Canaf Investments Inc V.CAF

CANAF ANNOUNCES CONSOLIDATED Q1 FINANCIALS

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Canafannounces consolidated Q1 financials

Mar29, 2011, Vancouver, British Columbia - Canaf Group Inc. (TSXV: CAF) ("Canaf"or the "Company") the Canada-registered mining group, today released itsFinancial Statements and Management Discussion and Analysis for the 3 monthsended January 31, 2011.

For the 3 months ended January 31, 2011sales increased 5% to $2,753,589 from $2,623,902 for the same period ofthe previous year, reflecting higher prices and marginally higher volume sales.Cost of sales at $2,572,874 reduced the operating margin to 6.6% or $180,715.The lower than traditional margin was caused by a planned major maintenanceshutdown to re-line an emissions stack and complete otherpreventative maintenance on the refractories of bothkilns. The net book loss afterallowing for provisional tax during the period was $48,229.

At January31, 2011, the Company had cash of $732,820. During the quarter the Company madefurther progress on its debt reduction plans, reducing commitments by $70,000to $726,860.

The Company is planning to use coal gasifiers toheat the kilns to vastly reduce the cost of electricity. Consulting engineerswho designed and commissioned both kilns are expected to complete theirproposals to switch the number two kiln to lower cost gasifiers over the nextsix months. Once that kiln is completed and operating successfully for a trialperiod then the Company would look to switch the number one kiln togasification. The Company expects to fund the cost ofthis switch to lower energy costs out of operating cash flow. The resultingreduction in operating costs will have a positive impact on gross margin.Further details will followregarding the proposed timescale for the conversion works.

The Financial Statements and ManagementDiscussion and Analysis can be viewed on www.sedar.com or the Company’swebsite, www.canafgroup.com.Allreference to dollars herein are to US dollars.

About Canaf

Canaf Group Inc. is a junior mining groupbased in Vancouver, Canada, and with subsidiary offices in the United Kingdom.Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., a carbonproducing company based in South Africa.

About Quantum

Quantum Screening and Crushing (Pty) Ltd’s isone of South Africa’s largest producers of calcined anthracite, a product usedas a replacement to coke in the manufacturing process of steel and manganese. Thecompany’s two largest clients are Mittal Steel and BHP Billiton, world leadersin steel and manganese production respectively. Quantum has a plant in Newcastle,KwaZulu Natal, where its two kilns operate around the clock devolatising theraw material anthracite. The majority of Quantum’s feedstock anthracite issupplied by Springlake Colliery, which has reserves in excess of 30 years andis located in the nearby town of Dundee.

Forward-LookingStatements

Certain information regarding Canafcontained herein may constitute forward looking statements.Forward looking statements may includeestimates, plans, expectations, opinions, forecasts, projections, guidance orother statements that are not statements of fact. Although Canaf believes thatthe 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 bebased on assumptions that could cause actual results to differ materially fromthose anticipated or implied in the forward looking statements.Canaf is under no obligation to updateor alter any forward looking statement. These risks include operational,political, currency and geological risks and the ability of Canaf to raise orobtain funds for its operations. Canaf's forward-looking statements areexpressly qualified in their entirety by this cautionary statement.

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

UK Office:
ChristopherWay
CanafGroup Inc.
Phone:[phone]
Fax:[phone]
E:[e-mail]

The TSX Venture Exchange has not reviewed and does not acceptresponsibility for the adequacy or accuracy of this release.