Ms. Jaime Leverton reports

HUT 8 MINING PRODUCTION AND OPERATIONS UPDATE FOR JULY 2023

Hut 8 Mining Corp. mined 116 bitcoin in July, 2023.

Production highlights for July 2023:

• 116 bitcoin were generated, resulting in an average production rate of approximately 3.7 bitcoin per day;
• 100 bitcoin -- 50 bitcoin produced in June and 50 bitcoin produced in July -- were sold during the month for proceeds totalling $3.9-million;
• Total balance of bitcoin in reserve was 9,152 on July 31 -- 8,305 of which was unencumbered;
• Installed ASIC (application-specific integrated circuit) hashrate capacity at the company's Alberta facilities was 2.6 EH/s (exahashes per second) at the end of the month;
• Hut 8 produced 44.6 BTC/EH in July.

Operational highlights:

• Repair and restoration efforts at the company's Drumheller, Alta., site continued as the team repaired more than 4,337 hashboards throughout the month, and the site is currently operating at approximately 20 per cent of the installed hash rate.
• In late July, the team utilized mutually beneficial terms in the electric service agreement covering its Medicine Hat site, which provides the opportunity for both parties to benefit from high prices in the Alberta power market.
• Earlier today, Hut 8 announced that it has entered into a transaction support agreement with Macquarie Equipment Finance Ltd. in support of an opportunity to potentially acquire certain assets of Validus Power Corp. and Validus's subsidiaries. While this process is under way, the company has paused plans to relocate approximately 6,400 miners originally operating in North Bay, Ont., to Texas.

"Our operational challenges at Drumheller have persisted, and despite implementing custom firmware to manage the power supply output and repairing more than 11,693 hashboards to date, we are seeing some additional failures when reinstalling the miners, which is adversely affecting our remediation timeline," said chief executive officer Jaime Leverton. "While we continue to work to increase operations beyond 20 per cent at Drumheller, we are pursuing growth opportunities through the transaction with USBTC and our transaction support agreement with Macquarie."

About Hut 8 Mining Corp.

Through innovation, imagination and passion, Hut 8's seasoned executive team is bullish on building and operating computing infrastructure that powers bitcoin mining, traditional data centres, and emerging technologies like artificial intelligence (AI) and machine learning. Hut 8's infrastructure portfolio includes seven sites: five high-performance computing data centres across British Columbia and Ontario that offer cloud, co-location, managed services, AI, machine learning and visual effects (VFX)-rendering computing solutions; and two bitcoin mining sites located in Southern Alberta. Long distinguished for its unique treasury strategy, Hut 8 has one of the highest inventories of self-mined bitcoin of any publicly traded company globally.

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