Mr. Asher Genoot reports

HUT 8 ANNOUNCES SALE OF 310 MW POWER PORTFOLIO TO TRANSALTA FOLLOWING SUCCESSFUL OPTIMIZATION AND LONG-TERM CONTRACT WINS

Hut 8 Corp. has entered into a definitive share purchase agreement with TransAlta Corp., one of Canada's largest publicly traded power generators. Under the agreement, TransAlta will acquire the 310-megawatt portfolio of four natural gas-fired power plants in Ontario owned and operated by Far North Power Corp., an entity formed by Hut 8 and Macquarie Equipment Finance Ltd., a subsidiary of Macquarie Group Ltd.

The transaction concludes a multiphase program through which Hut 8 stabilized and strengthened the portfolio following its acquisition out of bankruptcy. Upon assuming responsibility for the portfolio, Hut 8 executed the operational and commercial measures necessary to re-establish the assets as revenue-generating facilities. Earlier this year, Far North secured five-year capacity contracts across the 310-megawatt portfolio through the Ontario IESO Medium-Term 2 (MT2) auction. These contracts transition the power generation assets from short-term, seasonal arrangements to long-term, investment-grade-backed revenue commitments, significantly increasing cash flow stability and duration while preserving merchant energy revenue upside.

Asher Genoot, chief executive officer of Hut 8, said: "Our power-native team executed a disciplined program to strengthen the four natural-gas power plants comprising the portfolio, enhancing their operational and commercial footing. This work enabled the award of investment-grade, long-term capacity contracts across all four sites through the MT2 process. With that foundation in place, we created the appropriate conditions to crystallize the value of the portfolio for our shareholders."

Hut 8 continues to advance a multigigawatt pipeline of power-first digital infrastructure development opportunities across North America. While the company maintains a strategic interest in power generation, it intends to prioritize capital allocation toward large-scale digital infrastructure development opportunities.

Sean Glennan, chief financial officer of Hut 8, said: "These are attractive contracted facilities, but they are not core to our current strategy or capital plan, which is focused on high-return opportunities within our development pipeline. Redeploying capital from the portfolio enables us to advance those opportunities while demonstrating our ability to invest in, optimize and ultimately monetize complex power assets."

TransAlta's scale, commercial platform and longstanding operating presence in Ontario make it a natural long-term owner of the portfolio, positioning it for its next phase of value creation under TransAlta's stewardship.

John Kousinioris, president and chief executive officer of TransAlta, said: "With this acquisition, our position in Ontario increases through contracted and complementary assets. As electrification and population growth continues, the market will meaningfully rely on existing firm, dispatchable generation for grid reliability. Beyond the contract period these assets are attractively positioned for recontracting opportunities as well as with optionality given the co-located land. The transaction adds to our reliable and increasingly diversified portfolio, and we see long-term value in these assets."

CIBC Capital Markets acted as financial adviser to Hut 8, and Bennett Jones LLP served as legal counsel to the company.

About Hut 8 Corp.

Hut 8 is an energy infrastructure platform integrating power, digital infrastructure and compute at scale to fuel next-generation, energy-intensive use cases. Hut 8 takes a power-first, innovation-driven approach to developing, commercializing and operating the critical infrastructure that underpins the breakthrough technologies of today and tomorrow. The company's platform spans 1,020 megawatts of energy capacity under management and 1,530 megawatts of energy capacity under development across 19 sites in the United States and Canada: five bitcoin mining, hosting and managed services sites in Alberta, New York and Texas; five high performance computing data centres in British Columbia and Ontario; four power generation assets in Ontario; one non-operational site in Alberta; and four sites under development across Louisiana, Texas and Illinois.

About TransAlta Corp.

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of thermal generation and hydroelectric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where the company operates and where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Its reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 70-per-cent reduction in GHG (greenhouse gases) emissions or 22.7 million tonnes CO2e (carbon dioxide equivalent) since 2015 and received an upgraded MSCI ESG rating of AA.

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