Mr. David Jellins reports

CRYPTOSTAR CORP. PROVIDES UPDATE ON OPERATIONS

Cryptostar Corp. has provided an update on operations.

Self-mining operations

• In September, 2024, the company's ASIC (application-specific integrated circuit) miners located in Quebec, Canada, were shut down, reducing its total hashrate by 27.12 PH/s (petahash per second). This led to a monthly revenue decline of $36,630 (U.S.) but also generated cost savings of $58,603 (U.S.) per month on power and hosting fees.
• As at Oct. 2, 2024, the company maintains a self-mining hashrate of 21.26 PH/s, from ASIC miners operating under the off-peak program in Utah, United States, contributing $28,711 (U.S.) in monthly revenue.
• Older generation bitcoin miners, GPU (graphics processing unit) rigs and GPU cards located in Quebec, Canada, are to be sold as expeditiously as possible depending upon prevailing market conditions.

Hosting operations

• As at Oct. 2, 2024, the company has spare aggregate equipment hosting capacity of approximately 12 MW (megawatts) located at its award-winning data centre facilities in Utah, United States. The company plans to execute new equipment hosting agreements for the available mining capacity as expeditiously as possible.

Alberta operations

• The natural gas power generation site of 611890 Alberta Inc. doing business as Avila Energy (the Alberta partner) remains shut down. Litigation against the Alberta partner et al. is continuing with respect to the non-compliance with terms of the power supply agreement for up to 30 MW and damages arising therefrom.

Future growth

• The company plans to continue to further expand its self-mining inventory of mining hardware. Further orders for mining hardware may be placed using astute capital management strategies based upon prevailing market conditions.
• The company continues to consider and perform diligence on potential transactions and opportunities.

Financial position

• The company is in a strong financial position and is well capitalized.
• As at Oct. 2, 2024, the company held 7.6 BTC and $1.98-million (U.S.) ($2.7-million) in cash.
• The company has made payments and deposits for buildings, infrastructure equipment and security deposit payments of $2.4-million (U.S.) ($3.3-million).

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.

We seek Safe Harbor.