Mr. Sheldon Bennett reports

DMG BLOCKCHAIN SOLUTIONS RELEASES 2021 ANNUAL REVIEW

DMG Blockchain Solutions Inc. has released its annual review for 2021. Further, the company is expecting to release its audited financials by Jan. 31, 2022, and will conduct an investor conference call shortly after its financial statements are released.

DMG has had a strong end to the calendar year with December, 2021, results of:

Mined bitcoin: 66.71 BTC

Daily average: 2.149 BTC

Miners added: 441 S19J Pros

Hashrate added: 45 Ph/s

December maximum hashrate: 420 petahashes per second

DMG also made its live hashrate publicly available on its website banner, which has hit an all-time high of 464.47 petahashes per second since the start of the new year.

Core operations -- 2021 reviewed

DMG continued to develop its Core operations in 2021, focusing on self-mining and the completion of its data centre's mining infrastructure in Christina Lake. DMG kicked off the year with independent testing of its immersion mining solution and ended the year with over one exahash of new generation mining equipment purchased, including the S19 XPs, with deliveries started in the fall of 2021 and continuing throughout 2022.

Early in the 2021 calendar year, DMG changed its focus from majority hosting in its facility to focusing on self-mining with a few strategic hosting clients. With this new focus DMG added nearly 4,250 S19J Pro miners by the end of 2021, reaching a peak of 420 petahashes per second, with monthly additions planned to be received, installed and operating throughout 2022 to reach over one exahash (1,000 petahashes per second) by the end of 2022.

DMG's independent immersion testing results, on a small batch of bitcoin miners, substantiated the company's calculations that retrofitting from air to immersion cooling achieves an 18-per-cent decrease in miner power consumption with the same amount of computation hashrate. These results enable DMG to use less miners (thus reduce its capital spend) to reach its hashrate goals as well as extend their operating life compared with running fans cooled miners. Due to DMG's research in immersion being validated the company will focus on implementation of this technology throughout 2022.

During 2021, with the continuing issues related to COVID-19 and unforeseen disruptions in the global supply chain, DMG decided to take control of many of its manufacturing needs by making a strategic investment in Black Box Manufacturing, a company that specializes in the design and manufacture of electrical and mechanical enclosures for multiple industries including crypto mining. To date, the collaboration, specific to crypto, has produced 300 power distribution units (PDUs) for DMG as well as six crypto mining containers for DMG and its clients with current production now averaging four containers per month.

In 2022, DMG plans to continue focusing on projects at its Christina Lake site, which diversify its revenue and increase its efficiencies in operations. The company has already completed a study on deploying solar panels on its property and installing up to one megawatt of hydrogen production. Throughout the new year DMG will assess the viability of moving forward with these, and many other projects, on this site. As well, DMG has been working with other power generators and utilities which may lead to DMG diversifying beyond Christina Lake in 2022. As these projects solidify, DMG will provide updates.

Core+ platforms -- 2021 reviewed

DMG announced its Core+ strategy early in 2021 and has been building this strategy using Blockseer's technology and platforms as its foundation. DMG focused on hiring senior software engineers to accelerate its plans in the Core+ area, including experts in front end, back end and database design. Its long-term hiring strategy includes continuing to look for candidates who are interested in the space and can transfer their experience from more traditional sectors.

This focus turned 2021 into a great year for DMG's Core+ platforms. Functionality, UI (user interface), and core database upgrades were made to Blockseer's Helm platform to not only enhance its ability to manage the over 10,000 miners operating on it now, but to enable it to expand well into the hundreds of thousands of miners for the future.

In addition, part of DMG's Core+ strategy is to build and operate mining pools that align with its strategic goals. DMG is delighted that it had the opportunity to do this in partnership with Marathon Digital Holdings, which successfully launched earlier in the year and has since found over 370 blocks. Terra Pool has also been performing well through DMG's joint testing with Argo Blockchain, with over 20 blocks found, and is planned to be launched for new participants in February of this year. This brings over four exahashes per second across Blockseer built and managed pools with nearly 400 blocks mined.

