Charbone talks up milestone hits at Sorel-Tracy site

Mr. Benoit Veilleux reports CHARBONE HYDROGEN PROVIDES UPDATE ON FLAGSHIP SOREL-TRACY PROJECT, ACHIEVING MULTIPLE KEY MILESTONES THIS WEEK Charbone Hydrogen Corp. has provided an update on substantial construction progress and infrastructure connections at its flagship Sorel-Tracy project. Electrical interconnection completed Earlier this week, a Hydro-Quebec team completed the electrical interconnection of the site. This involved connecting the distribution network to the first pole installed on site, following the installation of the Hydro-Quebec metering station three weeks earlier. Energy can now flow from the Hydro-Quebec grid along the site's overhead power lines to the production area, paving the way for equipment installation. Water supply infrastructure installed Meanwhile, the Sorel-Tracy Water Department finished excavating and installing piping to link the Charbone site to a 14-inch main water line. This connection will ensure enough water capacity to support all five planned project phases. With both key inputs for electrolysis-electricity and water -- now secured, the site is prepared to start hydrogen production once the equipment installation is finished. Civil construction under way Heavy civil construction equipment has arrived on site, and Charbone's general contractor and subcontractor teams have begun work. Surveyors have finished all necessary site markings for the construction of buildings and production areas in preparation for the arrival of production equipment in the upcoming weeks. Environmental stewardship During site preparation, the Quebec Ministry of the Environment (MELCCFP) identified a rare and endangered plant species -- the Three-awn grass -- on a small part of the property. In collaboration with experts from Tetra Tech, Charbone successfully relocated and protected the plant, ensuring it has a dedicated habitat on the site. "This update marks the completion of three critical milestones for our team," said Dave Gagnon, president and chief executive officer of Charbone. "We are proud of the progress to date and remain on track to commence production this fall." Closing of shares for debt financing Charbone is pleased to announce the closing of shares for debt settlements amounting to $118,095. The company has settled with a arm's-length supplier $118,095 of payables through the issuance of shares. A total of 1,968,254 shares will be issued pursuant to the closing, at a conversion price per unit of six cents. The company believes that the settlement of the payables through the issuance of securities is appropriate to advance towards production for its Sorel-Tracy project and the overall need to manage its cash prudently. A formal agreement will reflect any debt settlement and will be subject to the approval of the TSX Venture Exchange. Any securities issued pursuant to a debt settlement will be subject to a statutory four-month hold period in Canada. Update on closing $1.5-million (U.S.) in convertible notes Following the exchange's review of the closing of $1.5-million (U.S.) ($2.1-million) convertible notes announced on Dec. 4, 2024, Charbone will issue 2,109,900 warrants to the placement agent. Each warrant entitles the holder to purchase one additional common share of the company at an exercise price of 10 cents or United States dollar equivalent. About Charbone Hydrogen Corp. Charbone is an integrated company specialized in ultrahigh-purity (UHP) hydrogen and the strategic distribution of industrial gases in North America and the Asia-Pacific region. It is developing a modular network of green hydrogen production while partnering with industry players to supply helium and other specialty gases without the need to build costly new plants. This disciplined strategy diversifies revenue streams, reduces risks and increases flexibility. The Charbone group is publicly listed in North America and Europe on the TSX Venture Exchange, the OTC Markets and the Frankfurt Stock Exchange. We seek Safe Harbor.