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Message: Mason Graphite Files an Amended Technical Report for its Lac Gueret Project

MONTREAL, QUEBEC--(Marketwired - March 1, 2016) - Mason Graphite Inc. ("Mason Graphite" or the "Company") (TSX VENTURE:LLG)(OTCQX:MGPHF) reports that it has filed an amended technical report entitled "NI 43-101 Technical Report: Resources Update and Feasibility Study, Lac Guéret Graphite Project, Québec, Canada" (the "Technical Report") which has been prepared pursuant to Canadian Securities Administrators' National Instrument 43-101; this amended version replaces the Technical Report filed by the Company on November 9th 2015. The proven and probable mineral reserves of graphite reported in the Technical Report, dated November 9, 2015, have been reduced to 4,741,000 tonnes grading 27.77% Cg from 62,875,000 tonnes grading 17.18% Cg. The difference in the quantity, or 58,134,000 tonnes of ore grading 16.30% Cg, has been effectively reclassified as measured and indicated mineral resources, as it has been reclassified as "In-Pit" Mineral Resources. Despite this reclassification, the overall graphite In-Situ tonnage, the tonnage and grade of the Mineral Resources, the economic analysis included in the Feasibility Study (including the IRR, the NPV and the other Feasibility Study Results Highlights included in the Press Release dated September 25, 2015) and the effective date of the technical report all remain unchanged.

Sections 1.9 and 15.3.6 have been modified to reflect the amended classification of the incremental tonnages contained within the pit design beyond the initial 25 years mine life of the Lac Guéret Graphite Project as "In-Pit Mineral Resources beyond Project Life of 25 years" instead of Mineral Reserves. These "In-Pit" Mineral Resources were included in the pit optimization study and are similar in quality and metallurgical response to the Mineral Reserves included in the 25 years pit design, but they have not been included in the economic analysis presented in the Feasibility Study as such analysis could not be reliably conducted for an extended period of time and because the cash flows generated beyond 25 years have little impact on the economic results of the Feasibility Study; therefore those "In-Pit" Mineral Resources cannot be classified as Mineral Reserves. However, no further drilling will be necessary to conduct the economic evaluation required to eventually classify In-Pit Mineral Resources as Mineral Reserves but there can be no assurance that they may be converted.

The amended Mineral Reserves, the In-Pit Mineral Resources beyond the Project Life of 25 years and the Mineral Reserves as presented in the original technical report dated November 9, 2015 are presented below (totals may not add-up due to rounding).

Mineral Reserves: Project Life - 1st 25 years

Ore Category Tonnes Grade (% Cg) Graphite In-Situ (t)
Proven 2,003,000 25.05 502,000
Probable 2,738,000 29.77 815,000
Proven & Probable 4,741,000 27.77 1,317,000

6% cut-off grade

In-Pit Mineral Resources Beyond Project Life of 25 years

Ore Category Tonnes Grade (% Cg) Graphite In-Situ (t)
Measured 16,929,000 16.98 2,874,000
Indicated 41,205,000 16.03 6,603,000
Measured & Indicated 58,134,000 16.30 9,478,000

6% cut-off grade

Mineral Reserves Before Update (Technical Report dated November 9th, 2015)

Ore Category Tonnes Grade (% Cg) Graphite In-Situ (t)
Proven 18,933,000 17.85 3,379,000
Probable 43,942,000 16.89 7,422,000
Proven & Probable 62,875,000 17.18 10,801,000

6% cut-off grade

Mineral Resources Estimates (unchanged)

Mineral Resources in Whittle 40 (price $1,285) Grade (% Cg) Tonnes
Measured 5% < Cg < 25% 15.16 15,730,000
Measured Cg > 25% Cg 30.58 3,375,000
Total Measured 17.88 19,105,000
Indicated 5% < Cg < 25% 14.59 40,257,000
Indicated Cg > 25% 31.58 6,332,000
Total Indicated 16.90 46,589,000
Measured & Indicated 5% < Cg < 25% 14.75 55,986,000
Measured & Indicated Cg > 25% Cg 31.23 9,707,000
Total Measured & Indicated 17.19 65,693,000
Inferred 5% < Cg < 25% 14.90 15,201,000
Inferred Cg > 25% 31.75 2,450,000
Total Inferred 17.24 17,651,000

5% cut-off grade

In addition to the above noted changes, a new section entitled "Risks Specific to the Project" has been added, which summarizes the risks factors disclosed in the various sections of the technical report and provides an overview of the risk factors associated with the project related to health & safety, to environment, to technical and operational elements, to commercial, competition and demand, to social aspects as well as financial and legal elements.

The preparation of the amended technical report was directed by Mr. Jean L'Heureux, Eng., M. Eng., Executive Vice-President, Process Development. For further details, please access the Technical Report having an effective date of September 25th, 2015 and a re-issue date of February 29th, 2016 available on www.sedar.com under Mason Graphite's profile and on the Company's corporate website at www.masongraphite.com.


The scientific and technical information contained in this news release pertaining to the Lac Guéret project has been reviewed and approved by the following Qualified Persons, as defined by National Instrument 43-101, who consent to the inclusion of their names in this release: Claude Duplessis, Eng. of Goldminds Geoservices Inc., Jeffrey Cassoff, Eng. formerly of Met-Chem Canada Inc., Geneviève Gauthier, Eng. and Pierre Roy, Eng. of Soutex, Edward Lyons, P. Geo. of Tekhne Research Inc. and Mohamed Bouna Aly, Eng. of Gesmine Inc., each of whom are independent of Mason Graphite.

Jean L'Heureux, Eng., M. Eng., Executive Vice-President, Process Development for Mason Graphite, and a Qualified Person, as defined by NI 43-101, was responsible for verifying the technical data herein and has read and approved this press release.

Cautionary Statements Regarding Mineral Reserves and Mineral Resource Estimates

The Mineral Reserves are the basis of the 25-year Mine Life of the Feasibility Study published on September 25th, 2015 and are not included in the "In-Pit" Measured and Indicated Mineral Resources of 58.1 Mt grading 16.3% Cg (which have an equivalent drilling definition). The Mineral Reserves and the "In-Pit" Mineral Resources are included in the total Measured and Indicated Mineral Resources of 65.7 Mt grading 17.2% Cg (19.1 Mt of Measured Resources grading 17.9% Cg and 46.6 Mt of Indicated Resources grading 16.9% Cg) that were reported in the Company's press release dated December 15th, 2014. The reference point for the Mineral Reserves estimate is the mill feed. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability and were not included in the mine life or the economics of the Feasibility Study. Environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues may materially affect the estimate of Mineral Resources. The same issues would need to be considered when conducting an eventual economic evaluation in order to classify the In-Pit Mineral Resources as Mineral Reserves. In addition, there can be no assurance that Mineral Resources in a lower category may be converted to a higher category, or that Mineral Resources may be converted to Mineral Reserves.

About Mason Graphite and the Lac Guéret Project

Mason Graphite is a Canadian mining and processing company focused on the development of its 100% owned Lac Guéret natural graphite deposit located in northeastern Québec. The Company is led by a highly experienced team that has over five decades of experience in graphite production, sales, and research and development. For more information, visit www.masongraphite.com.

Mason Graphite Inc. On Behalf of the Board

"Benoît Gascon, CPA, CA", President & Chief Executive Officer

Neither 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.

Simon Marcotte, CFA
Vice-President Corporate Development
+1 (514) 289-3580
[email protected]

For more information relating to local communities:
Luc Veilleux, CPA, CA
Executive Vice-President and CFO
+1 (514) 289-3582
[email protected]

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