Mr. Cristiano Veloso reports

VERDE ANNOUNCES 2024 GUIDANCE, HIGHLIGHTING CARBON CAPTURE POTENTIAL FOR THE YEAR, AND PROVIDES UPDATE ON 2023 RESULTS

Verde Agritech Ltd. has released its preliminary and unaudited results for the period ended Dec. 31, 2023. The company also has released its 2024 guidance, targeting sales of 800,000 tons of its multinutrient potassium products, BAKS and K Forte, sold internationally as Super Greensand, and a carbon dioxide removal potential of 38,300 tons of carbon dioxide. The yearly revenue from product sales in 2024 is targeted at $62.9-million, with earnings before interest, taxes, depreciation and amortization of $12.2-million, and $500,000 in net profit. Fiscal 2024 financial targets do not include any potential revenue from the sale of carbon credits.

Verde's financial results for the period ended Dec. 31, 2023, are being examined by its auditor. In the interim, the company offers an estimation of its FY 2023 results (non-audited) as follows:

• Sales: 427,750 tons of product;
• CDR potential: 17,680 tons of CO2;
• Revenue from sales range: $37.5-million to $38.5-million;
• EBITDA range: $1.5-million to $2.5-million;
• Net loss range: $5.0-million to $6.0-million.

"Despite our high expectations for the second half of the year, following the appointment of a new commercial leadership, the results in [fourth quarter] were the most disappointing of the year," commented Verde's founder, president and chief executive officer, Cristiano Veloso.

The unaudited preliminary financial results in this press release are based on information available to the company as of the date of this release and are subject to revision upon finalizing the audit of the company's annual consolidated financial statements for the fiscal year ended Dec. 31, 2023. The unaudited preliminary financial results in this press release have been prepared by its management on a reasonable basis, reflecting its best estimates and judgments.

2024 guidance

"We are currently engaged in multiple discussions with potential partners for our carbon removal project and with prospective buyers of carbon credits. The successful conclusion of these negotiations could result in a substantial adjustment to our production and financial projection for 2024. By operating at full capacity, with an annual production of three million tons, we could potentially generate up to 300,000 tons of CDRs per year. We are working hard to meet our targets, with the expectation of improving these figures as the year progresses," continued Mr. Veloso.

Verde's guidance for 2024 is detailed in the attached table.

                      2024 GUIDANCE

Key metrics                        FY 2024 guidance range 
  
Sales target (tons of product)            700,000-800,000  
CDR potential (tons of CO2)                 33,513-38,300 
Revenue from sales ($ million)                $55.0-$62.9  
EBITDA ($ million)                             $8.9-$12.2  
Net profit/(loss) ($ million)                 ($1.4)-$0.5  
                                   ----------------------

As previously announced, Verde has held back any hurried sale of carbon credits in favour of a long-term strategy that will reflect the higher value of the permanent carbon removal potentially performed by its products.

The 2024 guidance is underpinned by the following assumptions:

• Average Brazilian-real-to-Canadian-dollar exchange rate: $1 to 3.70 reais;
• Average Brazilian-real-to-U.S.-dollar exchange rate: $1 (U.S.) to 4.88 reais;
• Trade receivables average of 100 days;
• Average KCl CFR Brazil price of $295 (U.S.), with an overall discount rate of 10 per cent, resulting in a final price of $265 (U.S.);
• Product sale mix: BAKS sales are 8 per cent of the total;
• Crude oil Brent price: $80 (U.S.);
• Selic rate: reduction from 11.75 per cent in December, 2023, to 9.25 per cent in December, 2024;
• Sales Incoterms: 82 per cent CIF and 18 per cent FOB;
• Sales channels: 65 per cent direct sales and 35 per cent indirect sales;
• Weighted-average freight cost per ton: $47.

Verde's 2024 sales target represents a potential 87-per-cent growth year on year, compared with 2023.

The company plans to release its audited financial statements and related notes for fiscal 2023 on March 29, 2024, after the close of trading on the Toronto Stock Exchange. These results will be available to the public on SEDAR+ and the company's website. The company will issue a newswire alert when earnings materials are publicly available.

Verde will host a conference call on Tuesday, April 2, 2024, at 10 a.m. Eastern Time, to discuss fourth quarter and fiscal 2023 results and provide an update. Questions must be submitted in advance.

About Verde Agritech Ltd.

Verde is an agricultural technology company that produces potash fertilizers. Its purpose is to improve the health of all people and the planet. Rooting its solutions in nature, it makes agriculture healthier, more productive and profitable.

Verde is a fully integrated company: It mines and processes its main feedstock from its 100-per-cent-owned mineral properties, and 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. 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 per cent K2O and an inferred mineral resource of 1.85 billion tons at 8.60 per cent K2O (using a 7.5-per-cent K2O cut-off grade). 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 million.

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

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