Mr. Marin Katusa reports

CARBON STREAMING ANNOUNCES PROJECT UPDATE

Carbon Streaming Corp. has provided a project update with respect to the purchase and sale agreement dated as of May 9, 2023, as amended pursuant to that first amending agreement, dated as of Feb. 7, 2024 (the Sheep Creek stream), among Carbon Streaming, Mast Reforestation SPV I LLC (Mast) and its parent company, DroneSeed Co., doing business as Mast Reforestation (Mast Parent Co.).

Carbon Streaming has received a notice of adverse impact from Mast and Mast Parent Co. under the Sheep Creek stream agreement, pursuant to which, among other things, Mast advised Carbon Streaming that the Sheep Creek project has experienced significantly higher-than-expected mortality rates and that the surviving seedlings had exhibited slower-than-expected growth rates. As a result, Mast indicated to Carbon Streaming that it no longer expects to deliver the agreed-upon 286,229 forecast mitigation units to Carbon Streaming under the Sheep Creek stream as Mast no longer considers the existing Sheep Creek project plan and budget to be viable. Carbon Streaming has formally responded to the notice of adverse impact and requested that Mast respond to Carbon Streaming's significant concerns regarding, among other things, the timing of the delivery of the notice of adverse impact and the characterization of the cause of the adverse impact. The company is continuing to evaluate all legal avenues available under the Sheep Creek agreement.

The company had entered into a project pipeline streaming agreement for up to $15-million (U.S.) with Mast and Mast Parent Co., to advance its pipeline of postwildfire reforestation projects in the Western United States. Carbon Streaming also invested $2-million (U.S.) into Mast Parent Co. through a convertible note. In October, 2023, the convertible note was converted into preferred shares of Mast Parent Co. upon the execution of a qualifying financing event, resulting in 1.3 million preferred shares of Mast Parent Co. being issued to the company at a fair value of $2.6-million. The company expects that the facts described above will materially decrease the fair value of the Sheep Creek stream and the preferred shares on the company's consolidated financial statements.

About Carbon Streaming Corp.

The company's focus is on projects that generate high-quality carbon credits and have a positive impact on the environment, local communities and biodiversity, in addition to their carbon reduction or removal potential. This approach aligns the company's strategic interests with those of project partners to create long-term relationships built on a shared commitment to sustainability and accountability and positions Carbon Streaming as a trusted source for buyers seeking high-quality carbon credits.

We seek Safe Harbor.