Company Name Change, Vertical Integration into Technology Enabled Project Monitoring, and Intention to Dual List on London's AIM Market

VANCOUVER, BC, March 4, 2024 /CNW/ - Klimat X Developments Inc. ("Klimat X" or the "Company") (TSXV: KLX) (FSE: Q1C) is undertaking a transformational partnership to become the world's first listed, vertically integrated carbon project developer creating high value, technologically enabled credits. 

Highlights:

Name change and technology licensing and purchase right.

• Klimat X name to change to ("CARBON DONE RIGHT"), aligning its business vision and mission with new AI technologies and simplified strategic rainforest planting focus and radical transparency.
• The partnership will enable the Company to unlock the full potential of existing smallholder rainforest planting projects by leveraging proprietary technology to create high value, best in class carbon credits that offer positive ecological and social outcomes
• The Company has already secured c. 57,000 ha of forest and mangrove in Sierra Leone and intends to use CQS to significantly expand the land area in West Africa, where 90% of the of land for reforestation is owned by smallholders
• Premium pricing in voluntary carbon markets is being driven by trust, traceability, and transparency – 'CARBON DONE RIGHT' will be able to ensure its credits remain a premium product
• The Company has entered into an operating, licensing and purchase option agreement with Carbon Done Right, a tech-enabled, carbon quantification platform dedicated to supporting small farmers that own land used for carbon projects. 

Dual listing on AIM

• The Company is seeking a dual listing of its shares on London's AIM market, which the Company believes will open it up to a new pool of investors and future growth funding options.
• In advance of the dual listing, the Company has secured a convertible bridge financing from a number of parties for professional fees related to the process.
• AIM admission process is expected to conclude by early Q2 2024.

Rationale and benefits of technology and company name change

The Company recognises that confidence in the voluntary carbon markets has been eroded due to the poor practices of others. This has included low levels of transparency among carbon project managers and poor deals for governments of developing countries, despite them holding most of the world's nature-based assets.

The Company believes it can lead the way for best industry practice through the utilisation of Carbon Done Right's proprietary remote sensing and monitoring technology called the Carbon Quantification System (CQS™). Carbon Done Right has been created by the KLX team and the AI technology is expected to be a significant advancement in the precision, traceability and accountability of the Company's carbon credit generation process. To fully align its business vision and mission with the new technology and simplified strategic focus and radical transparency, the Company believes it is now logical to change its name to Carbon Done Right.

CQS™ tracks, via satellite, each tree the Company plants and uses tree level proprietary AI models that monitor the health of each tree and accurately track carbon sequestration data for farmers and customers. The technology will also connect with smallholder farmers to ensure the value the Company creates from the sales of carbon credits is shared fairly with land owning families and that farmers get paid quickly using automated payment tools.

The Company's most advanced existing projects in Sierra Leone aggregate land leases from smallholder farmers who own unproductive, degraded land and undertakes large scale restoration projects to plant a broad mix of native tree species. Land leases are secured under independently monitored Free and Prior Informed Consent rules. The Company has planted 1400 ha of forest to date and 14 ha of mangrove and has a previously announced pre-purchase agreement in place with BP Carbon Trading to plant a minimum of 5000 ha that is expected to produce up to 1.9 million tonnes of carbon credits over 30 years.

The Company intends to expand operations in Sierra Leone beyond the 57,000 ha that have been secured to date to at least 100,000 hectares and will transfer the same model to other countries across Africa, starting in Ghana and Liberia. Approximately half of all land suitable for restoration in Africa is held by smallholders.

Proposed Dual Listing on AIM

The Company also announces today its intention to complete a dual listing of its shares on London's AIM market.  The Board believes that AIM will give the Company access to a new, large pool of institutional and retail investors, providing future growth funding options and complementing its existing listing on TSX-V. In advance of the dual listing, the Company has secured a convertible bridge financing of USD300k from a number of parties. The Company has appointed advisers and expects the admission process to complete by early Q2 2024. Further updates will be provided in due course.

Commenting on the news, James Tansey, CEO, said: "We are committed to providing quality, transparent carbon credits and simplifying the offset buying process. The incorporation of proprietary technology will see us become a vertically integrated business active in nature-based projects, reflecting our mission to provide our buyers extraordinary levels of trust and traceability along all aspects of the carbon offset supply chain and live by our name Carbon Done Right. This is an exciting moment for the Company and coupled with our AIM dual listing plans, we look forward to updating on further progress soon."  

Kevin Godlington, President (designate), commented: "Carbon Done Right's unique Carbon Quantification System ™ is going to provide unprecedented insights into forest change and carbon capture at the individual tree level. We are delighted to change our name to reflect the technology as we align our business mission with its values of innovation and transparency.  We are excited to soon be integrating this technology into our flagship projects in West Africa and deliver greater benefits to smallholder landowners and their communities."

About 'CARBON DONE RIGHT'

'CARBON DONE RIGHT' is rainforest planting tech company and carries on the business of developing validated and verified carbon credits from afforestation and reforestation of degraded land areas and marine ecosystems, including mangroves, for sale into international voluntary carbon markets. In contrast to streaming and royalty companies, 'CARBON DONE RIGHT' works upstream as a direct owner and operator of projects, addressing a key supply constraint in the current market and the rapidly growing demand for carbon credits in global voluntary and regulated markets. The Company intends to achieve this by investing in the exploration, restoration and management of terrestrial and marine systems that can either be protected to enhance the sequestration of greenhouse gases or restored from a degraded status to fully productive ecosystems. 'CARBON DONE RIGHT' will draw on the experience of a senior executive team and board that provide access into key target jurisdictions through relationships in the mining and natural resources sectors, combined with decades of experience in carbon markets. 'CARBON DONE RIGHT' plans to deploy capital at risk under various arrangements (including cooperation, assignment, and production sharing agreements) with large landowners and governments in various suitable jurisdictions around the world.

The company also announces that it intends to settle an aggregate of C$45,234.47 of indebtedness owed to a certain arm's length creditor through the issuance of 301,563 common shares at a deemed issuance price of C$0.15 per share. The indebtedness relates to professional services rendered to the Company. The Company determined to satisfy the indebtedness with common shares in order to preserve its cash for working capital.  The common shares will be issued concurrent with this release. All common shares issued in satisfaction of the indebtedness will be subject to a four month hold period from the date of issuance. 

On behalf of the Board of Directors

"James Tansey"
James Tansey
Chief Executive Officer

&

Kevin Godlington
PRESIDENT
CARBON DONE RIGHT

Cautionary Note Regarding Forward Looking Statements

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

This press release contains forward-looking statements and forward-looking information (collectively "forward looking statements") within the meaning of applicable securities laws. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "will", "intends" "expects" and similar expressions which are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the company's dual listing in the UK and the acquisition of various technology licenses. and the ongoing business of the Company. Klimat X cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of Klimat X including expectations and assumptions concerning the Company and the risks associated with launching and operating a technology based product. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Klimat X. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this press release are made as of the date of this press release, and Klimat X does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

SOURCE KLIMAT X Developments Inc.

Klimat X Developments Inc., James Tansey, Chief Executive Officer, Email: [email protected], http://www.klimatx.com; CARBON DONE RIGHT, [email protected], www.carbondoneright.com; Yellow Jersey PR, Charles Goodwin, [phone]; Annabelle Wills, [phone], [email protected]