Mr. Daniel Reitzik reports

DMG BLOCKCHAIN EXPANDS INTO SILICON VALLEY WITH ACQUISITION OF INDUSTRY LEADING CRYPTO-ANALYTICS AND A.I. LEADER, BLOCKSEER

DMG Blockchain Solutions Inc. has formally closed the previously announced acquisition of Datient Inc., doing business as Blockseer.

The combined DMG-Blockseer alliance represents a strong competitive advantage in providing leading cryptocurrency forensics and proprietary real-time risk scoring for compliance and anti-money laundering (AML). Additionally, Blockseer's blockchain and data analytics expertise provides the capabilities to uniquely offer class-leading enterprise solutions with a natural convergence of Blockchain and artificial intelligence technologies -- data are the asset, which can be tracked and monetized utilizing blockchain technology.

Blockseer is a blockchain and artificial intelligence company headquartered in Silicon Valley, Calif. Blockseer has worked with several law enforcement agencies including the U.S. Secret Service, Federal Bureau of Investigation and the Internal Revenue Service, and it also provides Ethereum blockchain data services for Blockchain.info, one of the world's largest cryptocurrency wallet providers. Blockseer provides data analytics and incorporates artificial intelligence to provide insight into what is happening with digital currencies and blockchains.

Blockseer's intellectual property (IP) includes two U.S. provisional patents: (a) providing data provenance, permissioning, compliance and access control for data storage systems using an immutable ledger overlay network; and (b) off-network identity tracking in anonymous cryptocurrency exchange networks.

Blockseer's current team comes from Stanford, Harvard, University of Chicago, Carnegie Mellon and Columbia with deep experience in artificial intelligence, big data, and blockchain and is led by its chief executive officer and founder, Danny Yang. Its advisers include Andreas Weigend, Bill Tai, Stephen Sorkin, Vas Bhandarkar, Phil Porras, and Brian Klein, and its influential shareholders include Charlie Lee, the founder of Litecoin.

"To date, DMG has received recognition as a market leader in the crypto mining space, and now with the Blockseer acquisition, DMG can claim leadership in the blockchain development arena and deliver on its commitment to be a diversified blockchain company. Blockseer is not a single blockchain application, but a blockchain development engine for multiple applications with well-known global customers. We believe that the Blockseer team is amongst the most talented in the industry today, and we welcome Dr. Danny Yang and the Silicon Valley team to DMG," said Daniel Reitzik, chief executive officer and director of DMG.

Chris Filiatrault, DMG's chairman and founder, added: "Japan remains the largest crypto market in the world, and very few non-Japanese companies have been successful. With the Blockseer product line, and the DMG presence in the market today, Japan represents a massive opportunity for our stakeholders. We have already planned a visit for Dr. Danny Yang to visit Japan and look forward to sharing our progress in short order."

Terms of the transaction

Under the terms of the transaction, DMG, through its U.S. subsidiary, acquired Blockseer for a purchase price comprising $2,630,769 in cash and 7,673,076 common shares of DMG.

The transaction shares issued to the former Blockseer securities holders will be subject to vesting with such shares vesting ratably on a calendar quarterly basis over a two-year period following the closing.

Following the transaction, DMG-US will own 100 per cent of Blockseer, with DMG-US shares being owned approximately 61 per cent by DMG and approximately 39 per cent by the selling securityholders of Blockseer.

Upon completion of the trading restrictions, each individual holder of the DMG-US shall have the option to exchange such shares at the election of the holder one for one for DMG common shares, which will be fully tradable subject to the regulations of the TSX Venture Exchange. Additionally, in the event that upon completion of the trading restrictions, the per-share price of DMG's common shares is greater than 40 cents (as adjusted for stock splits and consolidations), then DMG, at its sole election, shall have the option to exchange all of the shares of DMG-US held by the former security holders of Blockseer one for one for common shares of DMG, which will be fully tradable shares in accordance with the policies of the TSX Venture Exchange.

About DMG Blockchain Solutions Inc.

DMG Blockchain Solutions is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG intends to be the global leader in bitcoin mining hosting -- mining as a service (MaaS), bitcoin mining, blockchain forensics/analytics and blockchain platform development.

We seek Safe Harbor.