Canada Carbon Inc.
TSX VENTURE : CCB

Canada Carbon Inc.

October 23, 2014 09:15 ET

Canada Carbon Makes Significant Graphite Discoveries on Its 100% Owned Miller Graphite Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 23, 2014) - Canada Carbon Inc. (the "Company") (TSX VENTURE:CCB) is pleased to report that the VN6 showing, first mentioned in the press release dated September 24, 2014, has become the most significant graphite zone identified since the acquisition of the Miller Project. The VN6 showing is associated with other previously reported graphite mineralization, identified as VN4, VN5 and VN6 Extension. All of these showings are inside a 155 metre ("m") long corridor. The 155 m long corridor aligns perfectly with a 250m long conductive Induced Polarization ("IP") anomaly modelled at 5m depth. When combined with conductive zones identified at 20 and 40 m depths, the conductive anomaly extends for over 700 m, reaching the historic Miller Mine Pit to the north and the E3 airborne anomaly to the south. This conductive anomaly is open to the northwest and to the southeast, at the boundaries of the IP grid.

Extensive trenching and drilling are currently underway to test the conductive anomaly at various points along strike. Drilling to-date has revealed that the VN6 mineralization continues to depth, with significant graphitic intersections, identified by visual examination of the core, currently at 9m and 22m beneath the VN6 surface vein showing. A large chargeability anomaly also runs parallel to the conductive anomaly, which can be explained by disseminated graphite already observed in trenches.

The VN6 showing was first identified with the man-portable Phispy geophysical system. Trenching over a strong Phispy anomaly revealed a succession of marble and graphite-rich skarn bands. This discovery led the Company to perform an IP survey in the southern area of the Miller Property's East Block. The geophysical survey consisted of 14 grid lines that varied in length between 225 and 450 m, which covered a total area of 0.2 km2 between the E3 anomaly and the VN1 and VN2 showings, and included the historic Miller Mine pit. Computer modeling of the IP data generated a total of 25 chargeability anomalies, along with many conductive anomalies. Trenching on VN6 has uncovered marble and graphite-rich skarn bands with widths over 7 m, which can be followed in the newly exposed bedrock surfaces for over 40 m. Similar mineralization is found in the VN6 Extension trench located 45 m along strike, suggesting that the skarn unit is continuous for at least 90 m. The trenching will continue as the discovery is still open along strike in both directions.

In August 2014, the Company commenced a 400 m drill program. However, due to follow-up of the VN6 discovery, it now exceeds 1,000 m and is continuing. The Company has decided to defer detailed core-logging, sampling, and assaying of the recovered core until after snow cover curtails field exploration activities. Graphite is readily identified through visual examination of exposed bedrock and drill core, and this evidence has provided sufficient information to facilitate efficient exploration. A detailed report of the complete drill program, and surface sampling activities, will be provided at a later date.

A map of the IP results, as well as photographs of the VN6 zone and drill cores, can be seen at: www.canadacarbon.com/oct-23-2014-news

26 tonnes of material from the VN6 showing, along with 15 tonnes from the VN4 showing, were included in the 102 tonne bulk sample which achieved better than 99.8% C(t) graphite purity during pilot-scale flotation concentration (see news release dated September 24th 2014). www.canadacarbon.com/vn4-vn6-samples

Dr. Charbonneau, Ph.D., P. Geo #290 (an Associate of Inlandsis Consultants s.e.n.c.) is an Independent Qualified Person under National Instrument 43-101, and has reviewed and approved the technical information provided in this news release.

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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