Mr. Sheldon Bennett reports

DMG BLOCKCHAIN SOLUTIONS INC. ANNOUNCES 50-MEGAWATT AI DATA CENTER LETTER OF INTENT

DMG Blockchain Solutions Inc. has signed a letter of intent (LOI) to offer 50 megawatts critical IT (information technology) load of artificial intelligence (AI) data centre co-location services to a single tenant at its Christina Lake, British Columbia, facility. The tenant, which is under a non-disclosure agreement (NDA) at this time, will be providing DMG with an investment-grade backstop to review. The company and the tenant are working toward a definitive agreement. but there is no guarantee the parties will reach such agreement.

The initial term of the definitive agreement is 12 years with the right to renew it for up to three periods of five years. Pursuant to the LOI, the company will deliver co-location capacity to the tenant in phases with the goal of delivering the first phase by Dec. 31, 2026.

The LOI specifies monthly recurring charges and annual escalations that reflect current market rates for AI co-location. As previously disclosed, DMG will seek to utilize debt as the primary method of financing to meet the needed capital requirements if a definitive agreement is concluded.

The LOI further stipulates that commencing on the date of the LOI and for a period of 12 months thereafter the right of first refusal (ROFR term), in the event that the company intends to accept an offer from a different third party, the tenant shall have seven business days from the offer notification to exercise the ROFR. Outside of the ROFR term, NDA and non-circumvent conditions, this LOI is non-binding. The proposed transaction is at arm's length.

During this time period, the company will continue to operate its Christina Lake facility primarily as a bitcoin mining operation. If the definitive agreement is entered into by the parties, then the company will transition the facility to an AI data centre to provide the co-location services to the tenant.

If and when the definitive agreement is executed in connection with the proposed transaction, the company will issue a more comprehensive news release disclosing further details of the proposed transaction. There is no assurance that the definitive agreement will be successfully negotiated or executed by the parties.

About DMG Blockchain Solutions Inc.

DMG is a sustainable, vertically integrated digital asset and data centre technology company that develops, manages and operates comprehensive platform solutions to monetize the blockchain and artificial intelligence (AI) ecosystems. The company's operations are driven by two strategic pillars: data center infrastructure (Core) and digital asset software and services (Core+). DMG is expanding its platform to include AI and sovereign compute solutions, supporting government, enterprise and research organizations across Canada.

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