Agreement with GSLR

Grenville-sur-la-Rouge, Quebec, August 3rd, 2021. Canada Carbon Inc. (“the Company” or “Canada Carbon” or “CCB”) (TSX-V:CCB), (FF:U7N1), and the Municipality of Grenville-sur-la-Rouge (“GSLR”) are pleased to announce that they held a meeting on July 27, 2021 to begin a meaningful dialogue. Virtually all previous interactions between the parties were limited to correspondence via emails and letters and can be found on the Miller Project website in the Document Library under the Agreement with GSLR tab.

In its notification of a change in preliminary orientation, La Commission de Protection du territoire Agricole du Quebec (“CPTAQ”) indicated that additional information was required from Canada Carbon in order for its zoning change application to be appropriately reviewed. The additional data that Canada Carbon plans to provide is also of interest to the municipality of GSLR. Canada Carbon will begin the planning process for the work to be conducted. While Canada Carbon’s experts will conduct the work, GSLR’s experts will be invited to observe the field work. In addition, input from GSLR’s experts will be requested. As with all previous studies, the data will be made public and shared with the municipality.

"We believe that the additional studies will help reassure the municipality about our project. Our respective experts will communicate with each other in advance of the work plan being finalized and it is our hope that the experts will be in agreement as to the scope and nature of work to be performed. As we gather more data, we plan to hold face-to face meetings with the municipality’s citizens to share the data and address their concerns," said Olga Nikitovic, interim CEO.

Both parties have agreed to continue the dialogue.

For further information:

Olga Nikitovic

Interim CEO

Canada Carbon Inc.

info@canadacarbon.com

Valerie Pomerleau

Director Public Affairs and Communications

Canada Carbon Inc.

valerie@ryanap.com

(819) 856-5678

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March 31, 2021, Mississauga, Ontario, Canada — Canada Carbon Inc. (the “Company”)(TSX-V: CCB), (FF:U7N1) announces that a hearing was held on March 30, 2021, at the Superior Court to hear Grenville-sur-la-rouge’s (“GSLR”) application to have the Commission de la protection du territoire agricole du Quebec (“CPTAQ”) hearings suspended and postponed. The Court rejected GSLR’s demand. Accordingly, the CPTAQ hearings will proceed on March 31 and April 1, 2021, as scheduled.

Yesterday, Canada Carbon was informed that GSLR has filed another legal proceeding against the Company and the CPTAQ with the Superior Court. GSLR is asking the Court to rule on the interpretation of Sections 16, 18 and 19 of the Settlement Agreement between Canada Carbon, GSLR and CPTAQ signed in February 2020, as the municipality believes, based on their interpretation of these sections, that Canada Carbon is in breach of the Settlement Agreement based on its refusal to allow drilling on the Miller Property.

The Settlement Agreement that was signed in February 2020 had two key paragraphs at issue in this proceeding.

• Section 18 states that, “GSLR and CCB agree to enter into a dialogue on the Miller Project and to put forward a process for that purpose with the assistance of the MERN, to the extent that the MERN agrees to act in that capacity.”
• Section 19 states that, “As part of this process, CCB agrees to collaborate with GSLR in the conduct of any study that GSLR may require, if necessary, on the recommendation of a professional under the Professional Code, in order to enable it to understand, analyze or participate in improving the Miller Project in terms of its social acceptability.”

As stated in the press release of March 26, 2021, the Company feels GSLR is interpreting Section 19 in isolation despite the fact that it is clear from the language and intent of Article 18, that dialogue and protocols are required beforehand. The purpose of these two sections was to ensure that, through dialogue, both parties would jointly determine what additional analysis would be required and that the collection of this additional information would be done jointly by both parties on a scientific, efficient and transparent basis.

Management of Canada Carbon and the GSLR municipality have not had a constructive dialogue regarding the Miller Project since the new council took office in November 2017, despite repeated requests by the Company to do so. CCB management does not consider its exchanges with GSLR’s legal counsel to be constructive dialogue, as intended in the Settlement Agreement. “We regret the impact that GSLR’s approach to using legal avenues to block the Miller project is having on the citizens of the Municipality and the shareholders of the Company. Significant amounts of money are being spent by both parties on legal fees that would not be necessary if only the current GSLR councilors would engage in dialogue,” said Olga Nikitovic, Interim Chief Executive Officer.

