Mr. Ellerton Castor reports

CANADA CARBON CLOSES PRIVATE PLACEMENT OF UNITS

Canada Carbon Inc. has closed a non-brokered private placement of 2,466,818 units at a price of 5.5 cents per unit for aggregate gross proceeds of $135,675. Each unit is composed of one common share in the capital of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to acquire one common share in the capital of the company at a price of 12 cents per share for a period of 60 months from the date of issuance.

All securities issued pursuant to the offering are subject to a hold period of four months plus a 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 general corporate expenditures. In connection with the offering, the company paid a cash fee of $4,400 to AlphaNorth Asset Management.

Ellerton Castor, chief executive officer of the company, subscribed for 181,818 units under the offering. The insider private placement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) by virtue of the exemptions contained in sections 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the company which were issued to Mr. Castor does not exceed 25 per cent of its market capitalization.

We seek Safe Harbor.