DGB N : DGB announces acceleration in signed offtake agreements to 128,000 tons of verified emission reduction in Q4

Press release

DGB announces acceleration in signed oftake agreements to 128,000 tons of verifed emission reduction in Q4

30 December 2021 | 08: 00h CET

• 1,462% increase in oftake agreements from 8,841 tons of Verifed Emission Reduction in Q3 to covering 128,000 tons of Verifed Emission Reduction at an average price of €8.84 per ton in Q4.
• Signed frst large oftake agreement for Verifed Emission Reduction worth €1.1m with a major international energy company
• Project pipeline outlook robust with 13 million tons of Verifed Emission Reduction ready for oftake agreements
• Doubled headcount with focus on bolstering software and tech expertise

Dutch Green Business Group N.V. (Euronext: DGB, "DGB" or "the Group"), announces its end of year operational statement and Q4 trading update. DGB is a leading provider of verifed emission reductions ("VERs"). Verifed emission reductions are also commonly known as carbon ofsets, carbon credits, or carbon ofset credits. Each verifed emission reduction represents one metric tonne of carbon dioxide equivalent emissions (mtCO2e).

The fourth quarter has seen a period of continued momentum as the Group pursues its strategic objective of becoming a leading high-impact investor in sustainably managed nature projects that generate VERs. DGB now holds over 13 million tons of VERs in its project pipeline making it the largest project developer of tradeable VERs in The Netherlands.

Selwyn Duijvestijn, Chief Executive of DGB, said:

"We are immensely proud of what DGB has achieved this year. Following increased awareness generated by COP26 of the net zero agenda, we have seen unprecedented demand for carbon credits which are being purchased by companies as quickly as they are being originated".

With not enough ecosystem restoration taking place to satisfy the demand for carbon ofsets to counter the 5 billion trees that are being destroyed every year, it's vital corporates participate in eforts to increase the number of reforestation projects which will help to meet

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their net zero targets. Progress seen through the projects in Sierra Leone, Paraguay, Kenya and Cameroon are helping prevent deforestation and to deliver reforestation at scale."

DGB is continuing to deliver impactful projects on the ground and generate returns for its shareholders. We are looking forward to building on this progress in 2022."

Melissa Lindsay, CEO of Emstream who facilitated the transaction, said:

"Prices for carbon ofsets rallied this year and the outlook remains exceptionally bullish with an ever growing number of corporate pledges to net zero and demand for carbon neutral commodities. Ahead of the curve, DGB is one of the few project developers playing a crucial role in helping companies meet their climate goals through its portfolio of scalable, high quality reforestation projects which focus on biodiversity."

Q4 2021 Highlights

Increase in binding oftake agreements

• In Q4 the Group signed agreements for 128,000 tons of Verifed Emission Reduction at an average price of €8,84 per ton. The total binding oftake agreements for 2021 are 136,841 tons at an average price of €9,37 per VER.
• In Q4 the Group signed its frst large purchase agreement for VERs worth €1.1 million with a major international energy company. The VERs have all been generated from DGB's reforestation investment project in Sierra Leone.
• This demonstrates clear momentum for the Group as in Q3 DGB entered into its frst binding oftake agreements, pursuant to which DGB committed to ofset 8,841 tons of carbon emissions for various business customers.

Target of 6 million carbon ofsets achieved

• In Q2 the Group set an ambitious target to expand its project pipeline to generate over 6 million tonnes of VERs in H2 2021. The Group successfully achieved this target in its fourth quarter by developing a project pipeline of 13 million tonnes of VERs across its projects in Sierra Leone, Paraguay, Tanzania, Uganda, Kenya and Cameroon.

Project milestones

• Sierra Leone: This has been a very successful project with all ofsets originated for DGB sold by forward contract. The Miro Sustainable Plantation project in northern Sierra Leone repurposes degraded land by planting carefully selected trees creating a wooded area spanning 12,000 hectares.
• Kenya: In advance of the key tree planting season in March-April 2022, DGB has ordered tissue plantlets, seedlings and seedling bags, greenhouse infrastructure, is securing required labour force for planting, identifed trees for replacement and maintenance (pruning, thinning etc). The 30-year forest project will protect critical primary forest and will generate over 13 million VCUs from it and the Cameroon project combined over a 30 year period, starting in 2023. 1 million trees will be

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planted each year. There is scope for expansion and DGB has established a Project Design Document to set verifcation of this in motion.

• Cameroon: This is a landmark initiative for the country as it is the frst reforestation project in Cameroon. Alongside the Kenya project, 6 million trees will be planted over the next three years.The projects will engage over 20,000 farmers in both countries and create employment opportunities for thousands of people in local communities. Much of the planting will be of fruit trees which will also have direct economic beneft to local farmers who will be able to sell produce. The projects will also see the manufacture and distribution of 300,000 energy-efcient cookstoves in communities where the tree planting takes place. The cookstoves will reduce the emission of carbon by more than half due to less use of charcoal and wood as the primary energy source in these local communities.

