Canada Carbon Inc.

TSX VENTURE : CCB


Canada Carbon Inc.

August 27, 2014 11:10 ET

Canada Carbon's Miller Graphite Flotation Concentrate Matches and Exceeds Several Properties of Synthetic Graphite

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 27, 2014) - Canada Carbon Inc. (the "Company") (TSX VENTURE:CCB) is pleased to provide an update on its Miller graphite characterization research activities. Evans Analytical Group, at Liverpool, New York, has confirmed that several properties of this natural crystalline graphite obtained by flotation only match and even exceed those of synthetic graphite, which can obtain market prices of U.S. $7,000-20,000/tonne(1).

This press release provides a summary of reports characterizing physical properties of the Miller graphite, obtained as part of an extensive and ongoing research program. All data herein arise from analysis and testing of an approximately 250 g flotation concentrate that was generated by SGS Lakefield by processing a representative sub-sample of a 50 kg bulk sample, selected for large particle sizes (+65 mesh, > 210 micron). Complete technical data for each of the physical properties described below is available at: http://canadacarbon.com/aug26-disclosure.

MEASURED PROPERTY MEASURED VALUE SYNTHETIC
Tap (bulk) Density(2) 0.965 g/cm3 Approx. 1.0 g/cm3
Skeletal Density(3) 2.12 g/cm3 Up to 2.26 g/cm3
B.E.T. Surface Area (uncoated)(4) 2.227 m2/g 2.77 - 19.38 m2/g
Porosity(5) 7.2 % 14-21%
Graphite Purity, flotation concentration only(6) 99.39 % C(t) >99.0% C(t)
Equivalent Boron Content, flotation concentrate 1.26 ppm N/A
Graphite Purity, after brief thermal treatment 99.74% C(t) >99.0% C(t)
Equivalent Boron Content, after thermal treatment 1.34 ppm N/A

Dr. Karol Putyera, Vice President for GD-MS Services for Evans Analytical Group, Liverpool, New York, commented, "I have been working in graphite characterization studies for many years, and the Miller graphite exhibits a collection of properties that I have never before observed, and has proven to be superior to synthetic graphite with respect to crystallinity, B.E.T. surface area, and surface porosity. Synthetic graphite is typically engineered to optimize one property, or perhaps a group of properties, but generally at the expense of other properties. The Miller samples exhibit very high-crystallinity, are easily upgraded to very high purity, have low surface area, with high density, and low porosity, all in one package."

Executive Chairman and CEO Mr. R. Bruce Duncan stated, "Canada Carbon has been conducting extensive testing and characterization of its Miller graphite for many months. At each point along the way, the results have served to differentiate our graphite from all the others. Meeting the criteria for nuclear purity graphite by flotation concentration alone is unprecedented. All of the available evidence is leading us to focus on initiating discussions with specialty, low volume, high-value niche markets, where the properties and performance of the graphite are paramount."

Generation of Bulk Graphite Concentrate

Canada Carbon has commenced shipment of a 100 t bulk sample to SGS Lakefield to be processed in a flotation pilot plant, which will generate several tonnes of graphite concentrate. The majority of this concentrate will be shipped to international parties for technical evaluation.

Bulk international shipments of the Miller graphite flotation concentrate will require that the Company meets stringent permitting, licensing, and reporting requirements according to the Nuclear Non-proliferation Import and Export Control Regulations for nuclear grade graphite with a true density of greater than 1.5 g/cm3 and an EBC of less than 5 ppm. As noted in the Company's press release dated February 4, 2014, Canada Carbon's management and its technical and legal advisors have been working with a variety of Canadian government agencies including the Nuclear Regulatory Commission and the Controlled Goods Protectorate which is a part of Foreign Affairs, to ensure full disclosure and compliance with all applicable legislation and international trade agreements. Canada Carbon expects to soon be fully permitted for bulk exports of its Miller nuclear-purity graphite concentrate.

