Canada Carbon Inc.
TSX VENTURE : CCB
OTC PINK : BRUZF
FRANKFURT : U7N1

Canada Carbon Inc.

November 18, 2014 10:30 ET

Canada Carbon Exceeds 99.99% (4N) Carbon Purity With SGS Standard Caustic Bake Upgrading

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 18, 2014) - Canada Carbon Inc. (the "Company") (TSX VENTURE:CCB)(OTC:BRUZF)(FRANKFURT:U7N1) is pleased to present early results from its Miller hydrothermal lump/vein ("HLV") graphite metallurgical upgrading program, conducted in conjunction with its pilot plant scale flotation concentration optimization program, both currently underway at SGS Canada Inc. ("SGS") in Lakefield ON. SGS is processing 127 tonnes of the Miller HLV graphite, obtained from numerous graphite exposures on the Miller property (see September 24th, 2014 press release).

One 2 kilogram ("kg") flotation concentrate sample was randomly selected from the pilot plant concentrate products and was assessed for carbon purity by Glow Discharge Mass Spectrometry ("GDMS"), both before and after the graphite concentrate was upgraded using the SGS standard caustic bake process. The pre- and post-treatment sample was fractionated into five particle size classes, representing 100% of the sampled flotation concentrate. Carbon purity as high as 99.9942% was reported by Evans Analytical (Liverpool, NY) for specific size fractions of the caustic baked material, using the GDMS method. The mass-weighted average carbon purity for the entire sample was 99.9925%. The Equivalent Boron Content ("EBC") was calculated using the GDMS results, with individual size fractions delivering EBC as low as 0.720 parts per million ("ppm"). Complete results appear in the table below. The GDMS reports are available online at: http://www.canadacarbon.com/gdms-reports-nov182014

TABLE 1: ULTRA-HIGH PURITY FLOTATION CONCENTRATE, FURTHER UPGRADED BY CAUSTIC BAKE
FLOTATION CONCENTRATE CAUSTIC BAKED
PARTICLE SIZE1 CARBON
PURITY
2
(%)
EQUIVALENT
BORON
CONTENT
3
(ppm)
CARBON
PURITY
2
(%)
EQUIVALENT
BORON
CONTENT
3
(ppm)
+48 MESH 99.79 1.550 99.9929 0.737
-48/+80 MESH 99.85 1.351 99.9939 0.720
-80/+150 MESH 99.77 1.411 99.9942 0.737
-150/+325 MESH 99.54 2.141 99.9929 0.777
-325 MESH 98.43 6.881 99.979 0.824

Notes:

  1. One randomly collected 2 kg flotation concentrate sample. Particle sizes are reported according to Tyler mesh criteria: +48 mesh (>300 microns; jumbo flake); -48/+80 mesh (177 to 300 microns; large flake); -80/+150 mesh (105 to 177 microns; medium flake); -150/+325 mesh (44 to 105 microns; fine flake); and -325 mesh (< 44 microns).
  2. Carbon purity was calculated by difference, 100% minus (sum of all impurity concentrations (%)). Reported carbon purity values were rounded to two significant digits. Reported GDMS elemental contaminant concentrations (see hyperlink, above, to access the GDMS reports), when added to the reported carbon purities, may not add to 100%, due to rounding error. Only the actual concentration of the various elements is considered and not their oxide form.
  3. Equivalent Boron Content (EBC), expressed as parts per million (ppm, by weight) was calculated according to ASTM Method C1233-09 "Standard Practice for Determining Equivalent Boron Contents of Nuclear Materials", in conjunction with ASTM Standard D7219-08, "Standard Specification for Isotropic and Near-isotropic Nuclear Graphites", which lists the 16 neutron-absorbing elements of concern with respect to the EBC criterion. The 'nuclear graphite' purity threshold is 5 ppm, by international agreement.

Executive Chairman and CEO Mr. R. Bruce Duncan stated, "I would like to emphasize that these results are preliminary, in that further optimization of the caustic bake technique is contemplated. We have also begun the process of assessing the upgrading of our Miller hydrothermal lump-vein graphite by another industry-standard technique. Those results will be reported, when received." Mr. Duncan further states, "The Miller HLV graphite continues to exceed our expectations. Even our smallest graphite particles can be easily upgraded to meet the nuclear purity standard. The Miller HLV graphite's high crystallinity and purity set us apart from any other natural graphite."

ABOUT CAUSTIC BAKE

Dr. Stephen Mackie, Manager, Hydrometallurgical Group, SGS Canada Ltd. (Lakefield), described the SGS caustic bake procedure as "...our standard non-hydrofluoric acid method used to chemically upgrade graphite concentrates. This method involves a three step process: 1. The graphite is mixed with sodium hydroxide (caustic soda), and then baked at an elevated temperature for a defined period of time. 2. The baked product is then slurried in water for a defined period of time, essentially washing the majority of the unreacted caustic soda and soluble impurities from the graphite solids, which are then recovered by filtration. 3. The resultant filter cake is subjected to a mild acid leach using dilute sulphuric acid, to neutralize any residual caustic soda, and to remove impurities which are insoluble in caustic solution. The graphite solids are again filtered, washed, and dried, to produce the final upgraded graphite product."

ABOUT GLOW DISCHARGE MASS SPECTROMETRY

GDMS is a technique for the direct determination of trace elements in a variety of materials. GDMS enables the elemental analysis of solid samples by sputtering from their surfaces in a low-pressure DC argon plasma discharge environment (glow discharge). The sputtered atoms are ionized in this plasma and extracted into the mass spectrometer for separation and detection based on their characteristic ionic mass/charge ratios (mass spectrometry).

ABOUT EQUIVALENT BORON CONTENT

The impurity concentrations obtained by GDMS were used to calculate the Equivalent Boron Content ("EBC") of the graphite, as defined in ASTM Method C1233-09, "Standard Practice for Determining Equivalent Boron Contents of Nuclear Materials", in conjunction with ASTM Standard D7219-08, "Standard Specification for Isotropic and Near-isotropic Nuclear Graphites", which lists the 16 neutron-absorbing elements of concern with respect to the EBC criterion. EBC is calculated as the sum of the EBC of each impurity, such that EBC (impurity) = (EBC Factor for impurity) (concentration of impurity (ppm)). Each EBC Factor was obtained from Table 1 of ASTM Method C1233-09.

Section 3.3 of ASTM Method C1233-09 states: "If the concentration of any of the elements used in the calculation is reported as "less than" values, these values shall be used in calculating the EBC." Eleven of the sixteen neutron-absorbing elements identified in ASTM Standard D7219-08 were reported as "less than" values in the GDMS assays reported here. Together, these eleven elements contribute >0.6 ppm of the calculated EBC. If all sixteen of the elements of concern are reported as their respective "less than" values, with respect to the sensitivity of the GDMS analysis reported here, the minimum possible EBC is 0.662 ppm. Thus, the EBC values reported in Table 1 (as little as 0.720 ppm) are approaching the minimum possible value that can be determined under the reported GDMS sensitivities. Steps are being taken to enhance the sensitivity of the elemental analysis, which could reduce the existing sensitivity limit for the EBC determination.

Qualified Person

Mr. Oliver Peters, M.Sc., P.Eng, MBA, (Consulting Metallurgist for SGS and Principal Metallurgist of Metpro Management Inc.) is an Independent Qualified Person under National Instrument 43-101, and has reviewed and approved the technical information provided in this news release.

On Behalf of the Board of Directors

CANADA CARBON INC.

R. Bruce Duncan, CEO and Director

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).

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