Base Carbon Reports Year End 2023 Operating and Financial Results - Seite 2

Vietnam Household Devices Project Update

The Company anticipates issuances of carbon credits generated from the project during Q2 2024 to be sold to the project offtaker pursuant to the fixed price offtake arrangement consistent with the previous sales. BCCPC has deployed 92% of the committed project capital with the remaining commitments, primarily tied to project monitoring and verification activities, anticipated to be fully deployed by year end 2024.

BCCPC expects to fully recover its deployed project capital, as well as receive significant initial returns, during 2024.

Rwanda Cookstoves Project Update

The DelAgua Group was recently issued approximately 815,000 carbon credits with respect to Base Carbon’s 250,000 cookstoves each tagged by Verra with the “Article 6 Authorized Label” or as correspondingly adjusted carbon credits. BCCPC and the DelAgua Group are currently in discussions with respect to the implementation of the letter of authorization with the Government of Rwanda. It is currently anticipated each carbon credit tagged with the “Article 6 Authorized Label” will be equal to approximately 1.14 carbon credits for the purposes of the 7.5 million carbon credits subject to the revenue sharing arrangement between the BCCPC and the DelAgua Group. The Company believes that the correspondingly adjusted carbon credits designation will expand the pool of buyers with potential pricing upside for such carbon credits.

In aggregate, the Company expects to receive approximately 2.1 million carbon credits, or 1.85 million correspondingly adjusted carbon credits, from the Rwanda project during 2024 for sale into the market according to the project agreement and revenue sharing arrangement, pursuant to which BCCPC maintains a contractual preferential share of proceeds from the sale of such credits.

India Afforestation, Reforestation, and Revegetation (ARR) Project Update

The Company, through BCCPC, executed a project agreement with Value Network Ventures Advisory Services Pte Ltd. to fund an expected $13.6 million related to the reforestation of degraded rural farmlands in the northern Indian state of Uttar Pradesh. The project's aim is to facilitate the planting of approximately 6.5 million trees, from which it is expected 1.6 million high-quality nature-based removal carbon credits will be generated over an expected 20-year project life.