Mr. Arran Thorpe reports

CANADA CARBON INC. ANNOUNCES CEASE TRADE ORDER, FINANCIAL REVIEW AND CRA AUDIT

The Ontario Securities Commission has issued a failure-to-file cease trade order pursuant to National Policy 11-207 (Failure to File Cease Trade Orders and Revocations in Multiple Jurisdictions) against Canada Carbon Inc. as a result of the company's failure to file its: (i) audited consolidated financial statements for the year ended Dec. 31, 2025; (ii) management's discussion and analysis relating to the annual financial statements; and (iii) chief executive officer and chief financial officer certificates relating to the annual financial statements. As a result of the FFCTO, the TSX Venture Exchange has suspended trading in the company's securities.

The delay in filing the annual filings was and is due to the continued financial hardships the company is experiencing. The company is working diligently to remedy this issue by securing the additional capital required to complete the audit process so that it can file its annual filings as soon as possible. The FFCTO will remain in effect until the annual filings are filed and the OSC revokes the FFCTO.

Financial review and CRA audit

Canada Carbon in the process of conducting a comprehensive financial review. This review is being undertaken, in part, in connection with a continuing audit by the Canada Revenue Agency relating to the company's flow-through expenditures and renunciations for the 2021 to 2024 taxation years.

The outcome of the CRA audit may have an adverse impact on the company if the CRA determines that the company did not fully satisfy its flow-through-share obligations. Additional information regarding the company's flow-through-share obligations is included in the company's financial statements, which are available on the company's website.

In the course of the financial review, the company identified certain expenditures that were charged to Canada Carbon but were unrelated to the affairs of the company. These expenditures were incurred without approval of the company's board of directors. As a result, the company has commenced an internal investigation into these matters. The expenditures under review are material in nature, and, depending on the outcome of the investigation, may result in the restatement of one or more previously filed financial statements. The expenditures in question total $203,992.89 of which $105,326.30 was paid by the company and the remaining $98,666.59 is accrued as a liability.

About Canada Carbon Inc.

Canada Carbon is a Canadian exploration and development company focused on high-purity graphite deposits, primarily the Miller and Asbury projects in Quebec. The company is positioned to supply premium graphite materials for advanced industrial applications.

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