Mr. R. Bruce Duncan reports

CANADA CARBON ISSUES OPTIONS

Canada Carbon Inc. has granted stock options to buy a total of up to 900,000 shares to consultants and advisers of the company, exercisable at a price of 25 cents per share for a period of up to five years from the date of grant. The options will vest in three equal instalments over an 18-month period.

The options have been granted in accordance with the company's stock option plan.

We seek Safe Harbor.