Mr. K. L. Wong reports

HELLO PAL ACQUIRES DOGECOIN MINER CRYPTO PAL

Hello Pal International Inc. has provided the highly accretive details of its recent acquisition of a 51-per-cent interest in Crypto Pal Technology Ltd. that closed on May 25, 2021 (see news release dated May 25, 2021).

Financial benefits of acquisition:

• Purchase price for Crypto Pal was based on dogecoin at 5.5 U.S. cents;
• Low acquisition cost of $3.5-million, consisting of $1.5-million cash and 1.8 million units;
• Cost to mine dogecoin and litecoin significantly less than bitcoin.

Strategic benefits of acquisition:

• First listed company with primary exposure to dogecoin;
• Access to cryptocurrency will accelerate growth of user base and live-stream revenues;
• Imminent launch of beta version of cryptocurrency-focused app, being part of the suite of Hello Pal apps.

Hello Pal founder and chief executive officer, K. L. Wong, stated: "Our acquisition of Crypto Pal is the next step in bringing the world closer together and promoting social tolerance. Dogecoin, often referred to as the people's coin, is being rapidly accepted and adopted internationally. We anticipate gains to our user base and live streaming services from the integration of dogecoin."

Mr. Wong further added, "By acquiring Crypto Pal at a minimal price, we are able to focus our strong cash position to implement our vision for Hello Pal's suite of complementary apps as well as carry out strategic acquisitions."

The recently acquired Crypto Pal currently has 12,500 mining rigs that are actively mining dogecoin and litecoin. The mining rigs are hosted across multiple locations to ensure diversification of risk as well as to take advance of variations in electricity costs in different geological areas according to seasonal weather patterns. Crypto Pal has entered into a long-term guaranteed service agreement with Yitang Data Technology Co. Ltd., a seasoned manager and operator of crypto assets and mining facilities. With Yitang engaged on a long-term basis, Crypto Pal has ensured cost certainty and operational continuity relating to the mining of dogecoin and litecoin.

As a result of Hello Pal's acquisition of Crypto Pal, it is believed that it is currently the sole listed issuer primarily focused on mining dogecoin. Hello Pal anticipates that dogecoin will continue to be seen as an alternative to bitcoin given its lower price, ease for making on-line payments and a much lower power requirement in mining it.

Hello Pal is currently updating its platform to integrate the obtaining and using of cryptocurrency within the Hello Pal ecosystem. As Hello Pal's live-streaming operations cover a diverse range of regions throughout the world, Hello Pal anticipates that the introduction of cryptocurrency will accelerate the use of its live-streaming services outside of China. In particular, this will facilitate growth in less developed countries where extreme exchange rate fluctuations occur and it is difficult for users to pay or receive local currencies.

About Hello Pal International Inc.

The Hello Pal platform is a proprietary suite of mobile applications built on a user-friendly messaging interface that focus on social interaction, language learning and travel. Hello Pal has been designed from the ground up to be easy to use and enables users the freedom to speak in their own language regardless of the other person's language they are speaking to. Hello Pal's overriding mission is to bring the world closer together through social interaction, language learning and travel. By creating a platform where it is easy to instantly interact with others around the world and giving them the tools to communicate with each other in a joyful and fun way, the company hopes to do its part (however small) in fostering understanding and tolerance between all citizens of the world.

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