Big Tree Provides Update

Big Tree Carbon Inc. (BIGT) has acknowledged its failure to meet the continued listing requirements (CLR) for Tier 2 Mining issuers on the TSX Venture Exchange, specifically concerning working capital and exploration activity. The company remains on a Notice to Transfer to NEX since March 4, 2025, with a deadline of September 30, 2026, to remedy these deficiencies.

To address a working capital deficit of $754,416 as of March 31, 2026, Big Tree Carbon entered into a debt postponement agreement with four creditors. This agreement defers $1,067,959.93 until August 2028, converting the obligation to a long-term liability. The company also disclosed historical failures to properly notify the Exchange of related party and arm's length loans, and announced plans for a working capital financing and a flow-through financing in the forthcoming month.

Regarding its Lac Seul forest carbon sequestration project, the company confirmed the initiative has failed. Agreements with Blue Source Canada and Lac Seul First Nation remain active but must be formally terminated by September 30, 2026. Additionally, an accounting restatement recognized a $155,000 CDN payment from Star Royalties Ltd. as other income rather than an unearned deposit.

Big Tree Carbon Inc. (BIGT) released its most recent update, confirming ongoing regulatory and financial distress. The company failed to meet Canadian Listing Rules (CLR) criteria and admitted to governance lapses regarding loan disclosures, highlighting issues with management oversight.

While a debt postponement provides temporary working capital relief, it does not address the underlying lack of exploration activity or revenue generation. Additionally, the collapse of the carbon offset project removes a primary catalyst for the business model, leaving the company reliant on gold exploration without clear progress.

Planned financings are expected but carry dilution risk and are subject to Exchange acceptance. The news is considered routine in the context of the company's prolonged struggles but remains negative due to the confirmation of listing transfer risk and project failure.

Big Tree Carbon Inc. is a resource development company focused on Northwestern Ontario, with indigenous leadership and equity ownership by First Nations groups. Its flagship assets include the Richardson Lake gold property, which is 100% owned and covers 1,700 hectares in the Red Lake Gold Camp, as well as the Ranger Lake and Ranger East properties.

The company previously pivoted to forest carbon sequestration via the Lac Seul project, partnering with Blue Source Canada and Lac Seul First Nation, but this initiative has failed. It also holds an interest in a clean energy business via Wiigwaasaatig Energy Inc. Management includes CEO Christopher C. J. Angeconeb and a board with indigenous representation.