Cielo Provides Update on Purchase of Land in Dunmore

Amendment to Purchase Agreement Executed Including Shares for Debt

CALGARY, Alberta, Jan. 18, 2024 (GLOBE NEWSWIRE) -- Cielo Waste Solutions Corp. (TSXV:CMC; OTCQB:CWSFF) (“Cielo” or the “Company”), a waste-to-fuel environmental technology company, announces today that it has executed an amendment (the “Amendment”) to the agreement of purchase and sale (the “PSA”) with Renewable U Energy Inc. (“Renewable U”) regarding the purchase by Cielo of land in Dunmore, Alberta (the “Dunmore Land”) for the purposes of building a full-scale, waste-to-fuel facility (the “Dunmore Facility”).  

On May 1^st, 2023, Cielo announced its agreement with Renewable U to acquire the Dunmore Land, which provided for a condition deadline as well as a tentative closing date, both of which have been amended since the date of the initial agreement, as previously disclosed. Following the Company’s recent asset purchase transaction with Expander Energy Inc., as previously announced, as management coordinates various aspects of achieving its primary goal of launching its first commercial facility, Cielo and Renewable U have agreed to amend the condition deadline for the financing condition to March 29, 2024 and the closing date to May 30^th, 2024. Cielo has waived all other conditions.

Cielo has also agreed to release the deposit of $100,000 (the “Initial Deposit”) and pay an additional $500,000 as a deposit (the “Additional Deposit”, together with the Initial Deposit, collectively the “Total Deposit”), provided that the Additional Deposit be payable in common shares of Cielo (the “Payment Shares”) at a price of $0.03 per share (to be adjusted to $0.45 after giving effect to the Consolidation, as defined below, if issued following the Consolidation), subject to the approval of the TSX Venture Exchange (the “Exchange”). In the event that Renewable U doesn’t close on the sale of the Dunmore Facility to Cielo, the Total Deposit will be set off against the amount owing by Cielo to Renewable U under an agreement announced on May 17^th, 2023 regarding the termination of memorandums of understanding that had been executed between the parties between 2018 and 2021.