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Based on the public information we had access to, this is a broad investigation by the Federal Police and the Federal Prosecution Service, on a fraudulent scheme within notary offices and official bodies of the federal and state governments, also involving landowners, all in the state of Amazonas.

The illegalities investigated include the issuance of official documents certifying ownership of areas, as well as licenses for livestock and logging activities.

The investigation involves several landowners in the region, including 3 of the 55 landowners for whom Carbonext provided carbon credit project development services.

When Carbonext develops a carbon project, it carries out land due diligence on the properties on which the projects will be developed.

For these steps, it uses documents issued by official bodies that are presented to the company by the owners of the areas, as is done with the vast majority of transactions involving properties, such as rental contracts and leases.

Therefore, Carbonext's responsibility is restricted to checking documents that have public faith, in addition to activities linked to the carbon project: preparing carbon project reports, registering the project and marketing the credits generated.

Carbonext was not involved in Operation Greenwashing. Upon learning of the operation through the media, it contacted the authorities to support the investigations.

Carbonext has already notified the owners of areas involved of the termination of contracts, based on the Compliance terms. We are evaluating appropriate legal measures.

We understand that police and Federal Prosecution Service investigations can contribute to improving the business environment in the Amazon Region. Therefore, Carbonext applauds the actions of the authorities.