Mr. Justin Cochrane reports

CARBON STREAMING ANNOUNCES FURTHER UPDATE ON RIMBA RAYA PROJECT

Carbon Streaming Corp. has provided an update on the status of the forest utilization business licence at the Rimba Raya project. On April 26, 2024, the company announced that it was informed of two third party media reports that claimed that PT Rimba Raya Conservation, the local concession holder for the Rimba Raya project, had its concession licence revoked by the Indonesian government's Ministry of Environment and Forestry. The company has since learned that the concession licence was revoked by the MOEF through an administrative decree that was issued only to the addressee and is therefore not a publicly accessible document.

InfiniteEARTH Ltd. and its Indonesian subsidiary PT InfiniteEARTH Nusantara, the project proponent of the Rimba Raya project, with which the company had previously entered into the carbon credit streaming agreement covering the Rimba Raya project, has operated the Rimba Raya project through a series of agreements with PT Rimba, its local partner in Indonesia and the direct legal holder of the concession rights granted by the Indonesian government pursuant to the concession licence.

The company confirmed the revocation of the concession licence by the MOEF through details about the decree published on the MOEF website in March, 2024. PT Rimba has publicly stated that it has complied with Indonesian regulations on carbon trading and otherwise disputed the basis of the revocation of the concession licence, and the company has confirmed that PT Rimba has filed a claim against the MOEF challenging the revocation of the concession licence before the State Administrative Court of Jakarta. In connection with such challenge, PT Rimba has also filed requests for the suspension of the implementation of the MOEF decree in respect of the revocation of the concession licence pending judicial determination of such appeal (which relief, to the knowledge of the company, has not been granted to date). A final ruling from the State Administrative Court of Jakarta is currently anticipated during June, 2024 (which ruling is subject to potential appeal by the parties).

Based on MOEF documentation and records of the State Administrative Court of Jakarta, the company has determined with its advisers that the concession licence was revoked by the MOEF on the basis that PT Rimba had transferred the concession licence to a third party without MOEF approval, and that its carbon trading activity covered a land area greater than the area covered by the terms of the concession licence and for non-payment of certain non-state revenue taxes payable to the MOEF under applicable Indonesian regulatory requirements.

Carbon Streaming is assessing the continuing situation and is engaged with its partners and local advisers. Carbon Streaming has been advised by InfiniteEARTH that it is taking steps in respect of the revocation of the concession licence and is also seeking clarifications from the MOEF as to the current status of the concession licence and the ramifications of the revocation, including on the status of InfiniteEARTH as the project proponent of the Rimba Raya project under the government-operated carbon registry, Sistem Registri Nasional Pengendalian Perubahan Iklim, and the impact on its rights to both historical and future credits as established through the collaboration agreement with PT Rimba.

At the present time, the company is evaluating all legal avenues to protect its investment in the Rimba Raya project and to strictly enforce its legal and contractual rights under the Rimba Raya stream. In addition, Carbon Streaming will also continue to work closely with InfiniteEARTH on its active engagement with its local partners, the MOEF and the Indonesian government to attempt to preserve the continuity of the Rimba Raya project.

For a comprehensive discussion of the risks, assumptions and uncertainties that could further impact the Rimba Raya project and the Rimba Raya stream, including without limitation, concerning the legal status of the concession licence and the company's Rimba Raya stream, investors are urged to review the section of the company's management's discussion and analysis for the three months ended March 31, 2024, dated as of May 15, 2024, entitled "Strategy and Outlook -- Indonesia Update" and the section of the company's annual information form dated as of March 27, 2024, entitled "Risk Factors," copies of which are available on SEDAR+.

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 its 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.

We seek Safe Harbor.