Ms. Jaime Leverton reports

HUT 8 MINING PRODUCTION AND OPERATIONS UPDATE FOR OCTOBER 2023

Hut 8 Mining Corp. mined 112 bitcoin in October, 2023.

Production highlights for October, 2023:

• 112 bitcoin (BTC) were generated, resulting in an average production rate of approximately 3.6 bitcoin per day;
• 365 bitcoin -- 66 bitcoin produced in July, all of August's and September's production, and 85 bitcoin produced in October -- were sold during the month for proceeds totalling $14.6-million (average proceeds per bitcoin of approximately $39,980);
• Total balance of bitcoin in reserve was 9,113 on Oct. 31 -- 7,016 of which were 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 43.1 BTC/EH in October.

Corporate update

On Nov. 3, Hut 8 announced that it received approval from the Ontario Superior Court of Justice (commercial list) for its stalking horse bid to acquire four natural gas power plants in Ontario, totalling approximately 310 MW (megawatts) and a bitcoin mine in North Bay. The stalking horse bid is part of the previously announced support agreement with Macquarie Equipment Finance Ltd., and was approved by the court in connection with a sale and investment solicitation process (SISP). If the stalking horse bid is ultimately declared the successful bid in the SISP, as further approved by the court, and completed in accordance with its terms, a new Ontario subsidiary of the company (BidCo) will become the owner of certain assets of Validus Power Corp., and the assets and operations of certain Validus subsidiaries. Macquarie will receive a minority equity interest in BidCo of approximately 20 per cent and a subsidiary of Hut 8 will be the majority owner with the remaining approximately 80 per cent.

"While our mining results remained steady month-over-month, we made meaningful progress toward building an infrastructure-first, diversified operation that we believe will be a first in our industry," said Jaime Leverton, chief executive officer of Hut 8. "Between being granted approval to submit a stalking horse bid for approximately 310 MW of natural gas power plant assets in Ontario, including our former North Bay site, and our work to close our proposed business combination with U.S. Bitcoin Corp., we are making headway toward creating a new Hut 8 that we believe will have vertically integrated mining operations with revenue generating optionality; diversified fiat revenue streams in high performance computing, hosting and managed services; and a significant North American footprint, which would position us well to capture upside as we head into the next halving."

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 AI (artificial intelligence) 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 VFX (visual effects) 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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