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TORONTO, May 15, 2024 (GLOBE NEWSWIRE) — Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) right now reported its monetary outcomes for the three months ended March 31, 2024. All figures are expressed in United States {dollars}, until in any other case indicated. The Company will host a dwell audio name at 11:00 a.m. ET on Friday, May 17, 2024.

Carbon Streaming CEO Justin Cochrane said: “In the first quarter of 2024, Carbon Streaming continued its focus on enhancing operational efficiency, resulting in improvements to operating cash flow compared to the comparative quarter. We remain dedicated to generating cash flows from sales and identifying further cost-saving measures going forward. Regarding the revocation of the concession license at the Rimba Raya project, we intend to evaluate all legal avenues to protect our investment and enforce our rights. Additionally, moving into 2024, our priority is ramping up credit issuance and sales, safeguarding our strong, debt-free balance sheet and pursuing strategic initiatives while providing support to our project partners.”

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Quarterly Highlights

• Recognized a loss on revaluation of carbon credit score streaming and royalty agreements of $33.1 million for the three months ended March 31, 2024 (three months ended March 31, 2023 – acquire of $0.7 million). The present interval loss on revaluation was primarily associated to the write-down of the worth of the Rimba Raya Stream to $nil.
• Ended the yr with $49.0 million in money and no company debt.
• Continued the previously-announced company restructuring plan centered on money circulation optimization, together with lowering working bills and reviewing current streams and royalties, leading to diminished ongoing working bills and a $1.4 million restructuring cost for the three months ended March 31, 2024 (three months ended March 31, 2023 – $nil).
• Generated $0.4 million in settlements from carbon credit score streaming and royalty agreements for the three months ended March 31, 2024 (three months ended March 31, 2023 – $4 thousand).
• Recognized internet lack of $35.8 million for the three months ended March 31, 2024 (three months ended March 31, 2023 – internet lack of $1.0 million).
• Adjusted internet lack of $1.6 million for the three months ended March 31, 2024 (three months ended March 31, 2023 – adjusted internet lack of $2.9 million) (see the “Non-IFRS Measures” part of this information launch).
• Operating lack of $36.8 million for the three months ended March 31, 2024 (three months ended March 31, 2023 – working lack of $2.7 million).
• Paid $0.4 million in upfront deposits for carbon credit score streaming and royalty agreements for the three months ended March 31, 2024 (three months ended March 31, 2023 – paid $1.5 million in upfront deposits for carbon credit score streaming and royalty agreements).

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Financial Highlights Summary

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^{1.   Relates to the online money proceeds generated from the Company’s carbon credit score streaming and royalty agreements.
2.   The Company holds a list of carbon credit, which had been acquired separate and other than carbon credit delivered underneath the Company’s carbon credit score streaming agreements.
3.   “Adjusted net loss”, together with per share quantities, is a non-IFRS monetary efficiency measure that’s used on this information launch. This measure doesn’t have any standardized which means underneath IFRS and subsequently is probably not similar to comparable measures introduced by different issuers. For extra details about this measure, why it’s utilized by the Company, and a reconciliation to probably the most instantly comparable measure underneath IFRS, see the “Non-IFRS Measures” part of the Company’s Management’s Discussion & Analysis.
4.   Cash, carbon credit score streaming and royalty agreements, whole belongings and non-current liabilities are introduced as on the related tabular reporting date.}

Portfolio Updates: Three months ended March 31, 2024 and Subsequent to Quarter End

New investments, portfolio restructuring and different important updates

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Rimba Raya Stream: On April 26, 2024, the Company introduced that it was knowledgeable that PT Rimba Raya Conservation (“PT Rimba”), the native concession holder for the Rimba Raya venture had its Forest Utilization Business License (the “Concession License”) revoked by the Indonesian Government’s Ministry of Environment and Forestry (the “MOEF”). The Company has confirmed that PT Rimba filed a declare difficult the revocation, and a ruling from the State Administrative Court of Jakarta is at the moment anticipated throughout June 2024 (which ruling is topic to potential attraction by the events). Carbon Streaming is at the moment assessing the continuing scenario and is engaged with our companions and native advisors. At the current time, the Company is evaluating all authorized avenues to guard its funding within the Rimba Raya venture and to strictly implement its authorized and contractual rights underneath the Rimba Raya Stream. For additional data, please see the Company’s information launch “Carbon Streaming Announces Further Update on Rimba Raya Project” dated May 15, 2024 which is on the market on SEDAR+ at www.sedarplus.ca.

