA, who held executive positions for 20 years, including over 6 years as President and CEO; Jean L'Heureux, Eng., Executive Vice-President, Process Development, with over 20 years of experience; and Luc Veilleux, CPA, CA, Chief Financial Officer and Executive Vice-President, with 8 years of experience. Timcal, now owned by Imerys, is one of the largest graphite producers in the world.

Cautionary Statements Regarding Forward Looking Information

This press release contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; * access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the resulting issuer; (xii) the risks associated with the various environmental regulations the resulting issuer is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management.

Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

Full technical details and notes for the Preliminary Economic Assessment ("PEA") can be found in the technical report entitled "NI 43-101 Technical Report on the Preliminary Economic Assessment, Lac Guéret Graphite Project, Quebec, Canada" dated June 6, 2013 and effective April 22, 2013, which is available under Mason Graphite's profile on SEDAR at www.sedar.com and on Mason Graphite's website at www.masongraphite.com.

A PEA is preliminary in nature and includes Inferred Mineral Resources, which are considered too geologically speculative to have mining and economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the reserves development, production, and economic forecasts on which the PEA is based will be realized.

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.

SOURCE Mason Graphite Inc.