Big North Graphite Corp. (TSXV:NRT) signed a letter of intent to acquire 97.5% stake in Grafito de Mexico, S.A. de C.V. from MAG Exploration Services Inc. and Cesar Javier Guajardo Villarreal for CAD 2.3 million in cash and stock on December 19, 2013. As a part of consideration, out of $1.7 million (CAD 1.81 million) cash Big North will pay $0.03 million (CAD 0.03 million) upon signing the LOI as a non-refundable deposit, $0.03 million (CAD 0.03 million) within 5 business days of signing the definitive agreement, $0.09 million (CAD 0.09 million) upon the 6 month year anniversary of signing the definitive agreement, $0.1 million (CAD 0.11 million) upon the 12 month year anniversary of signing the definitive agreement, $0.1 million (CAD 0.11 million) upon the 18 month year anniversary of signing the definitive agreement, $0.125 million (CAD 0.13 million) upon the 24 month year anniversary of signing the definitive agreement, 0.125 million (CAD 0.13 million) upon the 30 month year anniversary of signing the definitive agreement, 0.15 million (CAD 0.16 million) upon the 36 month year anniversary of signing the definitive agreement, $0.15 million (CAD 0.16 million) upon the 42 month year anniversary of signing the definitive agreement, 0.4 million (CAD 0.42 million) upon the 48 month year anniversary of signing the definitive agreement and 0.4 million (CAD 0.42 million) upon the 60 month year anniversary of signing the definitive agreement. Also, Bid North will issue 5 million shares within 5 business days of TSX Venture Exchange approving definitive agreement and 7.5 million shares on 12 month anniversary of signing the definitive agreement. MAG will retain a 3% net profits interest royalty with respect to the El Tejon Property.

The transaction is conditional upon satisfactory due diligence, settlement of a definitive agreement, corporate approvals and TSXV approval, including the review by the TSXV of a title opinion and a NI 43-101 compliant technical report for the El Tejon. As of February 5, 2014, Big North Graphite entered into a share purchase agreement for the transaction. John Eckersley of MJI Management Corp. acted as consultant to Big North Graphite and will receive fee 3.09 million common shares as fee. The conversion has been done through www.oanda.com.