Mr. Ellerton Castor reports

MILLER PROJECT: CANADA CARBON CONCERNED ABOUT CPTAQ DECISION ON THE DEVELOPMENT OF CRITICAL AND STRATEGIC MINERALS IN QUEBEC

Canada Carbon Inc. has noted the Commission de protection du territoire agricole du Quebec's (CPTAQ) decision regarding the Miller graphite project, located near Grenville-sur-la-Rouge, but is concerned about the impact of this decision on the development of projects related to critical and strategic minerals, and the precedent it sets for the Quebec mining industry.

In a ruling handed down on March 18, 2025, the CPTAQ refused to authorize development of the Miller project, arguing that it would have a negative impact on the general interest of protecting the land and agricultural activities. The CPTAQ is also not convinced of the economic benefits associated with the Miller project.

Canada Carbon believes that this deeply flawed decision, which ignores a preliminary economic assessment which underscores superior returns and tremendous municipal and regional benefits, fails to take into account a number of factors, including the fact that the CPTAQ is bound by the Mining Act. As such, the commission has a legal obligation to take it into account when analyzing authorization requests under the act; respecting the protection of agricultural land and agricultural activities as well as the obligation to try to harmonize mining activities with agricultural activities.

Moreover, this unfavourable decision by the CPTAQ sets a precedent for the industry that runs completely counter to the Quebec government's desire and priority to accelerate the realization of mining projects as well as the development and commercialization of critical and strategic minerals.

Canada Carbon emphasizes that the Miller project has strong mineralogical potential for graphite, a strategic mineral that could help secure this essential resource for accelerating Quebec's energy transition. This project, which is one of only two such deposits in the world, can make a significant contribution to expanding the supply of graphite in Quebec and Canada, in line with the stated objectives of the governments of Quebec and Canada.

Canada Carbon is currently evaluating the various options available to the company in response to this decision, including the possibility of appealing.

"I am deeply troubled by the CPTAQ's decision regarding the Miller project, and we feel that the CPTAQ erred on several points of law in its decision. We are currently assessing our options for the future, including a potential appeal of this decision," commented Ellerton J. Castor, chief executive officer of Canada Carbon.

He added: "I'm also concerned about the signal this sends to current and future project proponents regarding the development of future mining projects in Quebec. This decision is completely at odds with the government's articulated objectives and Premier Legault's recent statements on the need to accelerate the development and exploitation of Quebec's critical and strategic minerals, of which graphite is one. This project, in particular, is singularly unique globally, and a potentially important contributor the development of sustainable green-energy production in North America. The government needs to act to ensure that a favourable business environment is in place, so that it can more easily achieve these objectives."

About Canada Carbon Inc.

Canada Carbon is a mineral exploration company focused on the acquisition, exploration and development of graphite deposits. The company has acquired two historical graphite mines, the Miller and Asbury mines, located respectively in Grenville-sur-la-Rouge and Notre-Dame-du-Laus, Que. Canada Carbon is committed to realizing its potential as a producer of high-quality graphite while maintaining the highest standards of social and environmental responsibility.

We seek Safe Harbor.