Mr. Ellerton Castor reports

CANADA CARBON RECEIVES FULL ASSAY RESULTS ON ITS ASBURY PROPERTY, INCLUDING 12.25%CG OVER 22.50 METRES

Canada Carbon Inc. has received results from the fall 2023 drilling program completed on the eastern part of its Asbury property, located in Notre-Dame-du-Laus, Que. (NDDL). These results consist of 909 core samples that showed graphite mineralization. Drilling was conducted from Oct. 16, 2023, to Nov. 30, 2023 (see news release dated Oct. 5, 2023).

The program

The 2023 program consisted of 13 diamond drill holes (DDH) totalling 2,457 metres. The drill program aimed to test depth and lateral extensions of known mineralization in the northeastern area of the property and to probe the new conductor anomalies found along the interpreted mineralized corridor that connects the historical Asbury mine site to the current area (see press release dated Oct. 5, 2023). The interpreted corridor hosts multiple conductors and VTEM (versatile time-domain electromagnetic) anomalies. This corridor also extends approximately five kilometres from the historical Asbury mine to the northeast (see press release dated March 27, 2023). Historical mining operations extracted 875,000 tons of graphite at a 6-per-cent (Cg (graphitic carbon)) cut-off grade.

Initial interpretation of the results indicates significant graphitic mineralization, which in turn explains the conductor anomalies. The results can be found herein. The company will utilize these results, along with those of other campaigns and legacy exploration work, to design and plan future drilling campaigns, and will publish additional targets for future exploration work. With the current results obtained, the technical team is confident that the complete conductor anomaly will be explained by graphitic mineralization on the property. It is of note that the five km corridor appears to host two different anomalies and that both anomalies have shown extensive graphite mineralization so far.

Highlights:

• Results for drill holes targeting the conductor to the south show consistency with historic drilling and highlight the possible northeast extension of the graphite mineralization reported in historic drill hole MC-8805 (8.14 per cent Cg over 18.9 metres).
• DDH-AS23-01: 1.36 per cent (Cg) over 22 m;
• DDH-AS23-06: 4.09 per cent (Cg) over 14.60 m, including 9.59 per cent (Cg) over 3.55 m;
• DDH-AS23-08: 4.46 per cent (Cg) over 39 m, including 14.73 per cent (Cg) over 3.7 m or 14.73 per cent (Cg) over 2.85 m;
• DDH-AS23-11: 1.77 per cent (Cg) over 48.45 m, including 4.38 per cent (Cg) over six m;
• DDH-AS23-13: 1.54 per cent (Cg) over 61.90 m;
• DDH-AS23-14: 1.96 per cent (Cg) over 22.80 m, including 14.30 per cent (Cg) over 1.4 m;
• DDH-AS23-16: 3.31 per cent (Cg) over 16.30 m, including 4.15 per cent (Cg) over 8.54 m;
• DDH-AS23-17: 1.59 per cent (Cg) over 46.15 m, including 4.94 per cent (Cg) over 9.55 m;
• DDH-AS23-18: 7.81 per cent (Cg) over 39.65 m, including 19.58 per cent (Cg) over 7.35 m;
• These intercepts tested the depth and lateral extensions of the graphitic mineralization;
• Results for the new conductor anomalies along the mineralization corridor are sufficient to interpret the conductor anomaly as being graphitic in nature, with various thicknesses of mineralization along the conductor anomaly that extends from the historical mine to the northeast portion of the property, over a total length of four km.

Next steps

The company is currently analyzing these final results and will provide additional information in a subsequent news release. These results have also been shared with SGS Canada in order to produce a geological model that will help with the interpretation of the results. This work with SGS will allow the company to complete a maiden resources calculation on the Asbury property's northeast area in the following weeks. The company also plans further exploration work, which will include some combination of geophysics, geological mapping and drilling to cover the area between the historical mine and the recently completed drill program, since numerous conductors remain untested over a significant distance. The updated geological model will allow the company to continue its exploration work to further increase the resource on the property.

