February 3, 2021, Mississauga, Ontario, Canada - Canada Carbon Inc. (the "Company" or “Canada Carbon”) (TSX-V:CCB), (FF:U7N1) herein provides clarification regarding the direction of the Company and provides answers to frequently asked questions.
Canada Carbon is focusing its efforts on the development of its Miller Project (or the “Miller” or the “Project”), located in Grenville-sur-la-Rouge (GSLR), Quebec. The Miller Project hosts a marble and ultra-high purity hydrothermal graphite deposit.
Canada Carbon is targeting specialty or niche markets where high purity and high crystallinity natural graphite are essential. Tests to date have demonstrated that the Miller graphite has high crystallinity and that it can be purified to 99.9998%. This purity level of the Miller graphite means that it also meets nuclear purity standards. Canada Carbon compared its graphite purity testing results with the best natural graphite and the best synthetic samples available at the time and was found to be superior (https://www.canadacarbon.com/newsdetail?&newsfile=ccb_20150513.htm ). The Company’s target markets are certified reference materials (CRM), energy storage, fuel cells, small modular reactors, space technology, conductive additives and material for high-end battery anodes.
For the CRM market, the Company previously announced an order from LGC Standards Company (LGC). Canada Carbon’s January 4, 2021 press release explained the certification process for each batch of certified reference material. LCG will begin selling Canada Carbon graphite as a CRM only once the certification process is complete. The Company will inform stakeholders when the product is available for sale.
Each source of graphite has its own characteristics and end users. Depending on the application, there are specific requirements such as flake size, purity, crystallinity, density, expandability, etc. The qualification process to become a certified supplier can be lengthy. Canada Carbon provides a sample, based on the defined specifications, and the end user then submits this sample to its own internal testing. The Company is at various stages of qualification with a number of potential end users.
In 2014, Canada Carbon had a pilot flotation plant constructed to purify the graphite removed from the Miller Project site, as per its bulk ton sample permit. The objective was to test the effectiveness of the flotation process for graphite purification and to develop a flow sheet for future use in a feasibility level economic study of the Project. The Company still has quantities of graphite concentrate from the pilot plant. In addition, the Company has quantities of ore in super sacks which have still not been processed. This ore will be processed, as required, to provide samples to end-users for vendor qualification or to sell to LGC once the certification process is completed.
Graphite is one of the critical minerals essential to our modern economy and emerging technologies as it has a high supply risk and few substitutes. It is anticipated that the projected demand for graphite will result in a shortage by 2025. Graphite is used in a variety of applications, including a number of green technologies which contribute to the fight against climate change. The Canadian government has identified the development of small modular reactors (SMRs) as a key element in Canada's ability to meet its greenhouse gas emission reduction targets. The Government of Quebec, for its part, is counting on the electrification of transportation and energy storage to fight climate change. Canada Carbon has met with various government stakeholders to ensure that they are informed about the Miller project and that its graphite is a local, made-in-Canada resource that can be utilized in the development of SMRs thereby contributing to government strategies and environmental objectives.
In Quebec, social acceptability is necessary for a mining project to proceed. As indicated in the Settlement Agreement signed in February 2020, Canada Carbon and GSLR have agreed to initiate a dialogue on the Miller Project and to put forward a process to that end. The Company has suggested a co-facilitation process whereby each party would select its own facilitator so that discussions could begin. In good faith, the Company provided the source data used in its reports for the municipality to use in the preparation of its counter-expertise reports. Canada Carbon’s goal is to jointly develop a process and initiate a dialogue that it believes would be beneficial to both parties.
The Company’s experts are currently reviewing the counter-expertise reports prepared by GSLR's consultants. Once this analysis is complete, it will invite GSLR citizens to a virtual meeting to provide answers or clarifications to the questions raised. Canada Carbon is confident that transparent and ongoing communication will allow it to address concerns and modify the project, if necessary, for the benefit of all stakeholders.
With the help of Valérie Pomerleau, Canada Carbon met with various stakeholders in different departments of the governments of Quebec and Canada with the goal of raising the awareness of the Miller Project and its potential for green energy and economic benefits for Quebec. The Company has been invited to present its Project to the provincial inter-ministerial committee. The purpose of this committee is to answer questions and provide advice to the promoter. The Company intends to present the Miller Project to them once the decision of the Commission de protection du territoire agricole du Québec (CPTAQ) has been rendered. Currently, the Company is still waiting for the date of the public meeting of the CPTAQ.
Canada Carbon will continue to proactively communicate with all stakeholders through news releases, its website and other platforms such as Linked-In, Facebook and Twitter. It recognizes the need to improve its current website and will address that need in due course.
For further information:
Canada Carbon Inc.
Director Public Affairs and Communications
Canada Carbon Inc.
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FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).