Carbon Streaming Corporation provided an update on the status of the Forest Utilization Business License (the ?Concession License?) at the Rimba Raya project. On April 26, 2024, the Company announced that it was informed of two third-party media reports that claimed that PT Rimba Raya Conservation (?PT Rimba?), the local concession holder for the Rimba Raya project, had its Concession License revoked by the Indonesian Government?s Ministry of Environment and Forestry (the ?MOEF?). The Company has since learned that the Concession License was revoked by the MOEF through an administrative decree that was issued only to the addressee and is therefore not a publicly accessible document.

InfiniteEARTH Limited and its Indonesian subsidiary PT InfiniteEARTH Nusantara, the project proponent of the Rimba Raya project (collectively ?InfiniteEARTH?), with whom the Company had previously entered into the carbon credit streaming agreement covering the Rimba Raya project (the ?Rimba Raya Stream?), has operated the Rimba Raya project through a series of agreements with PT Rimba, its local partner in Indonesia and the direct legal holder of the concession rights granted by the Indonesian Government pursuant to the Concession License. The Company confirmed the revocation of the Concession License by the MOEF through details about the decree published on the MOEF website in March 2024. PT Rimba has publicly stated that it has complied with Indonesian regulations on carbon trading and otherwise disputed the basis of the revocation of the Concession License, and the Company has confirmed that PT Rimba has filed a claim against the MOEF challenging the revocation of the Concession License before the State Administrative Court of Jakarta.

In connection with such challenge, PT Rimba has also filed requests for the suspension of the implementation of the MOEF decree in respect of the revocation of the Concession License pending judicial determination of such appeal (which relief, to the knowledge of the Company, has not been granted to date). A final ruling from the State Administrative Court of Jakarta is currently anticipated during June 2024 (which ruling is subject to potential appeal by the parties). Based on MOEF documentation and records of the State Administrative Court of Jakarta, the Company has determined with its advisors that the Concession License was revoked by the MOEF on the basis that PT Rimba had transferred the Concession License to a third party without MOEF approval, that its carbon trading activity covered a land area greater than the area covered by the terms of the Concession License, and for non-payment of certain non-state revenue taxes payable to the MOEF under applicable Indonesian regulatory requirements.

Carbon Streaming is assessing the ongoing situation and is engaged with its partners and local advisors. Carbon Streaming has been advised by InfiniteEARTH that it is taking steps in respect of the revocation of the Concession License and is also seeking clarifications from the MOEF as to the current status of the Concession License and the ramifications of the revocation, including on the status of InfiniteEARTH as the project proponent of the Rimba Raya project under the government-operated carbon registry, Sistem Registri Nasional Pengendalian Perubahan Iklim (?SRN?), and the impact on their rights to both historical and future credits as established through the collaboration agreement with PT Rimba. At the present time, the Company is evaluating all legal avenues to protect its investment in the Rimba Raya project and to strictly enforce its legal and contractual rights under the Rimba Raya Stream.

In addition, Carbon Streaming will also continue to work closely with InfiniteEARTH on its active engagement with its local partners, the MOEF and the Indonesian Government to attempt to preserve the continuity of the Rimba Raya project.