Mr. Ben Gelfand reports

BLUESKY DIGITAL ASSETS CORP. CLOSES SECOND AND FINAL TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Bluesky Digital Assets Corp., further to its news release on April 11, 2023, announcing a non-brokered private placement of up to 14.75 million units of the corporation at a price of 4.5 cents per unit for aggregate gross proceeds of up to $663,750 (LIFE (listed issuer financing exemption) offering), has now closed the second tranche of the LIFE offering. On May 26, 2023, the corporation closed the second tranche of the LIFE offering through the issuance of 12.79 million units at a price of 4.5 cents per unit for aggregate gross proceeds of $575,550. On April 28, 2023, the corporation closed the first tranche of the LIFE offering through the issuance of 1.96 million units at a price of 4.5 cents per unit for aggregate gross proceeds of $88,200. With the closing of the LIFE first and second tranches, the corporation in total issued 14.75 million units for aggregate gross proceeds of $663,750.

Each unit consists of one common share of the corporation and one common share purchase warrant. Each warrant entitles its holder to purchase one additional common share at an exercise price of 6.5 cents per common share for a period of 24 months from the date of issue. Units in the LIFE first tranche were offered for sale to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemption, and will not be subject to any statutory hold period in accordance with applicable Canadian securities laws.

In the event that, during the period following 24 months from the closing date, the volume-weighted average trading price of the common shares exceeds 13 cents per common share for any period of 10 consecutive trading days, the corporation may, at its option, following such 10-day period, accelerate the expiry date of the warrants by issuing a press release, and, in such case, the expiry date of the warrants shall be deemed to be 5 p.m. (Toronto time) on the 30th day following the date of issuance of the warrant acceleration press release.

The corporation intends to use the net proceeds from the LIFE first tranche for (i) marketing and promotion of the corporation's blockchain engagement platform (the WEP), (ii) the development of the corporation's artificial intelligence (AI) division, Bluesky INTEL, and (iii) general working capital purposes.

In connection with the LIFE second tranche, the corporation paid a cash commission of $3,600 and issued 80,000 finder's warrants to certain eligible finders. In connection with the LIFE first tranche, the corporation paid a cash commission of $6,660 and issued 148,000 finder's warrants to certain eligible finders.

About Bluesky Digital Assets Corp.

Bluesky Digital Assets is building a high-value digital enterprise. Bluesky, in its start-up phase, mined digital currencies such as bitcoin and ether, and developed value-added technology services for the digital currency market, such as proprietary technology solutions. Offering a complete ecosystem of value-creation, Bluesky has invested appropriate portions of its previous digital currency mining profits back into its operations. A percentage of the profit was invested in the development of a proprietary AI-based blockchain technology. Over all, Bluesky takes an approach that enables the corporation to scale, and respond to changing conditions, within the still-emerging blockchain industry. The corporation is poised to capture value in successive phases as this industry continues to change, evolve and scale.

We seek Safe Harbor.