Mr. Justin Cochrane reports

CARBON STREAMING ANNOUNCES INNOVATIVE REMOVALS STREAMING AGREEMENT AND CONVERTIBLE NOTE WITH MAST REFORESTATION

Carbon Streaming Corp. has entered into a project pipeline streaming agreement for up to $15-million (U.S.) with Mast Reforestation SPV I LLC and its parent company, Mast Reforestation, to advance its pipeline of postwildfire reforestation projects in the Western United States and has signed its first carbon streaming agreement under the pipeline agreement for the Sheep Creek Ranch project in Montana, U.S. Concurrently, the company is investing $2-million (U.S.) into the parent company of Mast, through a convertible note, joining Mast's existing investors, including Social Capital, Alexis Ohanian's Seven Seven Six, DBL Partners, Marc Benioff's Time Ventures and Elemental Excelerator, among others.

Agreement highlights:

• Under the pipeline agreement, Carbon Streaming will finance up to $15-million (U.S.) into a pipeline of postwildfire reforestation projects in the Western U.S., by entering into separate stream agreements for each project.
• The Mast Reforestation projects are expected to be registered under the Climate Action Reserve's (CAR) Climate Forward program and to be issued forecasted mitigation units (referred to herein as carbon credits).
• Carbon credits generated by the Mast Reforestation projects are expected to be sold at a premium price to typical afforestation, reforestation and revegetation (ARR) credits due to the projects' desirable geographical location and biodiversity benefits. Previous buyers of Mast's carbon removal credits include Shopify and Time CO2.
• Under each stream agreement, Carbon Streaming will make an upfront deposit in exchange for receiving up to 100 per cent of the carbon credits generated from Mast Reforestation projects and will make continuing payments to Mast for each carbon credit sold.
• The Sheep Creek reforestation stream is the first stream under the pipeline agreement and is expected to remove approximately 225,000 tonnes of carbon dioxide equivalent (tCO2e), with carbon credits expected to be issued in 2025 and 2026.
• Carbon Streaming expects financial payback for the Sheep Creek reforestation stream following first issuance.

Mast Reforestation projects impact highlights:

• With increasing frequency and severity of wildfires in the Western U.S., postwildfire restoration is a critical piece of climate change mitigation. Mast's reforestation methods centre around growing healthy, climate-adapted, fire-resilient forests.
• The Mast Reforestation projects are expected to have positive impacts for wildlife and terrestrial and aquatic ecosystems, which will persist for more than 100 years of financed monitoring by an accredited land trust due to perpetual conservation easements.
• The Mast Reforestation projects will also support rural livelihoods, providing jobs in seed collection, nursery operation, site preparation and seedling planting.

Carbon Streaming founder and chief executive officer Justin Cochrane stated: "We are excited to partner with Mast for our first ARR stream, adding more North American carbon removal credits to our diversifying portfolio. Our innovative financing structure aligns our interests with those of Mast." Mr. Cochrane continued: "Mast is uniquely positioned as a leader in the North American ARR industry with its vertical integration strategy. We look forward to a long-term partnership, supporting Grant and his team as they advance their critical work reforesting lands devastated by wildfire."

Mast founder and CEO Grant Canary said: "We are excited to collaborate with Carbon Streaming in this new partnership as it shares our unique vision for scaling reforestation and carbon removal solutions. This pipeline agreement is a scalable model that will help us get more trees in the ground, accelerating reforestation efforts in areas devastated by the rise in forest fires amplified by climate change."

Mast Reforestation

Mast is the first and only vertically integrated reforestation company, combining proven reforestation practices with new technology to regrow healthy, resilient, climate-adapted forests. Through the acquisition of Silvaseed, Cal Forest Nurseries and Siskiyou Seed, Mast is able to cultivate, plant, manage and scale its portfolio of postwildfire reforestation projects in the U.S. With the sourcing of seed and space to grow it often being the bottleneck in the North American forestry industry, Mast is well positioned as the largest private seed bank in Western U.S., growing the majority of seedlings used for reforestation in California. In addition, Mast provides services ranging from seed collection and cultivation to traditional hand planting and continuing site monitoring.

Mast works with landholders to develop high-quality, North American postwildfire reforestation projects with positive biodiversity impacts on lands that would not otherwise naturally regenerate due to the severity of today's wildfires. It has invested heavily in biology-, software- and hardware-based technologies to reduce costs and timelines required to reforest postwildfire land. Mast supports those investments and technologies with innovative financing options that allow the company to take on and initiate reforestation projects at no upfront cost to landowners.

