Mr. William Hessert reports

BLUSKY CARBON ANNOUNCES AMENDMENTS TO TERMS OF CONVERTIBLE DEBENTURE FINANCING

In connection with the news release dated Feb. 24, 2025, Blusky Carbon Inc. has amended the terms of the convertible debentures of the company in the principal amount of $750,000. Each convertible debenture unit consists of (i) a $1,000 principal amount convertible debenture and (ii) 4,761.9 common share purchase warrants of the company, with each whole warrant entitling the holder to acquire one common share of the company at a price of 30 cents for a period of two years from issuance. The convertible debentures bear interest at a rate of 12.0 per cent per annum.

Pursuant to the amended terms, each convertible debenture will be convertible, in whole or in part, at any time while any principal or interest remains outstanding, into common Shares, at the option of the holder, at a price of 11.5 cents per common share, from the original conversion price of 21 cents per common share. The maturity date of the convertible debentures has likewise been extended to Feb. 23, 2027. The parties have further agreed to an escalation of the conversion price, such that if the common shares on the exchange close above 15.3 cents for 10 consecutive trading days, the debentureholder will have 30 days (the escalation period) to convert any outstanding principal amount or interest outstanding at the conversion price. Following the escalation period, the conversion price will change to 21 cents, subject to adjustment in certain circumstances set forth in the debenture certificate.

Grant of restricted share units

The company further announces that it has granted an aggregate of five million restricted share units (RSUs) to its directors, subject to vesting provisions. The RSUs were granted in accordance with the company's equity incentive plan and are subject to a hold period of four months commencing on the date of grant in accordance with the policies of the Canadian Stock Exchange.

We seek Safe Harbor.