Mr. Michael Costa reports

BASE CARBON ANNOUNCES FIRST REVENUES FROM SALE OF CARBON CREDITS

Base Carbon Inc. has received first revenues from the sale of carbon credits generated from the Vietnam Household Devices project pursuant to its agreement with project developer, Sustainability Investment Promotion and Development Joint Stock company (SIPCO) and offtake arrangement with the Citigroup Global Markets Ltd.

Highlights

• As previously disclosed, Base Carbon facilitated a carbon credit offtake agreement between Citigroup and SIPCO, developer of the project, related to the initial 7.4 million carbon credits issued from the project.
• Base Carbon has now received full payment associated with delivering the initial 1,020,903 cookstove-generated carbon credits to Citigroup.
• The company anticipates the first carbon credit issuance and associated revenues for the water purifier portion of the project in the near-term.

"This is a transformational milestone for both our business and the company's stakeholders. In just under 12 months from project execution and first capital deployment, we are now a revenue-generating company. The anticipated project cash flows will become more visible through continuous financial disclosure and we look forward to providing more details in the normal course of our operations. Going forward, we will continue expanding our team, and diversifying our business lines and portfolio," stated Michael Costa, chief executive officer of Base Carbon.

The success of the Vietnam Household Devices project is representative of Base Carbon's role in bridging the gap between project developers who require capital and the consumers who seek quality carbon credits. The Vietnam Household Devices project is an inclusive partnership designed to reduce carbon emissions, improve living standards in project communities and to deliver a return on invested capital.

Efficient household devices are critical to carbon emission reduction and lead to both positive and measurable social and health co-benefits for millions of individuals within the households and communities. Globally, approximately one out of three people rely on polluting cooking fuels including wood, charcoal and kerosene. Such "dirty cooking" is a leading source of global carbon emissions and kills approximately four million people per annum due to respiratory illness, according to the Clean Cooking Alliance.

In addition to 850,000 cookstoves distributed in Vietnam, the project includes the distribution of 364,000 water purifiers for which credits are anticipated to be issued in the near term. Project co-benefits are measured based on anticipated improvement in living standards and are viewed by Base Carbon as important drivers of project quality and as mitigators of project risk for stakeholders.

Vietnam Household Devices project

On May 27, 2022, the company, through its subsidiary investment vehicle Base Carbon Capital Partners Corp. (BCCPC), entered into a project agreement with SIPCO as in-country project developer, to facilitate the Vietnam Household Devices project. Pursuant to the terms of the agreement, Base Carbon has committed to invest $20,828,600 (U.S.) to finance the manufacturing, distribution and monitoring of approximately 1,214,000 household devices across several provinces of Vietnam. Citigroup, under the terms of the project offtake agreement, is contracted to purchase the initial 7.4 million carbon credits generated from the Vietnam project.

Rwanda Cookstoves project

On Jan. 25, 2022, the company, through BCCPC, entered into a carbon reduction project agreement with a subsidiary of the DelAgua Group to supply cookstoves in the country of Rwanda as part of an expansion of its existing carbon reduction project previously registered as a clean development mechanism (CDM) project governed by the United Nations pursuant to the Kyoto protocol. Pursuant to the terms of the agreement, Base Carbon invested $8,825,000 (U.S.) to finance the manufacturing, distribution and monitoring of approximately 250,000 cookstoves across rural Rwanda in exchange for a revenue sharing agreement with respect to the first 7.5 million carbon credits which are expected to be generated by the project. Base maintains a contractual preferential share of the revenues from the first 2.2 million carbon credits generated. First issuance of carbon credits from the Rwanda Cookstove project continues to be anticipated for mid-2023.

About Base Carbon Inc.

Base Carbon provides capital, development expertise and management operating resources to projects involved in the voluntary carbon markets. The company seeks to be the preferred carbon project partner in providing capital and developmental resources to carbon projects globally and, where appropriate, will endeavour to utilize technologies within the evolving carbon industry to enhance efficiencies, commercial credibility and trading transparency.

We seek Safe Harbor.