Mr. Ellerton Castor reports

CANADA CARBON CLOSES PRIVATE PLACEMENT OF UNITS

Canada Carbon Inc. has closed the first tranche of a non-brokered private placement of 7,333,333 units at a price of 1.5 cents per unit for aggregate gross proceeds of $110,000. Each unit comprised one common share in the capital of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to acquire one common share in the capital of the company at a price of six cents per share for a period of 60 months from the closing of the offering.

All securities issued pursuant to the offering are subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The proceeds of the offering will be used by the company for general working capital purposes.

Ellerton Castor, chief executive officer of the company, purchased 666,666 units pursuant to the offering. The insider private placement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61- 101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101) by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the company which will be issued to Mr. Castor does not exceed 25 per cent of its market capitalization.

We seek Safe Harbor.