Mr. Dave Gagnon reports

CHARBONE HYDROGEN PROVIDES CORPORATE UPDATE ON STRATEGIC PRIORITIES

Charbone Hydrogen Corp. has provided a company update, including significant progress being made with operating expenses and cash burn rate reductions over the last year, steps to strengthen its balance sheet, and reconfirmation of its 100-per-cent near-term focus on advancing green hydrogen production and deploying a network of modular and scalable production facilities throughout hydrogen-dependent industrial areas across North America.

"We have been taking important and deliberate steps toward creating long-term shareholder value through a series of successful recapitalization efforts and focusing business activities on green hydrogen production delivery, commercial growth scalability and strengthening our balance sheet," said Dave B. Gagnon, chairman and chief executive officer of Charbone. "We have completed two recent financings for $500,000 and $850,000 and expect that our cost-reduction efforts will continue to result in a significant decrease in our monthly cash burn rate, down to approximately $150,000 versus the $450,000 as seen in previous periods."

Reductions in burn rate and payables

Charbone has implemented a range of significant cost-cutting actions designed to sharpen its capital structure through significant reduction in payables and monthly burn rate while maintaining a healthy balance sheet and strengthening liquidity.

• The company has rightsized its monthly burn rate from approximately $450,000 per month to approximately $150,000, as per the latest financials dated Sept. 30, 2023.
• As of September 30, 2023, Charbone had $2.8-million in trade payables, and, as part of its continuing plan to recapitalize its balance sheet and clean its payables as well as its debt, the following was completed:
  • $479,162 of third party payables settled through the issuance of 4,791,619 unit shares confirmed as per the press release dated Nov. 9, 2023;
  • $195,000 of management, including chief executive officer, remuneration debts were settled through the issuance of 1.95 million unit shares as per the press release dated Nov. 17, 2023;
  • $88,066 of third party payables were settled through the issuance of 880,660 unit shares as per the press release dated Dec. 7, 2023.

Recapitalization efforts

Additionally, the company has recapitalized its balance sheet through the following two financings:

• Equity raise of $499,877 through issuance of 9,997,540 unit shares closed in two tranches on Dec. 6. 2023, and Dec. 15, 2023, as at five cents per unit;
• Equity raise of $849,622 closed on Feb. 1, 2024, through the issuance of 16,992,440 unit shares as at five cents per unit.

Advancing green hydrogen production efforts

The Charbone team has worked diligently to refine its technology and proprietary processes with the goal of delivering a network of 16 modular and scalable green hydrogen production facilities in strategic areas across North America by 2030. Development of Charbone's flagship green hydrogen facility, located in the city of Sorel-Tracy, Que., along Highway 30's Steel Highway, is set to come on line in mid-2024. Production will follow a phased approach, gradually accelerating to produce approximately 200 kilograms per day once reaching initial full capacity. In the United States, plant development will begin with the recently announced project in the Detroit, Mich., area.

"The decisions made to improve operational efficiencies have provided us with a clear path toward achieving several important milestones throughout the course of 2024," Mr. Gagnon continued. "I want to thank our shareholders and business partners for their support as we push forward with an exciting green hydrogen production agenda in the months ahead."

About Charbone Hydrogen Corp.

Charbone is an integrated green hydrogen group focused on delivering a North American network of production facilities and technological solutions for the creation and distribution of green hydrogen produced from clean and renewable energies. Providing ecofriendly energy solutions for industrial, institutional, commercial and future mobility users, the company's strategy is to develop modular and expandable hydrogen facilities producing green and low-carbon intensity dihydrogen molecules, with the goal of scaling to deliver 16 modular and scalable green hydrogen production facilities in strategic areas across North America by 2030.

As North America's only publicly traded pure play green hydrogen company, Charbone's common shares are active on the TSX Venture Exchange, the OTCQB and the Frankfurt Stock Exchange.

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