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USA Graphite Inc. Project Hunt Update

LAS VEGAS, NV -- (Marketwire) -- 12/28/12 -- USA GRAPHITE INC. (OTCQB: USGT) (or "The Company") is pleased to announce its search for additional large tonnage high carbon content properties is proving to be very successful.

The Company has been evaluating additional projects in Nevada that have the resources to host their own mine or be strategically linked in to operations with the Company's other Nevada assets. The Company sees the value in economies of scale with grouping neighboring projects. By this methodology, the Company will be able to use the same geologists and operators who will be working on the Company's flagship Blue Wing Mountain Graphite property and the Gordon Creek property on other Nevada projects as well. The Company sees the upside in amassing several thousands of tonnes of high carbon graphite and having direct access to commercial markets by well-known USA Interstates and Highways. Adding access to additional tonnage of high quality graphite and keeping costs down by sharing teams and resources is a valuable position for the Company.

Further, the Company has also attracted the attention of the international graphite mining community and has been introduced to a very high quality project in Canada next to a world class graphite producer.

The Company will continue to provide shareholders with acquisition updates.

Wayne Yamamoto, CEO of USA Graphite, comments, "The Company believes that adding additional Nevada projects to our fold is economically advantageous and securing a high quality Canadian asset for the American market would be advantageous for USA end users in who are currently sending funds out of America to bring high quality graphite in to America."

About Graphite:

  • Graphite is used in refractories -- used to line high-temperature equipment; pencils; lithium-ion batteries -- used in consumer electronics and electric vehicles, including the Nissan Leaf, Tesla Model S and others; fuel cells; and Pebble Bed nuclear reactors. It is used in foundries, lubricants and brake linings.
  • Graphite is also used to produce graphene, a tightly packed single layer of carbon atoms that can be used to make inexpensive solar panels, powerful transistors, and even a wafer-thin tablet that could be the next-generation iPad* or iPod*.
  • Graphene, extremely light and strong, has been called the world's next wonder material.
  • The closure of graphite mines in China, which produces 75% of the world's graphite, has resulted in a fall in global graphite production to 1.3 million tonnes per annum in 2011. Like rare earths, China is restricting the export of graphite to protect its own domestic industries. The second largest producer is India, followed by Brazil, North Korea, Austria and Canada.

*trademarks of Apple Inc.

About USA Graphite:

USA Graphite is a publicly traded US exploration company focused on the acquisition, exploration and development of world-class graphite properties in North America. USA Graphite intends to become a domestic (US) graphite supplier. The USGS has reported that the USA has been a 100% net importer of graphite over the last 5 years, sending billions of dollars out of America. USA Graphite has holdings in Nevada, offering considerable potential for the discovery and development of large flake, high-grade graphite, whereby mineralization is exposed at surface and clearly evident at economic depths. For additional information please visit http://www.usa-graphite.com

"Safe Harbor" Statement:

Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Notice Regarding Forward Looking Statements -This press release includes forward-looking statements that involve a number of risks and uncertainties, including the success of the programs it is commercializing and developing. Further, the risks involve the ability of the Company to raise capital to fund its operations and the capital requirements for the development and marketing of its products. Investors are encouraged to review the risk factors listed or described from time to time in the Company's filings (10K, 10Q's, S-1 and others) with the Securities and Exchange Commission.

Contact:

USA Graphite Inc.

[email protected]
Toll Free 1(888)603-3330

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