Mr. Jeff Allison reports

CARBON RX POSITIONED FOR SIGNIFICANT ADVANCES IN CARBON MARKET

Delta Cleantech Inc., the parent company of Carbon RX Inc., has made a series of significant advancements in Carbon RX's operations and strategic initiatives. These developments create strategic advantages in core areas of the business and position the organization for growth in 2024.

Jeff Allison, chief executive officer of Delta, remarks: "In 2023, Boston Consulting Group, an American global management consulting firm and one of the Big Three, reported the voluntary carbon market grew at a record pace, reaching $2-billion. By 2030, the carbon market is expected to reach between $10-billion and $40-billion. Carbon RX is a key carbon credit originator and contributor to the Delta suite of companies. The complementary nature of our decarbonization technologies, and the application of hydrocarbon and nature-based carbon credit offsets from Carbon RX, work hand in hand, assisting corporations to achieve their net-zero targets."

Marty Seymour, CEO of the Carbon RX division, added: "Our business has been gaining momentum. To be successful in the carbon crediting business, we needed a foundational carbon credit methodology, like the RX regenerative agriculture protocol (RX protocol) we developed with the Pure Sky Registry, active sales agreements and strategic partnerships. I'm pleased with the team and the voluntary carbon credits market for responding positively to our approach."

Voluntary carbon credits are used by corporations that chose to voluntarily offset carbon emissions as part of their ESG (environmental, social and governance) and net-zero reporting commitments. According to a 2023 United Nations report, more than 9,000 companies have made commitments to achieve net-zero emissions. These commitments require a combination of carbon reduction practices and carbon credit purchases. Carbon RX has entered into various agreements with multiple partners that desire to purchase Canadian-sourced carbon credits derived from first nation projects.

Carbon RX believes digitization of carbon credits is foundational to the integrity of a healthy, transparent carbon credit economy. The importance of digitizing carbon credits removes the risk of double counting and misrepresentation of carbon credit origin. Because of these beliefs, Carbon RX has co-founded the Pure Sky registry.

Pure Sky is a modern, community-driven carbon credit registry that solves problems associated with origination, digitizing and streaming of carbon credits. Pure Sky is modelled after a decentralized autonomous organization (DAO). Essentially, a DAO is a type of company structure that operates with no central governing body, but instead unites all stakeholders through a common, forward-looking goal. For Pure Sky, that common goal is a carbon credit registry that offers transparency, velocity and the integrity that can only be achieved through its unique decentralized voting system. Carbon RX is celebrating a major breakthrough with the approval of the RX protocol housed within Pure Sky. The RX protocol, developed through a collaboration between Carbon RX and Dr. Tristan Skolrud of the University of Saskatchewan, allows Carbon RX to utilize an integrated reduction and removal of carbon credit framework for Western Canadian farming operations. This RX protocol is the first protocol on Pure Sky, addressing specialized nitrogen and fuel reductions, in combination with soil organic carbon monitoring over the 20-year lifespan of the project.

Carbon RX specializes in working with first nations communities to monetize the carbon credits available on their lands. With agreements in regenerative agriculture, grasslands management and forestry, Carbon RX offers a full-service solution to help first nations manage their lands to achieve carbon credit revenues, using a revenue sharing model. The first tradeable carbon credits in the Carbon RX pipeline include a project using the RX protocol, certified under the Pure Sky standard, and are expected to be available for sale at the end of Q1 2024.

About Delta Cleantech Inc.

Delta Cleantech is a 19-year, ESG-driven, recognized global technology leader specializing in developing carbon mitigation products for energy transition industry. Delta continues to provide solutions to clients all over the world in capturing and sequestering CO2 (carbon dioxide), reclaiming industrial liquids and solvents utilized in CO2 capture, destructing methane and waste gases utilizing the Methanator, as well as originating, validating, digitizing and streaming carbon credits through its subsidiary, Carbon RX. Carbon RX is headquartered on Treaty 4 territory in Regina, Sask. Carbon RX specializes in the origination and streaming of carbon credits. Backed by a team of agriculture, forestry and hydrocarbon experts, Carbon RX provides high-fidelity carbon credits to the voluntary carbon market, ultimately aiding Canada in the race to net-zero emissions.

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