Mr. Paul Ogilvie reports

SAINT JEAN CARBON PREPARES FOR THE FUTURE AIR BATTERIES

Saint Jean Carbon Inc. has entered into a non-binding and non-arm's-length agreement to acquire the past-producing Glen Almond quartz mine in Quebec. Saint Jean feels it is strategic and falls in line with its graphite lithium-ion battery engineering work as a possible secondary material as silica may have increased demands with the new (silica-based) air batteries.

Air batteries were originally proposed in the 1970s as a possible power source for battery electric vehicles. Lithium-air batteries recaptured scientific interest in the late 2000s due to advances in materials technology and an increasing demand for renewable energy sources. The major appeal of the lithium-air battery is the extremely high specific energy, a measure of the amount of energy a battery can store for a given weight. A lithium-air battery has an energy density (per kilogram) comparable with gasoline. Lithium-air batteries gain this advantage in specific energy since they use oxygen from the air instead of storing an oxidizer internally.

Paul Ogilvie, chief executive officer of Saint Jean Carbon, commented: "We feel the acquisition gives us an opportunity to start working on air battery materials, studying the qualities that could be needed, test production theories and generally get a better understanding of the performance requirements of the material. This will help us significantly as the technology grows out in the coming years."

A major driver in lithium-air battery development is the automotive sector. The energy density of gasoline is approximately 13 kilowatt hours per kilogram, which corresponds to 1.7 kilowatt hours per kilogram of energy provided to the wheels after losses. The theoretical energy density of the lithium-air battery is 12 kilowatt hours per kilogram (43.2 megajoule per kilogram) excluding the oxygen mass. It has been theorized that the same 1.7 kilowatt hours per kilogram could reach the wheels using lithium-air batteries after losses from overpotentials, other cell components and battery pack auxiliaries, given the much higher efficiency of electric motors (Imanishi and Yamamoto, 2014). This means that it may be possible for a lithium-air battery to be as cost-effective as gasoline as the cost for electricity to charge the battery would be less.

The proposed transaction is subject to Toronto Stock Exchange approval; the term sheet states the company will issue 1.5 million shares at closing and will pay $10,000 in March, 2016. Further payments of 100,000 shares will be paid out, if the property meets certain milestones related to quality and tonnage. Dr. Don MacIntyre, the company's geologist, PGeo, and qualified person, reviewed and approved the technical and scientific information in this release.

We seek Safe Harbor.