Saint Jean Carbon Signs Term Sheet for the Acquisition of the Miller East Lump Graphite Property - Seite 2

Acquiring these additional claims fits with Saint Jean's efforts to develop an operational profile that leads to a lower overall cost base and a broad range of quality products. While important, the results of these efforts will continue to depend on additional development and analysis of all our properties. This work includes appropriate drill programs, feasibility studies, economic modeling, completed NI 43-101's, ongoing R&D efforts, and of course continued close contact with the graphite customer base.

That acknowledgement also fits with our broader recognition that the graphite sector needs not only new sources of product but also realistic development programs that will fit well with the existing market. The acquisition of these new Miller East claims further supports that effort and we look forward to continued and effective execution of all steps required to move forward. That is our commitment to our investors, customers, and ourselves as we build Saint Jean Carbon".

The Miller East and Page acquisition terms set out a payment of 3,000,000 shares on closing; and a further 500,000 shares one year from the anniversary of the closing provided always that the Claims produce graphite with a grade of 30%, a quality of 90% Cg and an ore quantity of 2,000,000 metric tons after Saint Jean Carbon has made up to $250,000.00 in exploration expenditures to verify same; and pay a 1.00 % royalty on the production cost of concentrate material. Acquisition is subject to the approval of the TSX Venture Exchange.

About Lump/Vein Graphite

Lump or Vein graphite is considered to be one of the rarest, commercially valuable, and highest quality types of natural graphite. It occurs in veins along intrusive contacts in solid lumps and is currently only actively mined in Sri Lanka. As a result of the carbon content typically found within lump/vein graphite, production costs are normally lower than flake or amorphous graphite recovery. Lump graphite processing techniques can include everything from hand sorting of large concentrated samples to standard crushing, grinding, froth flotation and milling. Lump/vein graphite is suitable for many of the same applications as flake graphite giving it a distinct competitive edge in terms market prices and product applications.