Mr. Geoff Balderson reports

DIGITAL ASSET TECHNOLOGIES INC. CLARIFYING NEWS RELEASE

Digital Asset Technologies Inc. is issuing this news release at the request of the B.C. Securities Commission to provide supplemental, corrective and clarifying information regarding its news releases dated June 30, 2025, and May 7, 2025, including its material change report dated May 7, 2025.

Retraction of prior disclosure

The company retracts certain disclosure in the prior disclosure relating to the LiquidLink AI Corp. business. The retracted disclosure includes statements regarding:

• The acquisition enables the company to acquire Ripple (XRP), and LiquidLink is developing Xrpfy that enables users to search for tokenized assets, discover trading routes and arbitrage opportunities across the XRPL decentralized exchange, and navigate the XRP, and that future versions of the platform may incorporate artificial intelligence agent capabilities.
• The primary services LiquidLink provides are global payments through Ripple's network and the Interledger Protocol, and LiquidLink maintains liquidity pools of stablecoins.
• LiquidLink has launched enterprise-grade infrastructure on the Bitcoin Lightning Network and Ripple's ILP. These deployments position LiquidLink as a foundational hub in the emerging Internet of value, much like the backbone Internet service providers that interconnected global networks in the early 2000s.
• The Xrpfy platform is currently in active development and is scheduled to launch by the end of second quarter 2025.
• LiquidLink aims to build one of the most connected hubs, bridging fragmented liquidity pools and enabling reliable settlement between networks. The company focuses on being the infrastructure layer merchants and institutions depend on.
• LiquidLink's next milestone with respect to its nodes is creating the first cross-chain liquidity bridge to connect bitcoin-native assets with the XRP ledger. This bridge will facilitate seamless asset movement between bitcoin and XRPL.
• LiquidLink's node business operates independently but complements Xrpfy, the company's flagship platform for efficient payment routing and liquidity discovery. LiquidLink plans to use Xrpfy for its own nodes to find cost-effective payment paths and exchange opportunities across networks.

The company advises that such disclosure was inaccurate, incomplete, unbalanced and/or overly promotional, and should not be relied upon.

Xrpfy platform and commercialization timeline

Prior disclosure indicated launch by second quarter 2025. This timeline was not supported by operational readiness or regulatory status. The platform has not been launched, and there is no confirmed commercialization timeline.

Regulatory matters -- MSB registration

The company would have been required to obtain MSB registration with FINTRAC to conduct certain contemplated payment-related activities. The company submitted a preregistration on Aug. 20, 2025, and was required to complete the registration process by Oct. 23, 2025. The company did not complete the registration process and determined not to proceed with the application. As a result, the company is not registered as an MSB and is not permitted to conduct regulated payment activities in Canada. There can be no assurance that such registration will be obtained in the future.

Clarification of node infrastructure deployment

In the original release, the company announced the launch of its enterprise-grade node infrastructure on the Bitcoin Lightning Network and XRP ledger Interledger Protocol. The company wishes to clarify that this launch referred to the successful technical deployment and connection of the node infrastructure to its respective networks in a limited, non-commercial testing environment.

As of the date of the prior disclosure, the infrastructure was intended for internal technical validation and cross-chain testing. Consequently:

• Commercial status: The infrastructure was not processing third party commercial transactions.
• Customer on-boarding: The company had not commenced customer on-boarding activities.
• Operational status: Following this initial deployment, the company paused further development and operation of such infrastructure.

Context regarding ISP comparisons

The company also wishes to provide additional context regarding the comparison in the original release between its node deployments and foundational Internet service providers. This statement was intended as a general description of the technical architecture of the Interledger Protocol. The company clarifies that such comparison does and did not reflect the company's operations, revenue, scale or market position, and should not be interpreted as such.

Path to commercialization and risk factors

The company's milestone of creating a cross-chain liquidity bridge for bitcoin-native assets remains in the development phase. Any potential commercialization would be subject to several requirements, including:

• Capital allocation: the company requires additional financing;
• Regulatory compliance: completing necessary money service business registrations;
• Technical integration: finalizing the cross-chain bridge protocols and security audits.

Investors are cautioned that there is no guarantee that the company will achieve these commercial milestones or secure the financing required to resume node operations.

Investment status -- private companies

The company confirms that certain previously disclosed investee companies, including Beyond Moo Inc., Goldbloom Inc. and Mylk Brands Inc., are no longer active or operating businesses. Investors are cautioned not to rely on prior disclosure regarding the growth, projections or business prospects of these entities.

Website and disclosure updates

The company confirms that it has taken action to update or remove prior disclosure from its website, investor materials and social media channels to ensure consistency with this clarifying news release.

About Digital Asset Technologies Inc.

Digital Asset Technologies is a publicly traded investment issuer that identifies and makes equity investments in global companies that are developing and commercializing technology.

We seek Safe Harbor.