Hut 8 provides update on North Bay Facility

This press release constitutes a “designated press release” for the purposes of the Company’s prospectus supplement dated August 17, 2022 to its short form base prospectus dated August 5, 2022.

TORONTO, November 28, 2022 /PRNewswire/ – Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (“hut 8” or the “company“) announces that it has filed for arbitration with Validus Power Corp. (“valid‘), an outside power supplier for the Company’s mining facility in North Bay, Ontario.

Hut 8 Mining Corp logo  (CNW Group/Hut 8 Mining Corp)

On November 9, 2022, Hut 8 sent a notice of default to Validus regarding Validus’ breach of certain obligations under the Power Purchase Agreement (“PPA“) between Validus and the Company. Validus subsequently suspended the supply of power to the Company’s North Bay mining operations and issued a Notice of Default alleging that Hut 8 had certain payments related to the supply of power to North Bay’s website, an allegation the company categorically denies, has informed Validus that it intends to pursue arbitration under the terms of the PPA.

As previously announced, the Company is exploring alternatives to mitigate the impact of this litigation, including through organic and inorganic growth opportunities.

The Company will continue to monitor the situation and will provide additional updates regarding the suspension of mining activities at North Bay, the arbitration process and any further proceedings as and when appropriate.

About Hut 8 Mining Corp.

Hut 8 is one of the largest innovation-focused digital asset miners in North America, led by a team of business-building technologists who are bullish Bitcoin, Blockchain, Web 3.0 and bridging the emerging and traditional worlds of high performance computing. With two digital asset mining sites in southern Alberta and a third site in North Bay, Ontario, all in Canada, Hut 8 has one of the highest capacity rates in the industry and one of the highest inventories of home-mined material Bitcoin from any digital asset miner or public company worldwide. With 36,000 square feet of geodiverse data center space and cloud capacity connected to grids powered by significant renewable and zero-emission resources, Hut 8 is revolutionizing conventional facilities to create the first hybrid data center model serving both traditional high-performance computing (Web 2.0 ) and emerging digital asset computing sectors, blockchain gaming and web 3.0. Hut 8 was the first Canadian digital asset miner to be listed on the Nasdaq Global Select Market. Through innovation, imagination and passion, Hut 8 is helping to define the digital asset revolution to create value and positive impact for its shareholders and generations to come.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain “forward-looking statements” and certain “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking statements and information are generally identified by the use of forward-looking terms such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue ‘, ‘plan’ or similar terms. The forward-looking information contained herein is intended to assist the reader in understanding management’s current expectations and plans regarding the future.

Forward-looking information contained in this press release includes, but is not limited to, statements relating to the North Bay facility and the anticipated outcome of litigation relating to Validus. Forward-looking information is necessarily based on a number of opinions, assumptions and estimates, which, while believed to be reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause the actual results, the level of activity, performance or achievements differ materially from those expressed or implied by such forward-looking information, including risks more fully described in the Company’s annual information form dated March 17, 2022, as well as most current Base Prospectus dated August 5, 2022 and the prospectus supplement dated August 17, 2022, all of which are available at www.sedar.comand should be carefully examined.

If one of these risks or uncertainties materializes, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events may differ materially from those anticipated in the forward-looking information. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other risk factors that are not currently known to us or that we currently believe are not are material, which could also cause actual results, results or future events to differ materially from those projected in such forward-looking information. There can be no assurance that this information will prove to be accurate as actual results and future events could differ materially from those anticipated in this information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date set forth herein and is subject to change after such date. However, we disclaim any intention, obligation or undertaking to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Any forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

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SOURCE Hut 8 Mining Corp