Despite continued challenging trading conditions, the Company is pleased to announce a significant improvement in the results for the 3-month period ended 30 April, 2016, compared to the previous quarter. Sales further reduced to $757,843 from $1,022,773 however, net income (loss) improved from ($294,482) to ($41,382).

Revenue for the 6-month period fell to $1,780,616 from $6,087,677, for the same period the previous year; adjusted EBITDA (loss) fell to (US$97,339), compared to $573,887 the previous year. The fall in revenue and profit was as expected, due to depressed sales in challenging trading conditions.

The results reflect the continued reduced levels of demand of the Company's product, ultimately due to the global slowdown in commodity consumption, stemmed from the economic slowdown in China and other developing nations. The Company expects to see a slight increase in Sales during Q3 2016, and a further increase in Q4, 2016.

Despite the current difficult situation, the company is confident that its long-term prospects remain positive, and understands that the reduction of sales is a function of the global economic slowdown. While the outlook for the sector as a whole remains challenging, the board believes that through its strong balance sheet, the company is well-placed to manage the current downturn and to benefit from any future upturn in markets.

For more details and discussion on the results, the Financial Statements and Management Discussion and Analysis can be viewed on www.sedar.com or the Company's website, www.canafgroup.com. All reference to dollars herein are to US dollars.

About Canaf

Canaf is a junior mining related group based in Vancouver, Canada, and with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., a South African based company that produces a high carbon, de-volatised anthracite.

About Quantum

Quantum Screening and Crushing (Pty) Ltd's is one of South Africa's largest producers of calcined anthracite, a product primarily used as a replacement to coke in the manufacturing process of steel and manganese. The company's two largest clients are ArcelorMittal and BHP Billiton, world leaders in steel and manganese production respectively. Quantum has a plant in Newcastle, KwaZulu Natal, where its two kilns operate around the clock de-volatising the raw material anthracite. The majority of Quantum's feedstock anthracite is supplied by the neighbouring Springlake Colliery, which has reserves in excess of 15 years.

Forward-Looking Statements

Certain information regarding Canaf contained herein may constitute forward looking statements. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Canaf believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. Canaf is under no obligation to update or alter any forward looking statement. These risks include operational, political, currency and geological risks and the ability of Canaf to raise or obtain funds for its operations. Canaf's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

For further information on Canaf Group, visit www.canafgroup.com or see contacts below.

UK Office:
Christopher Way
Canaf Group Inc.
Phone: +44 1273 492100
Fax: +44 1273 492175
E: [email protected]

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