Mr. Benoit Veilleux reports

CHARBONE ANNOUNCES A NON-BROKERED PRIVATE PLACEMENT CLOSING OF $3.1M

Charbone Hydrogen Corp. has closed a non-brokered private placement for gross proceeds of $3.1-million.

"We are excited to start the year 2026 with a strong improvement to our balance sheet and support shown by long-term investors in this private placement," said Benoit Veilleux, chief financial officer and corporate secretary of Charbone. "The completion of this financing provides Charbone with the resources for the phase 1B at Sorel-Tracy site, increasing our clean UHP hydrogen production capacity by 4.5 times reaching almost one tonne per day."

Private placement details

Charbone is issuing 23,614,286 units, with each unit priced at 13.125 cents, and consisting of one common share and one common share purchase warrant.

The proceeds from the equity offering will be primarily allocated to the company's purchase and installation of the phase 1B hydrogen equipment at the Sorel-Tracy site, and general working capital requirements.

Each of the units offered, priced at 13.125 cents per unit, included one common share of the company and one common share purchase warrant. Each warrant gives the holder the right to buy one additional common share of the company at an exercise price of 18 cents for 24 months after the closing date of the equity offering with an acceleration right forcing the exercise of warrants, within 30 days, if the market price of the company's common shares on the TSX Venture Exchange is 30 cents or higher for 10 consecutive trading days.

At the closing date, the company paid a finder's fee of $247,950. It also issued 1,889,143 finder's warrants to registered dealers related to the sale of specific units to qualified subscribers introduced by such dealers. The units were distributed pursuant to a decision under Section 12 of the Securities Act (Quebec) to qualified subscribers outside of the province of Quebec mainly to one institutional investor located in Germany.

The closing of the equity offering remains subject to the approval of the TSX Venture Exchange and other customary closing conditions

About Charbone Hydrogen Corp.

Charbone is a developer and producer of clean ultrahigh-purity (UHP) hydrogen with a growing industrial gas distribution platform. Through a modular approach, Charbone is focused on developing a network of clean hydrogen production facilities throughout North America and select markets abroad, starting with its flagship Sorel-Tracy project in Quebec. The company's integrated model reduces risk, enhances scalability, and enables diversified revenue streams through partnerships in helium and other specialty gases. Charbone is committed to supporting the global transition to a lower-carbon economy by providing accessible, decentralized clean hydrogen and specialty gas solutions while supporting underserved industrial gas customers and accelerating the shift to localized clean energy. Charbone is listed on the TSX Venture Exchange, the OTC Markets and the Frankfurt Stock Exchange.

We seek Safe Harbor.