Mr. Adam Ingrao reports

Lyken.AI Enters Non-Binding MOU with FingerMotion and BlueFlare to Support Enterprise AI Infrastructure Strategy

Alset AI Ventures Inc.'s 90.1-per-cent-owned cloud compute business, Lyken AI Computing Inc., operating as Lyken.AI, has entered into a non-binding strategic memorandum of understanding dated Sept. 2, 2026 (the MOU), with BlueFlare Energy Solutions Inc. and FingerMotion Inc.

Further to FingerMotion's Aug. 27, 2026, announcement of its strategic plan with BlueFlare, the MOU establishes an indicative implementation framework for the demand side of that plan. It is intended to connect Lyken's enterprise AI and high performance computing (HPC) client opportunity pipeline and platform-as-a-service requirements with potential modular behind-the-meter (BTM) capacity evaluated or developed under FingerMotion's existing BlueFlare alliance, initially in Western Canada and in other jurisdictions the parties may agree upon.

Preferred demand-to-capacity matching framework

Subject to the existing FingerMotion-BlueFlare framework, other existing obligations, third party rights, technical fit and project-specific definitive agreements, the parties intend to provide Lyken with early visibility into potential future BTM capacity being evaluated or developed through FingerMotion's BlueFlare alliance and a preferred opportunity to present and match qualified enterprise workloads to that capacity. Lyken would be able to present prospective client requirements -- including jurisdiction, workload, power density, deployment timing, networking, storage, security and service-level needs -- so that the parties can assess whether an opportunity within the existing development platform may provide an appropriate deployment path.

The preferred framework relates to demand matching and project evaluation only. It does not reserve, allocate or guarantee capacity, grant Lyken exclusivity or create a right of first refusal, option or ownership interest in any site, power asset or project. Any priority, capacity allocation, commercial right or project commitment would arise only under a definitive agreement for the applicable site or customer opportunity.

Three complementary roles

• Lyken -- The customer-facing demand and managed-services layer, including enterprise client origination, workload qualification, compute architecture, managed compute, server and token optimization, secure storage, private low-latency networking, and enterprise deployment support.
• FingerMotion -- The contemplated owner-operator and project sponsor, leading evaluation of project ownership, commercial structures and project-level capital, subject in each case to definitive agreements and required approvals. FingerMotion has not committed to finance any project under the MOU.
• BlueFlare -- FingerMotion's primary Western Canadian development partner for BTM site origination and qualification, natural-gas and other agreed power solutions, design and engineering, modular construction, commissioning, load management, and continuing energy and site operations.

Strategic alignment with FingerMotion

FingerMotion completed its acquisition of a 9.9-per-cent interest in Lyken from Alset on Aug. 17, 2026. On Aug. 27, 2026, FingerMotion publicly described its owner-operator strategy, BlueFlare's role as its primary development partner for BTM AI and HPC infrastructure across Alberta, British Columbia and Saskatchewan, and Lyken's role as the customer-facing path to contracted enterprise workloads and managed services. The MOU is intended to operationalize that demand-side connection. It supplements, and does not amend, replace, supersede or expand, the existing FingerMotion-BlueFlare memorandum of understanding or any other agreement among the parties. Those existing agreements continue to control their subject matter, including any rights, restrictions or exclusivity provisions.

"Power availability is increasingly the gating item between enterprise demand and operating AI infrastructure1," said Adam Ingrao, chief executive officer of Alset AI. "This MOU is designed to operationalize the customer-facing role for Lyken that FingerMotion described in its August 27 strategy, while preserving FingerMotion's owner-operator direction and BlueFlare's development mandate. It gives the parties a disciplined way to assess where Lyken-originated workloads may fit within that existing platform."

