Crystal Graphite Corporation's Subsidiary Canada Pumice Corporation Expands Production.

VANCOUVER, British Columbia -- Crystal Graphite Corporation ("CGC") (OTCBB:CYTGF) (CNQ:CYTG) wholly owned subsidiary, Canada Pumice Corporation ("CPC") has taken delivery of its new screening and conveying equipment at its Nazko Quarry Operations west of Quesnel, B.C. These new machines compliment CPC's current processing equipment and essentially doubles its production capability. This new equipment includes a state of the art portable track screen deck, three stacking conveyors, wheel loader and crawler tractor.

CPC has also taken delivery of 2 new highway tractors to pull its bulk haul "specialty equipment" B-Train trailers, and requisitioned 2 more additional tractors and two more sets of bulk haul trailers.

CPC bulk material sales are up 62 % from this time last year, a strong indicator received from the engineering and construction industry in Canada for the use of its high performance natural lightweight aggregates (Tephralite(TM)). As well, its landscape, horticulture and agriculture customer base continues to grow through out Canada and the Pacific NW of the US.

CPC is currently preparing a $470,000 bagged order for one of its distributors as well as negotiating orders for its other bagged products. The economic growth in Western Canada and the expansion of the infrastructure to support that growth finds CPC well positioned to be part of "building the future" and supplying a share of those "aggregate needs".

CPC continues to grow its business in Eastern Canada, the USA, Europe and the Asian Pacific Rim.

CGC also concentrates on the development of high purity flake graphite for fuel cell sector and is now well positioned to take advantage of that industry's enormous growth potential. Crystal Graphite has developed three high purity flake graphitic products (97% to 99.5% graphitic carbon). These products are produced at the company's processing facility, using graphitic material from the company's Black Crystal deposit near Nelson, British Columbia.

This release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to prediction, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "will", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could" or "might" occur.

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