Mr. Jeffrey Ciachurski reports

GREENBRIAR SUSTAINABLE LIVING INC. HIGHLIGHTS PROGRESS ON WATER RIGHTS FOR SAGE RANCH AND DISCUSSES TEHACHAPI WATER MARKET

Greenbriar Sustainable Living Inc. has shared progress in securing water rights for its 995-home Sage Ranch development in Tehachapi, Calif. This update highlights Greenbriar's advancements toward meeting water supply goals, clarifies fair pricing benchmarks and emphasizes the company's partnering efforts with local water rights holders and the City of Tehachapi.

Significant strides in water acquisition

Greenbriar is pleased to announce that it has secured 188 net acre-feet (282 base acre-feet) of adjudicated water rights in the Tehachapi basin, either through direct ownership or binding option agreements. With only 109 net acre-feet (164 base acre-feet) needed to reach the 297 net acre-feet required for its water supply assessment (WSA), the company plans to complete this milestone in the foreseeable future. From 2024 court filings using excerpts from the Tehachapi Cummings County Water District, the Tehachapi basin has a robust surplus, including over 2,400 adjudicated acre-feet of unused water annually from an 8,020-base-acre-foot allocation and court-filed 23,000 plus acre-feet of state water, ensuring ample supply to support the local community. The adjudicated Tehachapi basin contains 370,000 acre-feet.

Note that Greenbriar at this moment is choosing adjudicated deeded water rights (versus river water from the state water project) and the company is working with local owners of water rights to obtain the additional increment required.

Setting transparent water pricing benchmarks

Greenbriar, in its informed opinion, anticipates future purchases to remain within a fair range of $8,000 to $11,000 per acre-foot (albeit with some upside pressure due to Greenbriar's short-term demand requirement on the market), reflecting the basin's overall surplus supply and ensuring equitable value for all parties. Related benchmarks include a company director selling at $10,000 per baseline acre-foot purchased by Golden Hills in 2024 and a purchase in 2023 and 2024 by the City of Tehachapi for 23 baseline acre-feet from the Gerson Stiekman Trust (2023) and 55 baseline acre-feet from the Bozenich Trust (2024), each for $7,500.

Regrettably, there is an inaccurate data point in the local media stating that the company paid $29,000 per baseline acre-foot for water in a July, 2024, article. To clarify -- the price Greenbriar paid for this option was not $29,000 per acre-foot, but, rather, less than $11,000 per acre-foot. Greenbriar is actively working with local media to correct this inaccurate $29,000 figure, reinforcing the company's commitment to transparency and accurate market data.

Expected softening of water prices postacquisition

Once Greenbriar secures the remaining 109 net acre-feet, the company anticipates, in its opinion, a softening and likely decline of water prices in the Tehachapi basin, driven by the market's significant surplus. With over 2,400 acre-feet of adjudicated water unused each year and 23,000-plus acre-feet of state water available, the basin's overall supply far exceeds current demand. After completing its purchases, Greenbriar believes that the absence of its buying activity is likely to lead to prices stabilizing at lower levels, rather than the current benchmarks of $8,000 to $11,000 driven solely by Greenbriar. The above is verified by many government parties willing to lease Greenbriar adjudicated water, but Greenbriar believes that direct ownership is the current way to proceed.

This shift likely represents an opportunity for water rights holders to monetize idle assets and for future projects to access water cost-effectively, aligning with the company's shared goal of sustainable resource use.

Greenbriar views this as a positive step toward a more efficient and accessible water market, benefiting the Tehachapi community and beyond.

Building strong partnerships with water rights holders

Greenbriar is working to collaborate with key water rights holders in a collegial and mutually beneficial manner to secure the remaining water rights. The company's approach prioritizes fair pricing, open communication and shared commitment to unlocking the value of unused water, which currently generates minimal leasing to no revenue for owners while supporting low-cost agricultural leases. By working together, the company aims to create opportunities that advance Sage Ranch while providing economic benefits for water owners, fostering a spirit of partnership that strengthens the Tehachapi basin's water market.

Next steps with the City of Tehachapi and stakeholders

Greenbriar is working to deepen its collaboration with the City of Tehachapi, the California State Water Resources Control Board and other regional partners as the company finalizes its water portfolio. Greenbriar's road map includes:

• Completing water acquisitions -- finalizing agreements for the remaining 109 net acre-feet in the coming months, supported by the company's $40-million construction loan commitment from Voya;
• Refiling the water supply assessment (WSA) -- submitting an updated water supply assessment to confirm Sage Ranch's water security, paving the way for construction start, which can be done regardless of the fourth COA;
• Engaging the community -- maintaining transparent dialogue with local stakeholders to ensure Sage Ranch delivers sustainable, entry-level housing, bolstered by the USDA (U.S. Department of Agriculture) 502D direct loan program and other federal mortgage programs for the hard-working professionals in the Tehachapi region;
• Aligning with regulators -- partnering with state and local authorities to promote efficient water use and compliance with the California Environmental Quality Act (CEQA), ensuring Sage Ranch sets a standard for responsible development.

A sustainable future for Sage Ranch and Tehachapi

Greenbriar's progress in securing water rights reflects the company's unwavering commitment to delivering Sage Ranch as a beacon of sustainable living. With strong committed financing from Voya, a path to meeting water needs and collaborative partnerships, the company is poised to create a vibrant community that enhances Tehachapi's economic and environmental landscape. The anticipated softening of water prices postacquisition will further support sustainable development in the region, creating opportunities for all stakeholders. Greenbriar's extend its gratitude to the company's shareholders, water rights holders and the City of Tehachapi for their support and look forward to sharing further milestones as Greenbriar brings Sage Ranch to fruition.

Montalva update

Greenbriar has timely filed to the appeal court the PREB (Puerto Rico Energy Commission) approval to the company's PREPA-approved (Puerto Rico Electric Power Authority) settlement. The settlement requires the completion of some terms in the draft PPOA (power purchase and operating agreement) and this additional language is required to make the settlement complete.

Cordero Ranch

The company's independent professional engineers are replotting the 6,726 approved lots (67 per cent of that belong to Greenbriar's property) to better connect the first 400 units to the existing water and sewage lines.

About Greenbriar Sustainable Living Inc.

Greenbriar is a leading developer of sustainable real estate and renewable energy. With long-term, high-impact projects and led by a successful industry-recognized operating and development team, Greenbriar targets deep-valued assets directed at accretive shareholder value.

We seek Safe Harbor.