Carbon Streaming Announces Update on the Status of the Rimba Raya Verra Account and Concession License

TORONTO, May 21, 2024 (GLOBE NEWSWIRE) -- Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) today provided an update on the status of the Rimba Raya project’s Verra account and its Forest Utilization Business License (the “Concession License”).

On May 17, 2024, Verra temporarily suspended InfiniteEARTH Limited and its Indonesian subsidiary PT InfiniteEARTH Nusantara, the project proponent of the Rimba Raya project (collectively “InfiniteEARTH”), registry account for the Rimba Raya project. Verra has written to InfiniteEARTH, with whom the Company had previously entered into the carbon credit streaming agreement covering the Rimba Raya project (the “Rimba Raya Stream”), to seek clarification on several matters, including the revocation of the Concession License by the Indonesian Government’s Ministry of Environment and Forestry (the “MOEF”), and the status of InfiniteEARTH’s role in the Rimba Raya project and its relationship with PT Rimba Raya Conservation (“PT Rimba”), the local concession holder for the Rimba Raya project. InfiniteEARTH was given seven days to respond, after which Verra will determine whether any further action is required under its program rules and requirements.

On May 16, 2024, the State Administrative Court of Jakarta issued an interlocutory decision for the MOEF to suspend the implementation of the MOEF decree in respect of the revocation of the Concession License. This suspension will allow activities at the Rimba Raya project to resume until a final and binding decision on the revocation of the Concession License.

As previously announced, a final decision from the State Administrative Court of Jakarta is currently anticipated during June 2024 (which decision is subject to potential appeal by the parties). If the parties appeal the decision, the suspension would remain in place during the appeal process until there is a final and binding decision that has permanent legal force, unless there is another stipulation from the court that states otherwise. As a result, the duration of the suspension is unknown at this time.

For the Company’s most recently completed financial period, the three month quarter ended March 31^st, 2024, the Company determined the fair value of the Rimba Raya Stream to be nil due to the Concession License revocation. The Company will re-evaluate the fair value of the Rimba Raya Stream in the event there is a change in the facts and circumstances surrounding the Rimba Raya project, the revocation of the Concession License and the Indonesian national carbon emission regulations. The Company is continuing to evaluate 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.