Mr. Michael Costa reports

STX GROUP AND BASE CARBON PARTNER TO LAUNCH INNOVATIVE CARBON INVESTMENT VEHICLE FOCUSED ON SCALING GLOBAL MARKETS FOR CARBON REMOVALS

STX Group and Base Carbon Inc. have executed a letter of intent (LOI) to jointly launch a new investment vehicle to develop innovative carbon removal projects. The new vehicle will focus on bringing integrity and scale to global markets seeking durable, high-quality carbon removals based on scientific pathways and asset-backed solutions.

The new vehicle, expected to be the first in a continued series, aims to bring global market participants an innovative way to access and participate in the surging demand for high-quality carbon removals associated with the net-zero climate commitments from corporations, financial institutions and governments. The vehicle's primary investment focus, driven by buyer demand, will emphasize capital allocation to greenfield carbon solutions that include robust quantification, scientific durability, strong community engagement, sustainable development co-benefits and governance practices in accordance with leading industry standards, local regulation and the UNFCCC (United Nations Framework Convention on Climate Change) Paris agreement.

Leveraging its reputable, global team of market professionals, and access to environmental markets, corporate buyers, implementation partners and policy makers, STX Commodities will provide project origination and development services to the investment vehicle, as well as marketing and distribution of carbon removals and project byproducts. As manager of the fund, Base Carbon will leverage its existing investment platform, team expertise and corporate infrastructure, endeavouring to develop new, ancillary revenue streams without further dilution to its shareholders.

STX Group and Base Carbon are thrilled to be collaborating on this new initiative, viewed as a positive catalyst in their collective agenda to reduce global greenhouse gas emissions. Investor marketing and project offtaker discussions are anticipated to commence in early 2024.

"STX Group has been at the forefront of the global carbon markets for decades and we are excited to team up with Base Carbon to provide opportunities to our counterparties who seek to diversify their portfolio and invest in carbon projects of high calibre. We at STX Group are taking a leading role in developing innovative financial solutions to benefit the environmental commodities markets, and are thrilled to witness the increasingly important role of these solutions and projects in commodity finance," said Marijn van Diessen, chief commercial officer of STX Group.

"We are very excited to be collaborating with STX Group, a leader in global environmental markets, and this innovative investment vehicle represents an important and exciting new business venture for Base Carbon. There is complementary expertise and strong synergies between our organizations, enabling us to identify and underwrite high-quality projects offering attractive risk-adjusted returns to investors. We continue to anticipate exponential growth in global demand for quality carbon credits as we approach 2030 net-zero commitments. We believe this investment vehicle is an attractive and non-dilutive pathway to further diversify and scale Base Carbon's future revenue streams within the core competencies and resourcing of our existing team and infrastructure," stated Michael Costa, chief executive officer of Base Carbon.

About STX Group

STX Group is a leading global environmental commodity trader and climate solutions provider. For over 25 years, its teams have been at the forefront of the global transition toward a low-carbon economy. By leveraging its expertise in accurately pricing pollution and emissions, it has helped to cultivate trust in market-based solutions to the decarbonization of the economy.

With its trading and corporate climate solutions offerings, STX ensures that money flows to hundreds and thousands of projects that make the world a greener place, while providing corporations with the certified proof points of their contributions to environmental progress.

After acquiring Vertis and its subsidiary Strive in December, 2021, the STX Group now boasts a diverse team of nearly 500 employees from over 50 countries. Headquartered in Amsterdam, Netherlands, STX Group has 13 offices around the world and an annual trading volume of over four billion euros.

About Base Carbon Inc.

Base Carbon is a financier of projects involved primarily in the global voluntary carbon markets. It endeavours to be the preferred carbon project partner in providing capital and management resources to carbon removal and abatement projects globally and, where appropriate, will utilize technologies within the evolving environmental industries to enhance efficiencies, commercial credibility and trading transparency.

We seek Safe Harbor.