Ms. Jaime Leverton reports

HUT 8 RELEASES SECOND ANNUAL ESG REPORT

Hut 8 Mining Corp. has published its 2022 environmental, social and governance report, its second annual report following its inaugural 2021 findings. This report highlights Hut 8's objectives to minimize its environmental footprint while driving operational innovation. It also includes the company's high-performance computing (HPC) business data for the first time following the acquisition of five enterprise-grade data centres last year.

"At Hut 8, we understand that our environmental, social and governance commitments are fundamental to who we are as a company," said Jaime Leverton, Hut 8 chief executive officer. "We take pride in taking a pro-active approach to protect the planet, support our communities and people, and advance inclusive and transparent workplace practices."

Key highlights of the report include:

• Environment:
  • Continued commitment to achieving carbon neutrality by 2025;
  • Procured carbon instruments to offset 40 per cent of the company's 2022 scope 1 and 2 emissions (up from 20 per cent in 2021);
  • HPC (high-performance computing) data centres in Ontario and British Columbia reported a carbon-free grid mix of 94 per cent and 97 per cent, respectively;
  • Diverted more than 94 per cent of waste from landfills in 2022, up from 61 per cent in 2021;
  • Partnered with ERS International to recycle 220 metric tonnes of outdated machinery and earned 5,200 metric tonnes of carbon dioxide-equivalent serialized carbon credits;
  • Renovated the flagship data centre in Kelowna with 100 per cent LED lighting, and recycled and reused materials, including recycling 1,800 pounds of carpet tiles.
• Social:
  • Zero total recordable workplace safety incidents in 2022;
  • 43 per cent of executive management roles are held by women, 29 per cent by BIPOC (Black, indigenous and people of colour) individuals;
  • Endorsed and donated to local and national organizations, including Hackergal, Medicine Hat College and the Drumheller Dragons Hockey Team.
• Governance:
  • Completed Hut 8's first diversity and inclusion survey to gain an understanding of the BIPOC, age and gender diversity across the team;
  • 40 per cent of board of director seats are held by women, 40 per cent by BIPOC individuals.

Among Hut 8's chief ESG objectives is to advocate for employee health, safety and well-being, while also establishing community partnerships and committing to transparency. Over the past year, Hut 8 has expanded operations while still keeping its ESG commitments at the forefront.

In January, 2022, Hut 8 completed the acquisition of five traditional data centres, increasing the mix of the company's energy sources to include hydroelectric power. Hut 8 also continued to work as a founding member of the Bitcoin Mining Council to increase education, share key data points and promote best environmental practices on behalf of the industry.

"We are an ESG leader in our space and we also know that the more transparency we can bring to the industry, the more we can help educate key stakeholders on best practices," said Ms. Leverton.

The report was prepared in accordance with guidance provided by the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI), and Ernst & Young LLP provided limited assurances over certain disclosures contained in the report.

For more detailed information on Hut 8's ESG goals, accomplishments and last year's report, please visit the company's website.

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 and 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 self-mined bitcoin of any digital asset miner or publicly traded company globally. With over 36,000 square feet of geodiverse 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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