Drilling Program

A drilling program has been initiated in early August to commence the definition of the mineral resource of the Miller graphite mineralization. Results of this drilling program are expected within the next several weeks and will be communicated as they become available.

GD-MS Analysis and Thermal Upgrading

Every sample submitted to Evans Analytical Group is analyzed for chemical purity by glow-discharge mass spectrometry (GD-MS), as previously reported. For the sample reported here, total graphite purity was calculated by difference, both before and after brief thermal upgrading (by helium outgassing). This sample yielded grades and Equivalent Boron Content (EBC) values, as follows: "As received flotation concentrate": 99.39% C(t), EBC 1.26 ppm; "helium outgassed": 99.74% C(t), EBC 1.34 ppm.

To date, all samples submitted for GD-MS analysis at Evans Analytical Group have demonstrated nuclear grade purity, as defined by Equivalent Boron Content.

Work is proceeding to scale up the thermal upgrading procedure, in order to make available larger samples of highly purified graphite that have not been exposed to harsh chemicals (caustic/acid) that can both damage the graphite structure and introduce other impurities. Commercial graphite thermal upgrading typically employs treatment processes using a combination of high temperatures, long residence times, and/or corrosive gases such chlorine. In contrast, Canada Carbon's process involves rapid thermal treatment in an inert gas atmosphere. As soon as this technique can be scaled up to yield graphite of the desired criteria, the high-purity sample will be forwarded to the National Research Council (Ottawa), for further investigations more fully described below.

National Research Council Canada Research Underway

The National Research Council (NRC) has requested multiple samples of the Miller graphite concentrate, to conduct fundamental research with respect to its properties, and potential applications. In July, Canada Carbon submitted approximately 250 g of the high-purity flotation concentrate (100% C(t) by Leco furnace method; please refer to June 4, 2014 press release at http://www.canadacarbon.com/newsdetail?&newsfile=ccb_20140604.htm for further information) to NRC, to examine the exfoliative behavior of this high-purity, highly-crystalline graphite. A variety of graphene-related investigations are currently underway.

A further 250 g (approximate) sample is being thermally upgraded (as described above) prior to shipment to NRC for electro-chemical characterization. Graphite is an essential component in a variety of green-energy technologies, including solar cells, hydrogen cells, and a variety of energy storage devices, including Li-ion batteries.

NRC (Canada) also administers the Industrial Research Assistance Program (IRAP), which provides both funding and technical assistance to cutting-edge Canadian enterprises, with a stated mandate to "Stimulate wealth creation for Canada through technological innovation." Canada Carbon is proceeding with multiple applications for support under the IRAP program.

Scanning Electron Microscopy

Scanning electron microscope images of the high-purity, high-crystallinity Miller graphite flotation concentrate were obtained to determine the particle morphology and structure of the graphite particles that were generated by traditional mineral processing technology consisting of gentle grinding and flotation.

These SEM images demonstrate that the particles are very large, very well ordered, and exhibit very low visible porosity/void volumes. Adherent siliceous matrix material was identified by Back-Scattered Electron (BSE) analysis, as hypothesized in the press release dated June 17, 2014. Because this waste matrix material is surface-exposed, it is believed to be amenable to easy removal by any one of a number of industry-standard upgrading procedures.

The Miller graphite characterization research is ongoing. Further results will be released when they are made available to the Company.

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).

(1) Source: Industrial Minerals, November 13, 2013

(2) http://laws-lois.justice.gc.ca/eng/regulations/sor-2000-210/index.html

(3) http://www.hensengraphite.com/en/showpro.asp?id=449

(4) http://www.hensengraphite.com/en/showpro.asp?id=449

(5) http://info.ornl.gov/sites/publications/files/Pub32010.pdf

(6) http://scholarworks.boisestate.edu/mse_facpubs/75/

(7) http://asbury.com/materials/graphite/

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