Base Carbon Reports First-Quarter 2025 Operating and Financial Results and Upcoming Investor Update Call

TORONTO, May 15, 2025 (GLOBE NEWSWIRE) — Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp. (“BCCPC”, together, with affiliates, “Base Carbon”, or the “Company”), is pleased to announce its first-quarter 2025 consolidated financial results and operational highlights. The Company will host an investor update call on Tuesday, May 27^th at 11:00 a.m. Eastern Time, with registration instructions provided below. All financial references are denominated in U.S. dollars, unless otherwise noted.

Company Highlights for the Three Months Ended March 31, 2025:

• 4^th consecutive quarter of carbon credit sales revenue with net cash proceeds of $0.8 million from Vietnam water purifier carbon credit monetization

• Q1 2025 normal course issuer bid repurchases of over 0.7 million shares. Subsequent to quarter-end, the Company repurchased and cancelled an additional 3.75 million shares, reducing current shares outstanding to 104.75 million in aggregate

• Continued to advance Company’s biochar initiatives with significant focus and progress on key development opportunity

• Total assets of $112.3 million, including $13.4 million in cash and cash equivalents and a $25.6 million carbon credit inventory
  

“During the first quarter, the Company continued to execute on delivering free cash flow, project de-risking, and advanced our development of portfolio-level growth opportunities, all while reducing our shares outstanding by over 4% in the time from year-end to today,” said Michael Costa, CEO of Base Carbon. “The Company has been steadfast in the value of our business, including its projects, carbon credit inventory, robust cash balance and the moat we have built in how we operate. While we are both encouraged by and grateful for the recent recognition by the market of the inherent value of our business, we continue to see significant unrecognized value in our portfolio and platform.”

Financial Highlights:

During the first quarter of 2025, each of the Rwanda cookstoves project, the Vietnam household devices project, and the India ARR project have met or exceeded Management’s base case commercial expectations. Management continues to be confident in our proven track record of disciplined execution and cash flow generation, the strength and resilience of our assets, and the rigor of our underwriting diligence.

Vietnam Household Devices Project

During the three months ended March 31, 2025, the Company received $789,621 in net cash proceeds from project off-taker Citigroup associated with the delivery and monetization of the latest water purifier carbon credit issuance. During Q1 2025, an unrealized gain of $1,388,701 was also recognized on the project, resulting from the unwinding of the discount rate relative to the time value of money.

Since the establishment of the project, and as of March 31, 2025, the Company has received aggregate cash payments of approximately $35.2 million from the sale of Vietnam carbon credits which has resulted in a full repayment of invested capital and a cash gain of approximately $14.4 million.

Rwanda Cookstoves Project

During the three months ended March 31, 2025, an unrealized gain of $191,700 was recognized on the project, resulting from the unwinding of the discount rate relative to the time value of money, as well as a reassessment of the timing of the receipt of the next scheduled issuance of carbon credits from the project.

Work to apply Verra’s new VM0050 methodology for household devices continues to progress with in-country project development partner the DelAgua Group. Management anticipates that carbon credits held in inventory, following conversion to VM0050, as well as future carbon credit issuances from the project will be eligible for delivery into compliance programs like CORSIA, and should benefit from the premium pricing typically associated with CORSIA-eligible units.

India Afforestation, Reforestation, and Revegetation (ARR) Project

During the three months ended March 31, 2025, the Company did not deploy any further capital towards the project. The first issuance of carbon credits from the project is still expected in the second half of 2025 with project registration anticipated in the near-term.

As of the date of this release, multiple Requests for Proposals (RFPs) are active for Afforestation, Reforestation, and Revegetation (ARR) projects, including from prominent buyers such as the Symbiosis Coalition and Watershed. The Company believes this momentum underscores the growing demand for high-quality carbon removal solutions and affirms its strategic focus in the space.

Investor Update Call

An investor update call will be held on Tuesday, May 27^th at 11:00 a.m. Eastern Time (EDT). The management team will provide an overview of the Q1 financial results and a commercial update via Zoom Webinar. Registration instructions are published below. The Company invites current and prospective shareholders to attend this business update call and Q&A session.

DATE: Tuesday, May 27, 2025
TIME: 11:00 a.m. EDT
LOCATION: Zoom Webinar. To receive the meeting link and passcode, please register here.
QUESTIONS: Please submit questions ahead of time to: investorrelations@basecarbon.com.

About Base Carbon

Base Carbon is a financier of projects involved primarily in the global voluntary carbon markets. We endeavor to be the preferred carbon project partner in providing capital and management resources to carbon removal and abatement projects globally and, where appropriate, will utilize technologies within the evolving environmental industries to enhance efficiencies, commercial credibility, and trading transparency. For more information, please visit www.basecarbon.com.

