Mr. Michael Costa reports

BASE CARBON PROVIDES CORPORATE UPDATE AND OUTLOOK

Base Carbon Inc. is providing a corporate update and the company's outlook for 2024.

Two thousand twenty-three highlights and 2024 outlook:

• Targeted to receive approximately six million carbon credits from the Vietnam household devices project, for anticipated offtake proceeds of approximately $29.1-million (U.S.), and approximately 2.1 million carbon credits from the Rwanda cookstoves project in 2024;

• Receipt of approximately 1.1 million carbon credits and aggregate proceeds from the disposition of such credits of approximately $6.4-million (U.S.), or 7.2 cents per share, in 2023;

• Rwanda cookstoves project received Verra's first-ever corresponding adjusted or Article 6 Authorized Label in December, 2023;

• Execution of high-quality nature-based carbon removal project agreement in August, 2023, with approximately 4.7 million of 6.5 million trees having been planted to date and project registration with Verra on track for end of 2024;

• Execution of a letter of intent for a partnership with STX during December, 2023, to establish and launch an innovative fund for institutional investors to participate in offtake supported high-quality carbon removal projects.

"Two thousand twenty-three was a successful and productive year in which Base Carbon focused on capital allocation and project advancement. We anticipate 2024 to bear the fruits of this labour and expect significant production and capital returns from our carbon projects during 2024. We are confident in our business plan and prudent underwriting practices, and we believe that Base Carbon has quickly established itself as a respected and credible participant in global carbon markets," summarized Base Carbon's chief executive officer, Michael Costa.

Vietnam household devices project

The company received delivery of approximately 1.1 million carbon credits generated from the Vietnam household devices project and aggregate contractual offtake proceeds from such credits of approximately $6.4-million (U.S.) or 7.2 cents per share during 2023.

In aggregate for 2024 fiscal year, the company expects to receive approximately six million carbon credits from the Vietnam household devices project for offtake delivery and anticipated proceeds of approximately $29.1-million (U.S.).

Of such carbon credits, the company anticipates the issuance of approximately 2.1 million carbon credits for immediate delivery pursuant to the project offtake arrangement before end of the second quarter of 2024. Project issuances are dependent upon Verra's acceptance and verification of the project monitoring documentation.

The company anticipates to fully recover its project investment and purchase price as well as receive significant initial returns during 2024. The company's project investment and purchase price for the initial 7.4 million carbon credits generated from the project is expected to be approximately $20.8-million (U.S.), of which $19.0-million (U.S.) has been spent to date. As previously disclosed, Base Carbon holds an option over all remaining credits generated by the project.

The entire fleet of clean cooking devices, for example cookstoves and water purifiers, has been fully distributed by project partner SIPCO in partnership with local woman's unions in Vietnam.

Rwanda cookstoves project

As announced during December, 2023, an agreement was reached with the government of Rwanda which resulted in Verra issuing its first-ever correspondingly adjusted or Article 6 Authorized Label with respect to the Rwanda cookstoves project. The company continues to believe that the correspondingly adjusted carbon credits designation will expand the pool of buyers with potential pricing upside for such credits. Please see Verra's press release dated Dec. 7, 2023, for more details.

In aggregate for 2024, the company expects to receive approximately 2.1 million carbon credits from the Rwanda cookstoves project during 2024 for sale into the market according to the project agreement and revenue sharing arrangement, pursuant to which Base Carbon maintains a contractual preferential share of proceeds from the sale of such initial credits.

Of such carbon credits, the company expects the issuance of approximately 620,000 carbon credits from the Rwanda cookstoves project before end of the first quarter of 2024. Project issuances are dependent upon Verra's acceptance and verification of the project monitoring documentation.

The fleet of cookstoves pursuant to the Rwanda cookstoves project has been fully distributed and the company completed its full capital commitment obligations.

India nature-based removals project

As announced during August, 2023, the company executed a nature-based carbon removal project focused on the reforestation of degraded rural farmlands in northern India with project partner Value Network Ventures Advisory Services Pte. Ltd. Project listing documents were submitted to Verra on schedule during December, 2023, and approximately 4.7 million of the planned 6.5 million trees have been planted to date.

The project is expected to generate over 1.6 million high-quality nature-based removal carbon credits issued in relatively equal tranches over a 20-year project life beginning in early 2025.

Institutional investor vehicle with STX

As announced during December, 2023, the company executed an LOI to partner with the STX Group, a leading global environmental commodity trader, to collaborate on the establishment and launch of an innovative investment vehicle for institutional investors to participate in a curated portfolio of high-quality carbon removal projects. The investment vehicle is expected to emphasize capital allocation to greenfield carbon solutions with prearranged carbon credit offtake arrangements 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 Paris Agreement.

As manager of the investment vehicle, Base Carbon will leverage its existing platform, team expertise and corporate infrastructure, to develop a new stream of asset management and performance fees without incurring dilution to shareholders.

Base Carbon and STX are currently collaborating to advance potential portfolio investments, offtake commitments, and to determine the ultimate vehicle structure and terms.

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.