Mr. Romain Nouzareth reports

SATO TECHNOLOGIES CORP. ANNOUNCES EXPANSION INTO NEXT GEN POWER INFRASTRUCTURES FOR AI/HPC WITH A VISION TO BUILD LARGE SCALE COMPUTING-POWER FACTORIES

Sato Technologies Corp. has made a transformative expansion of its business strategy.

Building on its established expertise in the high performance computing blockchain sector, Sato plans to expand its digital infrastructure offerings to include advanced and efficient computing infrastructures for artificial intelligence, high performance computing and future-ready technologies such as zero-proof knowledge or quantum computing. This initiative is expected to place Sato at the forefront of hybrid computing power innovation.

Sato plans to utilize its existing 20 megawatts of hydroelectricity from Quebec -- a region recognized for its stable and renewable energy resources -- to power the first phase of its next-generation data centre.

In October, Sato received a partial reimbursement from the Canada Revenue Agency for previously claimed sales tax credits. As previously disclosed in the company's financial statements for the three and six months ended June 30, 2024, Sato has recorded a receivable, with a provision for uncollectible taxes. The CRA's review of the sales tax credits remains in progress, and the final refund amount remains uncertain. The recovery of these funds is expected to play a key role to kick-start Sato's strategic investment in developing its next-generation data centre designs and facilities, advancing the company's platform for energy-sensitive, business-critical applications. Additionally, the company is exploring various alternatives for additional financing to support its strategic initiatives.

"We're not just focused on one form of power. We're about all forms of computing from exahashes to exaflops," said Romain Nouzareth, chief executive officer and co-founder of Sato. "Starting in our 20-megawatt centre in Canada, we aim to build an ecosystem of computing power factories in North America that integrates blockchain with emerging technologies like AI or any type of computing power, while upholding our commitment to sustainability and operational excellence."

He added, "We're also looking for creative builders, forward-thinking individuals to join our team as we embark on this new journey."

This hybrid model enables Sato to evolve its infrastructure in step with the shifting needs of the digital economy. In addition to its continued focus on bitcoin, the new computing power factories will offer critical computational power for AI research, machine learning, data analytics, quantum computing and other resource-intensive applications.

Sato's expertise in energy-efficient bitcoin computing, coupled with Quebec's stable renewable energy, provides a strong competitive edge as the company diversifies into AI and high-power computing sectors. The 20-megawatt energy allocation marks the start of Sato's long-term investment in power compute data centres, designed to support diverse computing needs for the digital future.

About Sato Technologies Corp.

Sato, founded in 2017, is a publicly listed company, providing efficient computing power. The company currently operates one centre tailored to produce compute power for bitcoin computing, but may look to expand or add additional data centres for computing power for bitcoin computing, high-power computing, artificial intelligence and L2s. The company is listed on the TSX Venture Exchange: SATO and on the OTCQB: CCPU.F.

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