Mr. Brian Mosoff reports

ETHER CAPITAL PROVIDES CORPORATE UPDATE

Ether Capital Corp. has successfully reached a corporate milestone in its mission toward securing the ethereum blockchain in its allocation of an additional 9,120 ETH (having a current value of approximately $19.7-million) to yield-generating staking activities.

The newly staked ETH will run on the company's proprietary in-house infrastructure. This latest tranche follows an initial deployment of 320 ETH (having a current value of approximately $694,000) on its own infrastructure in July. This allocation reaffirms the company's commitment made in June, 2023, to maximize treasury exposure to staking and internalizing operations with custom-built intellectual property (IP) supporting its staking activities.

The approximately $20-million allocation of ETH to staking using proprietary infrastructure is in addition to the 36,000 ETH (having a current value of approximately $78-million) staked using a third party service provider. Year-to-date yield on the staked ETH has averaged 5.04 per cent on an annualized basis (as at Aug. 31, 2023). The price of ETH at present is up 33 per cent from the start of the year.

Brian Mosoff, chief executive officer of Ether Capital, commented: "Ether Capital remains committed to staking its treasury and using ETH as a core strategic asset to drive balance sheet growth. The company's unique structure consistently allows it to take advantage of the most attractive revenue activities, which is holding ether, staking and continuing the buildout of its proprietary infrastructure. As the digital asset ecosystem continues to evolve, staking and blockchain security remain core base layer activities that reinforce our decision to internalize the infrastructure to continue developing our institutional-grade IP to support our staking activities and be leveraged into future growth opportunities."

"Over the past 12 months, our technical team has diligently addressed the complexities of monitoring, reporting and validating within the evolving digital asset landscape," commented Jillian Friedman, chief operating officer and interim chief financial officer. "We remain well positioned, committed, and very enthusiastic about our business and where we sit in the ecosystem. With our restructuring efforts nearing completion, our near-term objectives are on track to have the company reach profitability and be cash flow positive through cost management and optimal allocation of resources."

Restructuring update

The company announced a strategic restructuring in June, 2023. This process is near completion with the majority of the cost-cutting measures having been made. The company is on track to realize a $2-million reduction in normalized operating cash expenses over projected operating expenses for the current fiscal year.

Staking generates yield denominated in ETH and yield fluctuates on a daily basis. The price of ETH is volatile, and as such, the company's future revenue from staking has the potential of being volatile as well. Note that any material reduction in the future staking revenue will have an impact on the net cash flow generated after company expenses.

Normal course issuer bid (NCIB) update

As at Sept. 12, 2023, Ether Capital has purchased and cancelled a total of 261,400 shares pursuant to its NCIB announced on June 15, 2023.

About Ether Capital Corp.

Ether Capital is a technology company within the ethereum ecosystem with a mission to be the premier access point in the public markets for investment in ethereum's native token, ether. The company generates yield on its ether treasury through staking, a process that allows ether holders to participate in securing the ethereum network and earn rewards in the form of additional ether tokens. The company's strategy is to hold and stake ether, build intellectual property related to staking and ethereum infrastructure in general, and supplement staking income with consulting and subadvisory mandates in the digital asset sector.

We seek Safe Harbor.