Mr. Ben Gelfand reports

BLUESKY DIGITAL ASSETS ANNOUNCES CORPORATE UPDATES AND PROVIDES CORRECTIVE DISCLOSURE

Further to the press releases dated July 8, 2025, and July 15, 2025, Bluesky Digital Assets Corp. has provided the following corrective disclosure.

Corrective disclosure

On July 8, 2025, the corporation disclosed its intention to complete a non-brokered private placement offering of up to 8,333,333 units at a price of 12 cents per unit for aggregate gross proceeds of up to $1-million. Each unit was to consist of one common share in the capital of the corporation and one common share purchase warrant. Each warrant was to entitle its holder to acquire one additional common share at an exercise price of 15 cents per warrant share for a period of 24 months from the date of issuance.

In addition, in connection with the offering, the corporation was to pay eligible finders a finder's fee composed of 8 per cent of the gross proceeds of the offering in cash, and such number of non-transferable finder's warrants which equals 8 per cent of the number of units equal to the gross units issued. Each finder's warrant was to entitle its 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 was to be on the same terms as the warrants.

The units, common shares, warrants, warrant shares, finders' warrants and finders' warrant shares are collectively referred to herein as the securities.

Initial tranche

On July 8, 2025, the corporation announced that it had closed the initial tranche of the offering, effective July 8, 2025, through the issuance of 1.75 million units for gross proceeds of approximately $210,000; however, the corporation actually closed the initial tranche, effective July 14, 2025. In addition, the corporation incorrectly disclosed that it had issued eligible finders an aggregate amount of 18,000 finders' warrants in connection with closing the initial tranche; however, the corporation actually issued eligible finders an aggregate amount of 100,000 finders' warrants.

All securities issued in connection with closing of the initial tranche were subject to a statutory hold period of four months and one day from the date of issuance.

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

Second tranche

On July 15, 2025, the corporation announced that it had closed the second tranche of the offering, effective July 14, 2025, through the issuance of an additional 1.2 million units for gross proceeds of approximately $100,000; however, the corporation actually issued an additional 833,333 units. Therefore, combined with the initial tranche, as of July 14, 2025, the corporation had issued an aggregate of 2,583,333 units for aggregate gross proceeds of approximately $310,000. No finders' fees were paid in connection with the second tranche.

All securities issued in connection with closing of the second tranche were subject to a statutory hold period of four months and one day from the date of issuance.

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

Third and final tranche

In addition, the corporation wishes to announce that, effective Aug. 15, 2025, the corporation closed its third and final tranche of the offering through the issuance of an additional 2,199,999 units for gross proceeds of approximately $264,000. No finders' fees were paid in connection with the final tranche.

All securities issued in connection with closing of the final tranche were subject to a statutory hold period of four months and one day from the date of issuance.

In connection with the offering, the corporation: (i) raised aggregate gross proceeds of approximately $574,000 through the issuance of a combined 4,783,333 units; and (ii) paid eligible finders $12,000 in cash and issued an aggregate 100,000 finders' warrants. 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.

June 30, 2025, financial statements and management's discussion and analysis

The company wishes to announce that it has refiled its financial statements and management's discussion and analysis for the three and six months ended June 30, 2025, to correct errors identified subsequent to their original filing. These corrections do not impact the company's overall financial position or cash flows materially.

About Bluesky Digital Assets Corp.

Bluesky 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- 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.