April 1, 2026 – Toronto, Ontario – Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp., is pleased to provide its year-end letter to shareholders from Chief Executive Officer, Michael Costa. Unless the context otherwise requires, all references in this letter to the “Company”, “we”, “us” and “our” refers to Base Carbon Inc. and its subsidiaries, collectively.

**Dear Fellow Shareholders,**

Base Carbon may carry the label of a junior company, but the business has never operated like one. Junior companies are typically reliant on capital markets to fund themselves and often price large binary risks. A fellow CEO once put it well: junior companies are liabilities until they become assets. We generate free cash flow¹, are not reliant upon capital markets to fund our business, and have a multi-asset project portfolio. Base Carbon is different.

We delivered our Rwanda and Vietnam carbon projects on time and on budget and continue to progress on our most recent India project, both steadily and systematically. We have generated return of capital in excess of our institutional financing in November, 2021². Since that raise we have repurchased over 20% of shares outstanding³ and we have never sold a share as a public company. We carry no debt and ended the year with a cash balance equivalent to roughly 10% of our current market capitalization⁴.

We see significant margin of safety in our enterprise: We ended 2025 with assets valued at roughly US$109 million, yet the market is currently pricing the entire Company at approximately US$57 million⁵. That is roughly fifty cents on the dollar for a business that continues to execute in a difficult market. Additionally, the majority of our investments in carbon credit projects are being discounted at a blended annual rate of over 15%, resulting in one dollar received in four years being carried at $0.57 in our year-end accounting valuation. **In a business with long-duration assets, the arithmetic speaks for itself.**

### What underpins that arithmetic are our three high-quality projects: 

**Rwanda Cookstoves Project:** In February 2026, our Rwanda Cookstoves Project achieved CORSIA-eligible tagging, and first compliance sales were completed, making us among the first global suppliers into aviation’s mandatory offsetting framework. CORSIA requires airlines globally to offset growth in aviation emissions above 85% of 2019 levels. CORSIA is often incorrectly painted as a derivative of the Paris Agreement, when it is actually a treaty-based framework under the International Civil Aviation Organization. The United States deliberately withdrew from the Paris Agreement twice: first in 2017 and again in 2025. On neither occasion did the administration choose to withdraw from ICAO or CORSIA⁶. When a sovereign has opted into the program, locally domiciled airlines become obligated, regulation-driven price takers, with Phase One CORSIA demand (covering emissions years 2024 through 2026) estimated at 146 to 236 million credits⁷ with independent pricing estimates ranging from US$26 to US$63 per tonne⁸. 

The Rwanda project is now a steady, compliance-grade asset generating CORSIA-eligible carbon credits on a regular cadence with approximately 2.6 million⁹ further carbon credits anticipated in future issuances on a regular bi-annual cadence. As of the date of this report, the Company holds a significant inventory of approximately 1.1 million VM0050 carbon credits plus roughly 680,000 carbon credits held by our project partner, the DelAgua Group, pursuant to the project agreement and revenue sharing arrangement. We are opportunistically engaged in active sales processes on a portion of the Company’s inventory. **We believe that the proceeds of Rwanda inventory sales will allow us to accelerate growth and further value accretion for our shareholders.** 

**Vietnam Household Devices Project:** The project has completed Phase 1, which fully returned the Company’s invested capital and has generated over US$15 million of returns on capital to date. In Phase 2, we retain the option to purchase all future carbon credits generated on a yearly basis at US$5.00 per carbon credit, subject to certain buyback options at attractive prices materially higher than our option price¹⁰, over a production window extending to 2032. Following the implementation of Verra’s updated VM0050 methodology, Phase 2 is projected to generate an estimated 7.6 million carbon credits. Upon execution, our expansion option is expected to produce an additional 4.7 million carbon credits at highly attractive rates of return, payback, and risk/reward characteristics. In aggregate, the project’s total potential production is approximately 19.7 million carbon credits across all phases. **Phase 2 and the expansion option represent the next phase of value creation from a proven asset with a proven partner.**

**India ARR Project:** This project represents Base Carbon’s entry into large-scale, nature-based carbon removals. We believe it will produce high-quality, price-inelastic carbon with an end-market buyer universe comprised of the largest companies in the world, with active carbon purchase programs sized at a fraction of their overall businesses. All 6.5 million planned trees have been planted, and the project is transitioning to Verra’s VM0047 methodology with application for the ABACUS quality designation. Similar to the transition to VM0050 from VMR0006 for our household devices projects, we believe the transition to VM0047, as well as the potential for an ABACUS label, leads to better economic outcomes and a more robust buyer base. Based on current project plans, we anticipate the potential issuance of approximately 1.2 million carbon credits over the applicable crediting period, with potential upside in the crediting profile under VM0047. With the transition to the enhanced methodology, we expect first crediting from the project in early 2027 and are beginning to actively engage with high-credit-quality end-market buyers for offtake. **Embedded within the project are two contractual expansion options, each for 10 million additional trees each being exercisable over the full 20-year project life.**

### Collectively, our three projects form the base of a de-risked, cash-generating platform with significant embedded expansion. We believe the risk of the next dollar committed is materially less than the first.

