The paper presents the results of experimental study of the structure and magnetic characteristics of Co-graphite compounds, which were obtained by metal reduction of metal chlorides in graphite intercalated compound (GIC) by C8K. The obtained materials were shown to have heterogeneous structure consisting of nanographite matrix in which nanoclusters of Co-GIC are distributed. Magnetic field was applied either along or perpendicularly to the C-axis. It was shown that magnetism of this compound is determined mainly by nanoclusters of Co-GIC for which high anisotropy of magnetic characteristic were observed. ZFC and FC temperature dependences of magnetic susceptibility indicate the formation spin glass state below similar to 20 K. It was also shown that experimental dependences of magnetization contain the contribution due to antiferromagnetic sublattice and magnetizationdue to uncompensated magnetic moments. (C) 2010 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim