Mr. Lucas Brown reports

VERDE ANNOUNCES LIFE CYCLE ASSESSMENT RESULTS IN ACCORDANCE WITH ISO STANDARDS

Verde Agritech Ltd. has released the results of its first life cycle analysis (LCA), completed by LCA Design Corp., a leading Canadian consultancy firm. The LCA determines the climate impacts associated with the production of Verde's potassium fertilizer K Forte (the "Product") from cradle-to-grave.3 The LCA was conducted according to ISO 14040/44:2006 Standard4 and Puro Earth Enhanced Rock Weathering ("ERW") Methodology.5

The Product's potential of carbon removal through ERW, determined as carbon dioxide removal certificates ("CORCs")6, can reach up to 112.56 kilograms of carbon dioxide equivalent per ton of Product ("CO 2 e / t").7 The Company assessed several scenarios, encompassing historical production, current production, and planned production capacity ramp-up. The potential for CORCs generation determined by the LCA was assessed based on the following assumptions:

• Production capacity: 3 million tons per year ("Mtpy"). This capacity can be achieved by utilizing Verde's currently installed Plant 1 and Plant 2, both operating at full capacity.
• Product distribution: The CO2e emissions vary depending on the product shipment distance from Verde's production facilities. The greater the shipping distance increases the diesel consumption and, consequently, the carbon footprint.
• Transportation mode: The CO2e emissions were calculated with the assumption that the Product transportation would be exclusively done by road. Nevertheless, Verde has an ongoing transition plan for railway transportation, with the objective of constructing a railway branch line that will connect its production facilities to a major freight route in Brazil.8 The implementation of railway transportation is expected to contribute to a reduction in the CO2 footprint compared to road transportation.9

Calculation Methodology

The climate impact assessed in the LCA is quantified in terms of kilograms of CO2e and encompasses all greenhouse gases directly and indirectly associated with the process. This includes:

1. Mining: This stage encompasses all activities related to raw material extraction, as well as its transportation to Verde's production facilities, including emissions from fuel, vehicles, and infrastructure.
2. Processing: This stage encompasses all processes involved in transforming Verde's raw material into K Forte, as well as the Product handling on-site (including transportation or conveying within the production facility).
3. Transport to application site: This stage involves the transportation of the Product to the farms where it will be applied. It encompasses emissions related to fuel consumption, vehicles, and infrastructure.
4. Application to site: This stage involves the actual application and use of the Product. It assumes that the Product is applied to the soil using agricultural equipment powered by diesel fuel.
5. Weathering phase: This stage occurs after the application of Product and involves carbon capture through the ERW process.
6. Carbon fate in environment: This stage considers the potential risk of remission of sequestered carbon into the environment.

Carbon Offset Removal Credits represent the net amount of CO2e removed by the applied rock weathering within a specified time frame, equivalent to 1 ton of CO2e, according to Puro Earth's ERW Methodology. CORC values are presented in kilograms of CO2e in the LCA.10

The overall equation for calculating CORCs generated by ERW activity is as follows:

CORCs = (CO 2 Stored ) - (CO 2 Supply Chain Footprint )

• CO 2 Stored (kg of CO2e): The amount of CO2 captured via ERW is determined by the weathering of the Product after being applied to soil. This process involves the generation of carbonate or bicarbonate ions and has the potential for the precipitation of solid carbonate minerals. CO 2 Stored is the amount of CO2 that is sequestered from the atmosphere as a result of the weathering process. The Product's CO 2 Stored is equivalent to 120 kg CO2e per ton of K Forte. The CO 2 Stored calculation was provided by Dr. Manning, determined through an independent study conducted at Newcastle University.11
• CO 2 Supply Chain Footprint (kg of CO2e): includes all greenhouse gas emissions that occur throughout the entire supply chain process, from mining activities and processing to transportation to the application site, the actual application to the soil using agricultural machinery, as well as monitoring, sampling, and testing activities during the weathering phase. The CO 2 Supply Chain Footprint reflects the greenhouse gas emissions associated with the entire life cycle of the Product. The CO 2 Supply Chain Footprint was calculated in the LCA.

