PUBC PureBase Corporation (PK)

As previously disclosed, the Company has been developing and testing a kaolin-based product that it believes will help create a lower CO2-emitting concrete through the use of high-quality supplementary cementitious materials (“SCMs”). The Company has been developing an SCM for the construction material markets, particularly the cement markets that it believes can potentially replace up to 40% of cement, the most polluting part of concrete. As government agencies, and California in particular, continue to enact stricter requirements for less-polluting forms of concrete, the Company believes there are significant opportunities for high-quality SCM products in the construction materials sector.

SCM’s are added to concrete mixtures for various reasons including improving durability, decreasing permeability, and improving the overall hardened properties of concrete. But one of the most important properties of an SCM is its ability to help reduce carbon emissions from the manufacturing of cement. One of the carbon-emissions-reducing SCMs is known as metakaolin which is considered by many construction industry experts to be a key component in the mix design of a “Green cement”. The Company currently has access to kaolin clays and is constructing a small scale (Phase 1) “calciner” which will allow the Company to process such kaolin clays into “metakaolin” which becomes an SCM which that can be added to commercial cement production.

Reduction of carbon emissions from the manufacturing of cement has become a high priority for the federal government and many states such as California to address this goal to reduce carbon emissions, California passed Senate Bill (SB) 596 in September 2021. California SB596 requires the California Air Resources Board (CARB) by July 1, 2023, to develop a comprehensive plan to reduce greenhouse gas emission from the cement sector. The Company believes it could potentially be well positioned to participate in achieving California’s emission reducing goals by providing its metakaolin-based SCM to commercial cement producers particularly those located in and around California.