Mr. Michael Costa reports

BASE CARBON REPORTS YEAR END 2023 OPERATING AND FINANCIAL RESULTS

Base Carbon Inc. has released its year-end 2023 consolidated financial results and operational highlights. All financial references are denominated in U.S. dollars, unless otherwise noted.

Annual corporate and financial highlights as of Dec. 31, 2023:

• Monetized 1.1 million carbon credits generated from the Vietnam household devices project with aggregate contractual offtake proceeds of approximately $6.4-million, or 7.2 Canadian cents per share during 2023.
• Rwanda cookstoves project received Verra's first ever corresponding adjusted or Article 6 authorized label in December, 2023. First Article 6 authorized label tagged carbon credits anticipated to be transferred to the company during second quarter 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.
• In August, 2023, executed a project agreement for the India afforestation, reforestation and revegetation (ARR) project, a high-quality nature-based carbon removal project.
• As of Dec. 31, 2023, the company had total assets of $141.2-million, including $1.4-million in cash and cash equivalents, and $137.1-million in investments into carbon credit projects.

"Two thousand twenty-three was the milestone year in which Base Carbon began to transition its project development portfolio to production. During the year, our company achieved a number of key objectives, including the first issuance, credit sale and ensuing cash flow on our Vietnam project, continued measured capital deployment into high-quality carbon projects managed by experienced developers with the addition of our India project with project partner, VNV, all while continuing our deep focus on underwriting positive asymmetric risk-reward, with margin of safety through diligence and structure, within the developing voluntary carbon markets. In the near term, during Q2 2024, we continue to anticipate the next credit issuance from our Vietnam project and to receive the first issuance of credits from our Rwanda project tagged as being correspondingly adjusted credits with Verra's Article 6 authorized label," stated Michael Costa, chief executive officer of Base Carbon.

Vietnam household devices project update

The company anticipates issuances of carbon credits generated from the project during Q2 2024 to be sold to the project offtaker pursuant to the fixed-price offtake arrangement consistent with the previous sales. Wholly owned subsidiary, Base Carbon Capital Partners Corp. (BCCPC) has deployed 92 per cent of the committed project capital with the remaining commitments, primarily tied to project monitoring and verification activities, anticipated to be fully deployed by year-end 2024.

BCCPC expects to fully recover its deployed project capital, as well as receive significant initial returns, during 2024.

Rwanda cookstoves project update

The DelAgua Group was recently issued approximately 815,000 carbon credits with respect to Base Carbon's 250,000 cookstoves each tagged by Verra with the Article 6 authorized label or as correspondingly adjusted carbon credits. BCCPC and the DelAgua Group are currently in discussions with respect to the implementation of the letter of authorization with the government of Rwanda. It is currently anticipated each carbon credit tagged with the Article 6 authorized label will be equal to approximately 1.14 carbon credits for the purposes of the 7.5 million carbon credits subject to the revenue sharing arrangement between BCCPC and the DelAgua Group. The company believes that the correspondingly adjusted carbon credits designation will expand the pool of buyers with potential pricing upside for such carbon credits.

In aggregate, the company expects to receive approximately 2.1 million carbon credits, or 1.85 million correspondingly adjusted carbon credits, from the Rwanda project during 2024 for sale into the market according to the project agreement and revenue sharing arrangement, pursuant to which BCCPC maintains a contractual preferential share of proceeds from the sale of such credits.

India afforestation, reforestation and revegetation (ARR) project update

The company, through BCCPC, executed a project agreement with Value Network Ventures Advisory Services Pte. Ltd. to finance an expected $13.6-million related to the reforestation of degraded rural farmlands in the northern Indian state of Uttar Pradesh. The project's aim is to facilitate the planting of approximately 6.5 million trees, from which it is expected 1.6 million high-quality nature-based removal carbon credits will be generated over an expected 20-year project life.

As of March 31, 2024, Base Carbon has financed 32 per cent of the committed project capital with five million of the planned 6.5 million trees planted to date. The project's registration with Verra is currently on track for the end of 2024.

2023 year-end financial results

As of Dec. 31, 2023, the company had total assets of $141.2-million, comprising primarily $1.4-million in cash and cash equivalents, $137.1-million in investments in carbon credit projects, amd equity investments in ACX Holdings Ltd. (AirCarbon) and Hardwick Climate Business Ltd. (HCBL) of $1.4-million and $600,000, respectively. The company had total liabilities of $6.6-million comprising primarily deferred income tax liabilities.

In 2023, the company recorded a net profit of $98.3-million, of which $111.1-million was due to gains on investments in carbon credit projects, with $6.4-million and $104.7-million attributable to realized and unrealized gains, respectively. Primary operating expenses in 2023 were attributable to consulting fees ($1.3-million), professional fees ($1.2-million), salaries and wages ($2.1-million), and general and administrative expenses ($700,000).

Pursuant to Base Carbon's normal course issuer bid program (NCIB), which was renewed on June 21, 2023, a total of 4,983,920 shares were purchased and cancelled during the year ended Dec. 31, 2023.

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.