BluSky, an innovative entry into the carbon removal clean technology sector, is pleased to announce that it has executed a preliminary strategic partnership agreement with Carbonpave USA, LLC (“Carbonpave”) on September 3rd, 2025, aimed at commercially deploying Carbonpave’s proprietary technologies throughout North America.

Carbonpave is a technology-based company that develops and produces construction and industrial materials at scale – these materials use biochar and engineered carbon as a critical ingredient. According to the Carbonpave, their cold asphalt mix can reduce the cost of new road construction and resurfacing by up to 40%, allowing paving even in temperatures as low as -8ºC. Their cold asphalt technology has built over 1,000 km of roads globally and is already in use in the southern United States for private roads, parking lots, and state roads. The technology is currently undergoing further certifications from various state Departments of Transportation.

Under the agreement, BluSky is responsible for securing funding for an initial joint production facility. To this end, BluSky is engaging project financiers to invest $4.75 Million USD into the initial facility. Upon securing an initial financing commitment, BluSky and Carbonpave will incorporate a Joint Venture (“JV”) with BluSky to own 70% and Carbonpave to own 30%. The JV will hold the exclusive commercial right to utilize Carbonpave’s technologies across North America and will pay a small royalty fee to Carbonpave.

In the event of the issuance of new shares in the JV, both BluSky and Carbonpave will experience proportional dilution of their respective ownership interests. All intellectual property (“IP”) contributed by each party to the JV will remain the sole property of the contributing party. However, any new IP developed by the JV during its operation will be exclusively owned by the JV.

The parties have agreed to cooperate on Carbonpave’s existing customer and business development pipeline throughout North America. Additionally the parties have agreed to not compete throughout North America for sale of products produced by the JV.

The JV will build its initial production facility onsite at BluSky’s AR1 facility in Arkansas. The JV will lease a Vulcan Heavy pyrolysis unit from BluSky. Additionally, the JV will purchase BluSky’s Vulcan II unit for research and development purposes. BluSky will use additional Vulcan units to fulfill local agricultural biochar offtakes at the AR1 facility.

Carbonpave is led by Andre van Zyl. Mr. Van Zyl graduated in 1986 as a Chemical Engineer from the Vaal University of Technology in South Africa. He has substantial experience in process plant design and implementation for the steel, water treatment, mineral processing and mining industry in Africa, Asia, and South America. For the past 15 years he has focused substantially and has acquired specialized knowledge

and skills in road surfacing technology, especially in the development, manufacturing, and installation of environmentally friendly emulsified cold road premix material for new urban and remote infrastructure development areas. During the last 5 years, he has been instrumental in the further development and re-design of low carbon footprint construction technology to suit the specific climatic, geotechnical and problematic soil conditions as viable and cost-effective infrastructure development.

Under the agreement, BluSky, with Carbonpave’s assistance, has until February 18th, 2026 to secure the initial funding commitment. Once this has been secured, the JV will be finalized under a Joint Venture Agreement under the terms laid out above. With success in North America, BluSky and Carbonpave may expand the geographic scope of their JV or form additional joint ventures.

Will Hessert, CEO of BluSky Carbon comments, “Carbonpave cold asphalt lets companies pave months more out of the year, reduce their material costs dramatically, and helps them win contracts by lowering their carbon footprint. I fully believe this technology will create demand for millions of tons of biochar across the United States and Canada and will transform how modern countries build infrastructure.”