Mr. Adam Ingrao reports

ALSET AI ADVANCES LYKEN PLATFORM TO SUPPORT CANADA'S DATA SOVEREIGNTY AND AI INFRASTRUCTURE GOALS

Alset AI Ventures Inc. has provided a strategic update on the continuing rollout of its proprietary cloud compute platform, Lyken.AI, with an emphasis on commercial traction, infrastructure expansion and alignment with national priorities around AI (artificial intelligence) data sovereignty.

As the global demand for AI processing power surges, Canada remains significantly underrepresented in the high-performance compute landscape, posing a risk to innovation, sovereignty and competitiveness. Alset AI, through Lyken, plans to directly address these challenges with a bold Canada-first strategy: one focused on deploying secure, scalable and compliant infrastructure rooted in domestic data centres and backed by capital-efficient, growth-aligned partnerships.

A Canada-first mandate to close the compute gap

Canada is at a strategic inflection point in the global AI race. Despite being home to world-class AI researchers and talent, the country controls only approximately 1 per cent of global AI compute infrastructure, compared with 11 per cent for the United States and 8 per cent for Japan. The resulting infrastructure shortfall has limited domestic innovation and heightened reliance on foreign hyperscalers for critical AI workloads.

Recent federal initiatives -- including the Canadian government's AI sovereign compute strategy, launched in April, 2024 -- have identified the urgent need for domestic, sovereign compute infrastructure that ensures data residency, privacy and national innovation leadership.

Further, a 2024 consultation led by Innovation, Science and Economic Development Canada (ISED) emphasized Canada's over-reliance on foreign compute providers, citing this as a risk to national competitiveness and AI commercialization.

Alset AI's Canada-first mandate directly addresses these needs. Through its wholly owned Lyken.AI platform, the company plans to deliver a compliant, secure and localized GPU compute platform, backed by Canadian infrastructure and aligned with government and industry expectations for data sovereignty.

Alset AI is pleased to report that its channel partner, Silver Birch Growth, is generating a growing pipeline of prospective AI and enterprise clients for Lyken.AI. These opportunities span industries from enterprise AI to digital health and research, and support the company's thesis that a domestic, compliant compute partner is needed in Canada. The company will continue to provide updates on client conversions as appropriate.

Infrastructure expansion in progress

To meet rising demand, Alset AI is actively engaged in negotiations for new data centre deployments across Canada. These facilities are being scoped to host high-performance GPU clusters while adhering to strict data residency requirements, supporting a growing ecosystem of clients that require compliance with Canadian regulations and secure infrastructure.

Platform scale accelerated via Excel computility

As previously announced, the company has entered into a strategic partnership with Excel Computility Service Ltd., enabling the integration of NVIDIA H100, A100 and A6000 GPU clusters, AI-ready NAS systems and full systems integration support into Lyken's infrastructure.

This partnership accelerates Lyken's rollout by increasing available compute capacity and performance while reducing time to deployment for clients.

CEO commentary

"Canada is at a pivotal moment in the global AI race-but remains underserved in compute infrastructure," said Adam Ingrao, chief executive officer of Alset AI. "With the Lyken platform and our Canada-first rollout strategy, supported by our partners, we aim to deliver secure, sovereign GPU compute that the market urgently needs. The strong pipeline and my recent personal investment in the company -- 250,000 shares acquired at a price of 13.5 cents per share on June 4, 2025 -- speak to my confidence in executing this vision."

In addition, the company has extended its agreement with Machai Capital Inc. for an additional two months, covering the period from May 22, 2025, to Sept. 22, 2025, for total consideration of $400,000. As previously announced, this extension supports enhanced investor relations, brand visibility and capital markets engagement as Alset AI continues to scale operations. The extension of the agreement is subject to approval by the TSX Venture Exchange.

About Alset AI Ventures Inc.

Alset AI is a pioneering AI and cloud computing investment firm, committed to nurturing high- potential technology companies. Through a combination of capital, strategic advisory and cloud computing alliances, Alset AI is shaping the future of artificial intelligence and building an AI-focused venture capital platform poised for substantial growth.

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