Mr. Ellerton Castor reports

CANADA CARBON COMMENTS ON PRESS RELEASE ISSUED BY THE MUNICIPALITY OF GRENVILLE-SUR-LA-ROUGE

Canada Carbon Inc. has acknowledged the press release issued by the municipality of Grenville-sur-la-Rouge (GSLR) following a special meeting of the municipal council concerning the company's application to the CPTAQ for the Miller graphite project.

The company is disappointed that, after refusing several attempts by Canada Carbon to initiate a constructive dialogue, the municipality has made the decision to ask the CPTAQ to refuse Canada Carbon's request for a fair hearing on its application related to the Miller project. The actions by the municipal council on May 2 are the latest in a campaign designed to thwart the company's efforts at the responsible development of the Miller project. Irrespective of the content of the municipal council's to-be-published resolution, the press release issued by the office of Mayor Arnold makes the following patently clear:

1. The council failed in fulfilling its only required obligation as per existing provincial laws and regulation: Sending the attestation as to the Miller project's conformity with municipal zoning regulations.
2. This thinly veiled attempt at evading its responsibility is in direct contravention of several provisions of the settlement signed by the parties in February, 2020, after protracted litigation; a settlement in which GSLR already stipulates that the Miller project conforms to municipal zoning regulations.
3. GSLR acknowledges that Section 246 of the act respecting land use planning and development renders GSLR's municipal bylaw inapplicable to the Miller project.

Canada Carbon's sole objective has always been, and shall remain, to obtain a fair hearing of its application to CPTAQ; a hearing where the Miller project can be judged on the merits of the company's plan to responsibly develop, commission, operate and rehabilitate the Miller project site. In contrast, the GSLR municipal council has waged and supported a campaign of obfuscation, disinformation and intimidation, all designed to frustrate the development of a project that could bring significant, sorely needed economic and other benefits to the residents and stakeholders of the region.

The Miller project, given its unique high-purity graphite, is likely to be an essential component of Quebec's ability to contribute to the green, new-energy economy. Quebec graphite is essential to the critical and strategic minerals strategy put forward by the Quebec government, in addition to contributing significantly to the energy transition, particularly the battery industry being developed within the province. Canada Carbon remains committed to establishing a transparent and constructive dialogue with the municipality and reiterates its willingness to work with all stakeholders to enable the realization of a project that will benefit the entire province. Nonetheless, the company remains committed to taking all necessary measures to ensure compliance with all terms of the settlement already secured through the aforementioned legal process.

About Canada Carbon Inc.

Canada Carbon is a mining exploration and development company focused on the acquisition, exploration and development of graphite deposits. The company holds a 100-per-cent interest in two strategic, past-producing graphite properties located in Quebec: the Miller graphite project located in Grenville-Sur-La-Rouge and the Asbury graphite mine located in Notre-Dame-du-Laus. Canada Carbon is committed to realizing its potential as a high-quality graphite producer while maintaining the highest standards of social and environmental responsibility.