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

Canada Carbon Inc.

January 13, 2015 12:25 ET

Canada Carbon Provides A Business Development and Exploration Program Update for Its Miller Graphite Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 13, 2015) - Canada Carbon (the "Company")(TSX VENTURE:CCB)(OTC PINK:BRUZF)(FRANKFURT:U7N1) is pleased to provide a report of advances in the development of the Company's business opportunities, as well as an exploration update with respect to recent work done on its flagship 100% owned Miller Hydrothermal Lump Vein ("HLV") Graphite Project.

Off-take Qualification Process:

Canada Carbon has begun the qualification process for obtaining off-take agreements with specialty graphite processors. The qualification process required prior to signing an off-take or supply agreement is a multi-step process, requiring not only multiple samples, but also increasing sample sizes. In one instance, a senior scientist representing a well-known high-tech graphite processor collected graphite grab samples during a site visit to the Miller Project, last year. This was followed up by a request for an 8 kg representative sample of the same material submitted to SGS Canada (Lakefield) for the pilot plant scale flotation optimization program, as well as a 2 kg "run of mill" sample of the flotation concentrate produced from that flotation optimization program. This graphite processor has now requested a container shipment, holding not less than 20 metric tonnes of the Miller HLV graphite, to conduct a full-scale process qualification for both graphite and graphene products, all at their cost. A revenue sharing agreement is in place for the products developed from this large sample.

Canada Carbon is participating in a number of off-take qualification processes with other high-tech graphite processors, each currently at a different stage of progression. Canada Carbon's presentation at the Graphite and Graphene Conference in Berlin in early December 2014 was a great success. A number of potential off-takers in attendance at the conference were made aware of the unique technical characteristics of our Miller HLV graphite and have since begun the off-take qualification process. Numerous graphite samples have been shipped for further assessment, both domestically and internationally.

Executive Chairman and CEO Mr. R. Bruce Duncan stated, "Canada Carbon has received numerous requests for samples of its highly distinctive natural graphite. These inquiries initially started when we demonstrated that several properties of this natural crystalline graphite matched and even exceeded those of synthetic graphite. While we fully recognize that our graphite is not synthetic and cannot be used in all the applications in which synthetic graphite is currently employed, we believe some of the qualification testing being conducted will assist in determining the applications for which our graphite can be substituted for synthetic graphite." Mr. Duncan further stated, "It is gratifying that Canada Carbon's stellar graphite results, such as achieving nuclear purity by flotation concentration alone, have attracted the attention of leaders in the graphite industry from around the globe, without requiring costly promotional activities. With our existing bulk sample permit, easy surface access to material, and stockpiles of pilot plant flotation concentrate, we can easily meet requests to supply our Miller HLV graphite for further assessment, whether by the kilogram, or by the truckload."

Cooperative Academic Research and Development Activities:

Canada Carbon has initiated cooperative academic research and development programs, partnering with two leading academic institutions in Quebec. Planned mineralogical work includes thin section petrology to be done at the University of Quebec at Montreal. Isotopic aging of various rocks and minerals on the property, modeling of the spatial dispersion of wollastonite, and isotopic analysis of oxygen is also planned at McGill University, to develop a model of the hydrothermal fluid flows responsible for the graphitic mineralization. Canada Carbon is seeking to better understand the processes leading to the deposition of the Miller graphite mineralization, and will use the mineralogical information to better select targets during small and large scale exploration work.

West Block Exploration Activities:

A ground geophysical survey, employing the man-portable PhiSpy Time-Domain Electromagnetic ("TDEM") geophysical system, was conducted in the vicinity of the West Block Versatile Time-Domain ElectroMagnetic ("VTEM") airborne survey anomaly W3 (see news release dated November 14th, 2013), located approximately 10 kilometers west of the Miller Mine. The PhiSpy results included 21 smaller conductive anomalies, and 3 much larger ones. The large anomalies are, respectively: 120 m by 70 m, 90 m by 49 m, and 43 m by 26 m. Each of these anomalies is larger than the surface footprint of the historic Miller Mine pit; (38 m by 22 m, for comparative purposes).

