Base Carbon Inc. provided an operational update regarding its initial projects. Base Carbon with the progress of both Vietnam and Rwanda projects as anticipate transitioning from a development stage to a revenue-generating company in 2023. Having now completed the distribution of cookstoves and water purifiers in Vietnam, the final stage of development involves initial project monitoring and reporting by an independent validation and verification body and the subsequent verification of the associated report by Verra, the project registry.

In Rwanda, the project documentation has been submitted to Verra and the project is pending registration. The Company anticipates initial verification and issuance of carbon credits in mid-2023 for both the Vietnam and Rwanda projects. The project Devices are critical to carbon emission reduction and lead to both positive and measurable social and health co-benefits for millions of individuals within the households and communities of rural Rwanda and Vietnam.

Globally, nearly one out of three people rely on polluting cooking fuels including wood, charcoal, and kerosene. Such ‘dirty cooking' is a leading source of global carbon emissions and kills approximately four million people per annum due to respiratory illness, according to the Clean Cooking Alliance. Vietnam Household Devices Project: All 1,214,000 Vietnam project Devices have now been distributed to participating households, four months ahead of the initial schedule and on budget.

Initial VVB monitoring and reporting work commenced in early January 2023, and upon review and verification of the associated report by carbon registry Verra, the first issuance of project carbon credits is anticipated to be sold to Citigroup via a contracted project offtake agreement. Initial monitoring work has been completed by an independent, Verra-accredited VVB. Submission of the initial monitoring report to Verra in support of the first carbon credit issuance is anticipated in early March 2023, with initial project carbon credit generation anticipated in mid-2023.

Rwanda Cookstove Project: Distribution of all 250,000 cookstoves associated with initial project in Rwanda has been completed. Project validation with Verra is anticipated in the near-term with initial monitoring, reporting and verification efforts to commence immediately thereafter. Project partner DelAgua continues to conduct large-scale weekly household visits to further community education and increase efficient use of the cookstoves.

Carbon credit sales and marketing activities are currently being coordinated in anticipation of the first carbon credit issuance in mid-2023. Danish Red Cross Partnership Update: Base Carbon has formally engaged a project consultant and is actively engaged in local site mapping and project design. In November 2022, the Company, through its subsidiary Base Carbon Capital Partners Corp., entered into a letter of intent with the Danish Red Cross to scope, assess and potentially develop one or more mangrove-related carbon reduction projects in Southeast Asia which are anticipated to follow Verra's “Tidal Wetland and Seagrass” methodology.

The Danish Red Cross are recognized innovators in designing investment and underwriting structures related to the commercialization of carbon, climate and social benefit projects. Potential projects related to the prospective partnership will be jointly funded by the Danish Red Cross including other Red Cross affiliated entities. Corporate Updates – Portfolio Evolution: The Base Carbon origination team is continuing with the assessment of additional carbon development opportunities with the intention of further diversifying its portfolio of carbon projects.

This is anticipated to include projects across a range of methodologies and jurisdictions that fit within the Company's investment and industry thesis as the global community works towards corporate, sovereign and global net-zero targets. Base Carbon's project selection strategy involves, in part, partnering with or working alongside best-in-class project developers and partners, investment grade credit-rated corporate partners and non-governmental organizations to mitigate project and capital risk while maintaining upside carbon price exposure.