Mr. Andrew White reports

CHAR ADVANCES THOROLD COMMERCIAL FACILITY AND TRANSITION TO NORTH AMERICAN EQUIPMENT SUPPLY

Char Technologies Ltd. has provided an update on its Thorold renewable natural gas and biocoal project, a commercial high temperature pyrolysis facility to convert wood waste into renewable natural gas and biocarbon. Major equipment and components have been ordered, and a balance of plant engineering firm has been selected to have this phase completed on schedule and budget to begin initial biocarbon production in late 2023.

In early 2024, the facility will enter its final construction phase, which will see the company install the equipment necessary to upgrade the facility's syngas output to produce pipeline injectable renewable natural gas (RNG). The company projects that the RNG will enter the marketplace through existing local pipelines backed by long-term sales contracts with large Canadian utilities.

To ensure the facility remains on schedule and now with a growing number of projects in development, Char Technologies has reduced supply chain and project delivery risks by transitioning to a network of North American-based equipment suppliers.

As part of the supply chain transition, on Aug. 28, 2022, Char Biocarbon Inc., a wholly owned subsidiary of the company, served 36 months advance written notice to terminate its exclusive licence agreement with Actinon Pte. Ltd. (the parent company of Anergy, a Singapore-based supplier of kiln equipment to the company) dated Aug. 18, 2021. Subsequently, the company has received a notice of immediate termination, effective July 1, 2023, in respect of, and regarding an allegation of additional licence fees owing under, the licence agreement. Char Technologies disputes Actinon's allegation of additional licence fees, and will take such action as it deems appropriate to protect its rights and interests.

About Char Technologies Ltd.

Char Technologies (TSX Venture Exchange: YES)'s first-in-kind high-temperature pyrolysis (HTP) technology processes unmerchantable wood and organic wastes to simultaneously generate two renewable energy revenue streams: renewable natural gas or green hydrogen and a solid biocoal that is a carbon-neutral drop-in replacement for metallurgical steelmaking coal.

Char Technologies' HTP is an ideal waste to energy solution that aligns with the global green energy transition by diverting waste from landfills and generating sustainable clean energy to decarbonize heavy industry.

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