Mr. William Hessert reports

BLUSKY CARBON RECEIVES FIRST PAYMENT UNDER AR1 PROJECT FINANCING TRANSACTION

Blusky Carbon Inc. has received the closing payment of $400,000 (U.S.) in connection with the company's previously announced project financing transaction relating to its Arkansas biochar production facility (AR1).

As disclosed on Dec. 16, 2025, Blusky entered into an asset purchase agreement and an operations, maintenance and asset management agreement with a project company, WARB1 LLC, formed by principals and advisors of Associated Energy Developers (AED) and a private investor.

Transaction highlights (previously disclosed):

• The project company agreed to purchase the AR1 facility for $8,314,650 (U.S.).
• The project company was to pay Blusky a $400,000 (U.S.) closing payment within five days after closing, followed by a $400,000 (U.S.) commissioning payment payable within five days after the project is fully operational or by Jan. 31, 2026, whichever occurs later.
• The remaining balance is to be seller financed by Blusky, to be paid off minimally in 12 years at a 1.99-per-cent interest rate (subject to the terms of the agreements).
• Blusky will remain the exclusive O&M provider for the project as part of the turnkey acquisition.

The company confirms receipt of the closing payment of $400,000 (U.S.) that was contemplated under the agreements. The company expects to provide further updates as additional milestones under the agreements are achieved, including the commissioning payment milestone described above.

About Blusky Carbon Inc.

Blusky is a renewable energy company that converts organic and industrial waste into biochar, renewable power and carbonate rocks. It also develops and sells carbon capture technology.

We seek Safe Harbor.