Press Releases

Canada Carbon Drilling and Discovery Update at the Miller Graphite Project, Quebec

February 6^th, 2014, Vancouver, BC, Canada – Canada Carbon Inc. (the “Company”) (TSX-V: CCB) is pleased to provide an update on the advancement of its winter exploration program on the Miller Mine property. Shortly after drilling began in December, it was halted due to the discovery of VN3, a graphite vein that is two metres thick on surface and continuous along strike for five metres. Drilling was re-directed to the VN3 discovery, and real-time electromagnetics (“EM”) were employed to identify new drill targets in the area.

R. Bruce Duncan, CEO & Director of Canada Carbon Inc. stated, "We continue to be pleasantly surprised by the prolific nature of graphite mineralization at Miller. The VN3 discovery is a wide graphite vein at surface over a large airborne EM anomaly, making it a high priority for re-evaluating graphite potential in this area. We continue to investigate this area using real-time ground geophysics to rapidly identify targets for drilling in the second phase of our winter program.”

Previously, the Company announced a minimum 1000-metre drill program of NQ-sized diamond drill holes to test several VTEM anomalies (see news releases, December 3, November 14, 2013). Drill hole DDH13-09 confirmed that the E2 anomaly is associated with a sulfide-rich intersection with minor disseminated graphite. Drill hole DDH13-10 targeted the E3 anomaly and encountered a wide intersection of minor and disseminated graphite in marble. During movement of the drill to the E3 drill site, a graphite-rich vein (VN3) was exposed over two metres in width and along strike for five metres before pinching out. The VN3 discovery was subjected to drilling with six shallow drill holes targeting the vein at depth and along its projected extension on strike and at depth. The winter campaign encountered bad weather, which slowed down the overall drilling production. A total of 547 metres in nine holes was completed in this phase of the program. Maps showing the DDH location can be found at:

DDH Location Link: www.canadacarbon.com/miller-graphite-project

Highlights of the drilling results are presented below.

The most significant results are from the new vein discovery VN3 where drilling in core hole DDH13-15 encountered 48.60% C graphite (Cg) over 1.8 metres, including 63.20% Cg over 0.5 metres.  This intersection of graphite occurs 4.6 metres (vertically) beneath the VN3 showing.  DDH13-14 intersected a graphite vein grading 50.50% over 0.30 metres in 3.50 interval metre interval grading 6.80% Cg between the surface and the DDH13-15 graphite mineralization.  The VN3 showing remains open at depth.

The other hole of interest is hole DDH13-11, which targeted a wollastonite-graphite pod located 22.5 metres southeast of the VN2 showing in the trench area. The hole was successful in extending the mineralization hosting the pod to a depth of 8.19 metres (vertically) beneath the surface showing. Grades similar to other graphite pods (see news release dated November 25, 2013), specifically 8.10% Cg over 2.3 metres including 11.00% Cg over 0.90 metres. The pod southeast of the VN2 showing is suspected to be within the same mineralized corridor that extends to at least 39.3 metres (vertically) beneath the VN2 showing. The mineralized corridor also remains open at depth.

Many lower grade intersections were also sampled during drilling. Some of the lower grade mineralization includes graphitic marble grading 2.00% over 10.50 metres including 4.50 metres at 3.50% Cg and 1.00% over 13.00 metres including 4.30 metres at 1.6% Cg.  Isolated values range between traces amount of graphite and 4.00% Cg.  No significant gold or base metal assays were obtained. The Company will use the geochemistry information to determine alterations patterns and to better interpret the encountered rock units.

The new vein (VN3) discovery triggered the Company to halt the drill campaign and perform a ground electromagnetic survey over the large VTEM anomaly surrounding target E3 to find the best targets before drilling resumes. Dubé & Desaulniers Geoscience Ltd. (Ottawa) was engaged to perform a ground electromagnetic survey using the PhiSpy system. This portable time-domain EM system enables the detection of conductive rocks at optimum depths of 10 to 20 metres, with the results seen in real time on a display screen. This allows for the strongest anomalies to be immediately identified for further testing. 

The PhiSpy survey was performed over a 0.11 square kilometre area centered on VN3 with line spacing between 10-20 metres for a total of 12.7 line kilometres. The survey identified 14 anomalies ranging between 5 and 54 metres in maximum dimension. The widest anomaly was discovered in the vicinity of the E3 target identified previously by Geotech, and the Company is currently working with Geotech to re-interpret their results to include the PhiSpy data. Additional data from the core and surface showings will also be incorporated to identify drill targets in this area.

Winter field work including trenching, beep-mat and TDEM surveys, and prospecting is currently underway on the new PhiSpy anomalies in the VN3 area. Drilling will resume once reinterpretation of all results are complete. Existing targets include the new VN3 showing, the trench area where the VN2 surface mineralization is established to a depth of 39.3 metres, and the E1 anomaly, located 800 metres north of the Miller mine pit. Geophysical maps indicate that E1 lies between two magnetic anomalies that may correspond to a lithologic contact of two geological units having a similar geological context to that of the known Miller mineralization (see news release, November 14, 2013).

In related news, the bulk sampling permit request previously filed for Miller (see news release, October 28, 2013) has been modified to include material from the VN3 showing. Receipt of the permit request has been acknowledged by the Ministry of Natural Resources. The Company has also engaged Inlandsis Consultants to produce a NI 43-101 compliant Technical Report for the Miller Mine Property that is expected to be completed in the following weeks.

Half splits of the drill core were delivered to Actlabs (Ancaster, ON) for gold, base metal and graphite assays. The results are reported using protocol 4F-C graphitic in which the samples underwent drying, crushing with up to 90% passing through a #10 square-mesh screen, riffle splitting (250 gram) and pulverizing to 95% passing a 105 micron square-mesh screen. Graphitic carbon (Cg) was determined by multistage furnace treatment and infrared absorption, with a 0.05% detection limit. Quality control and assurance performed by Actlabs on in-house standards and blanks produced acceptable results.

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, 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

Contact Information

E-mail inquiries: info@canadacarbon.com

P: (604) 638-0971

F: (604) 638-0973

“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).