Ms. Jaime Leverton reports

HUT 8 MINING PRODUCTION AND OPERATIONS UPDATE FOR APRIL 2023

Hut 8 Mining Corp. mined 132 bitcoin in the period ending April 30, 2023.

Production highlights for April, 2023:

• 132 bitcoin were generated, resulting in an average production rate of approximately 4.4 bitcoin per day.
• Total balance of unencumbered bitcoin held in reserve as of April 30 is 9,265.
• Installed ASIC (application-specific integrated circuit) hashrate capacity at Hut 8's Alberta facilities was 2.6 EH/s (exahashes/second) at the end of the month.
• Hut 8 produced 50.77 bitcoin/exahash in April.
• No bitcoin were sold during the month.

Operational highlights:

• Remediation at the company's Drumheller, Alta., site progressed throughout the month:
  • High energy input levels at the site have been causing equipment failures that have materially reduced operations, which are currently at approximately 15 per cent of the company's installed hashrate at the site.
  • In response, Hut 8 began implementing firmware across all miner models designed to lower the power supply's maximum output voltage, ensuring its equipment operates within safe limits.
  • Hut 8's team is actively engaged in repairing damaged equipment and restoring the hashrate to its optimal level.
  • The company is closely monitoring the situation and will continue to make the necessary adjustments as needed to restore, safeguard and optimize its equipment.
  • Hut 8 is actively increasing repair staff, adding an additional repair centre shift, and have procured new hardware to expedite repairs and accelerate the speed at which the company bring miners back on-line.
  • The company expects to have the site restored in 10 to 12 weeks.
• Spikes in energy rates have created additional headwinds at Drumheller.
• Hut 8's team is actively pursuing options to operationalize the bulk of the approximately 7,000 miners that were removed from its North Bay site.

"We are very aware of the impact that the issues at Drumheller are having on the broader business: they are complex and challenging, but we have made meaningful progress and have a road map to remediation," said Jaime Leverton, chief executive officer of Hut 8. "We are laser focused on closing the proposed transaction with U.S. Bitcoin Corp., which will both expand our overall production to 7.02 EH/s and provide access to additional energy markets."

About Hut 8 Mining Corp.

Hut 8 is one of North America's largest innovation-focused digital asset miners, led by a team of business-building technologists, bullish on bitcoin, blockchain, Web 3.0, and bridging the nascent and traditional high-performance computing worlds. With two operational digital asset mining sites located in Southern Alberta, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of unencumbered, self-mined bitcoin of any digital asset miner or publicly traded company globally. With over 36,000 square feet of geo-diverse data centre space and cloud capacity connected to electrical grids powered by significant renewables and emission-free resources, Hut 8 is revolutionizing conventional assets to create the first hybrid data centre model that serves both the traditional high-performance compute (Web 2.0), and nascent digital asset computing sectors, blockchain gaming and Web 3.0. Hut 8 was the first Canadian digital asset miner to list on the Nasdaq Global Select Market. Through innovation, imagination and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impacts for its shareholders and generations to come.

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