Mr. Ellerton Castor reports

CANADA CARBON ANNOUNCES POSITIVE RESULTS FROM GRAPHITE HALF-CELL BATTERY TESTING WITH POLARIS BATTERY LABS, LLC

Canada Carbon Inc. has completed half-cell battery testing of its graphite material with Polaris Battery Labs LLC. Flake graphite provided for this testing was provided from Canada Carbon's Miller graphite mine project located in Grenville-sur-la-Rouge, Que.

Coin cells for Canada Carbon were assembled and tested by Polaris Battery Labs against a commercially available graphite baseline material for comparison. Both sets of cells were assembled using a lithium metal counter electrode, Wattman glass fibre separator and 1M LiPF6 in 3 to 7 EC to EMC electrolyte. The coin cells were tested according to Polaris's batch qualification regime to determine the first cycle loss, reversible capacity and other key electrochemical limits.

Canada Carbon's flake graphite material showed promising results in terms of capacity and first cycle loss in comparison with commercial baseline materials with an approximately 6.5 per cent first cycle loss and 353-milliampere-hour-per-gram-mass reversible capacity, which is above the commercial reference graphite material testing at an average 345 mAh/g. Data indicate that improvements in rate performance are still needed to achieve commercial performance; however, this can be attributed to flake graphite being used in comparison with commercially used CSPG (coated, spheroidized and purified graphite), which allows lithiation only on the edge plane leading to typically slower lithiation and delithiation rate capabilities. However, improvements in performance would likely be seen with additional postprocessing such as spheroidization and pitch coating, which are used in commercial materials today.

Doug Morris, chief executive officer and director of Polaris Labs, stated: "These initial results from half-cell (coin cell) testing confirm excellent graphite properties. Given these positive results, we will now progress into testing of full pouch cells. These tests confirm that the Canada Carbon graphite material is suitable for anode material and electrode/battery markets. Canada Carbon and Polaris will continue the test program throughout 2024."

Highlights of this study

Cell materials and testing:

• 8.89-milligram-per-square-centimetre mass loading calendared to 1.56 grams per cubic centimetre;
• 304SS CR2032 coin cell cans;
• Whatman GF/F separator:
  • 200 microm (fully compressed) glass fibre material used to separate the graphite anode from the lithium reference/counterelectrode;
• 1.0 M LiPF6 in 3 to 7 EC to EMC electrolyte (Polaris standard);
• Testing:
  • Estimated cell capacity: 5.82 mAh;
  • Formation: CC Dchg/Chg at C/20;
  • Cycle: CCCV Dchg/CC Chg with C/20 CV at C/10, C/5, C/2 and C/10 (three times each rate);
• Formulation:
  • Graphite: 94.5 per cent;
  • Imerys C65: 1.5 per cent;
  • Wealthy Chem BH-1000 CMC: 1.5 per cent;
  • MTI SBR (dry basis): 2.5 per cent;
• Mix solids -- 41.88 per cent;
• Mix viscosity -- 2,930 millipascal-seconds;
• FoG (Hegman) -- no legible reading obtained.

Electrochemical results:

• Irreversible capacity (first cycle loss) -- 6.53-per-cent average;
• Reversible delithiation capacity at C/10 -- approximately 353 mAh/g:
  • Stabilized capacity at final C/10 cycles;
  • Theoretical graphite capacity -- 372 mAh/g;
• Capacity stable up to C/2;
• Cycling efficiency improvement.

"These results are quite promising and demonstrate the capabilities of Canada Carbon's graphite to meet the needs of battery producers. We fully expect performance to improve significantly as postprocessing activities (spheroidization, pitch coating etc.) occur for this specific material," noted Shelly Whitlock, chief executive officer for Iridian Labs.

Ellerton Castor, chief executive officer of Canada Carbon, shared: "We are encouraged by the positive electrochemical testing results of Miller flake graphite concentrate. This phase of testing with Polaris confirms our hypothesis about Miller: that the high quality and purity of the flake makes it well suited for applications beyond the nuclear power vertical. The implications for commercial scalability of the Miller deposit are far-reaching. With additional upgrading, such as spheroidization, we are confident that these improvements will give us the performance needed to have a deliver a premium product to the battery market."

About Canada Carbon Inc.

Canada Carbon is a Canadian mining company developing multiple natural graphite deposits geared to the green economy. Canada Carbon holds a 100-per-cent interest in two past-producing graphite mines, the Miller and the Asbury mines, both located in Quebec. The Miller hydrothermal lump-vein historical graphite mine and surrounding property cover approximately 100 square kilometres and are located 80 kilometres west of Montreal in the township of Grenville-sur-la-Rouge. The Asbury graphite mine is a past-producing property made up of 25 active claims for a total of 1,384.59 hectares or 13.8 square kilometres. It is located 8.1 kilometres northeast of Notre-Dame-du-Laus in the Laurentides region of Southern Quebec.

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