Mr. William Hessert reports

BLUSKY CARBON ANNOUNCES PARTNERSHIP WITH CARBONPAVE

Blusky Carbon Inc. has executed a preliminary strategic partnership agreement with Carbonpave USA LLC on Sept. 3, 2025, aimed at commercially deploying Carbonpave's proprietary technologies throughout North America.

Carbonpave is a technology-based company that develops and produces construction and industrial materials at scale -- these materials use biochar and engineered carbon as a critical ingredient. According to the Carbonpave, their cold asphalt mix can reduce the cost of new road construction and resurfacing by up to 40 per cent, allowing paving even in temperatures as low as negative eight degrees Celsius. Their cold asphalt technology has built over 1,000 kilometres of roads globally and is already in use in the southern United States for private roads, parking lots and state roads. The technology is currently undergoing further certifications from various state departments of transportation.

Under the agreement, Blusky is responsible for securing funding for an initial joint production facility. To this end, Blusky is engaging project financiers to invest $4.75-million (U.S.) into the initial facility. Upon securing an initial financing commitment, Blusky and Carbonpave will incorporate a joint venture (JV) with Blusky to own 70 per cent and Carbonpave to own 30 per cent. The JV will hold the exclusive commercial right to utilize Carbonpave's technologies across North America and will pay a small royalty fee to Carbonpave.

In the event of the issuance of new shares in the JV, both Blusky and Carbonpave will experience proportional dilution of their respective ownership interests. All intellectual property (IP) contributed by each party to the JV will remain the sole property of the contributing party. However, any new IP developed by the JV during its operation will be exclusively owned by the JV.

The parties have agreed to co-operate on Carbonpave's existing customer and business development pipeline throughout North America. Additionally the parties have agreed to not compete throughout North America for sale of products produced by the JV.

The JV will build its initial production facility onsite at Blusky's AR1 facility in Arkansas. The JV will lease a Vulcan Heavy pyrolysis unit from Blusky. Additionally, the JV will purchase Blusky's Vulcan II unit for research and development purposes. Blusky will use additional Vulcan units to fulfill local agricultural biochar offtakes at the AR1 facility.

Carbonpave is led by Andre van Zyl. Mr. Van Zyl graduated in 1986 as a chemical engineer from the Vaal University of Technology in South Africa. He has substantial experience in process plant design and implementation for the steel, water treatment, mineral processing and mining industry in Africa, Asia and South America. For the past 15 years he has focused substantially and has acquired specialized knowledge and skills in road surfacing technology, especially in the development, manufacturing and installation of environmentally friendly emulsified cold road premix material for new urban and remote infrastructure development areas. During the last five years, he has been instrumental in the further development and redesign of low carbon footprint construction technology to suit the specific climatic, geotechnical and problematic soil conditions as viable and cost-effective infrastructure development.

Under the agreement, Blusky, with Carbonpave's assistance, has until Feb. 18, 2026, to secure the initial funding commitment. Once this has been secured, the JV will be finalized under a joint venture agreement under the terms laid out above. With success in North America, Blusky and Carbonpave may expand the geographic scope of their JV or form additional joint ventures.

Will Hessert, chief executive officer of Blusky Carbon, comments: "Carbonpave cold asphalt lets companies pave months more out of the year, reduce their material costs dramatically, and helps them win contracts by lowering their carbon footprint. I fully believe this technology will create demand for millions of tons of biochar across the United States and Canada and will transform how modern countries build infrastructure."

About Blusky Carbon Inc.

Blusky is a renewable energy company that is in the business of putting Carbon back into the ground -- where it belongs. The company converts organic and industrial waste into biochar, renewable power and carbonate rocks, as well as the development and sale of carbon capture technology. Blusky's primary objectives are to (1) construct carbon removal equipment; (2) sell the biochar produced by the carbon removal equipment; and (3) sell carbon credits generated from the production of biochar. The company's business model is based on the growing need for carbon neutrality and demand to reduce CO2 (carbon dioxide) emissions.

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