Low‐temperature specific heat (Cp) and magnetic susceptibility (&khgr;) for the graphite intercalation compounds C6.2FeCl3(stage 1) and C17FeCl3and C11.3NiCl2.13(stage 2) is reported and analyzed. The FeCl3compounds show large anomalies in Cpat 4 and 1.7 K, respectively, while the NiCl2compound shows a peak at 20 K. For the FeCl3compounds, &khgr; is less than 5×10−6emu gm−1at all temperatures, showing only very small anomalies, while the NiCl2compound shows a very large peak in &khgr; at 16 K. Possible magnetic models for these layered compounds are considered, including a spin‐glass or spin‐cluster glass state.