Blockseer entered into many new strategic partnerships during 2021. Zodia started a new partnership with DMG and has successfully tested the Petra platform during 2021. All told, Petra managed approximately 100 transactions, which were testnet mined using a Blockseer mining pool. DMG has also been testing and successfully holding and transferring coins using Brane's crypto wallet technology. Both companies are looking forward to finalizing and releasing Breeze and Freeze in 2022. DMG's partnership with Bosonic allowed it to complete beta integration and testing of its Layer 2 Exchange in 2021 and DMG is now working on a 2022 release date, which will enable Blockseer users to access crypto exchange functionality.

In 2022, DMG will continue its software development and investments in Blockseer's platforms and strategic partnerships. Blockseer's original platforms Walletscore and Explorer will be rearchitected similar to the work completed on Helm during 2021. Terra Pool will go through further development testing phases until its go-live market launch. And, in line with DMG's focus on regulatory compliance, all Blockseer platforms are being built to meet SOC2 compliance requirements in 2022.

DMG's chief executive officer Sheldon Bennett comments: "Two thousand twenty-one was a monumental year for DMG. We launched a clear strategy which was communicated through two initiatives -- Core and Core+. Building strategic partnerships with the likes of Argo, Zodia, Brane and Bosonic, to name a few, put DMG at the forefront of industrial mining operations and software. The company has secured one exahash of mining equipment through purchase orders (with bitcoin miners delivered throughout 2022) as well as successfully launched our first bitcoin mining pool with a second pool soon to become public. Looking back, the company's achievements will be a springboard for a banner growth year in 2022."

Partnerships and investments -- 2021 reviewed

DMG's goal is to be the leading vertically integrated blockchain company. The company is driving its development by seeking investments and partnerships with various organizations that accelerate its strategy. During 2021, DMG licensed to Marathon Digital Holdings, the technology behind MaraPool. In partnership with Argo Blockchain PLC, Blockseer is close to publicly releasing Terra Pool. As well, Blockseer's partnership with Zodia has achieved successful trials of Petra in record time.

Investments have been made into a yet undisclosed crypto exchange, Brane Inc. (crypto custody company), Bosonic (a layer 2 crypto trading platform) and Black Box Manufacturing (electrical and mechanical enclosures).

DMG and Argo Blockchain PLC also announced their partnership in the Crypto Climate Accord (CCA) to promote the decarbonization of the cryptocurrency industry. DMG Blockchain has been an active member of the Bitcoin Mining Council (BMC) with CEO Mr. Bennett, recently presenting during the BMC's Q3 results on future crypto regulations. The BMC is an open forum of bitcoin miners committed to the bitcoin network and its core principles. The council has provided great research into the consumption of energy revolving around bitcoin mining.

In 2022, DMG will continue to execute on its strategy and develop its partnerships and investments while updating its investors and stakeholders on its progress.

About DMG Blockchain Solutions Inc.

DMG is an environmentally friendly, vertically integrated blockchain and cryptocurrency company that manages, operate, and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG's sustainable businesses are segmented into three main divisions: data centre operations, data analytics and forensics, and developing enterprise blockchains. DMG's non-polluting data centre operations focus on earning ecofriendly revenues from block rewards and transaction fees by mining primarily bitcoin as well as providing hosting services for industrial mining clients entirely powered by renewable energy. DMG's data analytics and forensic services provide technical expertise software products such as Blockseer Pool, Mine Manager and Walletscore, as well as working with auditors, law firms and law enforcement organizations. DMG's permissioned blockchain technology is focused on developing enterprise software for the supply chain management of controlled products. DMG's strategy is to become the domain experts across the business verticals it focuses on. DMG's environmentally committed management team includes seasoned crypto experts, forensic and financial professionals, and blockchain developers with deep relationships throughout the industry and a strong ecological consciousness.

Future changes in the bitcoin networkwide mining difficulty rate or bitcoin hash rate may materially affect the future performance of DMG's production of bitcoin, and future operating results could also be materially affected by the price of bitcoin and an increase in hash rate mining difficulty.

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