Going forward, we see material price upside in our projects, as the markets in which we participate remain supply constrained, particularly for high-integrity and high-quality projects. We do not expect significant downside to current market pricing, however, should this scenario occur, we believe our Company will continue to generate positive free cash flow¹ at carbon credit pricing well below current compliance benchmarks.

Our share repurchase program remains active and our balance sheet remains intact. The expansion of Base Carbon, whether through contractual options within our existing projects or novel opportunities as they arise, represents potential near-term, materially accretive growth for our business. **As we build the next chapter of Base Carbon, we see a path to meaningful growth without needing to access capital markets.**

Every Base Carbon shareholder owns a portion of a substantially discounted enterprise. What the arithmetic cannot capture, however, is the going concern value of this platform: the institutional knowledge, the track record, and what it took to deliver this business while navigating challenging markets for both junior companies and environmental market risk. **We have shown what this team can deliver when faced with significant headwinds; we are eager to show what it can do with the wind at its back.**


_“The impediment to action advances action. What stands in the way becomes the way.”_
_— Marcus Aurelius, Meditations_

**We are grateful for your continued partnership.**

Sincerely,

__**Michael Costa**_
 
_Chief Executive Officer_
 
_Base Carbon Inc.__




### About Base Carbon

Base Carbon provides capital, development expertise and management operating resources to projects involved in the global carbon markets. We endeavor to be the preferred carbon project partner in providing capital and management resources to carbon removal and reduction 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](https://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 
 
 
 
_¹ Free cash flow is a non-IFRS metric._
 
_² Institutional Financing means the brokered private placement closed December 2021 with proceeds of approximately C$50.0M (US$36.5M at a USD/CAD rate of $1.3706 as at December 31, 2025)._
 
_³ Purchased and cancelled over 25.6M shares as of December 31, 2025._
 
_⁴ Cash of US$5.7M as of December 31, 2025, relative to a C$79.8M market cap and USD/CAD rate of $1.3939 as at March 31, 2026._
 
_⁵ US$57.2M Market Capitalization based on a share price of C$0.79 per share and a USD/CAD rate of 1.3939 as at March 31, 2026 and approximately 101 million shares outstanding as at March 31, 2026._
 
_⁶ US Withdrawal from Paris Agreement Raises Questions Over CORSIA Credit Supply and Demand. January 2025. Available at: fastmarkets.com_
 
_⁷ Source: IATA, IATA and Industry Partners Urge Governments to Expedite Release of CORSIA Eligible Emissions Units, September 2025. Available at: iata.org._
 
_⁸ Source: MSCI, 2Q25 Carbon Credit Markets in Review, CORSIA Phase I Review and Outlook, July 2025. Available at: msci.com._
 
_⁹ 3.3 million credits as of December 31, 2025, less issuance in March 2026_
 
_¹⁰ If we exercise this option to buy the additional carbon credits, we may then sell such carbon credits to either SIPCO, pursuant to a buyback option (two thirds of which may be for offtake to Citigroup Global Markets Limited) or into the open market (or a combination thereof)._
 
 
### 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 future application of Article 6 of the Paris Agreement, the Article 6 Authorized label, the CORSIA-eligible label and the ABACUS label and market reaction thereto, the ability to monetize or sell carbon credits and the receipt of proceeds from the disposition of carbon credits or revenue sharing arrangements, future cashflows and discount rates, the implementation of the CORSIA framework and timing of eligibility and participation of carbon credits and carbon credit methodologies thereunder, the market demand and price of CORSIA-eligible carbon credits, the ability to transition the India afforestation, reforestation, and revegetation project methodology to VM0047, the timing of project registration and first carbon credit issuance of the India afforestation, reforestation, and revegetation project and the potential exercise of contractual expansion options for the Vietnam cookstoves project and 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”, “sees”, “intends”, “contemplates”, “believes”, “projects”, “plans”, “seeks” 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, (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 (such as project methodologies and changes thereto) and acceptance of such carbon credits by emissions trading schemes or compliance programs such as CORSIA, and (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 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 year ended December 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._




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Base Carbon Annual Letter to Shareholders

Published on April 01, 2026

Base Carbon Annual Letter to Shareholders