Klimat X Developments Inc. announced the completion of the second year of planting in Sierra Leone, this achievement has expanded the total area planted to 1,400 ha and enabled payments to be transferred to 170 direct smallholders in the community. The Company provides the following project update. The Company completed the landowner lease agreements and disbursements necessary to finalize the 30-year leases required under Sierra Leone law.

The Company has now completed demarcation of more than 20,000 ha of land and transferred payments to 170 smallholders under the supervision of the Sierra Leone Commercial Bank. All transactions were completed under the scrutiny and review of Namati, an international NGO that ensures smallholders are aware of their rights and sign leasehold contracts under conditions of Free, Prior and Informed Consent. The process is based on a comprehensive community mapping process led by the Company and resolves any land boundary disputes among landowners, village elders, chiefdom councils and paramount executives, confirming clear title over the land and the associated carbon.

The signing ceremony and transfers were broadcast on Sierra Leone national news. The Company continues to develop the mangrove restoration project with a further 10ha of trial plots planted from seedlings produced in their nursery. The Company has scaled the nursery capacity for mangrove planting and is prepared to plant up to 300 ha before the end of the calendar year.

The Company has also filed the Project Document (PD) for the mangrove restoration project, a critical step in advancing a project with Verra, the global carbon registry. The PD for mangrove conservation is being developed separately and continues to advance well.