Mr. R. Bruce Duncan reports

CANADA CARBON INTERSECTS 32.45% CG OVER TWO METRES IN DRILLING AND 28.2% CG OVER 1.3 METRES IN CHANNEL SAMPLES AT MILLER PROJECT

Canada Carbon Inc. has received the assay results from its trenching and drilling programs that were recently completed at the Miller mine project in Quebec. Collectively, the results demonstrate that the graphite and wollastonite mineralization exposed at surface extends to a depth of 39 metres. Deeper extensions suggested by core observations are still untested, and will be the focus of future drilling programs.

A total of 595.5 m of core in 12 holes was drilled at the Miller mine project, of which 33.5 m with higher visible graphite content from seven drill holes have been assayed for graphite to date. Trenching in relation to historic operations and recent geophysics has been described previously (see news release, Sept. 18, 2013). Channel samples were sent to Actlabs (Ancaster, Ont.). Core samples were half split and also sent to Actlabs. Quarter splits of richer intersections were sent to SGS Canada (Lakefield) and quarter splits of the graphite veins were sent to Actlabs for additional assaying of the richest intersections. Results are reported from Actlabs and SGS Canada. Actlabs results are reported using protocol 5D-C in which the samples underwent drying, crushing with up to 90 per cent passing through a No. 10 square-mesh screen, riffle splitting (250 grams) and pulverizing to 95 per cent passing a 105-micron-square mesh screen. Graphitic carbon (Cg) was determined by multistage furnace treatment and infrared absorption, with a 0.05-per-cent detection limit. SGS Canada prepared the samples by crushing to 75 per cent passing two millimetres, splitting (250 grams) and pulverizing to 85 per cent passing 75-micron-square mesh screen. Graphitic carbon was determined by difference from the carbon assay (after ashing) by tube furnace/coulometer minus the carbonate carbon (after ashing) by coulometry. Results from both drilling and trenching are reported in the associated tables.

  DRILLING RESULTS FOR THE MILLER GRAPHITE PROJECT
               (all holes are NQ)
                                
                                    Interval
Drill hole      From m     To m           m     Cg %

VN1-02            0.00     1.35        1.35     7.22
VN2-01            1.00     3.00        2.00    32.45
                  1.00     1.30        0.30    53.60
                  1.70     2.60        0.90    51.70
                  3.00     7.50        4.50     2.51
                  7.50     9.60        2.10     9.65
                  8.50     8.90        0.40    11.50
VN2-02            0.00     4.00        4.00     2.32
DDH13-03          0.00     2.00        2.00     1.61
                  0.80     1.10        0.30     6.33
                 46.70    48.70        2.00     6.14
                 47.50    48.40        0.90    15.14
DDH13-04         27.00    28.00        1.00     4.70
                 27.60    27.75        0.15    11.90
                 39.50    42.00        2.50     8.12
                 41.30    41.80        0.50    14.50
                 48.00    49.50        1.50     4.20
                 48.05    48.20        0.15     8.59
DDH13-05          2.30     2.60        0.30    22.70
DDH13-07         47.00    48.00        1.00     6.51


  TRENCH SAMPLE RESULTS FOR THE MILLER GRAPHITE PROJECT
                                                         
Sample          Channel width Channel length            
material                   cm              m         Cg %

VN2                       2.5            1.3         28.2
                    including           0.25         49.7
Pod #1                    2.5            0.6         10.1
Pod #2                    2.5            1.0         18.6
Pod #3                    2.5            1.3         22.2
Pod #3                    2.5           0.58         6.57
Pod #4                    2.5           0.44         42.0
Pod #5                    2.5            0.5         24.4
Pod #5                    2.5           0.65         12.5
Pod #5                    2.5            0.5         17.7
Pod #6                    2.5            0.5         33.0

The most significant results are from the VN2 surface showing, where the mineralization is located at the contact between marble and paragneiss, with local folding often acting as a focus of mineralization. Assays confirm 28.2 per cent Cg over 1.3 metres in a channel sample, including 49.7 per cent Cg over 0.25 m. Associated with the mineralization is a graphite-wollastonite pod that assayed 24.4 per cent Cg over 0.5 m and 17.7 per cent Cg over 0.5 m in channel samples. Drilling intersected the graphite-wollastonite pod at 39.3 metres (vertically) beneath the VN2 showing in hole DDH13-03, returning assays similar to the surface results, with 15.14 per cent Cg over 0.9 m. Drill hole DDH13-04 laterally extended the graphite-wollastonite mineralization 14 m toward the east, and intersected 14.5 per cent Cg over 0.5 m at 33.8 m (vertically) underground.

