Klimat X Developments Inc. provided an update on current activity from fieldwork in Sierra Leone and Suriname. The Company has completed initial fieldwork supporting the previously announced Suriname mangrove project under an agreement with the Government of Suriname. Extensive fieldwork, sampling from around 100 sites indicated that the mangroves are currently producing methane due to lower salinity levels.

A project that restores natural salinity levels would reduce this highly potent greenhouse gas and could potentially generate significant volumes of carbon credits. The Company expects to announce the results of this modelling work within the next 4 weeks. In Sierra Leone, the company is preparing for the planting season for the Sierra Leone Rewilding project and expects to plant 200 ha by the end of June and at least 800 ha by the end of the rainy season.

The indigenous species' seedlings for this year's planting will be secured through a combination of owner operated nurseries and local nursery partners. The company expects to finalize the investment by a large corporate buyer in June as announced in the term sheet on April 17, 2023. This within the original timeframe anticipated to pre-purchase credits from the first 5,000 of planting in Sierra Leone.

Klimat X has completed the latest extensive period of fieldwork in the mangrove project site in the Scarcie Estuary in Sierra Leone. Led by Silvestrum Climate Associates, the fieldwork focused on understanding the theory of change that establishes the additionality case for a carbon project and is based on interviews and research with the communities within the degrading mangrove area. The fieldwork also significantly improved the underlying model of soil and above ground biomass production and carbon storage in the mangrove ecosystems, which is key for understanding the total carbon production from the conservation of the project site.

This latest round of fieldwork is key to completing the draft Project Documentation necessary to secure pre-purchase agreements. The Company planted around 14 hectares of black and red mangroves in late 2022 within test sites and continues to record strong growth within those areas. A nursery has been established and based on the results of the 2022 test planting, the Company expects to be able to complete 300ha planting of mangrove propagules and seedlings between September and December 2023.