Mr. Andrew White reports

CHAR TECH AND LAKE NIPIGON FOREST MANAGEMENT INC. SIGN PARTNERSHIP AGREEMENT

Char Technologies Ltd. has formalized a partnership agreement with the first nations co-operative Lake Nipigon Forest Management Inc. (LNFMI), marking a significant milestone for both parties as they advance forestry sustainability programs in Northern Ontario. The partnership, Lake Nipigon Forest Sustainable Energy Solutions, builds upon the foundation laid by the memorandum of understanding (MOU) signed in April, 2023.

LNFMI is a forest management co-operative composed of four local first nation communities which hold the sustainable forest licence (SFL) on the Lake Nipigon forest:

• Animbiigoo Zaagi'igan Anishinaabek;
• Bingwi Neyaashi Anishinaabek;
• Biinjitiwaabik Zaaging Anishinaabek;
• Red Rock Indian Band.

The partnership will continue advancing development of the jointly owned facility modelled after Char Technologies' flagship facility in Thorold, Ont. The project is projected to annually produce 500,000 gigajoules of renewable natural gas (RNG) and 10,000 tonnes of biocarbon, and begin operations by 2026.

Under the agreement, LNFMI will oversee the annual wood fibre harvest from the Lake Nipigon forest, ensuring Char Technologies' wood waste feedstock supply for the wood waste-to-renewable energy (RNG and biocarbon) facility. The partnership supports initial production goals and paves the way for significant scalable expansion beyond Char Technologies' Thorold revenue capacity.

Scot Rubin, chief executive officer of LNFMI, describes how meaningful this partnership is for the four first nation community shareholders: "LNFMI has come a long way from the forestry downturn 15 years ago. It was the four first nation partners who kept this company afloat during the hard times, and LNFMI is now overseeing one of the most productive forests in the province. Through this new partnership and RNG initiative, our first nation shareholders will see employment, contracting opportunities and steady revenue streams for years to come, all while being a part of the clean energy future in the north."

Andrew White, chief executive officer of Char Technologies, emphasized the significance of the partnership, stating: "It is gratifying to be working with a partner like LNFMI who shares our vision of driving waste-to-renewable energy solutions. This project will set a good example for future successes in the region, and will reveal the value that resides in undesirable and unmarketable wood waste products of traditional harvest systems."

Also supporting regional development has been the Ontario government's Forest Biomass Program's Indigenous Bioeconomy Partnerships funding stream. In January, 2023, LNFMI was awarded an investment of $200,000 to support formalizing the LNFMI and Char Technologies partnership for the Lake Nipigon forest sustainable energy solutions RNG and biocarbon production facility.

Graydon Smith, Ontario Minister of Natural Resources and Forestry, added: "We welcome this investment in LNFMI to support formalizing the partnership with Char Tech, a company leading forest biomass innovation and clean fuel production in Ontario. Through our Forest Biomass Program's Indigenous Bioeconomy Partnerships funding stream, Ontario is ensuring that forest sector growth builds prosperity for the four indigenous shareholders of LNFMI, other indigenous communities and businesses."

Char quick facts:

• March, 2024, Char Technologies awarded $5.2-million from the government of Canada's Natural Resources Canada Clean Fuels Fund;
• July, 2023, closed a $6.6-million strategic investment by world's leading steel and mining company, ArcelorMittal SA, through ArcelorMittal's XCarb Innovation Fund;
• December, 2022, the government of Canada has previously announced $4,938,168 through the Investments in Forest Industry Transformation program and $1.5-million through the Federal Economic Development Agency for Southern Ontario Jobs and Growth Fund; and
• December, 2022, the government of Ontario has previously announced $6,438,168 through the Forest Sector Investment and Innovation Program.

About Char Technologies Ltd.

Char Technologies' 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 biocarbon that is a carbon neutral drop-in replacement for metallurgical steelmaking coal.

Char's 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.

We seek Safe Harbor.