Media and Investor Inquiries

Base Carbon Inc.
Investor Relations
Tel: +1 647 952 3979
E-mail: investorrelations@basecarbon.com

Media Inquiries
E-mail: media@basecarbon.com

Cautionary Statement Regarding Forward Looking Information

This press release contains “forward-looking information” within the meaning of applicable securities laws relating to the focus of Base Carbon’s business, the expected issuance, and timing, of carbon credits, the application of Article 6 of the Paris Agreement and the “Article 6 Authorized Label” and market reaction thereto, the receipt of proceeds from the disposition of carbon credits, the implementation of the CORSIA framework and timing of eligibility and participation of carbon credits thereunder, the market demand and price of CORSIA eligible carbon credits, and the timing of project registration and first carbon credit issuance of the India afforestation, reforestation, and revegetation project. In some cases, but not necessarily in all cases, forward-looking information may be identified by the use of forward-looking terminology such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans” or variations of such words and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events. These statements should not be read as guarantees of future performance, results, or achievements.

Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking information are based upon reasonable assumptions and expectations, readers should not place undue reliance on forward-looking information because it involves assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking information.

In respect of the Rwanda cookstoves project and the Vietnam household devices project, certain factors that influence the commercial success of such projects, including the timing and number of expected carbon credits, include among other things: (i) the Company has retained industry leading experts/consultants/advisors to assist with the evaluation, planning, negotiation and execution of such projects, (ii) the work product, including monitoring reports, of each project’s validation and verification body, (iii) project carbon credit market prices, (iv) the verification of ongoing project monitoring reports and issuance of carbon credits by Verra, (v) changes to laws, regulation or policies in applicable jurisdictions, and (vi) the Company has sufficient funds on hand to make any required carbon credit purchase price payments.

In respect of the Rwanda cookstoves project and the Vietnam household devices project, certain assumptions that influence the commercial success of such projects, including the timing and number of expected carbon credits, include among other things: (i) distributed cookstoves and water purifiers perform to specification when used and participating households use the devices as contemplated by project estimates, (ii) the Company’s in-country project partners, being the DelAgua Group in the case of the Rwanda cookstoves project and SIPCO and the project offtaker in the case of the Vietnam household devices project, perform their obligations in connection with the development and operation of the projects, and (iii) there is no further changes in the project methodologies used by the applicable carbon credit registry or otherwise adopted by project proponents which results in less carbon credits being issuable, (iv) positive market recognition of the attributes linked to the Company’s carbon credits and acceptance of such carbon credits by emissions trading schemes, such as CORSIA (v) continued participant involvement and public support, including that of applicable governmental authorities, of the voluntary carbon market.

In respect of the India afforestation, reforestation, and revegetation project, certain factors that influence the commercial success of the project include, among other things: (i) the Company’s expertise with respect to the evaluation, planning and negotiation of the project, (ii) the conduct of the project counterparties, including cooperation with local small-land owners, (iii) project costs and carbon credit market prices, (iv) ongoing project monitoring and issuance of carbon credits by Verra, (v) changes to laws and regulation in the Republic of India, and (vi) extreme weather event and natural disasters.

In respect of the India afforestation, reforestation, and revegetation project, certain assumptions that influence the commercial success of the project include, among other things: (i) the development of the project remains in line with anticipated timelines and costs, (ii) project counterparties, including project partner Value Network Ventures Services Pte Ltd., its subcontractors and local small-land owners, perform their contractual and/or standard operating procedures, (iii) the survival of trees, (iv) the successful project validation and registration by Verra, (v) the waiver of any carbon credit ownership rights by local project participants (vi) the growth rates of trees are consistent with the expectations under the project which is then reflected by monitoring reports accepted by Verra, (vii) the Company has sufficient funds to satisfy its capital commitments, (viii) over the life of the project, there is no change to the project methodology which results in less carbon credits being issuable from the operation of such project, and (ix) continued participant involvement and public support of the voluntary carbon market.

The forward-looking statements made herein are subject to a variety of risk factors and uncertainties, many of which are beyond the Company’s control, which could cause actual events or results to differ materially and adversely from those reflected in the forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Specific reference is made to the management’s discussion and analysis for the Company’s first quarter ended March 31, 2025 and the most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities (and available on www.sedarplus.ca) for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.

Should one or more of the risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual events or results may vary materially and adversely from those described in the forward-looking information. The forward-looking information contained in this press release is provided as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.