Nuclear Grade Graphite

The export of nuclear grade graphite, defined as "graphite having a purity level better than 5ppm boron equivalent and with a density greater than 1.50g/cm", from Canada requires an export permit from the Nuclear Safety Commission pursuant to the Nuclear Non-Proliferation Import and Export Control Regulations, SOR/2000-210.¹

The Explanatory Notes to this definition provide, as follows:

1. 1. For the purpose of export control, the Export Controls Division of Foreign Affairs and International Trade Canada will determine whether or not the exports of graphite meeting the above specifications are for nuclear reactor use.
2. Boron equivalent' (BE) may be determined experimentally or is calculated as the sum of BE_Z for impurities (excluding BE_carbon since carbon is not considered an impurity) including boron, where:
3. BE_Z (ppm) = CF x concentration of element Z (in ppm);
4. CF is the conversion factor: (σ_Z x A_B) divided by (σ_B x A_Z);
5. σ_B and σ_Z are the thermal neutron capture cross sections (in barns) for naturally occurring boron and element Z respectively; and
6. A_B and A_Z are the atomic masses of naturally occurring boron and element Z respectively.

These Explanatory Notes are entirely consistent with ASTM Method C1233-09, "Standard Practice for Determining Equivalent Boron Contents of Nuclear Materials", when applied in conjunction with ASTM Standard D7219-08, "Standard Specification for Isotropic and Near-isotropic Nuclear Graphites", which lists the 16 elements of concern with respect to the EBC criterion; to date, all samples analyzed by GD-MS at Evans Analytical Group, Liverpool, NY, and interpreted using the ASTM methods, have returned calculated EBC values below 3 ppm boron equivalent. For further information about GD-MS, please refer to the following page: GD-MS Analysis and Thermal Upgrading

Bulk international shipments of the nuclear grade Miller hydrothermal graphite flotation concentrate will require that the Company meets stringent permitting, licensing, and reporting requirements. 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, 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-grade hydrothermal graphite concentrate, which will become available upon completion of the pilot plant scale processing scheduled to commence within the next couple of weeks at the Lakefield site of SGS Canada.

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¹ http://laws-lois.justice.gc.ca/eng/regulations/sor-2000-210/index.html