Mr. Paul Ogilvie reports

SAINT JEAN CARBON FINALIZES PROPOSED WORK PROGRAM ON THE QUEBEC LUMP GRAPHITE PROPERTIES

Saint Jean Carbon Inc. has finalized the elements of its planned development and exploration program on its three Quebec lump graphite properties known as the Walker, Wallingford and St. Jovite. The company has established an initial budget of approximately $520,000 for the proposed work programs and expects to commence the work in the fourth quarter of 2013.

As outlined in the press release issued on Oct. 10, 2013, the company has completed a wide-ranging series of flotation and purification tests on Walker graphite samples and has confirmed its suitability for primary upgrading to levels in excess of 95 per cent carbon. Given these encouraging results, approximately $350,000 of the $500,000 total budget is proposed for the Walker property. The proposed program includes an expansion of the earlier beep mat surveys carried out by the company, followed by a preliminary historical National Instrument 43-101 technical report. The Saint Jean geological team expects to then carry out a series of trenching programs and a more comprehensive electromagnetic survey. Data obtained would be used to develop a matrix of drill targets that are included in the budget for this new work program. Subsequent testing and assay forms the final part of the program, and the work is planned to be carried out at Activation Laboratories Inc. in Ancaster, Ont.

The programs established for Wallingford and St. Jovite (postclosing) follow the same series of steps as Walker with the exception that they do not include a preliminary drill program at this point. The work planned on these two properties is expected to permit the company to carry out similar flotation and upgrading work to assess the commercial viability of the graphite deposits. The work programs are scheduled to run in parallel to the Walker program and use approximately $150,000 of the total planned budget for the fourth quarter. Once these efforts have been completed, the company expects to complete NI 43-101 technical reports on both Wallingford and St. Jovite, and proceed with a similar drill program for both. The drill results on all three properties and expanded NI 43-101 technical reports expected to be completed following are intended to be used to prepare prefeasibility and/or full feasibility studies as part of the effort to bring the properties into production as soon as possible. Members of the company's senior management team are planning to be on site in December to meet with the geological team and oversee the implementation of the work program.

Paul Ogilvie, chief executive officer of Saint Jean, commented: "Our geological and management team has worked closely over the past few weeks to identify the appropriate exploration steps and plan the next phase of development. This is just one more part of our ongoing systematic process of execution on all three properties, and we think the drill program on Walker will confirm many of our beliefs that it may well represent a breakthrough graphite property in terms of the product quality, grade and operating economics. We are excited about taking these next key steps and look forward to keeping our shareholders abreast of the assay results as they become available over the next few months."

The company's geologist, Isabelle Robillard, PGeo, commented: "The three graphite properties are all located in excellent geological environment, and there is an outstanding potential for significant graphite mineralisation. At Walker, our beep mat survey resulted in many positive responses, which were confirmed by additional graphite occurrences forming a number of zones that warrant more detailed investigation. The proposed exploration programs will be a significant step to fully develop these three properties."

The company's geologist, Isabelle Robillard, PGeo, an associate of Inlandsis Consultants senc, is an independent qualified person under National Instrument 43-101 and has approved the technical information in this news release.

About lump/vein graphite

Lump or vein graphite is considered to be one of the rarest, commercially valuable and highest-quality types of natural graphite. It occurs in veins along intrusive contacts in solid lumps and is currently only actively mined in Sri Lanka. As a result of the carbon content typically found within lump/vein graphite, production costs are normally lower than flake or amorphous graphite recovery. Lump graphite processing techniques can include everything from hand sorting of large concentrated samples to standard crushing, grinding, froth flotation and milling. Lump/vein graphite is suitable for many of the same applications as flake graphite, giving it a distinct competitive edge in terms of market prices and product applications.

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