Mr. Justin Cochrane reports

CARBON STREAMING PROVIDES UPDATE ON RESTRUCTURING INITIATIVES AND INITIATES STRATEGIC REVIEW

Carbon Streaming Corp.'s board of directors has initiated the next phase of a restructuring plan, a strategic review process, with the continued goal of ensuring the company's competitiveness and long-term sustainability. The board of directors has also established a special committee of non-executive, independent directors to assist with oversight of the strategic alternatives review.

Maurice Swan, chair of the board of directors and member of the special committee, stated: "The restructuring plan implemented in 2023 has continually focused on ensuring that the company maintains its competitiveness and sustainability, while focusing on optimization of cash reserves. We believe that Carbon Streaming is uniquely positioned to create shareholder value through its diversified investment portfolio and robust sales pipeline." Mr. Swan continued, "The strategic review process is the next step to ensure that Carbon Streaming continues to grow with the evolving voluntary carbon markets."

Progress to date

As previously announced, in response to changing conditions in the voluntary carbon markets and to ensure the company's competitiveness and long-term sustainability, the company has initiated a corporate restructuring which is focused on cash flow optimization.

To date, the company has made significant progress reducing operating expenses, including head count reductions, a sublease of its Toronto office space and the optimization of other expenses. These steps have resulted in total operating expenses decreasing by $3.9-million for the nine months ended Sept. 30, 2023, when compared with the prior-year period.

The company has also been actively involved in reviewing its existing carbon credit stream and royalty portfolio to recalibrate its agreements in light of evolving voluntary carbon market conditions, including an increased focus on carbon removal credits and North American-based projects. To date, the company has amended the terms of the Nalgonda rice farming stream, Waverly biochar stream and Magdalena Bay Blue carbon stream. See the company's management's discussion and analysis for the nine months ended Sept. 30, 2023, dated Nov. 14, 2023, and filed on SEDAR+ for more information.

Continuing to position the company for success

The company expects to continue to advance its effort to reduce costs, including considering a reduction to the size of the board, additional personnel reductions and a review of total executive compensation. The company anticipates such steps, when combined with existing cost reduction measures, to deliver savings of over $6-million per year.

Management is also continuing to actively manage its portfolio of streams and royalties and will continue to deploy its existing capital in an accretive way to diversify and further build out its portfolio of projects with leading project developers to deliver high-quality carbon credits and investment opportunities.

Strategic review

In conjunction with the company's corporate restructuring efforts, the board of directors and the special committee will, with the assistance of its financial and legal advisers, evaluate a broad range of options with a focus on maximizing value for all shareholders. These alternatives could include acquisitions, divestments, corporate transactions, financings, other strategic partnership opportunities, or continuing to operate as a public company with the potential to unlock the inherent value contained within the company's diversified portfolio of carbon credit streams and royalties on high-quality projects. While the board of directors remains confident in the company's long-term strategic plan and the opportunity it provides to enhance value for all shareholders, it is open to exploring all strategic alternatives that are in the best interests of the company and its stakeholders.

The board of directors and the special committee have not set a definitive timetable for this process, nor have they made any decisions related to strategic alternatives at this time, and there can be no assurance that the exploration of strategic alternatives will result in any transaction or change in strategy. The company does not intend to comment further on the review unless a specific transaction is approved by the board of directors, the review process is concluded or if further disclosure is required by law.

The company has retained BMO Capital Markets as financial adviser to the board of directors, Stikeman Elliott LLP as legal counsel to the company and Miller Thomson LLP as legal adviser to the special committee.

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 Carbon Streaming's strategic interests with those of project partners to create long-term relationships built on a shared commitment to sustainability and accountability and positions the company 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 and avoidance projects from nature-based, agricultural, engineered and community-based methodologies.

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