CANADA CARBON FILES APPLICATION WITH THE CPTAQ TO DEVELOP ITS MILLER GRAPHITE MINE - Seite 2

Canada Carbon has worked very hard, with a highly qualified team of professionals from multiple disciplines, to ensure that all legal and regulatory requirements are met. At this point in time, the Company believes that it deserves a fair hearing from the CPTAQ, during which the merits of the project and any potential agricultural impacts can be objectively evaluated.

All aspects of the project have been thoroughly analyzed according to the criteria outlined in Article 62 of the Loi sur la Protection du Territoire et des Activités Agricoles (LPTAA), which the CPTAQ uses to assess the merits of any application. Special attention has been given to the most critical aspect concerning agricultural potential, specifically the impact on the forest and any maple production capacity.

Recognizing the temporary impact the project may have on the forest, Canada Carbon has implemented a comprehensive zero net loss restoration plan specifically designed to restore and maintain the maple production potential. As part of this plan, for every maple tree that is cut down, a new one will be replanted. Additionally, maple-forest management practices will be implemented in the untouched areas of the forest starting from year 1 of the project. This approach ensures that the maple syrup potential will be even better than if the forest had been left untouched.

Remnants of the previous mining activities at the Miller mine can still be seen, and Canada Carbons’ restoration plan addresses this shortcoming in its entirety. The Company has developed a comprehensive program that focuses on recovering topsoil and composting stumps. This approach allows the Company to retain a significant amount of organic carbon in the soil, which is vital for the successful re-establishment of vegetation during the restoration process.

It is important to note that Canada Carbon is also actively pursuing the development of its Asbury Graphite Project, located in the municipality of Notre-Dame-du-Laus. The Company is poised to complete an NI 43-101 compliant resource statement on the project and has fostered a robust partnership with the municipality to ensure the successful execution of the project. The Company’s relationship with Notre-Dame-du-Laus is illustrative of the model with which it intends to support the economic growth and improvement of host communities, while contributing to the government's energy transition objectives.