Ms. Jaime Leverton reports

HUT 8 MINING PRODUCTION AND OPERATIONS UPDATE FOR MAY 2023

Hut 8 Mining Corp. mined 147 bitcoin in the period ending May 31, 2023.

Production highlights for May, 2023:

• One hundred forty-seven bitcoin were generated, resulting in an average production rate of approximately 4.7 bitcoin per day.
• One hundred seventy-nine bitcoin were sold in May, 2023, for proceeds totalling $6.8-million.
• Total balance of unencumbered bitcoin held in reserve as of May 31 is 9,233.
• Installed ASIC (application-specific integrated circuit) hashrate capacity at the company's Alberta facilities was 2.6 exahashes/second at the end of the month.
• Hut 8 produced 56.54 BTC/EH in May.

Operational highlights:

• Remediation at the company's Drumheller, Alta., site continued throughout the month:
  • Custom firmware has been installed across Hut 8's miner models and is working as intended;
  • The repair and restoration of damaged equipment continue, but progress in bringing the equipment back on-line has been slower than expected given frequent curtailments and hardware failures due to power surges;
  • As individual miner hashboards are repaired and reinstalled, other hashboards are failing and require repair, which is impairing the company's hashrate and production;
  • Given the challenges with bringing the equipment back on-line, Hut 8 will not meet the previous restoration timeline estimate as communicated on May 8, 2023, but will continue to provide updates on its progress at the site.
• The company's team is finalizing options to operationalize the bulk of the approximately 7,000 miners that were previously running in North Bay, Ont.
• Hut 8's HPC team signed a five-year agreement with a government client.

"While the re-energization at Drumheller has been challenging, our team continues to show grit and perseverance and is making progress," said chief executive officer Jaime Leverton. "In addition to recognizing our mining team for their hard work and dedication, I would also like to congratulate our HPC team for winning a significant five-year client contract at our flagship data centre in Kelowna."

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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