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Baccala Ranch Reforestation Stream: On February 9, 2024, the Company entered right into a carbon credit score streaming settlement with Mast Reforestation SPV I, LLC (“Mast”) for a post-wildfire reforestation venture in Tehama and Plumas Counties, California, USA (the “Baccala Ranch Reforestation Stream”). Under the phrases of the Baccala Ranch Reforestation Stream, Mast will ship 100% of the forecast mitigation models (“FMUs”) (referred to herein as carbon credit) created by the venture to the Company, that are anticipated to be issued in 2026. The Company will make extra upfront deposit funds of as much as $1.6 million because the Baccala Ranch Reforestation venture achieves website preparation, planting, and issuance milestones.

Community Carbon Stream: On May 8, 2024, the Company amended the phrases of the Community Carbon Stream leading to, amongst different issues, revising the Company’s financial curiosity to offer for a tiered streaming construction which is adjusted as sure return on invested capital thresholds are achieved, adjusting the portfolio composition and milestone funds to give attention to the 5 strongest tasks, three cookstove and two water purification tasks. Pursuant to this modification, the time period of the stream will finish December 31, 2040, until the venture is ready to deploy cookstoves and water purification gadgets forward of the projected schedule. Additionally, Community Carbon introduced that it secured a historic letter of authorization from the Government of Tanzania for its Tanzania cookstove venture (VCS 2676), representing Tanzania’s first-ever carbon credit approved for corresponding changes underneath Article 6 of the Paris Agreement.

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Key portfolio milestones

Nalgonda Rice Farming Stream: In April 2024, CoreCarbonX engaged CarbonFarming Technology SAS to conduct a pilot program making use of satellite tv for pc and synthetic intelligence-backed monitoring, reporting, and verification expertise (“MRV Solution”) for the 2 crop seasons in 2024. The MRV Solution is predicted to: detect a wide range of farming practices and quantify emissions with excessive accuracy; simplify operations offering an environment friendly and cost-effective technique of amassing ‘near-real-time’ information at scale, enabling shut monitoring of venture progress; and enhance the marketability and the worth of carbon credit issued.

Enfield Biochar Stream: In early April 2024, Standard Biocarbon reached a important venture milestone with the primary biochar manufacturing from their newly constructed biochar facility in Enfield, Maine. The Enfield Biochar venture continues to scale towards full working capability whereas amassing working information that can kind the idea for a facility audit and official registration with the Puro.earth carbon credit score commonplace.

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Strategy

Carbon Streaming is targeted on executing its gross sales technique by means of the advertising and promoting of carbon credit and persevering with to amass choose extra streams and royalties to diversify and complement its portfolio of tasks.

In executing its gross sales technique, over the long run and on a company-wide foundation, the Company continues to anticipate to retain on common 15% to 25% of money flows (with stream-specific retention various) generated from the sale of the carbon credit acquired from its carbon credit score streaming agreements, topic to fluctuation primarily based on the realized value from carbon credit score gross sales and the particular phrases of the stream agreements. Through an ongoing supply fee underneath the phrases of a stream settlement, a venture accomplice is usually entitled to obtain the stability of the online proceeds from the sale of carbon credit (i.e., on common 75% to 85%).

Outlook

In 2024, Carbon Streaming continues to reposition itself for long-term success. The Company expects to extend money circulation technology by means of the sale of carbon credit from a number of streaming agreements, together with the Community Carbon Stream, Waverly Biochar Stream, the Sustainable Community Stream and the Nalgonda Rice Farming Stream. Additionally, the Company continues its ongoing company restructuring, first initiated in 2023, with a give attention to money circulation optimization by means of the discount of working bills and a reassessment of our current streams and royalties. The steps taken by the Company to this point, together with a discount in headcount and the termination of consulting contracts, have resulted in important reductions to ongoing working bills. Moreover, the Company has amended a number of of its carbon credit score streaming agreements to enhance stream economics and shield towards draw back danger. In 2024, the Company amended the phrases of the Sheep Creek Reforestation Stream and the Community Carbon Stream, and in 2023, amended the phrases of the Nalgonda Rice Farming Stream, Waverly Biochar Stream and Magdalena Bay Blue Carbon Stream. In addition, the Company is constant to judge all authorized avenues to guard its funding within the Rimba Raya venture and can strictly implement its authorized and contractual rights underneath the Rimba Raya Stream in response to latest developments in Indonesia.

