Mr. Sunny Trinh reports

DEVVSTREAM ANNOUNCES MULTI-YEAR AGREEMENT WITH A MAJOR LOGISTICS AND MARKETING FIRM FOR THE SALE OF CFR CREDITS

Devvstream Holdings Inc. has signed a multiyear carbon credit purchase agreement with a major logistics and marketing firm (the customer), a wholesaler, transporter, supplier and marketer of liquid petroleum gases, crude oil, heavy fuel oil, and refined fuel and biofuel products. Under the terms of the agreement, the customer will purchase 25,000 compliance carbon credits from Devvstream, with an optional 100,000 additional credits.

Compliance credits purchased under the agreement will be generated under the Canadian Clean Fuel Regulations (CFR) program in Compliance Category 3 -- supplying fuel or energy to advanced vehicle technology, such as electric vehicle (EV) charging stations. The first delivery of CFR credits is expected by Dec. 31, 2024.

"This agreement reflects the strong demand for CFR credits and Devvstream's commitment to fostering long-term relationships with commercial buyers to incentivize innovation and adoption of clean technologies and expand the use of low-carbon intensity fuels throughout the economy," said Sunny Trinh, chief executive officer of Devvstream. "The CFR credits sold under this agreement will be developed under Canada's CFR program, the first national low-carbon fuel program in North America. Our ability to meet these stringent requirements showcases Devvstream's expertise in the carbon sector."

The CFR is a crucial component of Canada's climate plan aimed at reducing emissions, advancing clean technologies and fuels, and fostering sustainable jobs in various sectors like clean technology, agriculture and low-carbon energy. CFR regulations focus on making gasoline and diesel cleaner over time, promoting the adoption of clean fuels and technologies and driving innovation across multiple industries. According to company estimates, the expected price for compliance credits developed under the CFR program is $200 to $300 per credit.

Devvstream's low-carbon fuel adviser, Dr. Michael Rensing, will oversee the generation of CFR credits under this agreement. Dr. Rensing has been instrumental in developing and implementing successful low-carbon fuel standard (LCFS) policies and legislation, including British Columbia's, which is one of the most successful LCFS programs in North America. Carbon credits that are sold in the British Columbia LCFS market are among the world's highest in value, with prices in 2023 averaging $472 per credit.

The CFR program aims to reduce the carbon intensity of transportation fuels, such as gasoline and diesel, by approximately 15 per cent below 2016 levels by 2030, resulting in significant greenhouse gas reductions of up to 26 megatonnes. The CFRs have replaced Canada's renewable fuel regulations and focus on life-cycle greenhouse gas emissions rather than volumetric blending requirements. To comply with these regulations, primary suppliers must create credits and can trade them through a credit market established to meet specific carbon intensity reduction requirements. The CFR program was developed under the 2016 Pan-Canadian Framework on Clean Growth and Climate Change (PCF) and is now included under Canada's 2030 emission reduction plan, which provides a road map for the Canadian economy to achieve 40-per-cent to 45-per-cent emission reductions below 2005 levels by 2030, building upon the actions outlined in Canada's previous climate plans. The PCF is considered a foundational step for Canada to achieve its commitments under the Paris Agreement and work toward a prosperous net-zero-emission future by 2050.

About Devvstream Holdings Inc.

Founded in 2021, Devvstream is a leading authority in the use of technology in carbon project development. The company's mission is to create alignment between sustainability and profitability, helping organizations achieve their climate initiatives while directly improving their financial health. With a pipeline of over 140 technology-based projects worldwide, Devvstream makes it simple for corporations and governments to address their net-zero goals while generating premium carbon credits in the process. Devvstream takes a programmatic approach to evaluating project opportunities and co-develops projects spanning energy-efficient buildings, facilities and homes, industrial facilities, LED (light-emitting diode) systems, EV charging stations, and technologies to seal oil wells. The company's end-to-end proprietary solution removes the risk and complexity from every step, allowing organizations to move from project ideation to credit monetization with ease. The result is a multiyear stream of carbon credit revenue that transforms sustainability into a financial investment. In addition, for organizations that need help to offset their most difficult-to-reduce emissions, Devvstream also provides premium carbon credits for purchase.

On Sept. 13, 2023, Devvstream and Focus Impact Acquisition Corp. announced that they have entered into a definitive business combination agreement for a business combination that would result in the combined company (Devvstream) to be listed on the Nasdaq Stock Market under the ticker symbol DEVS. On Dec. 11, 2023, Devvstream announced the filing of a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, which contains a preliminary proxy statement/prospectus in connection with the proposed business combination between Devvstream and Focus Impact. Upon closing, the business combination is expected to result in Devvstream being the first publicly traded carbon credit company on a major U.S. stock exchange.

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