Mr. Ben Gelfand reports

BLUESKY DIGITAL ASSETS ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OFFERING OF UP TO C$1,000,000. COMPLETES FIRST TRANCHE CLOSING FOR C$210,000

Bluesky Digital Assets Corp. has started a non-brokered private placement raise of up to 8,333,333 units of the corporation at a price of 12 cents per unit for aggregate gross proceeds of up to $1-million which will be offered for sale to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions.

Each unit consists of one common share of the corporation and one common share purchase warrant. Each full warrant entitles its holder to acquire one additional common share at an exercise price of 15 cents per common share for a period of 24 months following the closing of the offering. Any shares issued upon the exercise of the warrants will be subject to a hold period of four months and one day from the date of issuance.

The corporation may pay registered persons a finder's fee comprising 8 per cent of the gross proceeds of the offering in cash, and such number of non-transferable finders' warrants which equals 8 per cent of the number of units. Each finder's warrant shall entitle the holder to acquire one common share at a price of 15 cents per finder's warrant share for a period of two years from the date of issuance. Other than being non-transferable, each finder's warrant shall otherwise be on the same terms as the warrants. The units, shares, warrants, warrant shares, finders' warrants and finder's warrant shares are collectively referred to herein as the securities.

All securities issued in connection with the offering will be subject to a statutory hold period expiring four months and one day after the closing.

The closing of the offering is expected to occur on or about July 14, 2025, and is subject to customary closing conditions and regulatory approvals, including the approval of the Canadian Securities Exchange (the CSE).

The corporation intends to use the net proceeds from the offering to further advance its AI development and on-line gaming endeavours and for general working capital purposes.

The corporation is pleased to also announce that the corporation has closed the first tranche of the non-brokered private placement and has issued 1.75 million units at a price of 12 cents per unit for gross proceeds to the corporation of $210,000. All securities issued are subject to a statutory hold period of four months and one day from issuance. The corporation paid a cash finder's fee of $12,000 on the first tranche and issued 18,000 finders' warrants.

About Bluesky Digital Assets Corp.

Bluesky Digital Assets has created a high-value digital enterprise at the intersection of artificial intelligence, blockchain and Web3 business solutions. Leveraging its success as an early adopter providing proprietary technology solutions, Bluesky has invested in its road map. Bluesky's platform, BlueskyINTEL, is well positioned to leverage the current exponential growth of artificial intelligence (AI) and blockchain-based technologies through a tightly focus built collaborative platform. This innovative Web platform offering supports and better enables businesses to adopt and utilize these emerging and developing technologies.

We seek Safe Harbor.