Mr. Ellerton Castor reports

GRENVILLE-SUR-LA-ROUGE ACKNOWLEDGES THAT CANADA CARBON'S MILLER GRAPHITE MINE IS A MINING PROJECT SUBJECT TO SECTION 246 OF THE RLUPD AND CPTAQ MAY PROCEED WITH ANALYSIS OF THE COMPANY'S APPLICATION

The Municipality of Grenville-sur-la-Rouge (GSLR), through a letter from its attorneys and a letter from its authorized municipal officer, has recognized that Canada Carbon Inc.'s Miller graphite mine project, located within GSLR, is a mining project within the meaning of the first paragraph of Section 246 of the Act respecting land use planning and development (RLUPD) and that the Commission de Protection du Territoire Agricole du Quebec (CPTAQ) may proceed with its analysis, effective immediately. GSLR hereby acknowledges that its subdivision, zoning, construction or other bylaws cannot impede the company's graphite mine project in accordance with the Mining Act and are not enforceable against it. Consequently, GSLR's attorneys have explicitly acknowledged the validity of the company's CPTAQ application. This recognition by GSLR holds significance as it allows the CPTAQ to evaluate the company's authorization application on the merits of the project and without any additional delays.

"Canada Carbon has always sought to have the Miller graphite project evaluated solely on its merits. That includes the company's demonstrated interest in being a good corporate citizen and intent to pursue the development of the project in the most responsible manner. The company will continue to work closely with all relevant stakeholders to ensure that the Miller project is developed with respect for the highest environmental standards and host communities. We will maintain an ongoing dialogue with the Municipality of Grenville-sur-la-Rouge, regulatory agencies and other local communities to ensure a responsible and sustainable approach to the development process while ensuring positive economic outcomes for the region [and] the province as a whole," said Ellerton Castor, chief executive officer and director of Canada Carbon.

"For example, we have already commenced a significant drilling program designed to address certain questions raised about the hydrogeological profile of the project. We will continue to take a similarly pro-active approach to the remainder of our licensing and permitting 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.