CANADA CARBON ANNOUNCES COMPLETION OF A NEW RESOURCE ESTIMATE FOR ITS MILLER PROJECT IN GRENVILLE-SUR-LA-ROUGE, QUEBEC

The Resource Estimate was prepared pursuant to Canadian Securities Administrators’ National Instrument 43-101 (“NI 43-101”) by the independent firm SGS Canada Inc. (“SGS”) of Blainville, Quebec. The updated Resource Estimate includes an indicated resource of 3.34Mt (“million tonnes”) with an average grade of 0.75% Cg, and an inferred resource of 10.48Mt with an average grade of 0.72% Cg, within the boundaries of an optimized open pit model. The new pit constrained graphite resources have increased by 27% compared to what was reported in the Company’s Miller Project Resource Update Technical Report, dated January 23rd, 2017. A Technical Report supporting the new Resource Estimate will be filed to SEDAR within 45 days, as required by NI 43-101.

TABLE 1: GRAPHITE MINERAL RESOURCES

*Rounded to the nearest thousand

• The classification of the current Mineral Resource Estimation into Indicated and Inferred is consistent with current 2014 CIM Definition Standards – For Mineral Resources and Mineral Reserves
• A fixed density of 2.81 t/m3 was used to estimate the tonnage from block model volumes.
• Resources are constrained by the pit shell and the topography of the overburden layer.
• The results from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic extraction” by an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the Property. The results are used as a guide to assist in the preparation of a Mineral Resource statement and to select an appropriate resource reporting cut-off grade.
• Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resources has a lower level of confidence than that applying to a Measured and Indicated Resources and must and must not be converted to a Mineral Reserves. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
• All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
• Effective date November 8th
• The estimate of mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
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The Company has thus far completed sufficient diamond drilling and bedrock channel sampling to result in a resource estimation with a maximal depth of the pit at 150 vertical meters. Geological modeling based on the drill results, surface trenching and mapping indicates that the deposit remains open at depth and on both strike extensions. The geological model also provides multiple exploration targets with the potential to further expand the graphite mineral resources. The portion of the Miller Project which is the subject of the updated Resource Estimate occupies only 0.29 square kilometres within the approximately 32 square kilometres of unrestricted contiguous mineral claims held by the Company.

Following completion of the revised resource statement, the Company will evaluate the impact of the exclusion of any potential maple syrup habitat in preparation for the filing of its revised CPTAQ application. Additionally, it is important to note that the Company will reduce focus on any potential marble quarry operations and prioritize its ability to develop Miller’s potential as a high-quality graphite deposit.  This is consistent with multiple developments in the energy sector indicating that the Miller graphite is a strategic resource for Quebec and Canada for small modular nuclear reactors and the electric battery sectors.

Canada Carbon Chief Executive Officer, Mr. Ellerton Castor remarked, “The significant increase in the resource estimate following December’s limited drill program enhances our understanding of the mineralization through out the claim area. The revised resource model will serve as the basis of future updates of the company’s Preliminary Feasibility Assessment.  The larger resource is consistent with the Company’s efforts to expand its potential universe of clients in the Aerospace, Defense, and Small Modular Reactor (SMR) sectors. Additionally, we believe that it gives us an increased degree of flexibility in future pit design.  This will be critical in streamlining our application to and approval by CPTAQ, as well the facilitating the work needed for the remainder of the licensing and permitting process.”

Mineral Resource Estimation Parameters

The Mineral Resources were estimated by Marc-Antoine Laporte, P.Geo., M.Sc., of SGS with an effective date of November 8, 2022. This estimate is the second Mineral Resource Estimate produced by Canada Carbon since the acquisition of the Miller property in September 2013. The Mineral Resources were estimated using the following geological and resource block modeling parameters which are based on geological interpretations, geostatistical studies and best practices in mineral estimation:

Graphite Mineral Resources

• Mineral Resources were estimated from the diamond drill holes and channels analytical results completed by Canada Carbon since 2013. A total of 213 drill holes and 135 surface/channels, comprising 11,885 assays were used for the mineral resources model.
• The 3-D modeling of graphite Mineral Resources was conducted using a minimum cut-off grade of 0.45% Cg over a 2 m horizontal thickness within a preliminary lithological model. The initial mineralized solids were developed using Leapfrog©, and subsequently remodelled by incorporating the complete assay dataset into the Leapfrog model, within SGS’s proprietary modeling software Genesis©.
• Assay data were composited to 1.5m.
• The interpolation was conducted using Ordinary Kriging of the low-grade graphite mineralization and Indicator Kriging for the high-grade graphite veins.
• The block model was defined by a block size of 5 m long by 5 m wide by 5 m thick and covers a strike length of approximately 930 m to a maximal depth of 150 m below surface. The modeled graphite mineralization is open both at depth and strike.
• The Mineral Resources were constrained within the boundaries of an optimised pit shell using the parameters stated in Table 2 below. All parameters are derived from economic assessment process associated with the Company’s Miller Project PEA and adapted for use in developing the new Resource Estimate. Any interpolated blocks of the resource model located outside of the optimised pit shell are not included in the Mineral Resources.
• All dollar values in Table 2 are expressed in Canadian dollars, except for the revenue value for the thermally treated graphite, assumed to be US$ 40,000/tonne.
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TABLE 2: PARAMETERS USED TO MODEL OPTIMIZED GRAPHITE RESOURCES

MILLER PROJECT OVERVIEW

The 100%-owned Miller Graphite and Marble Project is located in the Outaouais Region of southern Québec, Canada, about 80 km west of Montréal, Québec and 90 km east of Ottawa, Ontario. The closest cities are Grenville, Québec (5 km to the south) and Hawkesbury, Ontario (8 km to the south). The property is easily accessible from Highway 50, which runs approximately 2 km to the south of the Project boundary, and Scotch Road, which traverses the property from south to north. A wide range of services are available locally in the town of Grenville and at the nearby cities of Hawkesbury or Lachute. Project-specific services such as tree cutting, excavating, drilling, and blasting are available from local operators. Other required services including emergency response, equipment maintenance shops, transport companies, mobile electricians, mobile mechanics, security firms, IT firms, engineering, environmental and geological consultants, restaurants and a variety of housing options are all available near the Property. The local skilled labour force is capable of supporting a mining operation. A power line crosses the southern part of the Property and a railroad runs parallel to Highway 50, near Grenville. The Project is 90 km via paved highway from the container port at Montreal.