(via TheNewswire)

Toronto, Ontario – TheNewswire - May 20, 2026 – Big Tree Carbon Inc. (the “ Company ” or “ Big Tree ”) (TSXV:BIGT) is pleased to announce that pursuant to a Release Agreement dated May 12, 2026, the Company accepted the payment of $591,900, received on May 12, 2026, in full settlement of a promissory note in the amount of $772,503 (the “ Amended Note ”) in relation to funds advanced to Agoke Development LP (“ADLP ”) and accumulated interest and released ADLP from any further liability pursuant to the Amended Note. The Company foregave accrued interest of approximately $127,503 owed by ADLP and its First Nations partners, the Aroland First Nation, the Eabametoong First Nation and the Marten Falls First Nation to facilitate the repayment of the principal amount due and owing on the Amended Note.

On November 8, 2021, the Company announced the signing of an Emission Reduction Benefit Management Agreement (the “ERB Agreement ”) agreement between its wholly-owned subsidiary Big Tree Carbon Corp. and Agoke Development LP (“ADLP ”) to design and implement a forest carbon offset project that would create marketable carbon credits for the new carbon offset credit market. The ERB Agreement was intended to bring 974,000 hectares of potential carbon offsetting within the Ogoki Forest Forest Management Unit (FMU). Following the announcement and the signing of the ERB Agreement, in November and December of 2021, the Company executed three (3) Promissory Notes totalling $372,000 covering the advance of these funds to ADLP to assist it with its working capital requirements.  The Company made these initial advances with the good faith belief that the Company would be able to pursue a resource opportunity, being a forest carbon offset project, as a resource issuer without triggering a change of business.  In addition, it believed that the advances made to ADLP were short term, pending the development and ultimate implementation of the forest carbon offset project to assist ADLP in the interim.  The partners of ADLP are the Aroland First Nation, the Eabametoong First Nation and the Marten Falls First Nation within whose traditional territories the Ogoki Forest is located.  The original advances bore interest at 10% per year and principal plus accrued interest were due no later than March 31, 2024.  

During the year ended December 31, 2022, the Company made 5 further advances pursuant to five (5) additional Promissory Notes on the same terms as the initial advances for a further $273,000.  As at December 31, 2022, the Company had accrued interest of $63,003 in respect of the aggregate of $645,000 advanced to ADLP to assist with its working capital requirements.  In April 25, 2024, the Company amended the terms of the Promissory Notes combining all of them plus accrued interest into a new Note effective January 1, 2024 (the “Amended Note ”).  The Amended Note in the amount of $772,503 bears interest at 5% with interest payable monthly and principal due March 31, 2026. ADLP made principal payments in the amount of $53,100 and interest payments of $96,774 on account of the Amended Note between January 2024 and April 30, 2026.  

The Company did not file an application with the Exchange in respect of these advances and did not issue press releases at the time the advances were made or when the Amended Note was issued, contrary to the policies of the Exchange.  The Company was not in compliance with Exchange policies and corporate governance policy, as the Company failed to obtain prior Exchange acceptance and Board of Directors approval.

The Company made the advances to ADLP to ensure the continued viability of ADLP pending the advancement of the proposed forest carbon offset project.  On December 27, 2023, the Company issued a press release announcing that it had received two favourable assessment reports relating to the carbon sequestration potential of the Ogoki Forest. Notwithstanding the signing of the ERB Agreement and the favourable assessment reports with respect to generating carbon credits in the Ogoki Forest, the Company was not able to advance the project to a point where it could be funded and may have then triggered a change of business.  

The primary rationale for entering into the ERB Agreement and advancing the funds to ADLP was to fulfil the Company’s mandate to assist under clause 92 of the Truth and Reconciliation Commission of Canada: Calls to Action (the “ TRC Report ”) and particularly clause 92.ii. of the TRC Report to e nsure “that Aboriginal peoples have equitable access to jobs, training, and education opportunities in the corporate sector, and that Aboriginal communities gain long-term

sustainable benefits from economic development projects.”

ABOUT BIG TREE CARBON INC.

Big Tree Carbon Inc. is an indigenous-led publicly-traded natural asset resource company based in Ontario, Canada.

FOR FURTHER INFORMATION PLEASE CONTACT:

Big Tree Carbon Inc.

Christopher Angeconeb       

President and C.E.O.       

(807) 737-5353       

christopherangeconeb@gmail.com       

Forward Looking Statement:

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks.  The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Big Tree undertakes no obligation to update such forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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