Initiated €4.5 million Convertible Green Impact Bond fundraise

• Announced the launch of a €4.5 million capital raise via a placement of a convertible loan note. Proceeds from this green impact bond will be invested in DGB's reforestation project pipeline.
• Investors in this green impact bond will receive a return of 6% per annum and the notes convert into DGB equity shares on 30 September 2025 at a price of €2.00.
• DGB currently has €2,1 million in nominal value convertible bonds issued.

Launch of carbon calculator - CO2.expert

• During the fourth quarter DGB also launched its new carbon calculator enabling SME clients to measure their carbon footprint and ofer recommendations on how to address it. The calculator has already been well received by the Company's clients.
• The CO2.expert platform has been developed to provide accurate, reliable and consistent carbon dioxide emissions analysis, combined with an easy to use, fast and efective interface. CO2.expert unites the entire carbon management process in one easy-to-use platform to help companies and individuals keep track of carbon emissions and take immediate action.
• CO2.expert is the frst platform developed by DGB's wholly-owned subsidiary, GreenTech Solutions, in collaboration with its software development company, Statix Artifcial Intelligence B.V. DGB is working on expanding its range of Greentech Solutions highlighted on biodiversity.space

Launch of new retail platform - Corekees

• DGB's retail investment ofering, Corekees, launched a new crowdfunding platform for green projects.
• Coekees is a fntech startup and this development lays the foundation for sustainable investment projects that appeal to the mass market in the Netherlands and across Europe.
• Corekees currently manages capital for more than 800 investors and companies including Blokker, SHV Energy and Vandebron.

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Finance and Corporate Governance related matters:

Under the condition that the shareholders will vote in favour of the proposal to amend the Articles of Association of the Company which results in an extension of the reporting period to 18 months until 30 June 2022, we list below a number of fnancial highlights.

To inform the market in more detail about the fnancial position and performance of the company, second semi-annual interim fnancial statements will be issued within 3 months after the second semester ending on 31 December 2021.

The oftake agreements concluded in the second semester of 2021 will lead to a cash infow upon delivery or retiring of the Verifed Emission Reduction. This is expected in the third semester of the reporting period 2021/2022. At the same time the revenue is expected to be recognised.

The calendar year 2021 has been a year of investing in the development of the company. Most investment has been made in software development, market development and structuring the Group. These investments have been fnanced by the second tranche drawdown under the investment agreement signed between the Company and a consortium of Dutch-based accredited investors. After this second drawdown the agreement has been terminated with mutual understanding.

The Company has established in the second semester three 100% subsidiaries which are also representing the lines of business which refects the strategy of the Company:

• DutchGreen Project Management BV
• GreenTech Solutions BV
• Habitat BioBank BV

Furthermore the acquisition of Static Corporation BV has been closed in the second semester of 2021 and as a result control has been transferred. The Purchase Price Allocation is in progress and will be included in the second semi-annual interim fnancial statements.

During the Annual General Meeting of 15 September 2021 two non-executive Board Members have been appointed. With the appointment of Ms. van der Meulen and Mr. den Hartog the composition of the Board is in accordance with most of the Corporate Governance rules applicable in the Netherlands.

DGB continues to participate in the global discussion around the best way to value the price of carbon ofsets - alongside leading accountancy frms - including their impact in contributing towards biodiversity and societal impact on the ground where reforestation projects are being developed.

Outlook:

• The outlook for DGB is robust, driven by increasing global demand for carbon ofsets as the world moves towards its net zero goals and by an expanding project pipeline.

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• DGB has been experiencing strong demand at premium prices for the carbon credits it expects to receive in H1 2022. Nature based carbon credits are currently trading for an average of US$14.26/credit (as seen on www.carboncredits.com).
• Carbon credit prices are rising in a market that is rapidly expanding. According to Forest Trends' EcoSystem Marketplace Initiative, transactions of credits have grown 280% between September 2020 and September 2021. This year the voluntary carbon credit market has exceeded US$1 billion as of November 9, 2021.
• DGB delivered on its strategic and operational objectives in 2021 and plans to expand its project pipeline from 13 million ofsets to over 16 million tonnes of carbon ofsets in H1 2022 - this will enable it to ofer more ofsets to a broader range of corporate clients with binding oftake agreements and retail clients.
• DGB also expects to launch its state-of-the-artcloud-based online habitat banking platform in the frst half of 2022.

Contact details:

DGB GROUP NV

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[phone] (NL)

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About DGB:

Dutch Green Business Group N.V. is a public company traded on the main Dutch stock exchange Euronext Amsterdam under the ticker symbol AEX:DGB and ISIN-code NL0009169515. DGB's strategy is to participate in large forest carbon ofset projects around the world that deliver commercial and environmental benefts. DGB's vision is to be a leading high-impact investor in sustainably managed forests by providing competitive real investment returns for shareholders combined with high social impact. www.dgb.earth

Disclaimer:

This press release does not contain (an invitation to make an) ofer to buy or sell or otherwise acquire or subscribe to shares in DGB Group N.V. and is not an advice or recommendation to take or refrain from taking any action. This press release contains statements that could be construed as forward-looking statements, including with regard to the fnancial position of the DGB Group, the results it achieved and the business (ies) it runs. Forward-looking statements are all statements that do not relate to historical fact. These statements are based on information currently available and on forecasts and

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