Carbon Transition : 2022 Q4 Carbon Transition Earnings release

CONTENTS

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1 CEO statement

Energy price volatility has continued and has been exacerbated by the conflict in Ukraine as well as the recent lifting of the COVID shutdowns in China. Rising global inflation has impacted monetary policy and increased the risk of economic recessions around the world. In spite of this market uncertainty, we continue to see growing capital investment in the oil and gas industry. Underspending over the past several years and a growing demand for energy security is driving exploration and development. In addition, with oil and gas prices at current levels, the industry is generating record profits and the major E&P companies report a substantial increase in spending for 2023. With the growing investment in the oil and gas sector, we see strong interest in our seismic data and we now report our second write-up of USD 7.0 million for the library.

In the fourth quarter, we announced another multi-client late sale from the Utsira survey to an existing customer. In addition to a one-time payment, the license sale provides for significant additional future revenues relating to set

milestones. Subsequent to quarter end, we also announced a multi-client seismic data licensing contract for the Utsira survey with a new customer.

In December we announced the reprocessing of the Utsira survey, backed by the major operators in the area. The reprocessing has demonstrated significant improvements in subsurface imaging. Preliminary results were shown at the NCS Exploration Strategy conference in Stavanger in November of last year and highlights the substantial advancements generated. We believe the upgraded Utsira survey data will be crucial in optimizing existing and new production in the Utsira area.

With respect to the Gulf of Suez survey, this data set is a significant upgrade from the previously available seismic data. We made the first late sale from the survey in Q3 2022 and there are currently multiple drilling decisions made based on the survey. Positive results from these efforts would most likely have a near-term positive impact on future sales from the survey. Current high oil prices should also increase interest in utilizing the improved data set.

Concerning the investment portfolio, we took a non-cash USD 4.3 million write-down of the book value in the fourth quarter. This reduction was a result of the write-down of our position in Britishvolt, where Carbon Transition had invested USD 1.7 million (NOK 15.2 million).

Dolphin Drilling continued to deliver with a new contract in Nigeria at a day rate of approximately USD 325,000 per day, including local mobilization. Following this contract addition, Dolphin Drilling has secured back-to-back backlog for the Blackford rig for up to over two years. In light of the shortage of available semi-submersible rigs, we believe Dolphin Drilling is very well positioned for the upturn in this current E&P cycle.

CO2 Capsol started operation of the first CapsolGo unit at Öresundskraft´s waste-to- energy facility in Helsingborg. The company also announced a 12-month contract for

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two CapsolGo campaigns in Germany, where CO2 Capsol is seeing a significant demand increase. The US Inflation Reduction Act is also a major driver for growth in the North American market.

Going forward, we will continue our expanded investment focus and take a broader view of the opportunities we evaluate. In light of market volatility, we will take an opportunistic approach with respect to investment decisions.

Cash net income for the period was USD 1.9 million and available liquid funds were USD 11.2 million. The company's net asset value was NOK 2.00 per share at the end of the quarter.

Nils Haugestad, interim CEO

2 Events during the quarter

• Fair value of multi-client library USD 37.5 million

• 1. Includes second write-up of Utsira survey of USD 7.0 million
  1. Total multi-clientwrite-upsyear-to-date of USD 12.6 million
• Announced reprocessing of the Utsira survey, backed by the major operators in the area
• USD 2.5 million Utsira late sale (net to Carbon Transition) with significant additional future revenues based on agreed trigger events
• Non-cashUSD 4.3 million write-down of investment portfolio
• 1. Write-downof Britishvolt investment primary contributor

• • 1. Invested USD 1.7 million (NOK 15.2 million)
  • Cash earnings USD 1.9 million for the quarter
  • Available liquid funds of USD 11.2 million*
  • Net asset value NOK 2.00 per share
• Bank deposits, trade receivable and marketable securities

3 Subsequent events after the quarter

• USD 0.5 million (net to Carbon Transition) multi-client seismic data licensing contract with a new customer

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4 Key financial indicators

*Bank deposits, trade receivable, marketable securities less payable for repurchase of own shares **Net asset value per share; total assets - total liabilities divided by number of shares

5 Business overview

5.1. Multi-client

The seismic multi-client data business model is frequently the preferred way to access seismic data for petroleum exploration and production (E&P) companies. The seismic data is licensed by E&P companies to assist in the discovery and development of petroleum resources. The Group's return on investment from its multi-client library

is seen through the life span of the data; from its early stage with revenues coming from the pre-funding by E&P companies during the execution of the program, through subsequent late sales after the seismic images are processed and available.

The Group's multi-client data is targeting near-field exploration, where production infrastructure is in place and where E&P companies need high-quality seismic data to unlock existing and new resources. In these production fields, oil and gas can be developed with lower cost, environmental impact and emissions.

In the fourth quarter of 2022, our multi-client business line, Axxis Multi Client, announced several milestones, such as the announcement of the Axxis/CGG

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