In summary, CORCs represent the net CO2e removed by the Product's weathering through ERW activities.

LCA Results

Firstly, the table below displays the CORCs derived from the cradle-to-gate12 life cycle assessment of K Forte. This assessment covers activities from raw material extraction to production completion, taking into account the potential for carbon capture through ERW.

The greenhouse gas emissions associated with the cradle-to-gate cycle of K Forte are relatively low, less than 10% of the amount of carbon captured by the Product. This can be attributed to Verde's sustainable production process, which is characterized by:

• 100% renewable power supply: Our operations use 100% renewable energy sources from hydropower.
• Negligible water demand: Our production process consumes significantly less water compared to that of other mining or fertilizer production companies.
• Lower-impact mining: The area where we extract our raw materials primarily consists of degraded pastureland, deforested decades ago by local landowners for cattle breeding, minimizing environmental interventions
• No toxic contaminants: Our product does not contain concerning amounts of the toxic contaminants associated with basalt or olivine, namely nickel and chromium, unlike many other ERW projects.
• Zero tailing dams: Our mineral processing does not require generate tailings nor does require any dams.

When considering the cradle-to-grave assessment of the Product, the shipping distance between Verde's production facilities and the application site of the Product significantly impacts the range of greenhouse gas emissions within Verde's supply chain.

The table below shows the CORCs derived from the cradle-to-grave life cycle assessment and market size for K Forte, according to the distance radius for the Product's shipment from Verde's production facilities.

It is important to note that the LCA was carried out using 33-ton trucks for product shipping, while the standard truck capacity in Brazil is 74 tons. This resulted in a significant overestimation of transport emissions, as trucks with higher capacity offer improved fuel consumption efficiency by reducing the overall number of vehicles needed, thereby reducing total emissions.

Verde's ERW Carbon Capture Potential

Scalable and cost-effective ERW carbon capture projects depend on farmers' willingness to apply minerals on a large scale over their farmland. In that sense, Verde's has multiple advantages in ERW:

1. The Product has a fast dissolution rate, as evidenced by agronomic trials and potassium release.
2. The Product is a source of essential macronutrients for plants, which creates significant motivation for farmers to adopt them in place of traditional chemical fertilizers;
3. The Product has NI 43-101 certified14 mineral reserves proving reliably consistency in its mineralogy, carbon capture effectiveness and absence of deleterious elements;
4. The Product is certified organic by several governmental and non-governmental organizations, including some of the most stringent global standards such as the Washington State Fertilizer Registration and the California Department of Food & Agriculture;
5. The Product undergo meticulous particle size control when of its manufacturing process, guaranteeing a consistent particle size distribution. This is advantageous because particle size is essential for optimal carbon capture and its calculation.

Few carbon capture projects based on ERW showcase all, if any, of the above advantages which are consistently delivered by Verde.

About Verde AgriTech

Verde is an agricultural technology Company that produces potash fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.

Verde is a fully integrated Company: it mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product.

Verde's focus on research and development has resulted in one patent and eight patents pending. Among its proprietary technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.15 Currently, the Company is fully licensed to produce up to 2.8 million tons per year of its multinutrient potassium fertilizers K Forte and BAKS, sold internationally as Super Greensand. In 2022, it became Brazil's largest potash producer by capacity. Verde has a combined measured and indicated mineral resource of 1.47 billion tons at 9.28% K2O and an inferred mineral resource of 1.85 billion tons at 8.60% K2O (using a 7.5% K2O cut-off grade).16 This amounts to 295.70 million tons of potash in K2O. For context, in 2021 Brazil's total consumption of potash in K2O was 6.57 million17.

Brazil ranks second in global potash demand and is its single largest importer, currently depending on external sources for over 97% of its potash needs. In 2022, potash accounted for approximately 3% of all Brazilian imports by dollar value.18

We seek Safe Harbor.