Canaf Group Inc.
TSX VENTURE : CAF

Canaf Group Inc.

September 26, 2007 17:43 ET

Canaf Group Announces Trial Assessment & Potential Contract Increase

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 26, 2007) - Canaf Group Inc. (TSX VENTURE:CAF) announced today that Mittal Steel has increased its trial assessment of Quantum Screen & Crushing's ("Quantum") carbon product from 2,000 tonnes to 4,500 tonnes. Mittal is testing this product at one of its plants that is not currently making use of this product and, once the assessment is complete, will likely increase the total supply contract currently held by Canaf. Quantum, an 85% owned subsidiary of Canaf, currently supplies Mittal Steel with approximately 6,000 tonnes per month.

Mittal Steel currently purchases about two thirds of all carbon produced by Quantum while BHP Billiton purchases the remaining third.

Quantum is a coal/anthracite processing company based in South Africa, which produces a low volatile calcine (carbon). The calcine is used as a reductant in the manufacture of steel and manganese. Quantum has been operating profitably for the last four years and last year Quantum's net annual income was US$0.814 million (year end Feb 28 2007). If the current trials prove successful, production will increase from 9,000 tonnes per month to between 11,000 tonnes to 14,000 tonnes per month. This increase in production would require the construction of another kiln. The estimated cost of construction would be approximately US$1.5 million and would be bank funded in South Africa. Lead-in time is estimated to be between eight to twelve months from the signing of contract with Mittal.

David Way, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canaf Group Inc.
    Brad Jefferson
    Head Office
    (604) 767-3977
    (604) 682-2275 (FAX)
    or
    Ascenta Capital Partners Inc.
    Bryson Goodwin
    Investor Relations
    (604) 684-4743 ext. 239 or Toll Free: 1-866-684-4209
    (604) 939-1292 (FAX)
    Email: bryson@ascentacapital.com