SPB Superior Plus Corp

CHARBONE Hydrogen Corporation (“Charbone”) (TSXV:CH) is pleased to announce the execution, as of May 5, 2022, of a definitive agreement with Superior Propane, a division of Superior Plus LP (“Superior” and, collectively with Charbone, the “Parties”) (TSX: SPB) for the supply, marketing, sale and distribution of green hydrogen to commercial and industrial customers located initially in Québec, Canada (the “Definitive Agreement”). Pursuant to the Definitive Agreement, the Parties will leverage their collective expertise in mobile energy distribution and green hydrogen production to bring to the market green hydrogen at competitive and affordable levels and to provide a convenient green energy option for companies looking at the energy transition, in the reduction of their carbon emissions and achieving their sustainability goals in the decarbonization of the industrial sectors.

Subject to the terms and conditions set forth in the Definitive Agreement, the Definitive Agreement starts with a preliminary term commencing on May 5, 2022, expiring on the commencement of the supply term (the “Supply Term”). The Supply Term, during which Superior shall purchase hydrogen produced at Charbone’s facility, shall commence on the date at which Charbone’s facility is first capable of producing hydrogen meeting the forecasted minimum production as set forth in the Definitive Agreement and shall end on the date that is fifteen (15) months thereafter. The Supply Term shall automatically extend for one additional five (5) year period (the "Initial Renewal Term") unless Superior provides notice of non-renewal to Charbone at least six (6) months prior to the expiration of the Supply Term. Following the Initial Renewal Term, the Supply Term shall automatically extend for additional one (1) year renewal terms on an evergreen basis unless Superior provides notice of non-renewal to Charbone at least six (6) months prior to the expiration of the then-applicable Initial Renewal Term or subsequent renewal term. Pursuant to the Definitive Agreement, Charbone will provide Superior with green hydrogen from its shovel-ready Sorel-Tracy, Québec modular and expandable facility, with initial deliveries expected in the third quarter of 2022.

Superior’s industry-leading energy distribution business, through its existing Québec business units’ network, will be responsible for the marketing, sale, and delivery of green hydrogen directly from Charbone’s facility to Superior’s existing and new customers entering the hydrogen transition. These customers include existing industrial users of hydrogen, new processes, logistics, mining, transportation, and light and heavy mobility. Under the Definitive Agreement, Superior will have the option to enter into supply arrangements and/or equity participation with respect to certain future Charbone hydrogen production facilities and Hydrogen Refuelling Stations (HRS) in the Canadian and US market. Charbone will keep the ability of developing, owning and operating “on-site”, “over the fence” or “operation-only” hydrogen production facilities servicing single end users’.

“We are excited to be working with Charbone to offer green hydrogen to customers in Québec, Canada,” said Luc Desjardins, Superior’s President and CEO. “Superior’s safety record, logistics network and best-in-class mobile energy distribution platform will enable Charbone to continue to expand its hydrogen supply business. Superior’s access to Charbone’s green hydrogen production will allow us to sell cost-effective green energy to current and new customers and aligns with our larger strategy to offer alternative energy products, including green and low carbon energy alternatives, to our customers by leveraging our existing energy distribution business.”

“The combination of Superior’s expertise in delivering portable energy solutions to a wide variety of industries with Charbone’s production of green hydrogen, will be a game changer related to availability of zero-carbon energy offerings to customers in Québec,” said Rick Carron, President of Superior.

“This exclusive supply arrangement with Superior is a highly important milestone for Charbone and sends a positive market signal, that our modular and scalable regional hub concept work in the new hydrogen market sector” said Dave B. Gagnon, Chairman and CEO of Charbone. “The Definitive Agreement will allow both parties to produce, develop, sell and distribute green hydrogen throughout an extensive network in North America and will offer Canadian industries and others, a new clean energy solution alternative to start the energy transition now”.

About Charbone

Charbone is a Canadian green hydrogen group established in North America. The company’s strategy consists in developing modular and expandable hydrogen facilities. Through the acquisition of hydropower plants in the United States of America and Canada, Charbone will be able to produce green dihydrogen molecules using reliable and sustainable energy to distinguish itself as a provider of an environmentally friendly solution for industrial and commercial enterprises.

About Superior

Superior is a leading North American distributor and marketer of propane and distillates and related products and services, servicing over 890,000 customer locations in the U.S. and Canada.

Forward-Looking Statements

This news release contains statements that are "forward-looking information" as defined under Canadian securities laws ("forward-looking statements"). These forward-looking statements are often identified by words such as "intends", "anticipates", "expects", "believes", "plans", "likely", or similar words. Specifically, this news release includes forward-looking statements regarding Charbone’s expected commercialization and supply and logistics business opportunities related to green hydrogen, Charbone’s capacity of producing hydrogen meeting the forecasted minimum production as set forth in the Definitive Agreement, and the expected completion of Charbone’s Sorel-Tracy production facility. The forward-looking statements reflect Charbone's management's expectations, estimates, or projections concerning future results or events, based on the opinions, assumptions and estimates considered reasonable by management at the date the statements are made. Although Charbone believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on forward-looking statements, as unknown or unpredictable factors could cause actual results to be materially different from those reflected in the forward-looking statements. The forward-looking statements may be affected by risks and uncertainties in the business of Charbone.

Except as required under applicable securities legislation, Charbone undertakes no obligation to publicly update or revise forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts

For further information, please contact:

Dave B. Gagnon	Daniel Charette
Chief Executive Officer and Chairperson of the Board	Chief Operating Officer
CHARBONE Hydrogen Corporation	CHARBONE Hydrogen Corporation
Telephone: +1 450 678-7171	Telephone: +1 514 980 5841
Email: dg@charbone.com	Email: dc@charbone.com

Stéphane Dallaire

Chief Financial Officer and Head of Corporate Finance

CHARBONE Hydrogen Corporation

Telephone: +1 514-234-2544

Email: sd@charbone.com