Mr. Justin Cochrane reports

CARBON STREAMING ANNOUNCES FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023

Carbon Streaming Corp. has released its financial results for the three and nine months ended Sept. 30, 2023. All figures are expressed in U.S. dollars, unless otherwise indicated. The company will host a live audio call at 11 a.m. ET on Wednesday, Nov. 15, 2023.

Carbon Streaming founder and chief executive officer Justin Cochrane stated: "In [third quarter], Carbon Streaming continued to improve its operating cash flow through successful ongoing reductions in operating costs. These reductions are expected to deliver savings of over $5-million per annum. As we reach the end of the year and look towards 2024, the company remains committed to protecting our robust, debt-free balance sheet, while executing on sales and supporting our project partners."

Mr. Cochrane continued, "We believe that this approach, coupled with our diversified portfolio of streams and royalties on high-quality projects, uniquely positions us to benefit from future increases in demand for voluntary carbon credits as the global economy faces mounting pressure to decarbonize."

Third quarter highlights:

• Ended the quarter with $54.4-million in cash and no corporate debt;
• The company initiated a corporate restructuring plan, which remains in progress, focused on personnel reductions, optimizing its cash position and protecting its balance sheet, resulting in a $1.8-million restructuring charge and a $3.9-million reduction in operating expenses year to date; additional restructuring strategies are planned for coming quarters;
• Recognized net income of $700,000 (net loss of $2.4-million in Q3 2022);
• Adjusted net loss of $1.7-million (adjusted net loss of $5.3-million in Q3 2022);
• Operating loss of $800,000 (operating loss of $5.3-million in Q3 2022);
• Paid $2.1-million in upfront deposits for carbon credit streaming and royalty agreements.

Strategy

Carbon Streaming is focused on executing its sales strategy through the marketing and selling of carbon credits and continuing to acquire select additional streams and royalties to diversify and complement its portfolio of projects.

In executing its sales strategy, over the long term and on a company-wide basis, the company continues to expect to retain on average 15 per cent to 25 per cent of cash flows (with stream-specific retention varying) generated from the sale of the carbon credits acquired from its carbon credit streaming agreements, subject to fluctuation based on the realized price from carbon credit sales and the specific terms of the stream agreements. Through a continuing delivery payment under the terms of a stream agreement, a project partner is typically entitled to receive the balance of the net proceeds from the sale of carbon credits (that is, on average 75 per cent to 85 per cent).

Outlook

In 2023, Carbon Streaming began repositioning itself for long-term success and sustainable shareholder value creation as the voluntary carbon market faced headwinds. In response, the company initiated a corporate restructuring earlier this year. The focus of the restructuring has been, and will continue to be, on cash flow optimization through the reduction of operating expenses and a reassessment of its existing streams and royalties in light of the evolving voluntary carbon market. To date, the steps taken by the company have resulted in significant reductions to continuing operating expenses and amendments to stream agreements. For example, the company's other operating expenses have decreased by $3.9-million for the nine months ended Sept. 30, 2023, when compared with the prior-year period. Additionally, the company has restructured the commercial terms of the Nalgonda rice farming stream, the Waverly Biochar stream and the Magdalena Bay blue carbon stream. The company will continue to look for opportunities for cash flow optimization and will provide additional details as more initiatives are put in place.

Carbon Streaming also aims to continue expanding and diversifying its portfolio with leading project developers and to be a partner of choice for buyers seeking to support high-integrity carbon projects. Voluntary carbon markets have the potential to mobilize finance to address the gaps in financing for climate projects and act as a complementary tool to other climate action activities. Carbon Streaming believes that its strategy will position the company as an industry leader which will be a go-to source of carbon credits in the voluntary market.

Third quarter 2023 results conference call details

The company's management team will host an interactive audio call on Wednesday, Nov. 15, 2023, at 11 a.m. ET, to provide a brief company update. Participants may join by dialling 1-416-764-8658 or toll-free from North America at 1-888-886-7786. An audio replay of the conference call will be available on the company website until 11:59 p.m. ET on Dec. 15, 2023.

About Carbon Streaming Corp.

Carbon Streaming aims to accelerate a net-zero future. It pioneered the use of streaming transactions, a proven and flexible financing model, to scale high-integrity carbon credit projects to advance global climate action and additional United Nations Sustainable Development Goals. This approach aligns its strategic interests with those of project partners to create long-term relationships built on a shared commitment to sustainability and accountability, and positions it as a trusted source for buyers seeking high-quality carbon credits.

The company's focus is on projects that have a positive impact on the environment, local communities and biodiversity in addition to their carbon reduction or removal potential. The company has carbon credit streams and royalties related to over 20 projects around the world, including high-integrity removal, reduction and avoidance projects from nature-based, agricultural, engineered and community-based methodologies.

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