Mr. Cristiano Veloso reports

VERDE ANNOUNCES PARTNERSHIP WITH LEADING CARBON DEVELOPER, WAYCARBON, TO MONETISE CARBON CREDITS

Verde Agritech Ltd. has formed a strategic partnership with WayCarbon to bolster the development and monetization of its carbon removal project.

WayCarbon is 80 per cent owned by Banco Santander, one of Europe's largest banks. It is a leading developer of carbon removal projects and a pioneer in climate change mitigation and sustainability solutions. The partnership is based on Verde's specialty multinutrient potassium fertilizer K Forte (the product) and its potential to permanently capture carbon dioxide through enhanced rock weathering.

"This partnership with WayCarbon marks a new chapter for Verde. It represents a crucial step towards monetization of Verde's own significant carbon removal potential and allows the company to collaborate on new projects with Brazil's most credible carbon developer. WayCarbon has been active in this sector since 2006, making it a veteran with a success record to match. I believe that the combination of our attributes has the potential to spawn one of the world's largest carbon removal platforms," celebrated Cristiano Veloso, Verde's founder and chief executive officer.

WayCarbon has a history of high-quality carbon projects in Brazil. Within the partnership, WayCarbon will support Verde with the development, certification, marketing and monetization of its carbon credits. In addition to leveraging Verde's product, the partnership extends its scope to encompass Verde's origination and utilization of other minerals capable of carbon capture through enhanced rock weathering.

"We are thrilled about our partnership with Verde Agritech. At WayCarbon, our mission is to drive the transition to a net-zero economy. This transformation is a multisectoral endeavour. The distinctive properties of Verde's products, coupled with Verde's extensive proven mineral reserves and their strategic proximity to key agricultural regions of the country, present a unique opportunity to advance the decarbonization of the Brazilian agricultural sector," extolled Breno Rates, WayCarbon's founding partner and head of carbon projects.

Verde's carbon removal potential

Located in Sao Gotardo within the state of Minas Gerais, Brazil, Verde's operations are underpinned by one of the world's largest potash resources, at 5.9 billion tons as approved by the Brazilian Mining Agency, of which 3.32 billion tons have been certified under Canadian National Instrument 43-101. Thereupon, Verde has a total capture potential of 0.7 gigaton of CO2 from the atmosphere, which would establish it as one of the world's largest carbon capture projects.

As Brazil's largest potash producer by capacity, Verde has an annual production capacity of three million tons. With no further capital expenditure investment, the company is capable of capturing up to 360,000 tons of CO2 per year based on its existing production facilities.

Enhanced rock weathering

Verde has developed partnerships with leading British universities in soil science that have proven Verde's product has the potential to capture carbon dioxide from the atmosphere through enhanced rock weathering (ERW).

ERW refers to a suite of techniques aimed at accelerating natural rock weathering, which involves the breakdown of minerals and the absorption of CO2 from the atmosphere. In nature, the process takes centuries as the rocks' surface is gradually weathered down and reacts with CO2 to form new stable carbonate minerals or bicarbonate ions, effectively removing CO2 from the atmosphere and storing it for thousands of years.

By crushing and grinding such minerals and spreading it over large areas, ERW significantly accelerates the absorption of CO2. The speed of mineral weathering can be calculated using a shrinking core model, which assumes that the reaction occurs at the surface of the mineral so that the unreacted core gradually shrinks over time.

As detailed by an independent study conducted at Newcastle University under the leadership of Prof. David Manning, PhD, a renowned soil scientist, the carbon dioxide capture properties of the products are estimated at 120 kilograms per ton. The potential CO2 removal does not require any change to the products' production and farmland application methods, nor does it change the nutritional benefits to plants. Thus, the products undergo ERW to permanently capture atmospheric CO2 while releasing potassium and other plant nutrients.

In addition, the product potentially undergoes mineral dissolution in only a matter of months to a year from its application to soils, faster than the most rapid reacting silicate minerals (forsterite), which takes years to decades for a similar dissolution. Mineral dissolution is directly correlated to the capture of carbon dioxide from the atmosphere, the faster the dissolution the faster the absorption of CO2. The conclusion was reached by a commissioned study conducted by Dr. Phil Renforth, PhD, at Heriot Watt University, based on peer-reviewed publication and commercial data.

About Verde Agritech Ltd.

Verde Agritech is dedicated to advancing sustainable agriculture through the innovation of specialty multinutrient potassium fertilizers. Its mission is to increase agricultural productivity, enhance soil health and significantly contribute to environmental sustainability. Utilizing its unique position in Brazil, Verde harnesses proprietary technologies to develop solutions that not only meet the immediate needs of farmers but also address global challenges such as food security and climate change. The company's commitment to carbon capture and the production of ecofriendly fertilizers underscores its vision for a future where agriculture contributes positively to the health of the planet.

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