Mr. Akshay Sood reports

CRYPTOBLOX CLARIFIES REDWATER ACQUISITION ACCOUNTING

Cryptoblox Technologies Inc. is clarifying the accounting treatment of its acquisition of Redwater Acquisition Corp. in its interim financial statements for the periods ended July 31, 2023, and Oct. 31, 2023. As a result of a review by the B.C. Securities Commission, it is issuing this press release to clarify its disclosure.

In the company's financial statements for the three and six months ended July 31, 2023, and the company's financial statements for the three and nine months ended Oct. 31, 2023, the company reported a deemed acquisition value for Redwater of $11-million based on agreed-upon negotiated terms of the share purchase agreement.

During the company's Jan. 31, 2024, year-end audit, the company learned that the valuation was not the appropriate application of international financial reporting standards. Through discussions with the company's auditor, the company determined that the fair value of the acquisition should instead be based on a valuation methodology that takes into consideration Cryptoblox's share price at the time of close of the transaction, subject to a discount for lack of marketability (based on the Chaffe model and the Finnerty model), resulting in a revised valuation of Redwater of $2.99-million. The company reflected this corrected acquisition fair value for Redwater in its audited annual financial statements for the year ended Jan. 31, 2024. In addition, the company wrote off all the related goodwill from the acquisition of Redwater in the amount of $2,660,847 in the year ended Jan. 31, 2024.

About Cryptoblox Technologies Inc.

Cryptoblox is a blockchain technology infrastructure company, focusing on building out its diversified blockchain ecosystem strategy that consists of digital asset mining and infrastructure, mining products and technology, and structured digital asset products and blockchain payments. The company's infrastructure will be based on the value chain that stems from off-grid/alternative-energy-powered digital asset mining, along with a diversified portfolio of sustainable mining and blockchain fintech products and services enabled by both the sustainable mining products and technology and structured blockchain products and services divisions. The company will be focused on providing alternative energy solutions to power digital asset mining operations throughout North America -- with the first site being in Redwater, Alta. By using alternative energy sources and state-of-the-art operations techniques, the company will be positioned to achieve a high degree of financial optionality and long-term operational certainty, which can result in some of the cleanest and lowest-cost digital asset mining operations in the world.