CO2 GRO Inc. Provides a Q3 2023 Business Development Update - Seite 3

Given the opportunity with this customer and the intention of the customer to commercially implement our technology, CO2 GRO has invested in providing its new sophisticated control system ("Control System") and lessons learned, including plant conditioning advisory, to the customer. We fully expect the production results in this 3 ^rd season to exceed the customer's expectations and provide them with the confidence to transition from R&D phase to an initial commercial project of up to $3M in Q2 2024.

Fruit production in the CO2 GRO treated areas over the two seasons averaged 1.7 kg/m ² greater than the control area (ambient CO ₂ ), including 3-times greater category 1 fruit (3% of total vs 1%) and 37.5% more category 2 fruit (33% of total vs 24%). Category 1 is the highest-grade fruit that fetches the highest price, followed by category 2, and so on.

Colombia rose customer (Colombia, roses): This customer opportunity was developed in partnership with one of the largest industrial gas companies in the world. The TAP has been operating for nearly 18-months and has consistently resulted in higher production. We expect to conclude the TAP by December 2023 and enter into discussions for a sales contract in Q1 2024. The customer represents a total Sales opportunity of up to $1.5M.

Rose stem production in the CO2 GRO treated areas over the past 18-months has averaged 25% more than the control area (ambient CO ₂ ), including more production of higher-grade stems and over 75% reduction in powdery mildew.

Key Lessons Learned

The most important lesson learned about increasing production while employing CO ₂ enrichment using our technology is that plants are complex organisms which need to have their environmental conditions considered while balancing other plant conditioning practices. This enables the plant to direct resources towards producing more fruit or other parts of the plant that our customers monetize.

Control System: We have developed a sophisticated control system that applies our aqueous CO ₂ enrichment to plants in the most optimal environmental conditions in real-time, given that these conditions are in constant change in a commercial greenhouse.

Plant Conditioning: Plant conditioning, including nutrient balance and other production techniques while using our technology also determines how the plant utilizes its resources towards more production that growers can sell; for example, more fruit vs. more leaves Our work with experts in these areas has helped our customers understand that they may need to adjust some of their practices to the new condition of CO ₂ enriched plants. Thanks to our customers' willingness to learn and adapt, and our team's increasing technical proficiency, we have begun to see more consistent results.