Mr. Benoit Veilleux reports

Charbone ISSUES CORRECTIVE DISCLOSURE

Charbone Corp. has filed its 2025 amended consolidated financial statements and management's discussion and analysis, as well as the corresponding officer certificates, in connection with a routine continuous disclosure review conducted by staff at the Autorite des marches financiers. The correction does not have any impact on operating loss nor the company's cash flows.

During the fiscal year ended Dec. 31, 2025, the company agreed with certain suppliers to settle trade payables through the issuance of units. Each unit represented either one common share of the company or one common share and one warrant of the company. During the third quarter of 2026, following a review of the accounting treatment applied to these transactions, the company concluded that certain gains on settlement of accounts payable had been incorrectly measured. The error of accounting entry has been corrected by restating the amounts recognized for the year ended Dec. 31, 2025, to reflect the measurement of the equity instruments incorporating quoted prices in active market at the date the securities were issued and not at the time and conditions the company concluded these transactions with some suppliers.

Amended 2025 impacts:

• Share capital and warrants amounts increased respectively by $1-million and $700,000 with a net impact of nil on shareholder equity;
• No impact on total assets nor total liabilities;
• For the year ended Dec. 31, 2025, the financial expense has increased by $1.7-million without any impact on operating loss nor the company's cash flows.

"The correction is primarily linked to the appreciation of the share price between the negotiation of the suppliers' settlement agreement occurred in 2025 and the issuance of the shares, and management understands and agrees with the highly technical accounting treatment point of view articulated by the AMF," said Benoit Veilleux, chief financial officer and corporate secretary of Charbone. "Charbone will continue to take the regulator's comments very seriously and has demonstrated its good faith throughout its discussions with staff members to explain the basis for its financial reporting."

The company has provided corrective disclosure in the amended annual filings to address the matters described above. The company is also continuously enhancing its disclosure controls and procedures, including its processes for preparing and reviewing financial reporting.

Charbone to host third quarter results webinar

Charbone invites all investors and other interested parties to register for the webinar. Management will be presenting an overview of its third quarter 2026 results, recent operational achievements and coming milestones. There will be an allotted time for questions and answers. You may submit your question(s) beforehand in the registration form or live on the webinar platform.

Date:  Tuesday, Dec. 1, 2026

Time:  11 a.m. ET

About Charbone Corp.

Charbone is a vertically integrated industrial gas company focused on developing and operating a network of supply hubs for the production, storage and distribution of ultrahigh-purity strategic industrial gases. The company serves customers across sectors, including semiconductors, artificial intelligence and data centres, advanced pharmaceuticals, and aerospace and defence technologies, where UHP gases are critical for high-precision manufacturing processes and operational performance. Charbone is advancing a network of clean UHP hydrogen production plants across North America and selected international markets. The company's modular, decentralized and demand-driven approach, combined with its integrated storage and distribution platform for all UHP gases, supports scalable growth, enhances operational flexibility, and enables more stable and diversified revenue generation. This model allows Charbone to efficiently serve mid-tier industrial gas customers with a reliable supply of UHP gases, including hydrogen, helium, oxygen and any other high-demand gases that are often difficult to source reliably at the regional level. The company is committed to supporting the global transition to a lower-carbon economy by providing accessible, decentralized clean hydrogen and specialty gases while addressing supply gaps for underserved industrial customers and accelerating the shift toward localized clean energy. Charbone is listed on the TSX Venture Exchange, the OTC Markets and the Frankfurt Stock Exchange.

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