Green Star Royalties Acquires Portfolio of U.S. Forest Carbon Offset Royalties and Receives First Carbon Offset Delivery - Seite 2

"This investment will allow for the conservation of roughly 78,000 acres of prime timberland and is a culmination of extensive due diligence by our team and multiple third-parties. We respect NativState's team and their meticulous approach to building a sustainable business model rooted in forestland conservation and stewardship. NativState's attractive carbon offset issuance profile as well as their objective of enabling American forest landowners to generate carbon revenue made this partnership a natural fit for Green Star."

Stuart Allen, Founder and Chief Executive Officer of NativState, commented: "NativState was founded to give small and medium forest landowners access to global carbon markets. This announcement and our relationship with Green Star mark an important step in making the promise of voluntary carbon markets a reality for our landowner partners. We are thankful for Green Star's trust in NativState, and we look forward to continuing to create value in forest conservation as a project proponent. Each new project brought to market provides our landowners revenue to implement sustainable forest management practices and access to professional foresters. These practices then deliver high-quality carbon offsets to our corporate stakeholders."

Transaction Terms

Green Star has agreed to acquire the Royalties for $5.6 million, payable over a series of tranches linked to ACR registration milestones. In consideration of its investment, Green Star will receive a 20% Royalty on Project ACR 783 as well as 10% Royalties on an additional 60,000 acres to be enrolled by NativState and registered as ACR projects. Each Royalty will have a 20-year term commencing at the underlying ACR project's first carbon offset issuance date. The Royalties will be paid directly in carbon offsets. As part of this transaction, Green Star and NativState have agreed to several defensive mechanisms, including minimum carbon offset volumes to be delivered over the 20-year royalty term.

Transaction Impact on Green Star's Carbon Offset and Revenue Profiles

The transaction provides Green Star with immediately monetizable avoidance and removal carbon offsets. The Royalties are expected to deliver carbon offsets to Green Star over the 20-year royalty term, with an estimated 75% of these attributable carbon offsets expected in the first five years. Green Star's estimated annual carbon offsets and revenues are highlighted below in Figure 1.