Mr. Ben Gelfand reports

BLUESKY DIGITAL PROVIDES UPDATE ON PROPOSED ACQUISITION OF CHESSGOLD INC.

Bluesky Digital Assets Corp. has provided shareholders with an update regarding its previously announced proposed acquisition of ChessGold Inc., previously announced in the company's news releases of Jan. 22, 2026, and April 17, 2026, which is currently in advanced stages of review by the Canadian Securities Exchange.

As previously disclosed, the CSE has determined that the transaction constitutes a fundamental change under the policies of the CSE. Accordingly, trading in the company's common shares has remained halted since the announcement of the binding letter of intent and will continue to remain halted while the transaction proceeds through the CSE's review process.

The company continues to work closely with the CSE to substantially advance its review of the transaction and is responding to comments and requests for additional information as part of the normal regulatory process as it continues to progress toward completion.

As part of the fundamental change approval process, the company intends to convene a special meeting of shareholders to consider and, if deemed appropriate, approve the transaction and related matters. The company is currently preparing a management information circular, which is under review for final approval from the CSE, containing detailed information regarding the transaction, which will be filed under the company's profile on SEDAR+ and mailed to shareholders in advance of the meeting in accordance with applicable corporate and securities laws.

The company expects that trading in its common shares will remain halted until the management information circular has been filed and the CSE has completed its review in accordance with its policies. There can be no assurance as to the timing of the completion of the CSE review, the filing of the management information circular, the holding of the shareholder meeting or the resumption of trading.

The company remains committed to completing the transaction as expeditiously as possible while satisfying all applicable regulatory requirements and looks forward to providing shareholders with further updates as the transaction approaches completion.

For additional information regarding the transaction and its terms, please refer to the company's news releases of Jan. 22, 2026, and April 17, 2026, available under the company's profile on SEDAR+.

About Bluesky Digital Assets Corp.

Bluesky Digital Assets is creating a digital enterprise at the intersection of artificial intelligence, blockchain and Web3 business solutions. Leveraging its success as an early adopter providing proprietary technology solutions, Bluesky has invested in its road map.

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