Mr. Bruce Duncan reports

CANADA CARBON ARRANGES FLOW-THROUGH PRIVATE PLACEMENT

Canada Carbon Inc. has arranged a non-brokered private placement consisting of 650,000 units at 32 cents for gross proceeds of $208,000 with Stone & Co. Ltd. The units consist of one flow-through common share in the capital of the company and one-half non-flow-through common share purchase warrant, with each whole warrant being exercisable for the purchase of an additional common share for a period of two years from closing at 40 cents per common share. There are no finders' fees payable on the transaction.

The private placement is subject to certain customary conditions, including, but not limited to, the execution of a definitive subscription agreement, and the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The private placement is anticipated to close on or about Sept. 25, 2013. All securities issued in connection with the private placement will be subject to a statutory hold period of four months plus one day from the date of completion of the private placement, in accordance with applicable securities legislation.

The net proceeds from the private placement will be used to advance the company's work programs on its 100-per-cent-owned hydrothermal lump-vein graphite project.

Established in 1995, Stone & Co. is an independent, 100-per-cent-Canadian-owned fund company. Based in Toronto, SCL offers the Canadian investor, through financial advisers in all provinces and territories of Canada, eight mutual funds, 16 flow-through limited partnerships since 2003 and one Toronto Stock Exchange-listed investment fund.

We seek Safe Harbor.