Mr. Alan Grant reports

BLUESKY DIGITAL ANNOUNCES TERMINATION OF CHESSGOLD INC. TRANSACTION AND MANAGEMENT AND DIRECTOR CHANGES

Bluesky Digital Assets Corp. will not be proceeding with its proposed acquisition and fundamental change transaction with ChessGold Inc. Following a thorough review and continuing discussions, the parties have determined that they will be unable to meet the financial requirements for an equity financing as set forth by the Canadian Securities Exchange in its conditional approval and have mutually decided to terminate the share exchange agreement between the parties, previously announced on April 17, 2026.

The company and ChessGold have expressed appreciation for their collaborative efforts throughout the process and wish each other continued success in their future endeavours, as both parties pursue new opportunities. The company will resume activities in the technology sector while searching for new opportunities to enhance shareholder value.

Trading in the common shares of the company is expected to resume on the CSE upon receipt of confirmation from the CSE and the CSE issuing a bulletin announcing the resumption of trading.

Management and director update

The company also wishes to announce the departure of Ben Gelfand as a director and the chief executive officer of the company, effective Oct. 19, 2026. The company thanks Mr. Gelfand for his years of service to the company. Alan Grant, the chairman of the board, has been appointed as interim chief executive officer of the company to fill the vacancy created by Mr. Gelfand's departure.

The company is also happy to welcome back Frank Kordy to its board, effective immediately, to fill the vacancy created by Mr. Gelfand's departure. Mr. Kordy previously served as a director and the chief financial officer of the company.

About Bluesky Digital Assets Corp.

Bluesky Digital Assets is creating a 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.

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