Mr. R. Bruce Duncan reports

CANADA CARBON COMMENCES PRE-FEASIBILITY STUDY AND PROVIDES PERMITTING UPDATE ON MILLER PROJECT

Canada Carbon Inc. has begun a prefeasibility study, as recommended by the preliminary economic assessment prepared by Tetra Tech, on the portion of the Miller property that was the subject of the preliminary economic assessment and resource estimate. The company has already completed a 47-hole, 3,405.5-metre infill drill program to provide additional assay data required to upgrade its inferred graphite and marble resources to measured or indicated resources. The core samples are currently at Actlabs, Ancaster, for analysis. The new data from the additional drilling performed on the Miller marble zone will provide the company with sufficient information to request a quarry lease for its marble.

Prior to production of marble, the company must obtain authorization from the Commission de la Protection du Territoire Agricole du Quebec and certificates of authorization from the Ministry of Sustainable Development, Environment and the Fight against Climate Change. The CPTAQ is an organization that protects farmland. The company has contracted a number of consultants to confirm the unsuitable nature of the Miller land for agriculture. The consultants are currently producing the necessary reports to request the authorization from the CPTAQ and delivery of the authorization is expected by September, 2016.

Environmental assessments, including hydrology, hydrogeology, and floral and faunal assessments for the Miller property, as well as hydrogeology and floral and faunal assessments for the Asbury property, are already well advanced, and should be completed before the end of the summer of 2016. Applications will then be submitted to the MSDEFCC to obtain certificates of authorization to operate a marble quarry as part of phase 1 of the Miller project. Social impact studies and public consultations are needed for the Miller mine parts of the project, including the graphite purification thermal plant, before applications to obtain the certificates of authorization are submitted.

Canada Carbon has hired a land surveyor that is familiar with mining permits to perform a land survey of the lots and of the company's proposed mining permit limits. The survey is expected to be completed in March, 2016.

Canada Carbon executive chairman and chief executive officer R. Bruce Duncan stated: "We are pleased to be advancing the Miller project on multiple stages concurrently. Environmental assessments were identified early on as the elements requiring the lengthiest timelines for completion, so those studies were initiated as soon as the company's in-house modelling suggested that mineral extraction had a reasonable prospect for demonstrating positive economics. That decision has allowed the company to accelerate the completion of all required reports for certificates of authorization, minimizing the permitting timeline, to the extent possible."

Based on input from consultants regarding the permits and authorizations required for production, the estimated timelines required for such authorizations, and the work completed to date, the company anticipates, subject to obtaining positive results from its prefeasibility study, that it will begin the production of marble on or about February, 2017, and the production of graphite on or about January, 2018.

The information provided in this press release is a simplified summary of the permitting process, intended to provide an overview of the timelines and progress milestones anticipated by the company as it works toward obtaining the approvals required to develop phase 1 of the Miller project. Complete details will be provided in the preliminary economic assessment, to be filed to the company's SEDAR profile not later than April 18, 2016 (for instance, the date that is 45 days from the press release giving the economic summary of the project).

Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource will be converted into a mineral reserve. Inferred resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as mineral reserves (as defined in National Instrument 43-101). Additional trenching and/or drilling may be required to convert inferred mineral resources to measured or indicated mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the reserve's development, production and economic forecasts on which a PEA is based will be realized.

Dr. John Huang, PEng, of Tetra Tech, is a qualified person as defined by National Instrument 43-101 guidelines. He has reviewed and approved the technical related content of this news release.

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