Charbone Corporation drawsdown $1.5 million from convertible loan facility

Varennes, Quebec, September 2, 2026, CHARBONE Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47), a vertically integrated industrial gases company focused on clean ultra-high purity ("UHP") hydrogen and other strategic gases, has announced the drawdown of $1.5 million from its $10 million convertible loan facility. This move is part of a broader strategy to scale hydrogen production and expand its industrial gas platform across North America.

The loan, structured as a multi-drawdown secured facility, allows CHARBONE to access capital in a disciplined manner, aligned with its operational milestones at the Sorel-Tracy project and across its industrial gases platform. The $1.5 million drawdown, representing half of the second drawdown of up to $3 million, is subject to the approval of the TSX Venture Exchange and is expected to be completed shortly.

According to Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE, "This drawdown reflects RiverFort's ongoing confidence in our execution to date. The convertible loan structure provides us with the flexibility to grow without diluting our shareholder base. Our approach prioritizes non-dilutive and low-dilution financing, which aligns with our commitment to delivering value for our shareholders."

The Convertible Loan is part of CHARBONE’s broader strategy to scale hydrogen production capacity. The funds will be used to accelerate the development of clean UHP hydrogen production plants, support capital expenditures and equipment deployment, and provide general working capital to drive near-term growth initiatives.

Key terms of the Convertible Loan include: - A total facility size of up to $10 million, structured in multiple drawdowns. - The initial $3 million drawdown closed on April 29, 2026, with half of the second $3 million drawdown currently in the closing process. - The remaining $4 million will be available during the term of the agreement. - Drawdowns are repayable over 18 months, with interest at 12% per annum, payable in cash every four months. - Conversion options for half of the second drawdown, allowing for the issuance of units at a conversion price of $0.196875 per unit. - Warrants exercisable for a period of 48 months, subject to a maximum of five years from the Convertible Loan closing date. - Security provided through a first-ranking hypothec over all present and future movable property of the company.

CHARBONE Corporation is dedicated to providing accessible, decentralized clean hydrogen and specialty gases, supporting the global transition to a lower-carbon economy. The company serves a range of sectors, including semiconductors, artificial intelligence and data centers, advanced pharmaceuticals, and aerospace and defense technologies.

Benoit Veilleux added, "We remain focused on delivering value for our shareholders through operational performance. Our approach to financing aligns with our strategic goals, ensuring that we can scale our operations while minimizing dilution to our shareholder base."

RiverFort Global Opportunities PCC Ltd, the lender, provides debt and equity-based capital to high-growth companies and operates from offices in London, Australia, Gibraltar, and a strong presence in Europe and Canada. The company has executed over $15 billion of growth financing transactions, emphasizing mutually beneficial partnerships.