While Canada Carbon does not wish to pursue legal action and would prefer to sit down and have dialogue, the Company knows that it has respected and adhered to all aspects of the Settlement Agreement reached in February 2020 and is very confident in its position for this new legal proceeding.

For further information:

Olga Nikitovic

Interim CEO

Canada Carbon Inc.

info@canadacarbon.com

Valerie Pomerleau

Director Public Affairs and Communications

Canada Carbon Inc.

vpomerleau@canadacarbon.com

(819) 856-5678

Mississauga, Ontario, Canada - Canada Carbon Inc. (the "Company" or "Canada Carbon") (TSX-V:CCB), (FF:U7N1) wishes to quickly establish a mutually agreed upon protocol for the format and content of future discussions with GSLR to ensure the Miller Project’s impact on the municipality and surrounding areas is understood and modified to the extend required or possible for the benefit of all stakeholders.

CCB has always been convinced that the co-construction of a protocol based on equal contributions from both parties was the best approach to ensure an outcome with which each party feels comfortable. That is why the Company proposed a co-facilitation process which would be a non-confrontational process, conducted by neutral and mutually accepted parties. "We want to build trust from the very beginning of this important process and wish to begin dialogue in order to continue positively towards the common goals identified by both parties in the Settlement Agreement signed in February 2020, " said Olga Nikitovic, Interim CEO.

The Settlement Agreement, which was agreed to by both parties, states that GSLR and CCB agree to enter into a dialogue on the Miller Project and to put forward a process for that purpose with the assistance of the MERN, to the extent that the MERN agrees to act in that capacity (Section 18). As part of this process, CCB agrees to collaborate with GSLR in the conduct of any study that GSLR may require, where applicable, upon the recommendation of a professional under the Professional Code, in order to enable it to understand, analyze or participate in improving the Miller Project in terms of its social acceptability (Section 19).

The objective of these two sections was to ensure that through dialogue both parties would determine what additional analysis would be required and that the collection of this additional information was carried out jointly on a scientific, effective and transparent basis.

To this end, Canada Carbon sent several communications to the Municipality of GSLR during 2020 to begin the dialogue with co-facilitators. In the Company’s communications with GSLR, it was made clear that CCB would be prepared to pay for some portion of the co-facilitator utilized by GSLR and would also be prepared to fund some portion of the reports that would be determined by both parties to be necessary.

GSLR chose not to begin the co-facilitation process at this time and decided to proceed with the counter-expertise studies on their own. It should be noted that in good faith, Canada Carbon provided GSLR’s consultants with the source data from our independent consultants so that they could conduct their analysis.

CCB has now proposed that both parties each develop their own draft protocol. The proposed protocol to be developed by CCB will be based on what the Company considers to be best practices. Once the two protocols are finalized, they can be reviewed by both parties for constructive comments and the proposals jointly refined so that a joint agreement can be signed quickly, and a mutually beneficial project can be co-constructed.

The Company's experts are continuing to review the counter-expertise reports prepared by GSLR's consultants. Once this analysis is complete, the Company will invite GSLR citizens to a virtual meeting to provide answers or clarifications to the issues raised. Canada Carbon is confident that transparent and ongoing communication will enable it to address concerns and modify the project, if necessary, for the benefit of all stakeholders.

In preparation for this virtual meeting, CCB invites questions from the public. "I invite people to share their questions with me through our social media platforms or to send them directly to me by email or phone. In the weeks following this first virtual meeting, we will share the questions and answers. I will continue to communicate proactively with all stakeholders" said Valérie Pomerleau, Director of Public Affairs and Communications.

For further information:

Olga Nikitovic
Interim CEO
Canada Carbon Inc.

info@canadacarbon.com

Valerie Pomerleau
Director Public Affairs and Communications Canada Carbon Inc.
vpomerleau@canadacarbon.com
(819) 856-5678