Press Releases

Canada Carbon Files Lawsuit Against The Municipality of Grenville-sur-la-Rouge in Order to Protect the Company's Rights

June 11th, 2018, Vancouver, BC, Canada - Canada Carbon (the "Company") (CCB: TSX-V) (BRUZF: OTC) (U7N1: FF) today filed in the Superior Court of Quebec its action for $96 million in damages against the Municipality of Grenville-sur-la-Rouge ("the Municipality"), and served the Municipality with a copy of the statement of claim. In order to maintain its rights of recourse against the Municipality, under the applicable municipal laws, the Company was required to: 1) send to the Municipality a notification of its intention to file a lawsuit, which it did on March 2, 2018; and 2) file its lawsuit "within 6 months after the date on which the cause of action arose" (section 1112.1 Municipal Code of Quebec), which the Company filed with the Court earlier today.

By filing its action in damages against the Municipality, the Company ensures that it retains its right to claim compensation from the Municipality in the event that the actions taken by the Municipality cause the Company's Miller Project to fail or irreparably jeopardize the achievement of social acceptability of the Project.

The amount claimed represents the damages (the exact amount of which is yet to be determined) which will be caused to the Company if it is not able to obtain its authorization from the provincial Commission for the Protection of the Agricultural Territory ("CPTAQ") by acts of the Municipality, if its Project is blocked irremediably, or if the social acceptability of the project is irreparably compromised by the actions of the Municipality or its representatives.

As part of this legal action, the Company reserves its right to potentially add Mrs. Natalia Czarnecka, Mr. Thomas Arnold, Marc-André Le Gris and any other person as co-defendants to this action if they make untimely, false or misleading statements in order to discredit the Company or its Project and thereby compromise the social acceptability of the Project.

R. Bruce Duncan, CEO and Director of Canada Carbon, commented "From the beginning, we have rigorously complied with the laws and regulations that apply to mining projects in Quebec. Our priority is to pursue our efforts with the competent authorities to obtain all of the necessary authorizations for the development of the Miller graphite mine and marble quarry project."

The Company has applied for a judicial review by the Superior Court of the Municipality's recent declaration that the Miller Project is not compliant with municipal development regulations. The Company has also applied to Quebec's Administrative Tribunal ("TAQ") for a review of CPTAQ's decision to declare the Company's application inadmissible as a result of the Municipality's declaration of non-compliance. Until such time as these reviews are completed, the Company will suspend its action for damages against the Municipality to avoid unnecessary clutter of the judicial system, and to limit the legal costs of all parties to the suit.

CANADA CARBON INC.

“R. BRUCE DUNCAN”

CEO and Director

Contact Information

E-mail inquiries: info@canadacarbon.com

P: (604) 685-6375

F: (604) 909-1163

www.canadacarbon.com

“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).