Mr. Ellerton Castor reports

CANADA CARBON CLOSES PRIVATE PLACEMENT OF FLOW-THROUGH UNITS

Canada Carbon Inc. has closed a non-brokered private placement of 16,666,667 flow-through units at a price of three cents per FT unit for aggregate gross proceeds of $500,000. Each FT unit comprises one flow-through share in the capital of the company and one-half common share purchase warrant. Each whole warrant shall entitle the holder thereof to acquire one common share in the capital of the company at a price of five cents for a period of 24 months from the date of issuance. The FT shares will qualify as flow-through shares within the meaning of the Income Tax Act (Canada).

All securities issued pursuant to the offering are subject to a hold period of four months and one day from the date of issuance and the resale rules of applicable securities legislation. The proceeds of the offering will be used by the company for eligible flow-through expenditures.

In connection with the offering, the company paid finders' fees to certain finders, consisting of: (i) a cash fee equal to $40,000; and (ii) 1,333,333 warrants. Each finder's warrant shall entitle the holder to acquire one common share at a price of five cents per share for a period of 24 months from the date of issuance.

We seek Safe Harbor.