Canada Carbon’s Miller Project will Preserve Surrounding Water Quality and Quantity

Canada Carbon (the “Company”) (TSXV:CCB) (OTC:BRUZF) (FF:U7N1) announces that contrary to the incorrect information which is being disseminated by the current municipal Council of Grenville-sur-la-Rouge (“GSLR”), the Miller Project possesses multiple protective features which serve to preserve the water quality and quantity of its neighbours using water wells in all locations surrounding the Project. An engineering study conducted by BluMetric Environnement inc. (https://www.canadacarbon.com/docs/CCB-Fermeture-Plan-de-fermeture-Canada-Carbone_PRELIMINAIRE.pdf) showed that:

1) There are insufficient levels of metals in the rocks to contaminate the environment.

2) There will be no acid generated to attack the metals thereby eliminating leaching potential.

The Miller Project’s waste rock, tailings and graphite ore were tested for metal leaching potential and the results indicated that none of the metal concentrations in the leachate exceeded the criteria set by the Ministry of Environment “MDDELCC” due to the very low initial content of metals in the rocks (please refer to the news release dated July 18th, 2017; https://www.canadacarbon.com/newsdetail?&newsfile=ccb_20170718.htm).

The same materials listed above were tested for acid generation potential.  The study confirmed that due to the high lime content of the host rock, no acid mine drainage can be generated from the waste rock, graphite mineralization and tailings (please refer to the news release dated July 18th, 2017; https://www.canadacarbon.com/newsdetail?&newsfile=ccb_20170718.htm). In the absence of acid generation, metal leaching or contamination of water cannot occur.

It is also important to note that proposed work on the Miller Project will not affect natural surface water flow and will not impact groundwater sources of well water (please refer to the news release dated February 28, 2018https://www.canadacarbon.com/newsdetail?&newsfile=ccb_20180228.htm and https://www.canadacarbon.com/docs/Final_Hydrogeological_Report_Quarry.pdf). The surface water flow in the area of the Miller Project goes from the McGillivray Lake area toward the Miller Project, precluding upstream effects on that area.

The proposed dewatering of the marble quarry shows very limited impacts on underground water levels that extend not more than 150 m in the direction of the nearest well.  Since that well is located 720 m away from the marble quarry a significant protective buffer zone is present (please refer to the news release dated February 28, 2018https://www.canadacarbon.com/newsdetail?&newsfile=ccb_20180228.htm).

Canada Carbon intends to use observation wells around the Miller Project to periodically monitor the quality and quantity of water, even though the results of the hydrology studies suggest that they will be unnecessary.

The Village of Grenville and the Municipality of Grenville-sur-la-Rouge each confirmed through separate independent engineering studies that their public water well sources would not be affected by the Miller Project’s operations because their water well locations are in different watersheds than the Miller Project’s watershed (please refer to the news releases dated July 18, 2017https://www.canadacarbon.com/newsdetail?&newsfile=ccb_20170718.htm, and September 11, 2017https://www.canadacarbon.com/newsdetail?&newsfile=ccb_20170911.htm).

Bureau d’Audiences Publiques sur l’Environnement (BAPE)

A press release issued by MiningWatch Canada on March 5th, 2018, commented on the BAPE process as it relates to Canada Carbon’s Miller Project. Our preliminary production plan (please refer to Preliminary Economic Assessment, dated April 14, 2016https://www.canadacarbon.com/docs/Miller-PEA.pdf) shows that a maximum of 300 tonnes per day is expected to be treated from the Miller Graphite Project during the first 11 years of production (see table below), well below the 500 tonnes per day BAPE review threshold.  During the last 7 years of production, the Company intends to only treat waste rocks with low graphite content at a maximum rate of 486 tonnes per day. The completion of a final engineering study for the Miller Graphite Project, known as a Feasibility Study, will ultimately determine if the Graphite Project requires a BAPE review.

The BAPE, if applicable, is part of the process to obtain a Certificate of Authorisation (“CA”) from the MDDELCC for the graphite mine. Canada Carbon has not yet applied for a CA for the marble quarry as the Company has been intentionally blocked from completing the necessary steps required for the application for a CA by resolutions adopted by the current municipal Council of GSLR, which they knew or ought to have known were based on false information.

People seeking factual information or wishing to engage in discussions regarding the Miller Project are invited to visit our Facebook page (https://www.facebook.com/Canada-Carbon-Inc-TSXv-CCB-263158513699007/)

QUALIFIED PERSON

Steven Lauzier, P.Geo. OGQ1430, a Qualified Person as defined by National Instrument 43-101 guidelines, has reviewed and approved the technical content of this news release.

Contact information:

Olga Nikitovic

Canada Carbon

416-575-1667

Pierre Bouchard

INDICO Communications

514-951-7516

“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).

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