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Carbon Streaming additionally goals to proceed rising and diversifying its portfolio with main venture builders and to be a accomplice of alternative for patrons looking for to help high-integrity carbon tasks. Voluntary carbon markets have the potential to mobilize finance to deal with the gaps in funding for local weather tasks and act as a complementary software to different local weather motion actions. Carbon Streaming believes that its technique will place the Company as an trade chief who shall be a go-to supply of carbon credit within the voluntary market.

Q1 2024 Results Conference Call Details

The Company’s administration staff will host an interactive audio name on Friday, May 17, 2024, at 11:00 a.m. ET to offer a short firm replace. Participants could be part of by dialing +1 289-514-5100 or toll free from North America at +1 800-717-1738. An audio replay of the convention name shall be out there on the Company web site till 11:59 p.m. ET on June 17, 2024.

About Carbon Streaming

Carbon Streaming goals to speed up a net-zero future. We pioneered the usage of streaming transactions, a confirmed and versatile funding mannequin, to scale high-integrity carbon credit score tasks to advance international local weather motion and extra United Nations Sustainable Development Goals. This strategy aligns our strategic pursuits with these of venture companions to create long-term relationships constructed on a shared dedication to sustainability and accountability and positions us as a trusted supply for patrons looking for high-quality carbon credit.

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The Company’s focus is on tasks which have a optimistic influence on the surroundings, native communities, and biodiversity, along with their carbon discount or elimination potential. The Company has carbon credit score streams and royalties associated to over 20 tasks world wide, together with high-integrity elimination, discount and avoidance tasks from nature-based, agricultural, engineered and community-based methodologies.

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ON BEHALF OF THE COMPANY:
Justin Cochrane, President & Chief Executive Officer
Tel: 647.846.7765
data@carbonstreaming.com

www.carbonstreaming.com

Investor Relations
buyers@carbonstreaming.com

Media
media@carbonstreaming.com

Performance Measures

Average realized value per bought carbon credit score bought
Management makes use of the “average realized price per purchased carbon credit sold” efficiency measure to raised perceive the worth realized in every reporting interval for carbon credit score gross sales. Average realized value per bought carbon credit score bought is calculated by dividing the Company’s income from sale of bought carbon credit by the amount of bought carbon credit bought. Average realized value per bought carbon credit score bought doesn’t incorporate proceeds from the sale of carbon credit delivered underneath the Company’s carbon credit score streaming agreements, and solely incorporates income from the sale of bought carbon credit.

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Cost per bought carbon credit score bought

Management makes use of the “cost per purchased carbon credit sold” efficiency measure to evaluate the Company’s profitability in relation to the typical realized value per bought carbon credit score bought and believes that sure buyers can use this data to judge the Company’s efficiency compared to different carbon credit score streaming firms. Cost per bought carbon credit score bought is calculated by dividing the Company’s value of bought carbon credit bought, excluding stock write-downs, by the amount of bought carbon credit bought. Cost per bought carbon credit score bought doesn’t incorporate ongoing supply funds from the sale of carbon credit delivered underneath the Company’s carbon credit score streaming agreements, and solely incorporates the price of bought carbon credit bought.

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Non-IFRS Measures

Adjusted Net Loss and Adjusted Loss Per Share

The time period “adjusted net loss” on this information launch shouldn’t be a standardized monetary measure underneath IFRS and subsequently is probably not similar to comparable measures introduced by different firms the place comparable terminology is used. These non-IFRS measures shouldn’t be thought of in isolation or as an alternative to measures of efficiency, money flows and monetary place as ready in accordance with IFRS. Management believes that these non-IFRS measures, along with efficiency measures and measures ready in accordance with IFRS, present helpful data to buyers and shareholders in assessing the Company’s liquidity and total efficiency.

Adjusted internet loss is calculated as internet and complete loss and adjusted for the revaluation of carbon credit score streaming and royalty agreements, the revaluation of warrant liabilities, the revaluation of spinoff liabilities, the revaluation of the convertible word, impairment loss and the company restructuring which the Company views as having a big non-cash or non-continuing influence on the Company’s internet and complete loss calculation and per share quantities. Adjusted internet loss is utilized by the Company to observe its outcomes from operations for the interval.

