Mr. Brian Hinchcliffe reports

INTERBIT ANNOUNCES PATENT AND STRATEGIC REVIEW UPDATE

Interbit Ltd. has received a favourable patentability opinion for its Chain Joining patent co-operation treaty application. Chain Joining refers to a method and system for facilitating data transfer between blockchains. The company is now proceeding to file an expedited examination request in the United States for this Chain Joining application, similar to what it has already done for its Hypervisor, Hyperconvergence and Payload Layer applications.

The company also announces that it has received a notice of allowance from the United States Patent and Trademark Office with respect to its Chainception patent application (application No. 16/568,948 entitled "Method and System for Hosting a New Blockchain Using an Existing Blockchain Node") indicating that the examination and prosecution of this application has now closed. The company's next step in its goal to obtain patent rights in the United States in respect of this application and related claims is to file final paperwork and fees.

Strategic review

In addition, following review by Xinova LLC and its partners, the company has now received independent feedback regarding the company's Interbit platform code and design. The conclusions received indicate that while the potential technological ambitions of the Interbit platform and its associated patent applications seek to address the strategic challenges that the blockchain industry continues to face (such as scalability), the design and architecture employed in building the Interbit platform to date has structural challenges. The reviews have identified that the platform would require significant additional architectural and development work before it would have the potential to generate any commercial returns. Furthermore, the reviewers noted that blockchain platform development may be best done in the open source arena as it enables rigorous and robust testing to be done by multiple independent parties.

The board has therefore concluded that it is in the best interest of the company at this time to focus on advancing its patent strategy and the company is now working with Xinova to identify potential partners to work with or to potentially license its intellectual property to.

As previous announced, with the departure of several members of the management team and the closure of the United Kingdom offices, the company has halted development of the Interbit platform and significantly decreased its operating costs.

The company will continue with its continuing strategic review and explore and evaluate opportunities to maximize shareholder value. There can be no assurance that this strategic review will result in the completion of any transaction or other alternative, or that a transaction, if pursued, will be completed. The company has not set a timetable for completion of the review process and it does not intend to comment further regarding the process unless a specific transaction or other alternative is approved by the board of directors or it is otherwise determined that further disclosure is appropriate or required by law.

About Interbit Ltd.

Interbit owns proprietary technologies and is listed on the TSX Venture Exchange.

We seek Safe Harbor.