“In 2024, Base Carbon continued to deliver on its business plan by generating strong free cash flow, enhancing the value of its carbon credit inventory and further expanding the embedded optionality across our portfolio. Our key efforts over the year were to (i) actively manage and begin monetization of our portfolio of assets, and (ii) lay the groundwork that will underpin our next phase of growth and capital deployment. Within our current portfolio, 2024 was a year of transition from asset underwriting and capital deployment to operational management and monetization,” said Michael Costa, CEO of Base Carbon.

“As we progress and execute on our growth strategy, we remain keenly focused on our equity cost of capital. Throughout the year, our growth capital was primarily allocated towards share repurchases under our NCIB where we strongly believe in the long-term accretive value of these purchases on both a fundamental basis as well as on an optionality basis. With broader softness in carbon and environmental industrials capital markets, the Company through its track record, expertise and meaningful cash position is uniquely positioned to capitalize on this market dynamic. This cyclical weakness in environmental markets presents a unique opportunity for the Company to begin deploying capital into high expected return situations, in a manner consistent with our thorough underwriting, with attractive risk reward characteristics that we believe to be accretive to the long-term value of the Company,” Costa added.

Outlook

Despite cyclical headwinds within carbon markets, including near-term commercial and perception-based challenges, Base Carbon remains confident in the sector’s long-term fundamentals, particularly in the end-markets where we maintain active, risk-aligned exposure. We continue to see strong validation of our disciplined approach through proven free cash flow generation, the strength of our asset base, and commercial optionality embedded in our portfolio.

Base Carbon retains an option to expand or extend our investment in the Vietnam household devices and India ARR projects, which could meaningfully scale production and returns. We continuously evaluate and re-underwrite these options based on our equity cost of capital, market conditions and expected risk-adjusted returns. Management views these options as compelling growth levers given the operational success of both projects to date.

Base Carbon continues to progress a diversified but highly-focused portfolio set through novel capital allocations via three key channels: organic expansions, thesis-driven growth, and inbound opportunities. While no new capital deployments were announced in 2024, this is a reflection of our intentional focus on portfolio quality, timing, and market discipline rather than strategic inertia or lack of opportunity. We believe our improved capitalization and track record provide a strong foundation to pursue attractive growth opportunities in 2025 and beyond.

Looking ahead, Base Carbon is focused on nature-based and technology-based removals, aligned with growing demand for high-integrity and compliance-aligned credits. We are also actively evaluating mature biochar opportunities across North America and see this as a key growth driver of our long-term capital allocation strategy.

Furthermore, as Base Carbon’s shares continue to trade below the value of its cash plus its carbon credit inventory⁴, as well as at a significant discount to both, book value and equity research estimates, we remain committed to enhancing shareholder value through opportunistic buybacks under our NCIBprogram. In addition, the Company is exploring complementary capital market-based strategies which align with our disciplined approach to capital allocation and long-term value creation.

Rwanda Cookstoves Project Update

In 2024, the Rwanda cookstoves project issued and delivered over 1.7 million Article 6 Authorized carbon credits to BCCPC. These credits, valued at approximately $25 million, were reclassified from current investments to carbon credit inventory.

In Q4 2024, Verra released an updated methodology (VM0050) for cookstove projects, enhancing the accuracy of emission reduction calculations and aligning with the latest scientific standards. Shortly thereafter, it was confirmed that Verra-issued credits under the new VM0050 methodology may be eligible for the first phase of the Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA”) compliance program.

The Company and DelAgua Group, the project developer, are working collaboratively to maximize the value of the carbon credits, and believe that participation in CORSIA could drive significant pricing upside and position the project as a leader in high-integrity, compliance-aligned carbon reduction endeavors.

Base Carbon and DelAgua initiated the process to transition the Rwanda cookstoves project and its future issuances to the updated methodology, and based on the latest update from DelAgua, CORSIA eligibility is expected to be confirmed in Q3 of 2025.

With respect to the current inventory of 1.7 million Article 6 Authorized carbon credits, Base Carbon retains the right, but not the obligation, to re-quantify these credits under the VM0050 methodology. While the existing credits remain valuable as non-double counted Article 6 Authorized carbon credits, re-quantification could lead to eligibility for CORSIA, further enhancing their value.

The Rwanda cookstoves project is fully funded and requires no further capital from the Company.

