Mr. David Jellins reports

CRYPTOSTAR CORP. EXECUTES EQUIPMENT HOSTING AGREEMENT IN UTAH, USA AND SIGNS NON-BINDING LETTER OF INTENT FOR HOSTING SERVICES IN ALBERTA, CANADA

Cryptostar Corp. and a United States-based company have executed an equipment hosting agreement, effective Aug. 11, 2021, for four megawatts of mining capacity at its award-winning data centre facility in Utah, United States. The company is also pleased to announce that the company and a U.S.-based company have signed a non-binding letter of intent, effective Aug. 12, 2021, for 10 MW of mining capacity to be deployed in Alberta, Canada.

Equipment hosting agreement -- Utah, United States

Under the terms of the hosting agreement, the company will provide hosting services to the Utah customer for four MW of mining capacity at its award-winning data centre in Utah, United States.

Highlights of the hosting agreement:

• Annual hosting revenues for the company of $720,000 (U.S.);
• Initial term of 12 months, renewing month to month thereafter.

David Jellins, president and chief executive officer of Cryptostar, stated: "We are delighted that the Utah customer has selected Cryptostar and our award-winning data centre in Utah, USA. We are looking forward to providing hosting services to the Utah customer, and we anticipate that this will be the beginning of a long-term and mutually beneficial relationship."

LOI for hosting services -- Alberta, Canada

The LOI sets out the basic terms and conditions under which the company will provide hosting services and infrastructure to the Alberta customer for 10 MW of mining capacity at its data centre locations in Alberta, Canada. The transaction terms outlined in the LOI are subject to the parties entering into a definitive agreement, which is expected to occur within 14 days.

It is expected that the definitive agreement will include the following terms:

• Annual hosting and power revenues for the company of up to $5.3-million (U.S.);
• Initial term of 36 months, with the option to renew for an additional 36-month term;
• Hosting services for the Alberta customer to commence in fourth quarter 2021.

Mr. Jellins further stated, "We are looking forward to finalizing the definitive agreement with the Alberta customer and to further expansion in Alberta, Canada."

About Cryptostar Corp.

Cryptostar has cryptocurrency mining operations with data centres located in the United States and Canada. Cryptostar is currently dedicated to becoming one of the lowest-cost cryptocurrency producers in North America and a major supplier of GPU and ASIC miners worldwide.

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