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The following desk reconciles internet and complete loss to adjusted internet loss:

Cautionary Statement Regarding Forward-Looking Information

This information launch incorporates sure forward-looking statements and forward-looking data (collectively, “forward-looking information”) inside the which means of relevant securities legal guidelines. All statements, aside from statements of historic reality, that handle actions, occasions or developments that the Company believes, expects or anticipates will or could happen sooner or later, are forward-looking data, together with, with out limitation, statements relating to the Company’s strategic positing; the Company’s anticipated restructuring methods and expense reductions and financial savings from working value discount measures; statements with respect to money circulation optimization and technology; its gross sales technique; supporting the Company’s carbon streaming and royalty companions; timing and the quantity of future carbon credit score technology and emission reductions and removals from the Company’s current streaming and royalty agreements; statements with respect to the tasks wherein the Company has streaming and royalty agreements in place; statements with respect to the Company’s progress targets; statements with respect to execution of the Company’s portfolio and partnership technique; and statements with respect to the standing of the Concession License held by PT Rimba and the analysis of authorized avenues to guard the Company’s funding within the Rimba Raya venture and to implement its authorized and contractual rights.

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When used on this information launch, phrases akin to “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends” “should”, “could”, “may” and different comparable terminology are meant to establish such forward-looking statements. This forward-looking data is predicated on the present expectations or beliefs of the Company primarily based on data at the moment out there to the Company. Forward-looking data is topic to a lot of dangers and uncertainties that will trigger the precise outcomes of the Company to vary materially from these mentioned within the forward-looking data, and even when such precise outcomes are realized or considerably realized, there may be no assurance that they are going to have the anticipated penalties to, or results on, the Company. They shouldn’t be learn as a assure of future efficiency or outcomes, and won’t essentially be an correct indication of whether or not or not such outcomes shall be achieved. Factors that would trigger precise outcomes or occasions to vary materially from present expectations embrace, amongst different issues: statements with respect to the standing of the Concession License held by PT Rimba with the MOEF; basic financial, market and enterprise circumstances and international monetary circumstances, together with fluctuations in rates of interest, overseas trade charges and inventory market volatility; volatility in costs of carbon credit and demand for carbon credit; change in social or political opinions in the direction of local weather change, carbon credit and ESG initiatives and subsequent modifications in company or authorities insurance policies or laws and related modifications in demand for carbon credit; restricted working historical past for the Company’s present technique; dangers arising from competitors and future acquisition actions; focus danger; inaccurate estimates of progress technique; dependence upon key administration; influence of company restructurings; reputational danger; failure or timing delays for tasks to be registered, validated and finally developed and for emission reductions or removals to be verified and carbon credit issued (and different dangers related to carbon credit requirements and registries); overseas operations and political dangers together with actions by governmental authorities, together with modifications in or to authorities regulation, taxation and carbon pricing initiatives; uncertainties and ongoing market developments surrounding the validation and verification necessities of the voluntary and/or compliance markets; due diligence dangers, together with failure of third events’ evaluations, stories and projections to be correct; dependence on venture companions, operators and house owners, together with failure by such counterparties to make funds or carry out their operational or different obligations to the Company in compliance with the phrases of contractual preparations between the Company and such counterparties; failure of tasks to generate carbon credit, or pure disasters akin to flood or hearth which might have a cloth opposed impact on the power of any venture to generate carbon credit; volatility available in the market value of the Company’s frequent shares or warrants; the impact that the issuance of extra securities by the Company might have available on the market value of the Company’s frequent shares or warrants; international well being crises, akin to pandemics and epidemics; and the opposite dangers disclosed underneath the heading “Risk Factors” and elsewhere within the Company’s Annual Information Form dated as of March 27, 2024 filed on SEDAR+ at www.sedarplus.ca.

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Any forward-looking data speaks solely as of the date of this information launch. Although the Company believes that the assumptions inherent within the forward-looking data are affordable, forward-looking data shouldn’t be a assure of future efficiency and accordingly undue reliance shouldn’t be placed on such statements as a result of inherent uncertainty therein. Except as could also be required by relevant securities legal guidelines, the Company disclaims any intent or obligation to replace any forward-looking data, whether or not on account of new data, future occasions or outcomes or in any other case.

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