Mr. Sheldon Bennett reports

DMG BLOCKCHAIN SOLUTIONS REPORTS THIRD QUARTER RESULTS ENDING JUNE 30, 2023

DMG Blockchain Solutions Inc. has released its third quarter 2023 auditor-reviewed financial results.

Recent highlights:

• Revenue of $7.5-million, 195.7 mined bitcoin on 0.8 exahash per second of realized hash rate, net loss of $4.3-million and three-cent net loss per share;
• Cash and digital currency of $22.4-million in Q3, up 3 per cent quarter over quarter and 88 per cent year over year, and $1.0-million in debt;
• Completed installation of one EH/s of nameplate capacity; targeting 1.2 EH/s with additional miners to be installed by the December quarter;
• Targeting initial deployment of immersion cooling technology in the December quarter;
• Invested in additional developers for its Core+ business to accelerate development of new products.

Readers are encouraged to review the company's June 30, 2023, quarterly auditor-reviewed financial statements and management's discussion and analysis thereof for a fulsome assessment of the company's performance and applicable risk factors, available at SEDAR+.

Sheldon Bennett, DMG Blockchain's chief executive officer, commented: "In the June quarter, we focused our software effort for enabling scalability of Terra Pool, as growing our pool is foundational to our ability to generate revenue from our other software initiatives. We are also encouraged that the market for cryptocurrency has improved slightly during the last quarter, suggesting the market is in a holding pattern, as it waits for the regulators to potentially approve spot bitcoin [exchange-traded funds]."

Steven Eliscu, chief operating officer, added: "Our balance sheet has remained strong with $22.4-million of cash and digital currency, up from $21.7-million the prior quarter, and we are encouraged that our income before other items less depreciation and stock-based compensation, a proxy for operating cash flow, rose to $2.0-million or 27 per cent of revenue from 22 per cent the prior quarter. This improved liquidity position is enabling us to continue to invest in infrastructure, including power distribution equipment for our purchased mining containers, as well as equipment and materials for our first 12-megawatt tranche of immersion cooling infrastructure. This spending will enable us to have the infrastructure in place to rapidly grow to two EH/s or more with new miner purchases."

DMG Blockchain third quarter 2023 financial results and corporate update call

Company management will host a conference call to review third quarter 2023 financial results and provide a corporate update on Aug. 30, 2023, at 4:30 pm ET. Participants are asked to preregister for the call through this link. Registered participants will receive a financial results and corporate update call weblink and dial-in information in their confirmation e-mail.

As there will be no live question-and-answer session, management will address presubmitted questions during the call. Those wishing to submit a question may do so by investors@dmgblockchain.com using the subject line "Conference call question submission" through 2 p.m. ET on Aug. 30, 2023.

About DMG Blockchain Solutions Inc.

DMG Blockchain is an environmentally friendly vertically integrated blockchain and cryptocurrency company that manages, operates and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG Blockchain's sustainable businesses are segmented into two business lines under the Core and Core+ strategies and unified through DMG Blockchain's vertical integration.

We seek Safe Harbor.