Mr. Ellerton Castor reports

CANADA CARBON ANNOUNCES PRIVATE PLACEMENT OF FLOW-THROUGH UNITS

Canada Carbon Inc. has arranged a non-brokered private placement of up to 27.5 million flow-through units at a price of two cents per FT unit for aggregate gross proceeds of up to $550,000. Each FT unit shall comprise one flow-through share in the capital of the company and one common share purchase warrant. Each whole warrant shall entitle the holder thereof to acquire one common share in the capital of the company at a price of seven cents per share for a period of 60 months from the date of issuance. The FT shares will qualify as flow-through shares within the meaning of the Income Tax Act (Canada).

All securities issued pursuant to the offering will be 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 from the offering will be used by the company for eligible exploration expenditures. The closing of the offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.

In connection with the offering, the company may pay a finder's fee to eligible arm's-length parties. The finder's fee may consist of a cash fee equal to up to 8 per cent of the gross proceeds of the offering and finders' warrants equal to up to 8 per cent of the FT units issued pursuant to the offering. Each finder's warrant shall entitle the holder to acquire one common share in the capital of the company at a price of seven cents per common share for a period of 60 months from the date of issuance.

We seek Safe Harbor.