Crystal Graphite Corporation Announces Canada Pumice Corporation Expansion.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 3, 2004

Crystal Graphite Corporation ("CGC") (CNQ:CYTG) (OTCBB:CYTGF) announces that its newly acquired subsidiary Company, (refer to news release April 29, 2004) Canada Pumice Corporation ("CPC"), is immediately proceeding with an expansion in production equipment at its quarries both in Nazko and Quesnel, British Columbia. The construction of the bagging plant facility in Quesnel is essential to service the product increased demand for bagged products for the retail market. The bagging plant facility is serviced with its own rail siding and bulk loading and storage facility is scheduled to be completed by mid July 2004 to accommodate the processing of fall shipments of bagged goods to CPC's customer base and its major distributor.

Mr. Brian Wear Vice President and COO states, "the bagging plant facility will allow CPC to increase its market share and sales in the retail market sector. With eight new distributors in British Columbia, Alberta and Washington state, the demand for bulk products has increased considerably. Bulk sales are up 66% in the first quarter of 2004 compared to the first quarter last year. CPC is currently operating two shifts per day at its primary quarry."

Mr. James Beechey, Marketing and Product Development Manager of True North Specialty Products/a Univar Company states "we are very pleased with our decision to have aligned ourselves with Canada Pumice Corporation to be able to represent their product line. We are in the final stages of placement of Lavascape(TM), Sante Fe Shale(TM), Anti-Slip(TM) and Tephragro(TM) with several of Canada's largest retailers. The ability to supply bagged and packaged products has been the key to securing this opportunity and will be the key to the future in expanding the business."

CPC supplies a number of major landscape and construction products with its Lavascape(TM) and Tephralite(TM) products. CPC has been providing its unique products to the horticulture, agriculture, construction, landscape trades, and concrete block industry for 13 years.

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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