Mr. John Archibald reports

CO2 GRO COMMISSIONS A TECHNOLOGY ADAPTATION PROJECT (TAP) WITH A MAJOR US GREENHOUSE LETTUCE GROWER AND PROVIDES AN UPDATE ON ITS COLOMBIA ROSE TAP

CO2 Gro Inc. has commissioned a technology adaptation project (TAP) with a major United States greenhouse lettuce grower. The TAP began in the first week of November, 2023, and is scheduled to run for a 12-month period. The lettuce grower will assess CO2 Gro's CO2 Enrichment Solutions (formerly CO2 Delivery Solutions) technology's impact on lettuce yield, product quality, CO2 (carbon dioxide) savings and overall financial impact to its business.

The lettuce grower is a multistate operator with over two million square feet of greenhouse lettuce production with plans to expand further. Major U.S. greenhouse lettuce and leafy greens producers currently operate a total cultivation area of approximately eight million square feet, which is forecasted to double to exceed 16 million square feet in the coming years (source: Greenhouse Grower).

Aaron Archibald, CO2 Gro's vice-president of sales, commented: "Commissioning this TAP with one of the United States' major greenhouse lettuce growers is an important step in the market penetration of our technology in the U.S. Greenhouse lettuce is one of the fastest growing greenhouse vegetable segments. As the product is a leaf, it is perfectly suited for our technology. We look forward to completing a successful project with this lettuce grower and moving towards a commercial deployment as soon as possible in 2024."

Colombia rose project update

CO2 Gro's TAP in Colombia with a greenhouse rose grower is now yielding outstanding results. The TAP began in January, 2023, and, as of the end of October, 2023, has yielded 38 per cent more rose stems in the CO2 Gro beds versus the control group. This means potential additional production of over 125,000 more rose stems per hectare annually, which generates an additional $62,500 more revenue.

The TAP is expected to conclude after Valentine's Day 2024, when CO2 Gro and the rose grower plan to finalize terms for a commercial deployment. The rose grower has four million square feet of rose greenhouses, all of which produce high-value roses for export.

There is over 250 million square feet of greenhouse rose production in Colombia, of which 60 per cent is operated by four large groups exporting to the United States. The remaining 100 million square feet are owned by growers operating greenhouses in the two million square feet to four million square feet range, mostly for export (source: De Ruiter).

John Archibald, CO2 Gro's chief executive officer, commented: "The results so far from this rose TAP are beyond our expectations and, more importantly, the grower's. In addition to the 38-per-cent yield increase, the rose grower has reported a significant decrease in powdery mildew spread in the CO2 Gro beds, showing that our natural Pathogen Perimeter Protection benefit also works on flowers. We look forward to concluding this TAP and moving to commercial deployment. The Colombia rose market square footage is huge that is mostly run by a small number of growers. Excellent results at this initial TAP could lead to a fast roll out throughout Colombia's rose industry."

About CO2 Gro Inc.

CO2 Gro is a precision agricultre technology, clean technology company with a focus on people, the planet and prosperity. The company's vision is to become one of the leading companies enhancing global food production from protected agriculture. By helping its customers sustainably increase yield and profitability, CO2 Gro could help feed up to half a billion people worldwide while reducing its customers' ecological footprint.

About 300 million tonnes (Mt) of fruit and vegetables are grown annually from about five million hectares of protected vegetable facilities globally (six kilograms per square metre per year of average production). A 30-per-cent yield increase using the company's technology could add up to 100 Mt of fruits and vegetables per year. The U.S. CDC (Centers for Disease Control and Prevention) recommends annual fruit and vegetable consumption of up to 200 kg per year per adult.

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