Mr. John Archibald reports

CO2 GRO SIGNS ~CAD $1 MILLION SALES CONTRACT WITH EL SALVADOR-BASED HIDROEXPO

CO2 Gro Inc. has signed its largest sales contract to date with El Salvador-based greenhouse pepper grower Hidroexpo SA de CV. The sales contract is based on a multiyear pay-for-use model worth approximately $800,000, in addition to the previously announced sales contracts of approximately $200,000, with Hidroexpo.

This sales contract is a result of CO2 Gro's technology adaptation trials (TAPs) with Hidroexpo, the first of which was initiated in September, 2021, and delivered a 20-per-cent increase in pepper production; and the second in April, 2022, which delivered a 30-per-cent increase after technology protocol optimization.

Hidroexpo's choice of the pay-for-use option that CO2 Gro offers will create a long-term partnership, which is expected to accelerate larger sales contracts with other customers.

Hidroexpo's general manager, Rodrigo Martinez, commented: "After using CO2 Gro's aqueous CO2 technology over the past two seasons, we have decided to expand its deployment to additional greenhouses at our facility and are confident that it can provide more benefits to our operations. We believe that the additional production and profits can help transform our business and enable us to expand our operations over the coming years. We look forward to cultivating our partnership with CO2 Gro and enhancing both our businesses for many years to come."

"Our multiyear pay-for-use contract option provides for recurring cash flow and allows more greenhouses to adopt our technology sooner and on a larger scale. Having closed this sales contract with Hidroexpo, we look forward to helping them continue to boost yields at more of their greenhouses, as well as inspire more growers who have shown great interest in our technology's benefits to move forward," said John Archibald, chief executive officer, CO2 Gro.

"This sales contract, combined with our recently announced approximately $500,000 sales contract with a Canadian greenhouse vegetable grower, brings our total sales contracts since our inception to approximately $2.1-million. This is a significant sales milestone that we look forward to building upon in the second half of 2023."

About CO2 Gro Inc.

CO2 Gro is an innovative precision agricultural technology company focused on delivering CO2 Delivery Solutions to the global protected agricultural sector. Its patented technology helps growers increase crop yields and profits by enhancing plant growth, resilience, quality and water-use efficiency through aqueous CO2 misting.

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