TORONTO, Nov. 14, 2024 (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 third-quarter 2024 consolidated financial results and operational highlights. All financial references are denominated in U.S. dollars, unless otherwise noted.

“Base Carbon has continued to execute commercially, having achieved multiple key milestones in recent months. During the third quarter, the Company received over $11 million in cash proceeds from the sale of carbon credits. Last month, we achieved completion of planting of all 6.5 million trees for the India ARR project and from our Rwanda project the Company was issued over 1 million additional carbon credits. The Company currently has a total inventory of over 1.7 million Article 6 Authorized labeled carbon credits on balance sheet, and as we move through Q4 and look forward to 2025, we continue to be encouraged by recent positive market developments applicable to our curated portfolio of carbon projects and short-term credit inventories,” said Michael Costa, Chief Executive Officer of Base Carbon.

## Company Highlights:

- Received payments totalling approximately $11.2 million from the sale of carbon credits generated from the Vietnam and Rwanda projects. 

- Received total payments of approximately $30.0 million from the Vietnam project to date, representing full capital expenditure payback and initial returns on invested capital of approximately $9.2 million (or 43.9%) within 27 months of first dollar deployment. 

- Subsequent to quarter-end, received 1,014,635 Article 6 Authorized labeled carbon credits from the Rwanda project. The Company now holds a current inventory of 1,712,193 Article 6 Authorized labeled carbon credits. 

- Achieved key India ARR project milestone with completion of planting all 6.5 million planned project trees which are expected to generate 1.6 million carbon credits over the project life with first credit production expected in 2025. 

- As of September 30, 2024, the Company had total assets of $126.9 million, including $13.6 million in cash and cash equivalents, $9.2 million in carbon credit inventory and $101.4 million in investments in carbon credit projects.

### Financial Highlights:

<table>
  <thead>
    <tr>
      <th>in thousands of United States dollars</th>
      <th>Three months ended</th>
      <th>Three months ended</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td></td>
      <td>September 30, 2024</td>
      <td>September 30, 2023</td>
    </tr>
    <tr>
      <td>Gains on investments in carbon credit projects</td>
      <td>$2,161</td>
      <td>-</td>
    </tr>
    <tr>
      <td>Loss on carbon credit sales</td>
      <td>(79)</td>
      <td>-</td>
    </tr>
    <tr>
      <td>Total operating expenses</td>
      <td>(1,783)</td>
      <td>(1,679)</td>
    </tr>
    <tr>
      <td>Operating income (loss) for the period</td>
      <td>299</td>
      <td>(1,679)</td>
    </tr>
     <tr>
      <td>Net income (loss) before income tax</td>
      <td>360</td>
      <td>(1,745)</td>
    </tr>
    <tr>
      <td>Income tax recovery (expense)</td>
      <td>(299)</td>
      <td>-</td>
    </tr>
    <tr>
      <td>Net income (loss) for the period</td>
      <td>61</td>
      <td>(1,745)</td>
    </tr>
        <tr>
      <td>Basic income (loss) per share</td>
      <td>0.00</td>
      <td>(0.01)</td>
    </tr>
    <tr>
      <td>Diluted income (loss) per share</td>
      <td>$ 0.00</td>
      <td>$ (0.01)</td>
    </tr>
    <tr>
      <td></td>
      <td></td>
    </tr>
    <tr>
      <th>
        (in thousands of United States Dollars)
      </th>
      <th>September 30, 2024</th>
      <th>December 31, 2023</th>
    </tr>
    <tr>
      <td>Cash and Cash Equivalents</td>
      <td>$13,550</td>
      <td>$1,401</td>
    </tr>
    <tr>
      <td>Carbon credit inventory</td>
      <td>9,161</td>
      <td>-</td>
    </tr>
    <tr>
      <td>Current investment in carbon credit projects</td>
      <td>24,468</td>
      <td>34,813</td>
    </tr>
    <tr>
    <td>Non-current investment in carbon credit projects</td>
      <td>76,904</td>
      <td>102,273</td>
    </tr>
    <tr>
      <td>Total Assets</td>
      <td>$126,858</td>
      <td>$141,243</td>
    </tr>
  </tbody>
</table>

### Vietnam Household Devices Project Update

Including a payment of approximately $11.0 million received during the quarter, as of September 2024, Base Carbon has received approximately $30.0 million from the contracted sale of carbon credits generated from the Vietnam project, achieving full payback of the Company’s capital investment of approximately $20.8 million and a significant initial capital return of approximately $9.2 million, or 43.9%.

The Company expects additional proceeds of approximately $6.3 million in future payments from the project off-take arrangement within the next 12 months.

The Company has no further unfunded capital commitments to the Vietnam project.


### Rwanda Cookstoves Project Update

In August 2024, the Company completed an initial market sale of 20,000 carbon credits generated from its Rwanda project. The sale was designed as a market-based “test-trade” to ensure commercial capabilities. This initial test-trade represented less than 3% of the initial carbon credits issued to the Company as of the sale date. As of September 30, 2024, the Company held a carbon credit inventory of 697,558 Article 6 Authorized labeled carbon credits from the Rwanda project with a carrying value of $9,160,919.

Subsequent to the quarter-end, in October 2024, the Company received its second issuance of carbon credits from the Rwanda project when project developer the DelAgua Group transferred 1,014,635 Article 6 Authorized labeled carbon credits to the Company. The Company now holds an inventory of 1,712,193 Article 6 Authorized labeled carbon credits.

The Company has no further unfunded capital commitments to the Rwanda project.

In October 2024, Verra, the carbon registry for the Company’s projects, announced a significant milestone with the United Nations International Civil Aviation Organization’s (ICAO) approval of the Verified Carbon Standard (VCS) Program for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), anticipated to broaden the Company’s opportunities to participate in the market. For further details, see Verra’s [press release](https://verra.org/icao-approves-verras-vcs-program-for-corsia-eligibility/).


### India Afforestation, Reforestation, and Revegetation (ARR) Project Update

The Company, through BCCPC, executed a project agreement with Value Network Ventures Advisory Services Pte Ltd. to fund an expected $13.6 million related to the reforestation of degraded rural farmlands in the northern Indian state of Uttar Pradesh. Subsequent to the quarter-end, the Company announced the completion of planting all 6.5 million planned project trees representing the achievement of a key project milestone. The project is expected to generate 1.6 million high-quality nature-based removal carbon credits over an expected 20-year project life with the first carbon credit issuance expected in 2025.

As of September 30, 2024, Base Carbon has funded 43% of the committed project capital with all further capital commitment funding tied to achievement of specific project milestones. Project validation is ongoing with Verra, the carbon registry, with completion of the validation process expected early in the first quarter of 2025.

### 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](https://basecarbon.com/).

### Media and Investor Inquiries

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

Media Inquiries <br>
E-mail: media@basecarbon.com <br>

### _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 eligibility of carbon credits thereunder, including carbon credits generated by the Company’s projects, and the timing of project validation and continued development 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 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) 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 Advisory 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 growth rates of trees are consistent with the expectations under the project which is then reflected by monitor reports accepted by Verra, (v) the Company has sufficient funds to satisfy its capital commitments, and (vi) 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 third quarter ended September 30, 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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Base Carbon Reports Third-Quarter 2024 Operating and Financial Results  

Published on November 14, 2024

Base Carbon Reports Third-Quarter 2024 Operating and Financial Results