Dr. James Tansey reports

OFFSETTERS ANNOUNCES 2014 YEAR END RESULTS

Offsetters Climate Solutions Inc. (OCS) has released its financial results for the financial year ended Dec. 31, 2014.

2014 financial highlights

• Sales revenue for the 12 months ended Dec. 31, 2014, was $5,266,597, compared with sales of $7,095,306 for the same period in 2013.
• Gross profit was $3,359,689 for the 12 months ended Dec. 31, 2014, compared with $4,521,503 for 2013.
• Operating income before finance and other items was ($95,482), compared with the 2013 operating profit of $177,982.
• Net comprehensive loss for the company was $1,914,629 in 2014, compared with $3,296,606 in 2013, driven primarily by non-cash items including a final goodwill impairment of $2,371,881, bringing the carrying value to nil, and accretion expense related to the net present value estimate of future cash flows of $299,082.

Offsetters' 2014 revenues were derived primarily from carbon offset sales and consulting contracts through its advisory services group. Total carbon offset sales for 2014 represent a 6-per-cent decrease from total offset sales in fiscal 2013. Approximately 97 per cent of all carbon offset revenues from 2014 were generated through voluntary market transactions, with the remaining 3 per cent of offset sales being transacted under British Columbia's carbon-neutral government program administered by the Climate Investment Branch (formerly known as the Pacific Carbon Trust).

The company expected to realize new revenues in 2014 from compliance market carbon offset sales as both California and Quebec cap-and-trade markets matured, along with demand for compliance grade offsets. While significant progress was made on company projects destined for these markets, unforeseen administrative delays in California and project auditing backlogs have pushed the company's project verifications into 2015 and beyond. As these projects achieve verification, the company is well positioned to monetize these assets through sales to regulated entities in California, and potentially Quebec. The company has further positioned itself with a pipeline of projects that will supply demand from existing and developing jurisdictions like Alberta (where legislated carbon markets currently exist) and British Columbia, which legislated a carbon-offset component under its liquefied natural gas regulations in 2014. The company is also exploring opportunities within Ontario, given the recent announcement of Ontario's intention to establish a cap-and-trade program similar to that established by Quebec and California. It is expected that a number of projects undertaken in 2014 will be announced in 2015 as they pass certain development milestones over the coming months.

"Despite unforeseen administrative and project development delays in our compliance portfolio, we are pleased to have been able to progress many of our core projects forward in 2014," commented Dr. James Tansey, chief executive officer of Offsetters. "We have clear line of sight on monetizing our first sales into compliance markets, and we have established a full suite of projects that will be developed to meet the needs of compliance entities across a number of developing jurisdictions in Canada and the U.S. We are also anxious to roll out our expanded services offerings in the agro-forestry space as we endeavour to complete the acquisition of ForestFinance assets announced in February."

All financial information is prepared in accordance with international financial reporting standards. The audited consolidated financial statements and associated notes for the 12 months ended Dec. 31, 2014, along with the related management's discussion and analysis, are available on SEDAR.

We seek Safe Harbor.