Some drill holes also tested the VN2 at near surface. Drill hole VN02-01 resulted in 32.45 per cent Cg over two m from one to three m down, including two veins assaying 53.6 per cent Cg over 0.3 m and 51.7 per cent Cg over 0.9 m. The company believes that a mineralized zone is present along the depth extension of the VN2 showing, as demonstrated by the graphite-wollastonite mineralization found at surface and depth, and will conduct further drilling to find large graphite-rich veins similar to those closely associated with graphite-wollastonite pods at surface. Drill holes DDH13-03 and DDH13-04 were the only holes that tested the showing at depth.

Many lower-grade intersections were also sampled during drilling. Some of the lower-grade mineralization includes graphitic marble or paragneiss grading between 0.46 per cent and 5.27 per cent Cg. Many rock units were crosscut by centimetre-width graphite veins. The enrichment of graphite in the marble and paragneiss may be caused by the same hydrothermal fluids responsible for the high-grade veins found to date. On Nov. 16, the company submitted a total of 55.5 m of lower-grade core samples from seven drill holes for assay, to enhance its database, which will help with the modelling of the mineral deposit.

Channel samples were also collected from other graphite-wollastonite pods found during trenching. All channel samples were taken perpendicular to the orientation of the pods. The pods are of metre-scale and consist of calcite, diopside, feldspar, wollastonite and graphite. They have a pegmatitic texture and are primarily located along the contact between marble and paragneiss. From the trench trending northeast to the southwest over 55 m, six graphite pods were sampled. Assays returned values up to: 10.1 per cent Cg over 0.6 m, 18.6 per cent Cg over one m, 22.2 per cent Cg over 1.3 m (VN1 showing), 42 per cent Cg over 0.44 m, 24.4 per cent over 0.5 m (pod near the VN2 showing) and 33 per cent Cg over 0.5 m. The associated table shows more results of sampling over the pods. The company's ore genesis model suggests that high-grade mineralization was deposited as graphite-rich pods and lump veins along permeable channels utilized by the fluids and gases as they moved toward lower pressure zones.

R. Bruce Duncan, chief executive officer and director of Canada Carbon, stated: "We are very pleased the drilling and channel sampling have confirmed that the very high-grade Miller graphite mineralization continues at depth. We have multiple intersections of graphite in multiple holes, equating to vertical depths of mineralization to at least 39.3 metres, and our impending drill campaign will further extend the downdip and strike extension of these high-grade intervals. The campaign will also test our three high-priority targets defined by airborne EM, each of which exhibits geophysical attributes like those over the VN2 area."

The three high-priority EM anomalies that are scheduled for drilling were selected for their size, shape and amplitude (see news release dated Nov. 14, 2013). Ground prospecting and beep mat surveying were conducted over the remaining anomalies, which resulted in the discovery of many graphite veins southeast of the Miller mine pit, 114 m from high-priority anomaly E3. Selected grab samples collected from these veins returned assays of 29.9 per cent Cg, 23.4 per cent Cg, 29.8 per cent Cg, 29.9 per cent Cg, 24.5 per cent Cg and 33.3 per cent Cg. Further exploration with trenching is planned over these new areas of surface mineralization, as well on the other EM anomalies where no outcrop was present.

Dr. Remi Charbonneau, PhD, PGeo No. 290 (an associate of Inlandsis Consultants SENC), is an independent qualified person under National Instrument 43-101, and has reviewed and approved the technical information provided in this news release.

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