Preliminary prospecting using Beepmat technology led to the discovery of graphite blocks in the overburden in the vicinity of the PhiSpy anomalies, including disseminated graphite in marble, and vein graphite, similar to that seen on the East Block. Graphitic marble has also been observed in bedrock exposures. All of the West Block anomalies are at the contact between a marble unit and a paragneiss unit, which is consistent with the East Block graphitic mineralization discovered to date.

The Company has modeled the graphite mineralizing event as having occurred on a district scale. A significant exploration program is in the planning phase for these targets, which may provide evidence to support this hypothesis.

East Block Exploration Activities:

As first reported on August 27th, 2014, the Company initiated a diamond drill campaign estimated at 400 metres ("m"), in total. This drill program was immediately expanded to sample numerous graphitic exposures in bedrock revealed by stripping and trenching over conductive geophysical anomalies. By the time drilling was suspended in mid-December, over 2,000 m of core had been recovered from 42 holes. Visual examination of the core samples provided sufficient evidence of graphitic intersections that an efficient exploration program could be conducted, without delaying field work for laboratory confirmation of graphite content by assay. All drill core has now been logged, and sampled where indicated. A total of 133 core samples have been submitted to Actlabs for precise determination of their graphite content, along with a further 23 assays based on channel and grab sampling. The complete results from the assay program will be reported, when available.

The initial drill campaign, to test Induced Polarization ("IP") geophysical conductors identified in a ground survey in the vicinity of the VTEM airborne survey anomaly E1, began in mid-August. Initially estimated at 400 m, the actual campaign resulted in 441.5 m of diamond drill core recovered from 8 holes. Although some graphitic intersections were identified visually, the conductive anomalies were generally better explained by recovered intersections of sulphide mineralization, primarily pyrrhotite. Recovered core did not provide an explanation for the conductive anomalies in some instances. There were no samples from this initial drill campaign sent for assay, although the Company may sample them at a later date. Complete drill information for this campaign, and all other drilling done to date, is available on the Company's website at http://www.canadacarbon.com/drill-data-jan132014.

Immediately following the E1 drill campaign, the Company focused its attention on conductive targets identified using the man-portable PhiSpy Time-Domain Electromagnetic ("TDEM") ground geophysical system, in the vicinity of VTEM anomaly E3, and the VN3 showing. Trenching and stripping of the PhiSpy anomalies revealed the VN4, VN5, and VN6 showings, and 9 diamond-drill holes totalling 408 m were completed on these new discoveries. Visual examination of the recovered core confirmed numerous graphitic intersections, and an IP ground geophysical program was immediately performed, which identified a 700 m long conductive anomaly stretching from the historic Miller Mine in the northwest to VTEM anomaly E3 in the southeast, and open along strike in both directions. (See news release dated October 23rd, 2014). The VN6 graphite exposure was found to be largely coincident with the IP conductive anomaly.

Two subsequent drill campaigns totalling 1,159 m in 25 diamond drill holes, primarily in the vicinity of the VN6 showing, were completed in mid-December. Other targets included the VN7 showing, in the vicinity of the Miller Mine, and PhiSpy conductive anomalies not yet exposed by stripping or trenching. All drill cores from these four drill campaigns have now been logged, sampled when indicated, and submitted for assay. These results will be reported when available, along with the results of channel and grab sampling associated with these graphite showings.

To date, only about 100 m of the 700 m long IP conductive zone has been sampled. Once available, the results of the various sampling programs will then be compiled with the available geophysical data to develop a model of the graphitic mineralization. This model will provide guidance for further exploration activities, as well as serving as the template for a NI 43-101 compliant Resource Estimate.

During field exploration activities in the vicinity of the 700 m long IP conductive anomaly, numerous historical mineral stockpiles were discovered, varying in size from only a few tonnes to many thousands of tonnes. The Company is taking steps to have the stockpiles independently assessed for both volume and grade, to be included in a future resource estimate.

The Company recently completed a PhiSpy survey over the northern extension of the 700m long IP conductive anomaly. The survey generated 9 shallow conductors that are going to be trenched in the coming weeks. The most interesting target is a conductive anomaly 20 m by 13 m in size, similar to the PhiSpy anomaly generated by VN6. This anomaly is also coincident with an airborne VTEM anomaly. Trenching and drilling activities are expected to continue throughout the winter.

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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