Mr. Dave Gagnon reports

CHARBONE HYDROGEN ANNOUNCES CLOSING OF UNITS FOR DEBTS AND CONVERTIBLE DEBENTURES FINANCING FOR A TOTAL AMOUNT OF $0.8M

Charbone Hydrogen Corp. has closed units for debt settlements of $474,482 and will convert short-term loans to 18-month secured convertible debentures of $300,000, for a total of $774,482.

The company has settled with certain arm's-length suppliers $474,482 of payables through the issuance of units. Each of the units offered, priced at 10 cents per unit, comprised one common share of the company and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the company at an exercise price of 12 cents for a period of 12 months following the closing date. A total of 4,744,817 units will be issued pursuant to the closing, at a conversion price per unit of 10 cents. The company believes that the settlement of the payables through the issuance of securities is appropriate at the present time in light of the various project commitments and the overall need to manage its cash in a prudent manner. Any debt settlement will be reflected by a formal agreement and will be subject to the approval of the TSX Venture Exchange. Any securities issued pursuant to a debt settlement will be subject to a statutory four-month hold period in Canada and be released in a manner of 25 per cent of the total shares received every quarter over a period of 12 months.

In addition, Charbone has negotiated to convert $300,000 of short-term loans to secured convertible debentures. The secured convertible debentures have better financial terms and conditions. They are maturing on March 1, 2025, to an arm's-length investor, Finexcorp. The debentures bear interest at a rate of 12 per cent per annum payable quarterly in arrears on the last day of March, June, September and December in each year until the maturity date. The first interest payment will be made at the end of the December following the closing date and will consist of interest accrued from and including the closing date to the initial interest payment date. The debentures' aggregate principal amount of $300,000 is convertible into an aggregate of up to three million common shares of Charbone, at a conversion price per share of 10 cents, until the maturity date. The debentures would be secured within the Finexcorp financing agreement conditions already in place and will be issued upon the approval of the TSX Venture Exchange and other customary closing conditions.

About Charbone Hydrogen Corp.

Charbone is a green hydrogen group established in North America. The company's strategy is to develop modular and expandable hydrogen facilities and regional hubs. Charbone will be able to produce green dihydrogen molecules using reliable and sustainable energy in order to distinguish itself as a supplier of an ecological solution for industrial, commercial and mobility users.

We seek Safe Harbor.