Vietnam Household Devices Project Update

During the year ended December 31, 2024, Base Carbon, through BCCPC, received total net cash payments of approximately $28.0 million from the delivery and monetization of carbon credits generated by the Vietnam household devices project. This amount reflects both a realized gain and a derecognition of a portion of the investment’s financial asset balance. Since inception to date, the Company has received approximately $35.2 million in aggregate cash payments from the sale of carbon credits, representing a full repayment of capital deployed ($20.8 million) and an initial cash gain of approximately $14.4 million, generating a return of over 69% on invested capital since the initial capital deployment in May of 2022.

As of August 2024, the Company had fully funded its contractually committed capital to the project.

India Afforestation, Reforestation, and Revegetation (ARR) Project Update
During the year ended December 31, 2024, all 6.5 million project trees were planted, within 14 months of deal execution in August 2023. The first issuance of carbon credits from the project is expected in the second half of 2025, contingent on the completion of key development milestones, including the finalization of the project design document and successful project registration and verification. Over its anticipated 20-year life, the India ARR project is expected to generate approximately 1.6 million nature-based removal carbon credits.

To date, Base Carbon, through BCCPC, has deployed approximately $6.1 million in project capital, including $1.7 million during the year ended December 31, 2024, in line with required milestones completed by in-country project partner, Value Network Ventures Services Pte Ltd. (“VNV”). An additional $7.5 million is expected to be deployed through 2032, the deployment of which is directly tied to milestone-based conditions precedents such as on-time project registration and first issuance of carbon credits. Remaining capital commitments are comprised of $3.1 million in growth capital and $4.4 in maintenance capital, and the latter is expected to be fully funded through revenues from carbon credit sales.

Following expected credit issuance, this will mark Base Carbon’s third project brought online within a two-year span, an accomplishment delivered amid challenging market conditions. Importantly, the project will mark the Company’s entry into the nature-based carbon removals segment, which has seen increasing market demand and liquidity.

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.

2024 Year-end Financial Results

As at December 31, 2024, the Company had total assets of $112.1 million, primarily comprised of $14.8 million in cash and cash equivalents, $69.9 million in investments in carbon credit projects and $25.6 in carbon credit inventory. The Company had total liabilities of $9.1 million comprised primarily of deferred income tax liabilities.

In 2024, the Company recorded a net loss of $28.9 million, of which $45.0 million was due to unrealized losses on investments in carbon credit projects, with $28.0 million attributable to realized gains. Adjusted comprehensive income for the period was $18.2 million, representing a $24.2 million increase year-over-year when compared to an adjusted comprehensive loss of $6.2 million in 2023.

Primary operating expenses in 2024 were attributable to consulting fees ($1.1 million), professional fees ($0.9 million), salaries and wages ($2.9 million), and general and administrative expenses ($1.0 million).

Pursuant to Base Carbon’s NCIB program, which was renewed on June 21, 2024, a total of 8,695,696 shares were purchased and cancelled during the year-ended December 31, 2024.

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.

Non-IFRS Accounting Standards Measures

This press release contains non-IFRS financial measures. The Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company's performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. Moreover, the presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein has an actual effect on the Company's operating results.

Adjusted Comprehensive income (loss) for the period, including per share amounts, is calculated as comprehensive (loss) income for the period and adjusted for (i) the unrealized (losses) gains on investments in carbon credit projects, (ii) share of loss on investment in associate and (iii) loss on investments at fair value. Adjusted comprehensive income (loss) for the period is used by the company to monitor its results from operations for the period.

For a full reconciliation of the non-IFRS financial measures referenced in this press release to their closest IFRS equivalents, please refer to the Company's Management's Discussion and Analysis (MD&A) for the year ended December 31, 2024.

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 validation and first carbon credit issuance of the India 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 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 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 registration and validation 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 monitor 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 year ended December 31, 2024 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.

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¹ “Adjusted Comprehensive Income (loss) for the Period” is a non-IFRS metric and for information on why it is used and a reconciliation to the most directly comparable measure under IFRS see the “Non-IFRS Accounting Standards Measures” section below and the Company’s MD&A for the year ended December 31, 2024.
² At an exchange rate of C$1.4389 per US$ exchange rate, as at December 31^st, 2024.
³ As of close of business, March 31^st, 2025.
⁴ Cash and cash equivalents as at December 31, 2024: ~US$14.8 million, Inventory as at December 31, 2024: ~US$25.6 million, equivalent to ~US$0.37 (C$0.54) per basic share.