Pipeline agreement

The company has agreed to finance up to $15-million (U.S.) under the pipeline agreement, pursuant to which Carbon Streaming has the option to finance projects from Mast's pipeline of postwildfire reforestation projects across the Western U.S. The parties will enter into a separate streaming agreement for each project, under which Carbon Streaming will make an upfront deposit in exchange for receiving up to 100 per cent of the carbon credits generated from the project and make continuing payments to Mast for each carbon credit sold. The company expects the Mast Reforestation projects to cover more than 9,000 acres of land in the Western U.S. severely impacted by wildfires and are expected to remove approximately one million tCO2e and generate an equivalent number of carbon credits.

The company expects carbon credits generated by the Mast Reforestation projects to be sold at a premium to typical ARR credit pricing due to the desirable geographical location of the projects in the Western U.S.; the conservation and biodiversity benefits; and Mast's comprehensive approach to climate-resilient postwildfire restoration using biodiverse, native species.

Sheep Creek reforestation stream

Concurrent with entering into the pipeline agreement, the company and Mast signed the first stream for the Sheep Creek reforestation project. This project, located in western Montana, U.S., is expected to restore more than 2,700 acres at Sheep Creek Ranch that experienced a high-severity burn from the 2021 Harris Mountain fire. The company will receive 100 per cent of the carbon credits generated by the Sheep Creek reforestation project, less any precommitted credits, which are expected to be independently confirmed by a CAR-approved confirmation body.

The Sheep Creek reforestation project is expected to remove a total of approximately 225,000 tCO2e and generate an equivalent number of carbon credits based on two planting phases. Carbon credit issuance for the first planting area is expected in approximately 2025 and issuance for the second planting area is expected in approximately 2026. In 2022, Mast presold all carbon credits from its Henry Creek project, a project similar to the Sheep Creek reforestation project, at premium pricing to corporate buyers, including Shopify and Time CO2.

Under the terms of the Sheep Creek reforestation stream, the company will make an initial upfront deposit of $540,000 (U.S.) upon closing. The company will make additional milestone payments of up to $3.24-million (U.S.) as the Sheep Creek reforestation project achieves site preparation, planting and issuance milestones. Carbon Streaming will also make continuing delivery payments to Mast for each carbon credit sold under the Sheep Creek reforestation stream, which will increase according to a tiered streaming structure dependent on return on invested capital thresholds. Proceeds from the Sheep Creek reforestation stream are expected to be used for planting activities. Closing of the Sheep Creek reforestation stream is subject to customary conditions of closing and is expected to occur within one week.

Convertible note

Carbon Streaming is also investing $2-million (U.S.) into Mast's parent company through a convertible note. The company is making this investment alongside Mast's key existing investors. Proceeds from this investment will be used for adding key personnel, and continued investment into software, hardware and field technology. Closing of the convertible note is subject to customary conditions of closing and is expected to occur within one week.

Climate Action Reserve's Climate Forward program

The Mast Reforestation projects are expected to be registered under CAR's Climate Forward program. This program is designed to catalyze innovative, creative emissions reduction projects that require upfront investments by generating forecasted mitigation units using a methodology specifically intended for forward financing. Each forecasted mitigation unit is equal to one metric tonne of carbon dioxide equivalent (CO2e) expected to be reduced or sequestered. Forecasted mitigation units for any given project or project area are issued in one tranche following confirmation, which occurs approximately one year after planting to ensure seedling survival beyond the highest-mortality period, and can be converted to climate reserve tonnes with postmonitoring and verification, or retired to mitigate future anticipated emissions.

About Carbon Streaming Corp.

Carbon Streaming aims to accelerate a net-zero future. It pioneered the use of streaming transactions, a proven and flexible financing model, to scale high-integrity carbon credit projects to advance global climate action and additional United Nations Sustainable Development Goals. This approach aligns the company's strategic interests with those of project partners to create long-term relationships built on a shared commitment to sustainability and accountability and positions Carbon Streaming as a trusted source for buyers seeking high-quality carbon credits.

The company's focus is on projects that have a positive impact on the environment, local communities and biodiversity, in addition to their carbon reduction or removal potential. The company has carbon credit streams and royalties related to over 20 projects around the world, including high-integrity carbon removal and avoidance projects from nature-based, agricultural, engineered and community-based methodologies.

We seek Safe Harbor.