Argo Living Soils Corp. announced the successful completion of the first phase of the Memorandum of Understanding (MOU) previously signed on April 9, 2024 with Connective Global SDN BHD ("Connective Global"), a Malaysian-based company. Under the terms of the executed MOU, Argo and Connective Global have agreed to jointly conduct research and development of biochar for agricultural and industrial applications at University Putra Malaysia (UPM).

This collaboration aims to develop biochar-enhanced products tailored for distribution in Southeast Asia and the Middle East. Pursuant to the executed MOU, Connective Global has secured the research facilities of University Putra Malaysia for Argo and Connective Global to carry out their joint research. The research and development of products will be conducted over a period of up to 12 months.

In consideration of Connective Global securing the R&D facilities at UPM, Argo will issue, subject to applicable securities laws and exchange approval, 250,000 common shares of Argo to Connective Global. Argo reported that Connective Global has already secured and delivered 20 tonnes of biomass from palm oil processors to University Putra Malaysia. The university will process this biomass into base biochar material as a proof of concept.

Argo has committed to funding a total of CAD 100,000 for research and development and issuing up to one million common shares to Connective Global in stages, based on achieving certain performance milestones in the research and development phase, subject to applicable securities laws & exchange acceptance. While attending meetings in Malaysia with Connective Global at University Putra Malaysia, senior representatives from Argo further defined the research and development program and objectives with Connective Global and UPM. This has led to the identification of multiple organic biochar-enhanced products previously developed by University Putra Malaysia, which have immediate commercial applications.

The refined research and development program aims to extend the extensive work previously completed at the university, creating a suite of organic biochar- enhanced products for both agricultural and industrial markets, proprietary to Argo. Argo will own all intellectual property developed, or created by the parties during the R&D phase. Upon achieving successful results from this R&D program, Argo and Connective global anticipate formalizing a commercial production agreement, transitioning from research to practical application.