Big Tree Carbon Inc. Postpones Related Party Debts to Improve Working Capital

Toronto, Ontario — August 18, 2026 — Leads & Copy — Big Tree Carbon Inc. has announced that certain related party debts, totaling $1,130,284.61, have been postponed for two years, extending the repayment deadline to August 17, 2028. This strategic move is expected to convert the postponed debt into a long-term liability, thereby improving the company's current working capital position.

The postponement agreements were entered into on August 17, 2026, with four creditors, including two officers of the company, a law firm associated with an officer and director, and a former director. In exchange for a payment of $62,324.68, approximately 5.5% of the total debt, the remaining $1,067,959.93 will be deferred.

Under the terms of the agreement, the postponed creditors will not have the right to demand repayment or take any enforcement actions regarding the deferred debt until August 17, 2028. This restructuring, combined with funds received from the settlement of the ADLP Promissory Note and the reclassification of some historical third-party liabilities, has resulted in Big Tree Carbon Inc. achieving a positive working capital position.

A significant portion of the postponed debt, amounting to $994,168.93, involves three officers and directors of the company. This is classified as a related party transaction under Multilateral Instrument 61-101. However, it is exempt from the valuation and minority shareholder approval requirements due to financial hardship exemptions under sections 5.5(g) and 5.7(1)(e) of MI 61-101. The company asserts that these postponements are necessary to improve its financial standing and are reasonable given the circumstances, particularly the goal of achieving a positive working capital position.

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

Source: Big Tree Carbon Inc.