Canaf Investments Inc V.CAF

Q2 FINANCIALS

[wiseman_321]

Canafannounces consolidated Q2 financials, new plant acquisition and appointment ofnew President

June22, 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 April 30, 2011 and the appointment of a new President.

For the 3 months ended April 30, 2011sales increased approximately 35% to $3,709,335from $2,753,589 for the previous quarter, reflecting higher sale pricesand higher volume sales.

Costof sales at $3,325,814 increased the operating margin to 10.0% or $383,521,compared to the previous quarter (margin of 6.6%). The increase in the marginwas caused by an unusually low margin during the previous quarter caused by aplanned major maintenance shutdown.

The net bookprofit for the Company, after allowing for provisional tax, during the periodwas $85,868 and at April 30, 2011, the Company had cash of $965,604.

The Company has also recently committed to purchasenew crushing and screening plant for Quantum’s operation in South Africa, whichis expected to be commissioned before the end of July 2011.The total cost of investment isestimated at approximately $235,000. The new crushing and screening plant will enable Quantum tosignificantly improve its range of sizes of products so that further increasein orders can be achieved from a greater number of customers.

The Company was pleased to announce in AnnualGeneral Meeting on 14 June, 2011 the appointment of Christopher Way, replacingDavid as President of the Company. Christopher has been an integral part of theCompany since joining in 2007.David remains Chairman and Chief Executive.

The Company is investigating the switch to coalgasifiers, from electric, to heat the kilns, in an attempt to reduce heatingcosts. Consulting engineers who designed and commissioned both kilns areexpected to complete their proposals to switch one of the two kilns to lowercost gasifiers over the next four months. Theresulting reduction in operating costs will have a positive impact on grossmargin.Further detailswill follow regarding the proposed timescale for the conversion works, oncetrials have been completed.

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 Samancor, world leaders insteel and manganese production respectively. Quantum has an operation 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 25 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 beencorrect. These statements are subject to certain risks and uncertainties andmay be based on assumptions that could cause actual results to differmaterially from those 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.