CHARBONE Hydrogen Accelerates Clean Hydrogen Production Through Strategic Asset Acquisition

CHARBONE Hydrogen Corporation has officially taken possession of hydrogen production and refuelling assets from Harnois Energies Inc. in a strategic transaction that will enable the company to rapidly relocate and repurpose proven hydrogen production equipment at its flagship Sorel-Tracy facility. This acquisition allows for the first production of clean ultra high purity hydrogen by early Q4 2025, significantly accelerating the company's timeline for bringing clean hydrogen to market in Quebec.

The transaction represents a crucial step in CHARBONE's mission to build North America's first clean ultra high purity hydrogen production and distribution network. By utilizing proven, already operational assets, CHARBONE expects to significantly reduce capital installation costs and accelerate time-to-market compared to deploying new systems. This approach demonstrates the company's commitment to capital efficiency while advancing clean energy infrastructure development in the region.

Under the terms of the agreement announced on September 5, 2025, CHARBONE has issued 13,333,334 common shares at $0.075 per share, representing $1 million in equity consideration to Harnois. Additional cash payments will be made in staged tranches over two years, preserving capital for growth initiatives. The structure of this transaction reflects CHARBONE's strategic approach to financing while maintaining flexibility for future expansion projects.

Harnois elected to receive a substantial portion of the consideration in CHARBONE equity at market value, underscoring their recognition of the strategic long-term benefits of aligning with CHARBONE as Quebec's leading clean ultra high purity hydrogen supplier. This equity participation creates alignment between the two companies and demonstrates confidence in CHARBONE's business model and growth prospects within the emerging clean hydrogen economy.

Dave B. Gagnon, CEO of CHARBONE, described the acquisition as a transformative moment for the company. The accelerated production timeline at Sorel-Tracy represents a significant milestone in CHARBONE's development strategy, positioning the company to capitalize on growing demand for clean hydrogen solutions across industrial and transportation sectors. The transaction structure also welcomes Harnois as a shareholder in CHARBONE's capital, further strengthening the relationship between the two energy companies.

This acquisition comes at a time when clean hydrogen is gaining increased attention as a critical component in decarbonization strategies across multiple industries. The ability to produce ultra high purity hydrogen using proven equipment provides CHARBONE with a competitive advantage in bringing clean hydrogen solutions to market more rapidly than competitors relying on new infrastructure development. The company's modular approach to hydrogen production, combined with strategic asset acquisitions like this one, supports its position as an emerging leader in North America's clean hydrogen ecosystem.