Mr. Ellerton Castor reports

CANADA CARBON TO REQUEST PUBLIC HEARING BEFORE CPTAQ ON MILLER GRAPHITE PROJECT

Canada Carbon Inc. has strongly reaffirmed its commitment to the Miller graphite mining project, located in Grenville-sur-la-Rouge (GSLR). The Miller project will provide a mineral essential to the battery industry aimed at decarbonizing Quebec, electrification, and the fight against climate change, a key objective of the Quebec and Canadian governments.

Following the preliminary orientation released by the Commission de protection du territoire agricole du Quebec (CPTAQ) in connection with the Miller project, the company wishes to confirm its continuing commitment to bringing the project into production. Canada Carbon would like to share the following observations about the CPTAQ process:

• The company is clear that it is fairly normal, at this stage, for CPTAQ to issue a negative preliminary orientation with an eye toward ensuring that a project proponent optimizes a development plan.
• The preliminary orientation has clearly not taken into account all available studies, empirical data and analyses, as well as the full range of potential solutions offered.
• As part of its commitment to transparency and collaboration, the company is calling for a public hearing to present all of the aforementioned studies and data to the commissioners and the public so that any and all concerns can be addressed.

Concerns raised

In response to the concerns expressed by the CPTAQ regarding the potential impact of the project on agricultural lands and sugar maples, Canada Carbon made a clear and explicit commitment in its application to the CPTAQ. As stated in the company's previous communications (see press release of May 24, 2023), Canada Carbon has developed an ambitious restoration plan aimed at achieving no net loss in maple syrup potential. For each maple felled, at least one new tree will be replanted. In addition, maple syrup production facilities will be integrated into the preserved forest areas in the first year of the project, guaranteeing higher maple syrup production capacity than currently exists.

Canada Carbon has already conducted an in-depth hydrogeological study to assess and minimize the impact on water resources essential to agriculture. The company anticipates that this study will convincingly address the CPTAQ's concerns, attesting to minimal localized impacts, with no negative consequences on the water table or neighbouring agricultural activities.

The recent position adopted by the CPTAQ is seen by the company as a constructive milestone in an exhaustive process. It is Canada Carbon's intention to establish a productive, collaborative and constructive relationship with the CPTAQ. Canada Carbon intends to integrate CPTAQ's recommendations so as to optimize plans for the Miller project to ensure that it integrates harmoniously with Quebec's strategic ambitions and comprehensively addresses the needs of the GSLR community.

"The observations made by CPTAQ so far are subjective. Canada Carbon is anxious to meet with the commissioners and the public to address any concerns raised during the review process to date. Since the release of the preliminary orientation, there have been many public assertions made, the vast majority of which have been completely baseless. We are confident that, following a fair and open public hearing with the objective analysis of all available information, we will have demonstrated that the company meets and, in certain cases, exceeds all of the criteria for a compliant application," said Ellerton Castor, chief executive officer of Canada Carbon.

"We understand that the preliminary orientation by the CPTAQ is only the first step in the process. The public hearing will be an opportunity to obtain feedback from all stakeholders in order to improve our project," concluded Mr. Castor.

About Canada Carbon Inc.

Canada Carbon is a mining exploration company focused on the acquisition, exploration and development of graphite deposits. The company has acquired two historical graphite mines, the Miller and Asbury mines, located respectively in the Grenville-sur-la-Rouge and Notre-Dame-du-Laus within the province of Quebec. Canada Carbon is committed to realizing its potential as a high-quality graphite producer while maintaining the highest standards of social and environmental responsibility.

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