CHARBONE Closes $1.5 Million Draw on Convertible Loan Facility

Varennes, Quebec — September 8, 2026 — Leads & Copy — CORPORATION CHARBONE (TSXV: CH; OTCQB: CHHYF; FSE: K47), a company specializing in industrial gases and focused on the production, distribution, and storage of Ultra High Purity (UHP) hydrogen and other strategic industrial gases, announced the closing of a $1.5 million tranche from a previously announced convertible loan facility. This represents half of the second draw, which has a maximum amount of $3 million, available to the company before six months after the closing of the initial draw of the $10 million secured convertible loan facility.

The company has successfully completed the second draw of $1.5 million under the convertible loan agreement with Riverfort Global Opportunities PCC Ltd. This facility is structured as a secured, multi-draw credit facility, with additional tranches available to CHARBONE during the term of the agreement, subject to customary conditions and mutual agreement.

CHARBONE can make a further draw of up to $1.5 million, as part of the $3 million allocated for the second draw of the convertible loan.

The total loan facility is secured and provides up to $10 million through multiple draws. The first draw of $3 million was completed on April 29, 2026. From the second draw, with a maximum of $3 million, $1.5 million has now been drawn. The remaining $1.5 million can be drawn by the company before six months after the first draw's closing date, contingent on mutual agreement.

An additional $4 million from the $10 million facility may be drawn by CHARBONE in a single tranche during the loan term, subject to mutual agreement with RiverFort and standard conditions stipulated in the convertible loan agreement.

Draws under the convertible loan are available for three years, with each draw having an 18-month repayment period. The maturity dates are October 29, 2027, for the first draw and March 4, 2028, for the second $1.5 million draw.

Interest is set at 12% per year, payable in cash every four months, with default interest capped at 24%.

The $1.5 million draw is convertible at the lender's option into units comprising one common share of CHARBONE and 0.3 common share purchase warrants. The conversion price is $0.196875 per unit. If not converted earlier, 10% will be repaid at six months, 20% at 12 months, and 70% at maturity (18 months).

Any securities issued upon conversion of the loan principal will be subject to a four-month statutory holding period in Canada from the closing date. Each whole warrant issued as part of the $1.5 million draw will allow for the acquisition of an additional common share of CHARBONE at a price of $0.236250 per share. This exercise period extends for 48 months, up to five years from the convertible loan's closing date of April 29, 2026.

The facility is secured by a first-ranking mortgage on all present and future movable property of Charbone Hydrogène Québec Inc. (Sorel-Tracy project) and Charbone Hydrogen Corporation.

A 5% implementation fee on the draws was paid in cash upon the closing of each draw.

Following the closing of the $1.5 million draw, RiverFort holds a total principal amount of $4.5 million due under the convertible loan facility. CHARBONE and RiverFort will continue to assess subsequent draws based on the company's equity funding needs.

The convertible loan is a key component of CHARBONE's strategy to increase its hydrogen production capacity and expand its industrial gas platform in North America. The $1.5 million funds are designated for accelerating the development timeline of CHARBONE's UHP clean hydrogen production facilities, supporting capital expenditures and equipment deployment, and providing general working capital to expedite short-term growth initiatives.

“With this financing round now finalized, we are focused on implementing our strategies to maintain our sustained growth trajectory,” said Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE. “The funds raised are being directly invested in our priorities in Sorel-Tracy and across our industrial gas platform, and we remain committed to achieving the objectives we have communicated to our shareholders.”

RiverFort provides capital, both debt and equity, to high-growth companies. It is an international firm with offices in London, Australia, and Gibraltar, possessing a strong presence in Europe and Canada, employing a multi-sector, global approach. RiverFort aims to create mutually beneficial partnerships between its alternative funding sources, including co-investors from family offices, and the companies it invests in.

CHARBONE is a vertically integrated industrial gas company focused on developing and operating a regional network of logistical platforms for the production, storage, and distribution of UHP strategic industrial gases. The company serves clients in sectors including semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense, where UHP gases are critical for high-precision manufacturing and operational performance.

CHARBONE is developing a network of UHP clean hydrogen production facilities in North America and select international markets. Its modular, decentralized, and demand-driven approach, combined with its integrated storage and distribution platform for all UHP gases, supports controlled growth, enhances operational flexibility, and enables more stable and diversified revenue generation.

This model allows CHARBONE to effectively supply mid-sized industrial clients with a reliable supply of UHP gases, including hydrogen, helium, oxygen, and other high-demand gases, which are often challenging to source reliably on a regional basis. The company is committed to supporting the global transition to a low-carbon economy by providing accessible, decentralized clean hydrogen and specialty gases, while addressing supply gaps for underserved industrial clients and accelerating the transition to local clean energy.

Source: CORPORTION CHARBONE