To: Clyde Spaulding who wrote (3237 ) 1/20/2016 3:45:19 PM From: klondikekid Read Replies (1) | Respond to of 12350 canadacarbon.com "During definition drilling for the marble and graphite Resource Estimates and PEA, extensive zones of disseminated graphite in a white marble host have been encountered. In order to provide accurate metallurgical data for the PEA, a composite sample of this material was prepared, and submitted to SGS Canada (Lakefield), for bench scale flotation trials under the optimized conditions developed during the Company’s pilot plant scale flotation concentration program. The results of two flotation trials were very similar : Trial 1, 54.6% of the concentrate reported to the +80 mesh (large flake) category, with 34.1% in the +48 mesh category; and, Trial 2, 55.9% of the concentrate was +80 mesh, with 35.3% in the +48 mesh category. The graphite concentrate from both trials was recombined to represent “run of mill” material, and was thermally upgraded by a commercial nuclear graphite processor, using the method previously reported (link below). This yielded graphite of 99.9995% (Ct) purity , with an Equivalent Boron Concentration (“EBC”) of 0.917 ppm." "The disseminated graphite in marble sample processed by SGS at bench scale was composed of quarter-split drill core (NQ size) obtained from 14 diamond drill holes . Up to five samples were collected from each hole, for a total of 45 samples, with a total mass of 38 kg . The samples were collected from widely separated occurrences of disseminated graphite in marble mineralization , with the goal of providing a metallurgical sample with 0.5% graphite content . (To view a map of the sample locations, please refer to: canadacarbon.com ) The 38 kg of material was crushed and homogenized at SGS. The calculated head grade obtained from these low-grade flotation trials was 0.53% graphite . As the post-purification results of the disseminated graphite were similar to those obtained from the pilot plant flotation material with a calculated head grade of 7.63% , the Company is confident that thermal upgrading can yield ultra-high purity graphite over a variety of potential head grade scenarios."