"We have consistently viewed Lyken and BlueFlare as complementary parts of the same enterprise AI infrastructure strategy," said Jolie Kahn, chief executive officer of FingerMotion. "This framework advances the plan we announced on August 27: FingerMotion evaluates projects as contemplated owner-operator, BlueFlare remains our primary development partner in Western Canada, and Lyken contributes the customer-facing path to qualified enterprise workloads and managed services. We can then determine, project by project, which opportunities warrant capital and definitive agreements."

"BlueFlare's platform is built to originate and deploy power-backed modular infrastructure in Western Canada," said Landon Ruszkowski, chief executive officer of BlueFlare. "Within our existing development alliance with FingerMotion, Lyken can contribute qualified enterprise workloads and managed-service requirements. The framework is intended to focus development activity on opportunities where site readiness, power, customer demand and project financing can come together."

Project-by-project development

The parties expect to evaluate opportunities on a project-by-project basis, with FingerMotion leading the evaluation of owner-operator, commercial and project-capital structures for opportunities it may sponsor and BlueFlare leading or co-ordinating development work within its existing mandate. Potential definitive agreements may address site control, fuel supply, power generation, engineering, procurement and construction, equipment and compute procurement, hosting or managed services, customer off-take, service levels, operations and maintenance, project ownership, financing, security, regulatory approvals, and economic allocation. The MOU does not establish pricing, minimum capacity, revenue, capital commitments, ownership percentages or development schedules.

The MOU is non-binding and non-exclusive and records the parties' present intentions only. It does not alter the existing FingerMotion-BlueFlare relationship or obligate any party to finance, acquire, develop or operate a project; reserve, provide, purchase, or take power or compute capacity; enter into a customer, financing or other commercial agreement; or continue negotiations unless and until applicable definitive agreements are executed. Advancement of any opportunity would be subject to, among other matters, site and power availability, technical and commercial due diligence, customer credit and binding offtake, financing, corporate approvals, applicable exchange acceptance, permits and regulatory approvals, fuel and equipment availability, networking and connectivity, and compliance with applicable laws, including export-control, sanctions, know-your-customer, end-user and end-use requirements. There can be no assurance that the parties will negotiate or enter into any definitive agreement, or that any project or customer opportunity contemplated by the MOU will be financed, developed, completed or become operational.

About Lyken.AI

Lyken.AI is Alset AI's cloud compute business and is developing an integrated platform-as-a-service offering spanning managed compute, server and token optimization, secure storage, private low-latency networking, and enterprise deployment support. Lyken's model is intended to extend beyond infrastructure access through related technical co-ordination and support services.

About BlueFlare Energy Solutions Inc.

BlueFlare Energy Solutions is an Alberta-incorporated integrated developer, engineer, and constructor of behind-the-meter energy and compute infrastructure in Western Canada, operating under its "from wellhead to workload" platform and its proprietary BALA (BlueFlare Adaptive Load Architecture) load-following technology. BlueFlare originates, designs, constructs and supports digital-load infrastructure that co-locates high performance compute inference capacity with legacy and continuing bitcoin mining loads used as a load-balancing and gas-continuity mechanism. BlueFlare is part of the BlueFlare Group Holdings Inc. corporate group.

About FingerMotion Inc.

FingerMotion is a technology company serving a growing base of users across the mobile payment, recharge and data analytics markets in the People's Republic of China. The company continues to develop new tools and services for those users, with the long-term objective of expanding that base organically into a large and highly engaged community. FingerMotion is extending that strategy into the enterprise AI and cloud compute market through its equity position in Lyken AI Computing Inc., its owner-operator strategy and its existing development alliance with BlueFlare. Under the terms of the Lyken transaction, FingerMotion may increase its position over time, subject to the conditions set out in the definitive agreements.

About Alset AI Ventures Inc.

Alset AI is an AI-focused venture investment platform dedicated to sourcing, funding and developing companies across the artificial intelligence value chain. The company seeks to provide investors with diversified exposure to emerging applications and infrastructure that enable advancements in AI technologies.

We seek Safe Harbor.