Mr. William Hessert reports

BLUSKY CARBON SIGNS PROJECT FINANCING DEAL - COMPANY ENTERS $8.3 MILLION ASSET PURCHASE AGREEMENT

BluSky Carbon Inc. has secured an asset purchase agreement and operations, maintenance and asset management agreement regarding its Arkansas biochar production facility.

BluSky is partnering with Associated Energy Developers, a renewable project development company whose principals have over 40 years of experience in system design, project financing and more. AED has developed a project financing vehicle unique to the biochar industry that can be replicated across BluSky's entire U.S. project pipeline.

Deal structure:

• AED's principals, some of its advisers and a private investor have established a project company, WARB1 LLC, that will purchase BluSky's AR1 facility for $8,314,650 (U.S.).
• The project company will pay BluSky a $400,000 (U.S.) cash deposit within five days after the closing, followed by a $400,000 commissioning payment, payable within five days after the project is fully operational or by Jan. 31, 2026, whichever occurs later.
• The remaining balance will be seller financed by BluSky to be paid off minimally in 12 years at a 1.99-per-cent interest rate, which can be accelerated with profit distributions and/or additional project financing.
• As part of the turnkey acquisition of AR1, BluSky will remain as the project operators as the exclusive O&M provider for the project.
• Once the seller financing has been paid off, AED and BluSky will work in good faith to renew the O&M agreement with BluSky or continue operations under a mutually agreed upon compensation model.
• The project company will take ownership of the assets of the AR1 project, including BluSky's Vulcan heavy unit and the biochar offtake agreement.

The agreements remain subject to closing conditions, including, but not limited to, BluSky obtaining the necessary internal and external approvals and the project company to make the first $400,000 (U.S.) payment within five days after the closing. Both AED and BluSky completed their respective due diligence processes prior to executing the agreements.

The company's chief executive officer, Will Hessert, stated: "We are incredibly excited to be partnered with AED. They've brought their background in renewable energy projects into the biochar world and have unlocked project financing vehicles that have long eluded the industry. For the biochar industry to succeed, the industry must solve production, offtake and financing. We are diligently working alongside AED to deploy financing into the dozens of other planned projects across the United States."

AED's chief executive officer stated: "For decades, AED has been promoting and developing renewable energy systems to help slow down the harmful effects of CO2 in our atmosphere. Through the growth of our new carbon division, we are now taking steps to actually remove existing CO2 from the air and recycle it back into the earth. In addition to enhancing soils for farming, our biochar is applicable to many other novel markets, such as the downstream production of graphene, to create new electrical storage batteries to pair with solar photovoltaics."

About BluSky Carbon Inc.

BluSky is a renewable energy company that is in the business of putting carbon back into the ground where it belongs. The company converts organic and industrial waste into biochar, renewable power and carbonate rocks, as well as the development and sale of carbon capture technology. BluSky's primary objectives are to: (1) construct carbon removal equipment; (2) sell the biochar produced by the carbon removal equipment; and (3) sell carbon credits generated from the production of biochar. The company's business model is based on the growing need for carbon neutrality and demand to reduce carbon dioxide emissions.

BluSky Carbon is publicly listed in Canada on the Canadian Securities Exchange under the symbol BSKY and in Frankfurt, Germany, under the symbol QE4.

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