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Canada Carbon Reports Results from Second Purification Test at SGS Canada

Canada Carbon Inc. (the “Company”) is pleased to announce the following results from a second purification test conducted at SGS Canada Inc. (Lakefield) on its 100% owned Miller hydrothermal lump/vein graphite property. Trials using two different purification processes both yielded results exceeding the target of >99.0% Graphitic Carbon (“Cg”).

Further to the results that were reported on July 18th, 2013, results from a second two-stage hydrometallurgical purification process have been reported by SGS Canada Inc. (Lakefield). The alternative purification process treated the +48 mesh concentrate with an alkaline roast followed by a conventional acid leach. The alkaline roast stage increased the purity from 93.5% Cg (94.4% C) to 99.1% Cg (100% C). The acid leach stage resulted in an exceptional product grade of 100% Cg (100% C). A Loss on Ignition (LOI) test was also performed resulting in 100% loss. The presence of impurities in the graphite would have resulted in some ash residue however, according to SGS Canada Inc. (Lakefield) there was a complete burn. These results are truly remarkable, and in follow-up discussions about these reported values with SGS Canada Inc. (Lakefield), the 100% Cg purity assay was reconfirmed.

All carbon analyses were performed by SGS Canada Inc. (Lakefield) and are reported as total carbon (C) by Leco or graphitic carbon (Cg) employing a roast, followed by a leach and Leco assay of the leach residue.

Further process development is scheduled to commence during the week of July 22nd, 2013, and the primary objective is to increase the graphitic content of the flotation concentrate by optimizing the crushing, grinding and flotation parameters, thus minimizing the impurities in the concentrate that would then have to be removed in a downstream purification process. Upgrading the ore through conventional mineral processing technologies including grinding and flotation constitutes a well-established and low-cost upgrading approach.

R. Bruce Duncan, Interim CEO & Director of Canada Carbon stated, “Needless to say we are truly excited that we can produce a purity that is usually only attributed to Sri Lanka.” Mr. Duncan further stated, “We can also look forward to producing a higher pre-leach concentrate to cut costs in the purification process.”

As an added point of historical significance, the Miller graphite property was previously known as the "Grenville" graphite deposit. The following newspaper article from the Pittsburgh Press dated April 5, 1903 illustrates that the lump/vein graphite from the Grenville deposit was considered equal to that of Sri Lanka.

“Graphite from the Grenville deposit was forwarded to the Paris Exposition and to the Glasgow Exposition with the Canadian exhibits. It was promptly awarded the FIRST PRIZE.”

“The medal awarded by the Paris Exposition is now on exhibition at the Company’s office in New York, together with the certificate of award from the Glasgow Exposition. The Imperial Institute in London requested, through the Canadian Department of Colonization and Mines, at Quebec, that these exhibits of Grenville graphite be deposited permanently with it. This request was granted, and the graphite from the mines of the Grenville Graphite Company, now present in the Imperial Institute at London, has caused many inquiries from Europe to be forwarded to this Company. The quality of the product of the Grenville Mine is unquestioned. It fully equals the Ceylon graphite.”

Rémi 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, who read the report describing the purification test by caustic roasting and hydrochloric acid leach by SGS Canada Inc. (Lakefield) approved the technical information provided in this news release.

About Miller Graphite Mine

The Miller Graphite Mine, located in Grenville Township in Quebec is a past graphite and mica producer with unknown graphite reserves remaining. This mine was worked around 1845 and was probably the first graphite operation in Canada. The quantity of produced graphite is unknown but it is reported that 25 rail cars of lump graphite were shipped from this deposit in the year 1900 and sent to the Globe Refining Company of Jersey City, N.J. This yielded thirty-two tons of clean crucible graphite. The Morgan Crucible Company of London and also J.H. Gauthier and Company, Jersey City, used some of this graphite in their crucibles and pronounced it equal to the best graphite known to come from Ceylon (now Sri Lanka). The property covers 15.3 km2 of land and is located 80 km west of Montreal. A main road, located approximately 800 m from the deposit, is connected by a gravel road to the deposit allowing very easy access. A power line also crosses the property 500 m south of the deposit. There is no certainty that further exploration will result in the development of similar deposits.


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