Mr. Justin Cochrane reports

CARBON STREAMING ANNOUNCES FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023

Carbon Streaming Corp. has released its financial results for the three and six months ended June 30, 2023. All figures are expressed in U.S. dollars, unless otherwise indicated. The company will host a live audio call at 11 a.m. ET on Tuesday, Aug. 15, 2023.

Carbon Streaming founder and chief executive officer Justin Cochrane stated, "In Q2, Carbon Streaming continued to build out our sales and marketing channels, added an exciting new reforestation project into our portfolio, implemented cost-cutting measures, and significantly improved our operating cash flow and adjusted net loss when compared to the same quarter last year."

Mr. Cochrane added: "As we pass the first-half mark of 2023 and look ahead to the remaining year, the company is committed to protecting our robust, debt-free balance sheet while focusing on sales and supporting our existing carbon streaming and royalty partners."

Second quarter highlights:

• Ended the quarter with $59.4-million in cash and no corporate debt;
• Recognized net loss of $9.2-million (net income of $29.1-million in Q2 2022);
• Adjusted net loss of $800,000 (adjusted net loss of $3.6-million in Q2 2022);
• Announced a pipeline streaming agreement with Mast Reforestation SPV I LLC to develop postwildfire reforestation carbon removal projects in the United States, which are expected to generate approximately one million carbon removal credits;
• In order to reduce continuing G&A (general and administrative) expenses, the company undertook a corporate restructuring plan, which resulted in personnel reductions and is anticipated to result in a reduction in operating costs in future periods; as a result, the company incurred a non-recurring corporate restructuring charge of $1.6-million (nil in Q2 2022);
• Transferred or retired 97,184 carbon credits acquired under the company's carbon credit streaming agreements;
• Paid $3.4-million in upfront deposits and milestone payments for carbon credit streaming and royalty agreements.

Subsequent to June 30, 2023:

• Carbon Streaming increased its upfront investment in the Waverly biochar stream to $2.95-million. The company now expects the project to remove over 262,000 tonnes of carbon-dioxide-equivalent emissions (tCO2e) over the 25-year project life and generate an equivalent number of carbon removal credits. As part of this increased upfront investment, the company will also receive a revenue royalty on biochar sold, which is expected to be approximately 140,000 bone dry U.S. tons of biochar over the project life.

Portfolio updates -- three months ended June 30, 2023

Community carbon stream

Distribution of cookstoves or water purification devices is now continuing at six of the seven projects within the stream, in line with expectations. During the quarter, the company received first carbon credits from two projects under the stream, the Ugandan cookstoves and water purification projects, resulting in additional milestone payments of $2-million.

Sheep Creek reforestation stream: In May, 2023, the company and Mast signed a $15-million (U.S.) pipeline agreement and a $3.7-million (U.S.) stream agreement for the Sheep Creek reforestation project, the first stream under the pipeline agreement. This project is expected to remove a total of approximately 225,000 tCO2e and generate an equivalent number of carbon removal credits referred to as forecasted mitigation units (FMUs) under the Climate Action Reserve's Climate Forward program based on two planting phases, with FMU issuance anticipated in 2025 and 2026. The company made an initial upfront deposit of $500,000 (U.S.) and will make additional milestone payments of up to $3.2-million (U.S.) as the Sheep Creek reforestation project achieves site preparation, planting and issuance milestones.

Strategy and outlook

Carbon Streaming is focused on executing its sales strategy through the marketing and selling of carbon credits and continuing to acquire select additional streams and royalties to diversify and complement its portfolio of projects.

In executing its sales strategy, over the long term and on a companywide basis, the company continues to expect to retain on average 15 per cent to 25 per cent of cash flows (with stream-specific retention varying) generated from the sale of the carbon credits acquired from its carbon credit streaming agreements, subject to fluctuation based on the realized price from carbon credit sales and the specific terms of the stream agreements. Through a continuing delivery payment under the terms of a stream agreement, a project partner is typically entitled to receive the balance of the net proceeds from the sale of carbon credits (on average 75 per cent to 85 per cent).

Outlook

The company expects 2023 to be transformational as it begins to sell carbon credits and generate cash flow from its portfolio of streams and royalties. The strong foundation and systems that Carbon Streaming has been building since its 2021 public listing position the company well to receive carbon credits or royalty payments from 10 or more projects in 2023. To date, five of the projects in the company's portfolio of streams and royalties have been issued carbon credits. The company aims to optimize the sale of carbon credits from its streams over the 12 months following issuance, with cash flow expected to follow.

As the company commences selling carbon credits, Carbon Streaming also aims to continue growing and diversifying its portfolio with leading project developers and to be a partner of choice for buyers seeking to support high-integrity carbon projects. Voluntary carbon markets have the potential to mobilize finance to address the gaps in financing for climate projects and act as a complementary tool to other climate action activities. Carbon Streaming believes that its strategy will position the company as an industry leader that will be a go-to source of carbon credits in the voluntary market.

Second quarter 2023 results conference call details

The company's management team will host an interactive audio call on Tuesday, Aug. 15, 2023, at 11 a.m. ET, to provide a brief company update. Participants may join by dialling 1-416-764-8658 or toll-free from North America at 1-888-886-7786. An audio replay of the conference call will be available on the company's website until 11:59 p.m. ET on Sept. 15, 2023.

About Carbon Streaming Corp.

Carbon Streaming aims to accelerate a net-zero future. The company 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 removal, reduction and avoidance projects from nature-based, agricultural, engineered and community-based methodologies.

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