Big Tree Carbon Provides Update on Listing Requirements and Financing

TORONTO, Ontario — August 21, 2026 — Leads & Copy — Big Tree Carbon Inc. (TSXV:BIGT), an indigenous-led publicly-traded mineral resource company, provided a market update regarding its continued listing requirement deficiencies and recent financing activities. The company is currently in danger of being transferred to the NEX board of the TSX Venture Exchange if it cannot rectify its deficiencies by the September 30, 2026 deadline.

Big Tree Carbon currently does not meet certain continued listing requirements for a Tier 2 Mining issuer on the TSX Venture Exchange. The company holds gold-focused mineral exploration properties, including the Richardson Lake Gold Property, but has not incurred any exploration expenditures on this asset for the two most recent financial years, ending December 31, 2025, and December 31, 2024. As of March 31, 2026, the company reported a working capital deficit of $754,416, failing to meet the requirement of having working capital of at least $50,000 or the amount needed to maintain operations and cover general and administrative expenses for six months.

The company has been on a Notice to Transfer to NEX since March 4, 2025, due to deficiencies in Working Capital and Activity criteria, according to Exchange Policy 2.5. Failure to resolve these issues by the final deadline of September 30, 2026, could lead to its transfer to NEX.

To address the working capital deficit and activity requirements, Big Tree Carbon has entered into postponement agreements with four creditors, concerning an aggregate of $1,130,284.61 of debt. This debt is owed to two company officers, a law firm with which an officer and director is a partner, and a former director. Through a payment of $62,324.68, approximately 5.5% of the total debt, the repayment of $1,067,959.93 has been postponed until August 17, 2028. This postponement, conditionally approved by the Exchange, converts the postponed debt to a long-term liability, thereby improving the company's current working capital position.

Combined with funds received from the settlement of the ADLP Promissory Note and the reclassification of certain historical third-party liabilities to long-term debt, Big Tree Carbon now reports a positive working capital position. The company plans to announce both a working capital financing and a flow-through financing to arrange necessary funding for its exploration programs over the coming month. These proposed equity financings, subject to Exchange acceptance, are expected to satisfy the working capital and activity requirements of Section 2.1 of Exchange Policy 2.5.

The company also provided details on advances from related parties totaling $24,061. These included $8,000 from former director Richard Nemis (since repaid), $19,541 from former director Ian Brodie Brown (partially repaid), and $1,520 from Poplar Properties Inc., a company controlled by director William R Johnstone (since repaid). The company acknowledged that it did not provide proper notices to the Exchange for these loans nor issue press releases as required by Exchange policies.

Additionally, Big Tree Carbon received $91,506.03 in aggregate from arm's length creditors via unsecured, non-interest-bearing loans between October 2023 and January 2026. The company has repaid these creditors, also noting that proper Exchange notices and press releases were not issued for these loans at the time of receipt.

Regarding its Forest Carbon Sequestration Opportunity, Big Tree Carbon previously announced a Carbon Development & Marketing Agreement (CDMA) with Blue Source Canada ULC in August 2019. This agreement aimed to collaborate on developing carbon sequestration opportunities and marketing carbon offsets with First Nations. Despite several subsequent agreements, including an Emissions Reduction Benefits Management Agreement with Lac Seul First Nation and an Adoption Agreement to develop a forest carbon project, the Lac Seul Project did not proceed. Blue Source abandoned the project due to challenges in defending its baseline model and lack of support for a harvesting program from Lac Seul's Obishikokaang Resources Corporation. Lac Seul First Nation has also indicated no further pursuit of a carbon capture project.

The company also clarified its accounting treatment for a $155,000 payment received from Star Royalties Ltd. in May 2020. This payment, initially treated as an unearned deposit, was restated in the 2024 audited financial statements as 'other income,' reflecting it as a one-time sale of a 16% gross revenue royalty. The CDMA, ERBMA, Adoption Agreement, and agreements with Star Royalties were not filed with and accepted by the Exchange at execution and, although legally active, have not been formally terminated. The company is required to formally terminate these agreements by September 30, 2026.

Big Tree Carbon Inc. is an indigenous-led publicly-traded mineral resource company based in Ontario, Canada.

Source: Big Tree Carbon Inc.