Mr. Cale Moodie reports

NEPTUNE MAKES INITIAL STRATEGIC INVESTMENT IN XAI AND PROVIDES SPACEX UPDATE

Neptune Digital Assets Corp. has entered into an agreement dated Dec. 11, 2025, with an arm's-length party for a strategic investment of $300,000 (U.S.) into X.AI Corp., the artificial intelligence company. This planned investment underscores Neptune's commitment to supporting and gaining exposure to pioneering technologies that are shaping the future, including advanced development of artificial intelligence.

Under the terms of the investment, Neptune will acquire shares of X.AI valued at $300,000 (U.S.). The company views X.AI as a growth asset at the intersection of critical future technologies. X.AI's mission is to accelerate human scientific discovery with a focus on developing sophisticated AI systems.

"Following the successful and highly valued investments in SpaceX, our team is thrilled to commence strategically allocating capital into X.AI," stated Cale Moodie, Neptune chief executive officer and president. "This planned investment aligns with Neptune's strategy of identifying and capitalizing on transformative, high-value technologies. We believe artificial intelligence and robotics are the next frontier of innovation, much like space exploration and digital assets, and X.AI is poised to be a leader in this domain. This move will further diversify our asset base and is designed to create substantial long-term value for our shareholders."

Recent reports indicating that Space Exploration Technologies Corp. is preparing for a potential initial public offering in 2026 with a valuation exceeding $1-trillion (U.S.), further validate Neptune's investment thesis. With a current holding of over 32,000 shares in SpaceX, management views this position as a blueprint for long-term value creation and believes the X.AI investment offers a similar opportunistic early exposure to a category-defining asset under the same visionary leadership.

The planned investment in X.AI aims to strengthen Neptune's base of high-growth, innovative technology assets. This strategic move complements the company's existing holdings, including its successful investment in SpaceX, and highlights Neptune's focus on key pioneering technology sectors: blockchain, artificial intelligence and space exploration. Neptune remains dedicated to building long-term shareholder value by investing in assets that are at the cutting edge of global innovation.

Neptune also announces that it has granted an aggregate of 1.3 million stock options to certain directors and officers of the company, effective Dec. 9, 2025, in accordance with the company's share compensation plan. The options are exercisable for a period of 10 years at a price of 70 cents per common share. The options vest immediately upon grant.

About Neptune Digital Assets Corp.

Neptune is one of the first publicly traded blockchain companies in Canada, and is at the forefront of the cryptocurrency and blockchain landscape. Neptune engages in operations across the digital asset ecosystem including bitcoin mining, proof-of-stake mining, blockchain nodes, decentralized finance and other associated innovative technology. Its unwavering commitment to innovation and strategic growth enables it to continually explore new opportunities and maximize value for its shareholders.

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