Mr. Justin Cochrane reports

CARBON STREAMING ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2023

Carbon Streaming Corp. has released its financial results for the fiscal year ended December 31, 2023. All figures are expressed in United States dollars, unless otherwise indicated. The Company will host a live audio call at 11:00 a.m. ET on Thursday, March 28, 2024.

Carbon Streaming Founder and CEO Justin Cochrane stated: "In 2023, Carbon Streaming was able to improve its operating cash flow through the successful implementation of ongoing reductions in operating costs. As of December 2023, we have achieved savings of over $7.5 million for the fiscal year when compared to the previous 12-month period, and we expect to continue targeting additional cost saving opportunities in the future." Mr. Cochrane continued: "As we look towards 2024, the Company remains committed to protecting our robust, debt-free balance sheet and exploring strategic opportunities, while executing on sales and supporting our project partners."

Annual Highlights

• Ended the year with $51.4 million in cash and no corporate debt.
• The Company initiated a corporate restructuring plan, which remains ongoing, focused on personnel reductions, optimizing its cash position, and protecting its balance sheet, resulting in a $7.5 million reduction in operating expenses for the fiscal year compared to the prior twelve month period and a $1.8 million restructuring charge.
• Recognized net loss of $35.5 million for the year (compared to net income of $2.4 million for the six month period ended December 31, 2022).
• Adjusted net loss of $7.6 million for the year (compared to an adjusted net loss of $11.1 million for the six month period ended December 31, 2022) (see the "Non-IFRS Measures" section of this news release).
• Operating loss of $45.0 million for the year (compared to an operating loss of $6.3 million for the six month period ended December 31, 2022).
• Paid $9.1 million in upfront deposits for carbon credit streaming and royalty agreements.

Quarterly Highlights

• Recognized net loss of $26.1 million for the quarter (compared to net income of $2.4 million in Q4 2022).
• Adjusted net loss of $2.2 million for the quarter (compared to an adjusted net loss of $5.7 million in Q4 2022) (see the "Non-IFRS Measures" section of this news release).
• Operating loss of $26.8 million for the quarter (compared to an operating loss of $1.0 million in Q4 2022).
• Paid $2.1 million in upfront deposits for carbon credit streaming and royalty agreements.

Portfolio Updates: Year ended December 31, 2023

New investments and portfolio restructuring

Magdalena Bay Blue Carbon Stream: In July 2023, the Company amended the terms of the Magdalena Bay Blue Carbon Stream. Under the amended terms of the stream, the Company will receive the greater of 300,000 carbon credits or 30% of carbon credits generated by the project on an annual basis, an increase from the previous terms (which were the greater of 200,000 carbon credits or 20% of the carbon credits generated by the project on an annual basis). This also resulted in a $3.0 million increase in upfront deposit payments to be made as the project achieves certain development milestones.

Waverly Biochar Stream and Waverly Biochar Royalty: In July 2023, the Company amended the terms of the Waverly Biochar Stream, resulting in a $1.6 million increase in the upfront deposit amount and a lower ongoing delivery payment. Additionally, the Company also entered into the Waverly Biochar Royalty pursuant to which Carbon Streaming will receive a revenue royalty on volume of biochar sold from the project over its 25-year life. Following the amendment, the Company announced an agreement to provide Microsoft with carbon credits from the Waverly Biochar Stream of up to 10,000 carbon credits per year.

Nalgonda Rice Farming Stream : In July 2023, the Company amended the terms of the Nalgonda Rice Farming Stream, resulting in a $0.8 million decrease in the upfront deposit amount and a higher ongoing delivery payment. Additionally, in September 2023, the project completed its submission of the first validation report for the Nalgonda Rice Farming methane avoidance grouped project to Verra.

Sheep Creek Reforestation Stream : In May 2023, the Company and Mast Reforestation SPV I, LLC ("Mast") signed a pipeline agreement and a stream agreement for the Sheep Creek Reforestation Project, the first stream under the pipeline agreement. During the year, the Company made total upfront deposit payments of $1.4 million. The Company will make additional upfront deposit payments of up to $2.4 million as the Sheep Creek Reforestation Project achieves site preparation, planting, and issuance milestones.

Feather River Reforestation Stream : In September 2023, the Company and Mast entered into a stream agreement for the Feather River Reforestation project, the second stream under the pipeline agreement. During the year, the Company made total upfront deposit payments of $0.3 million. The Company will make additional upfront deposit payments of up to $0.4 million as the Feather River Reforestation project achieves site preparation, planting, and issuance milestones.

Key portfolio milestones

Cerrado Biome Stream : The final approval of the project was confirmed in December 2022, and the Company received its first issuance of 316,781 carbon credits in early 2023. With the first issuance, the Company made an upfront deposit payment of $66.0 thousand to the project partner for reaching this milestone. Sales of carbon credits from the project continue, with the Company generating net cash flows from the stream during the year.

Community Carbon Stream : For the year ended December 31, 2023, Carbon Streaming made upfront deposit payments totaling $4.7 million to Community Carbon, as it reached various milestones for the portfolio of projects, including device deployment target for its Uganda cookstoves project. The Company received first carbon credits from the Ugandan cookstoves project, the Ugandan water purification project and the Tanzania cookstove project during the year.

Strategy

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 company-wide basis, the Company continues to expect to retain on average 15% to 25% 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 an ongoing 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 (i.e., on average 75% to 85%).

Outlook

In 2023, Carbon Streaming began repositioning itself for long-term success and sustainable shareholder value creation as the voluntary carbon market faced headwinds. In response, the Company initiated a corporate restructuring in 2023. The focus of the restructuring has been, and will continue to be, on cash flow optimization through the reduction of operating expenses and a reassessment of our existing streams and royalties in light of the evolving voluntary carbon market. To date, the steps taken by the Company have resulted in significant reductions to ongoing operating expenses and amendments to stream agreements. For example, the Company's other operating expenses have decreased by $7.5 million for the fiscal year ended December 31, 2023 when compared to the previous twelve-month period. Additionally, in 2023, the Company amended the terms of the Nalgonda Rice Farming Stream, Waverly Biochar Stream and Magdalena Bay Blue Carbon Stream, and amended the terms of the Sheep Creek Reforestation Stream in early 2024. The Company will continue to look for opportunities for cash flow optimization and will provide additional details as more initiatives are put in place.

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 funding 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 who will be a go-to source of carbon credits in the voluntary market.

2023 Results Conference Call Details

The Company's management team will host an interactive audio call on Thursday, March 28, 2024, at 11:00 a.m. ET to provide a brief company update. Participants may join by dialing +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 website until 11:59 p.m. ET on April 28, 2024.

About Carbon Streaming

Carbon Streaming aims to accelerate a net-zero future. We pioneered the use of streaming transactions, a proven and flexible funding model, to scale high-integrity carbon credit projects to advance global climate action and additional United Nations Sustainable Development Goals. This approach aligns our strategic interests with those of project partners to create long-term relationships built on a shared commitment to sustainability and accountability and positions us 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.

We seek Safe Harbor.