Red Chris South

All information pertaining to mineral resources herewith presented are historical in nature and while relevant, the information was obtained before the implementation of National Instrument 43-101 reporting standards. No historical estimate should be relied upon until it can be confirmed by the Company.

Canada Carbon's 100%-owned Red Chris South copper-gold prospect consists of over 13,000 acres, contiguous to Imperial Metals Corporation’s (III – TSX) “Red Chris” copper-gold discovery in northwest BC. Imperial Metals neighbouring “Red Chris” property recently announced drill intercepts of 628.7 metres grading 1.97 g/t gold and 1.13% copper and 1,112.5 metres grading 0.54% copper, 0.61 g/t gold and 1.96 g/t silver in 2 separate drill holes.

Imperial Metals Corp. on December 10th, 2009 announced the following results from the Deep East Zone at Red Chris, "Drill hole RC09-350 previously reported the highest grade intercepted at Red Chris South to date (NR Nov 09/09: RC09-350 returned 152.5 metres grading 4.12% copper and 8.83 g/t gold starting at a depth of 540.0 metres). The higher grade material extends to 962.5 metres and averages 2.00% copper and 3.80 g/t gold over 432.5 metres. With all intervals assayed, drill hole RC09-349 intercepted 625.3 metres of 0.82% copper and 0.93 g/t gold starting at 390.0 metres depth."

There is no assurance that similar mineralization will be discovered on the Canada Carbon property.

In 1998, Homestake Canada Inc., conducted geological mapping and geochemical sampling, and outlined stratigraphy that is prospective for Eskay Creek style mineralization. Nearby intrusions have alteration and other characteristics similar to those observed at the Red Chris deposit.

Canada Carbon's tenures are underlain by Upper Triassic age Stuhini volcanic and sedimentary formations that are the principal host rocks of the Red Chris South deposit.

In 2010, sampling and surveying on Canada Carbon's “Red Chris South” property identified several significant coincident IP and geochemical, anomalies. These anomalies were identified using a 55 km induced polarization IP survey and 560 MMI soil samples. In 2011 a drill program was completed on four holes. Additional geological mapping and rock chip geochemical sampling was also undertaken which identified gold and copper anomalies. Further drilling is required to test these anomalies.