Chief executive officer Ellerton Castor said: "We're working on significant conductors that connects the currently investigated area to the historical Asbury mine, where commercial graphite production was achieved. The current program was located approximately four km from the Asbury mine and the conductor anomalies clearly connect the two extremities of the Asbury claim area. The company believes that these results support our view that there is significant graphite mineralization that extends between the two extremities of the property and explain the conductor anomalies. This is expected to result in a scalable resource with significant continuous graphite mineralization as already demonstrated from the observations in the cores and trenches we recently completed."

Quality assurance/quality control and core sampling protocols

All drill core samples were collected under the supervision of SL Exploration Inc. employees. The drill core were transported from the drill platform to the logging facility where it was logged, photographed, attributed a serialized number and split with a hydraulic blade. Core samples were split in half at 1.5 m intervals while higher-grade mineralization was sampled separately to better identify its grade. Samples were then bagged with their serial number written on each bag. Blanks and certified reference materials were inserted at regular intervals in the sequence of samples. Groups of continuous samples were placed in large bags, placed on skids and wrapped in plastic. Everything was shipped to Actlabs laboratory in Ancaster, Ont. At the Actlabs laboratory, rocks samples are prepared by protocol Rx-1, which consists in drying, crushing (less than seven kilograms) up to 90 per cent passing 10 mesh, riffle splitting (250 g) and pulverizing (mild steel) to 95 per cent passing 105 micrometres. Graphitic carbon (Cg) was determined at Actlabs Laboratories by protocol 4F-C graphitic, which is a multistage furnace treatment and infrared absorption, with a 0.05-per-cent detection limit. Graphitic carbon was determined by calculating the difference from the carbon assay (after ashing) by tube furnace/coulometer minus the carbonate carbon (after ashing) by coulometry.

A QA/QC program was conducted on the 2023 drilling campaign. QA/QC samples were inserted approximately every 20 samples in the sample series, alternating between standards, blanks and duplicates. A total of 34 standards, 33 blanks and 19 duplicates were sent with the core samples, representing respectively 3.7 per cent, 3.6 per cent and 2.1 per cent of the assayed samples, for a total of 9.4 per cent, which is within industry standards.

Three graphite standards were used during the drilling program, one low-grade graphitic carbon (0.13 per cent graphitic carbon: GGC-07); three high-grade graphitic carbon (2.41 per cent graphitic carbon: GGC-09; 2.03 per cent graphitic carbon: OREAS 722 and 5.87 per cent graphitic carbon: OREAS 723) standards. GGC-07 and GGC-09 standards were taken from certified supplier (Geostats Pty. Ltd.) and are certified for graphitic carbon and a carbon/sulphur analysis. OREAS 722 was taken from certified supplier (Ore Research & Exploration Pty. Ltd. (OREAS)) and is certified for graphitic carbon analysis. Except for one value slightly above one standard deviation (but below two standard deviations), the reported values fall within the expected threshold.

From the 33 blanks analyzed, 32 of them returned values less than 0.05 per cent graphite carbon, which is the detection limit. One sample was considered not having enough material to be assayed.

Core duplicates were produced during the drill program. They were made by first splitting the core in half, where one-half was sent as the original sample; and the second half was again split in half, resulting in a quarter split. For homogeneous rock a difference of less than 10 per cent would be acceptable. This QA/QC campaign presents eight out of 19 duplicates above or below 10-per-cent difference. The graphite grain size at the Miller property is considered coarse and range from two millimetres to 10 mm. This grains size, compared with the size of a quarter split core piece, make the local variability a greater challenge to duplicate core sample, especially with greater graphitic values.

Stock option plan

At the company's annual and special shareholders' meeting held on Jan. 31, 2024, shareholders of the company approved the adoption of a rolling stock option plan, as more particularly described in the company's management information circular dated Dec. 22, 2023.

Qualified persons

This press release was prepared by Steven Lauzier, PGeo, OGQ, and by Pierre-Alexandre Pelletier, PGeo, OGQ, who are qualified persons as defined under National Instrument 43-101, and who reviewed and approved the geological information provided in this news release.

We seek Safe Harbor.