Mr. Ellerton Castor reports

CANADA CARBON ANNOUNCES CLOSING OF PRIVATE PLACEMENT OF FLOW-THROUGH UNITS AND FLOW-THROUGH SHARES

Canada Carbon Inc. has closed a non-brokered private placement of: (i) 15 million flow-through units at a price of two cents per FT unit for aggregate gross proceeds of $300,000; and (ii) 12.5 million flow-through shares in the capital of the company at a price of two cents per FT share for aggregate gross proceeds of $250,000. Each FT unit comprises one FT share 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.

In connection with the offering, the company paid finders' fees to certain finders, consisting of: (i) a cash fee equal to $44,000; and (ii) 2.2 million common share purchase warrants. Each finder's warrant shall entitle the holder to acquire one common share at a price of seven cents per share for a period of 60 months from the date of issuance.

We seek Safe Harbor.