Mr. Benoit Veilleux reports

CHARBONE AND VEMA HYDROGEN BUILD QUEBEC HYDROGEN SUPPLY CHAIN TO MEET WELLHEAD-TO-INDUSTRIAL GAS DEMAND AND REDUCE TRANSPORT COSTS

Charbone Hydrogen Corp. has signed a conditional offtake and infrastructure development agreement with Vema Hydrogen to develop a new hydrogen production and processing project in Quebec. The site adds a valuable new resource for the region's merchant industrial gas customers and strengthens the broader supply chain. The agreement pairs Vema's engineered mineral hydrogen (EMH) production with Charbone's purification, compression and distribution capabilities to serve growing demand from Charbone's industrial merchant hydrogen customer base up to 15 tons per day.

Leveraging Quebec's position as a regional hydrogen hub, the partnership sets the framework for a "well-to-market" supply chain in the region. The province's concentrated industrial demand and proximity to key transportation networks minimize long-distance fuel transport and reduce overall system costs, making it a highly efficient geography for hydrogen production and distribution. The project's design allows Vema to expand into emerging markets including low-carbon maritime and aviation fuel manufacturing, e-fuels and power generation, where Charbone's purification and distribution capabilities could integrate into multiple parts of the value chain.

"The market is demanding high-value industrial gases and our customers need cleaner, more reliable supply. By pairing Vema's EMH feedstock with our purification and distribution capabilities, we're strengthening Quebec's position as a regional hub for next-generation hydrogen," said Dave Gagnon, president and chief executive officer of Charbone.

On the heels of completing drilling and initiating pilot operations in Quebec by Vema, the agreement represents the latest milestone in Vema's accelerating commercial progress. It broadens the company's offtake pipeline into industrial gas distribution, e-fuels and clean mobility as Vema positions its technology for initial market deployment.

About Charbone Hydrogen Corp.

Charbone is a vertically integrated industrial gases company focused on developing and operating a network of regional supply hubs for the production, storage and distribution of ultrahigh purity (UHP) strategic industrial gases. The company serves customers across sectors including semiconductors, artificial intelligence and data centres, advanced pharmaceuticals, and aerospace and defence technologies.

About Vema Hydrogen

Vema Hydrogen is a producer of low-carbon hydrogen, offering a new path to a clean energy future.

We seek Safe Harbor.