Cabot Graphite. Cabot Graphite Project

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1 Cabot Graphite CEX has a diverse portfolio of projects, along with Gold and Copper it has focused on Rare Earth Elements (REE) which has been discovered on our Rusty Ridge property and Graphite on our Cabot property located in the prolific mining belt of Baie Verte Newfoundland. Cabot Graphite Project Figure 1 Map depicting geographic location of the Cabot Project (outlined in red) and relative location and status of nearby mining operations within the Baie Verte Peninsula.

2 The Cabot Project occurs in Baie Verte Newfoundland and consists of 100 mineral claims over 5 licenses totaling 25 Square Kilometers. The project is located 5km north of the mining community of Baie Verte within a highly prolific mineral belt, which has produced 14 mines, 2 of which are still in commercial production by Rambler Metals Plc, and Anaconda Mining Ltd. The Cabot Project is adjacent to a paved highway and electrical line; the interior of the property is easily accessible by pick-up due to an extensive network of forestry roads, with coastal exposures accessible by boat. The Cabot Project Contains 3 distinct mineral prospects, the Cabot Copper-Cobalt Prospect (VMS), the Cabot Graphite Prospect (Structurally hosted metamorphic Graphite), the Marble Cove Prospect (Gold). CEX s Cabot Graphite Prospect was mapped and sampled on surface for 2.2km with the average grab sample grading 5.2% Cg. The prospect was subsequently drilled by 4 drill holes and found to have a thickness ranging from 50 to 150m. Figure 2 Geochemical map depicting Cabot Graphite Zone. As depicted in Independent F Technical Report written by Caracle Creek International Consulting Inc.

3 The Cabot property has large zones of untested graphite mineralization, which when drilled is expected to increase the value of the deposit significantly. CEX feels that the time and markets are ripe for a focus on the Graphite. The natural and synthetic graphite industry is expected to follow lithium as excitement builds for potential growth from lithium-ion batteries. Despite their name, these batteries contain far more graphite than they do lithium. With global sales of new energy vehicles expected to rise dramatically over the next decade and an unprecedented surge in stationary storage, the future of battery graphite looks positive. Major automotive/battery manufacturers are making plans for mega-size factories in China and a few other countries. There are just a few new mines coming into production and the markets are beginning to realize that there will be a lack of graphite production. A report by Persistence Market Research shows that the global graphite market is valued at $13 billion in 2013 is expected to reach $17 billion and possibly far beyond in A rising demand for lithium-ion batteries in these vehicles and other electronic devices is predicted to significantly drive growth of graphite, the second-largest component in the batteries, in the years to come. The global graphite market is expected to witness a lot of opportunities, on account of rise in demand for lightweight materials such as carbon fiber reinforced plastic (CFRP) to be used in automobiles and manufacturing components of aircraft. Moreover applications of graphite in lubrication are expected to propel the growth of the market. There are other uses such as Solar, Semiconductor s, cell phones, computers and other electronic products. The Huffington Post, stated that Graphene is the future. It is 200 times stronger than steel, thinner than a sheet of paper and more conductive than copper and that it will be so vital to our future that it has been named a Supply critical mineral and a "strategic mineral" by the United States and the European Union. Yet only a few companies around the world have access to mineral resource that is required to make graphene. And 70% of supply is controlled by China. So an opportunity exists for any non-chinese supply to become an extremely lucrative investment, which opens the way for our company Canadian Exploration Inc.

4 Our main focus for 2018 will be our Cabot graphite property; Figure 3 CEX Project Map Check assay intervals from sampled diamond drill core, Cabot Graphite Property. Drill Hole # Historical Sample # From (m) To (m) Length (m) C (graphite) % 2016 Check Sample C (graphite) % CB a 6.50 CB a 4.85 CB a 5.35 CB a 3.96 CB a 8.72 CB a 8.21 CB a 7.67

5 Diamond drill hole casing for diamond drill hole CB13-01, Cabot Property, Newfoundland and Labrador. Diamond drill core storage yard, near Baie Verte, Newfoundland and Labrador, about 8.5 km from the Cabot Graphite Property

6 Diamond drill core from drill hole CB13-01 ( metres) showing foliated graphitic zone. Diamond drill core from drill hole CB13-03 ( metres) showing pervasive deformation in the graphitic zone.

7 Graphite production in Canada was approximately 30,000 tonnes in 2014 and in North America, there are only two natural flake graphite production facilities. In Canada, Eagle Graphite ( operates the Black Crystal graphite quarry, located 35 kilometres west of the city of Nelson in British Columbia. The second graphite mine, located in Quebec, Canada and operated by Imerys S.A. ( suspended operations in The company engaged an independent review and documentation of the showings and 2013 drilling. All 4 drill collars were located and intact, it was noted that drill hole CB13-04 has been collared in graphite and therefore has not tested the entire graphitic horizon. Steven Balch of Caracle Creek International Consultants Inc. completed an assessment report on the graphite drilling. Mr. Balch concluded that: Based on the available data the graphitic zone is ~100m true thickness. CB13-04 ended in mineralization. CB13-03 appears to have shut down before reaching the main graphitic zone. CB13-01 may have been shut down prior to reaching a second graphitic horizon. The graphitic zone remains open to the northeast, southwest and at depth.

8 Further drilling, and supplementary sampling of the core was recommended to determine the true widths and grades of the graphitic zones. This additional drilling should continually sample the graphitic horizon. Once sufficient drilling has been completed a metallurgical study will be necessary to determine the size, distribution, and processing requirements for any flake graphite. The Cabot Project exhibits a great deal of potential for graphite, copper and gold. The project area is easily accessible by woods road; and is close to a large mining community within a well-established mining belt. The 2013 drilling of the Cabot Graphite Zone (CGZ) found the zone to have a true thickness of between m, and tested this horizon for up to 600m of strike. At that time it was concluded that the drill program failed to test the thickness of the entire graphitic horizon with at-least 3 of the 4 holes failing to cut the entire zone. It was also found that core sampling had been selective in an effort to reduce analytical costs. This selective sampling frequently omitted graphitic material thereby reducing the overall composite grades. It was recommended by Caracle Creek that: The graphitic zone should be sampled in its entirety, to provide the most accurate representation of the grade distribution of the CGZ. The zone was open to the NE and SW and significant potential existed for extending the mineralization of the CGZ along strike. 18-Drill holes will be required to test the entire extent of the graphite horizon as it is mapped on surface. All pertinent geophysical, geological, and drill core data should be integrated into a 3D model in order to allow further drill planning to be effective. Although the Cabot Graphite showing is thick and laterally extensive the most significant question remains unanswered. Are the graphite grades sufficient and flakes coarse enough for this deposit to be economically significant; and how easily can this flake graphite be liberated?

9 Cabot Project, Location, Geology, Access, Mineral Occurrence s and Diamond Drill hole Location Map