Oct 25, 2012 (ACCESSWIRE-TNW via COMTEX) -- October 25, 2012 - Birmingham, Alabama, USA - Alabama Graphite Corp. (the "Company") (cnsx:ALP) (frankfurt:1AG WKN A1J35M) has two diamond drill rigs on the Coosa Graphite Project in Alabama, USA operated by Major Drilling working on the phase one drill program. Eight core holes have been completed to date and additional holes are currently being bored. The two rigs on the property will work towards each other as twelve stratigraphic definition holes are expected be complete by late October 2012.

Preliminary core logging has revealed that graphitic schists are the dominant rock type encountered in each of the first five stratigraphic holes. Cross-sections based on the drill results indicate that the graphitic schist unit has a true thickness in excess of 1600 feet (515m). Sample preparation is underway with the first holes already at SGS laboratories for analysis. Initial assay results are expected before the end of the month.

Danny Spine CEO of Alabama Graphite Corp. commented: "We are very excited about the drilling which appears to have intercepted consistent graphite mineralization as expected. The core lengths look very encouraging as we now await assay results. The drill program remains ahead of schedule and under budget so we are pleased with the progress to date"

An access road has been prepared for entry into the resource development grid. This grid will outline phase two of the drill program and will be comprised of eighty reverse circulation and core holes to provide definition of the resource and provide material for metallurgical testing.

The Company expects initial fieldwork will be completed in 2012 and will use these results toward creating a preliminary resource estimate. The Company's goal is to become the first operating graphite mine in the United States in sixty years.

As a result of European investor interest the Company, its common shares are now quoted on the Frankfurt stock exchange for trading under the symbol 1AG.F.

The drill program and QA/QC program is under the supervision of Dr. Douglas Oliver, PhD, VP Exploration of the Company. Dana Durgin, a Qualified Person as defined in National Instrument 43-101, has reviewed the contents of this news release.

Danny Gravelle of Goal Capital has joined the Company as Investor Relations.

About Alabama Graphite:

Alabama Graphite Corp., through its wholly-owned subsidiary, Alabama Graphite Company Inc., is a graphite exploration and development company whose flagship project "The Coosa Graphite Project" in Coosa County, Alabama is located in an area with significant historical production of crystalline flake graphite. For further details go to www.alabamagraphite.co .

ALABAMA GRAPHITE CORP.

Daniel Spine, CEO

(404) 661-6254

Danny Gravelle, Goal Capital Inc.,

Investor Relations

(949) 481-5396

ir@alabamagraphite.co

THE CANADIAN NATIONAL STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Forward-looking information

This release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking information includes, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the planned exploration work allowing for a focus of subsequent exploration efforts on the most favourable areas and the definition of drilling targets. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate" or "belief" or describes a "goal" or variation 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.