Mr. Karl Kottmeier reports

HYDAWAY DIGITAL APPOINTS GROUP APZ AS FIRST-CHOICE HARDWARE PROVIDER

Hydaway Digital Corp. has appointed Group APZ, a Toronto-based advisory firm specializing in supply chain cost reductions and artificial intelligence hardware supply, as its first-choice provider of GPU hardware, procurement advisory services.

Under the terms of the preferred provider agreement, Group APZ will serve as Hydaway's first-choice procurement partner for GPU hardware and related high performance computing equipment for Hydaway's operations, including its RealityChek content verification platform and its GPU rental business. Group APZ will also provide hardware procurement advisory services, including guidance on product selection, supply chain optimization and sourcing strategy. The arrangement is on a preferred but non-exclusive basis, with individual hardware purchases to be made pursuant to purchase orders at competitive pricing. The agreement has an initial term of one year with automatic annual renewals.

This appointment represents a meaningful step in the company's strategy of securing reliable, cost-effective access to the high performance computing hardware that underpins both its GPU rental platform and its RealityChek content verification technology. Partnering with an established procurement adviser like Group APZ, which specializes in supply chain cost reductions and procurement at the intersection of AI and high performance computing, positions Hydaway to scale its infrastructure more efficiently as demand for compute capacity continues to grow.

The company believes that establishing a strong hardware supply chain through a dedicated first-choice provider is essential to maintaining competitive pricing on its GPU rental platform and ensuring the continued development of its RealityChek technology.

"Appointing Group APZ as our first-choice procurement partner is a strategic move that strengthens Hydaway's supply chain at a critical time," said Karl Kottmeier, chief executive officer of Hydaway. "As demand for GPU compute capacity accelerates, having a dedicated procurement partner with deep expertise in hardware sourcing and supply chain optimization gives us a significant advantage. Group APZ's advisory capabilities and access to competitive pricing will help us scale our infrastructure efficiently while keeping costs in check for both our GPU rental platform and RealityChek."

Seena Arjomandi, managing director of Group APZ, said: "We're thrilled to formalize our relationship with Hydaway as their first-choice procurement partner. The AI infrastructure space is moving fast, and companies need a procurement partner that can navigate the complexities of global supply chains, while delivering competitive pricing and reliable access to hardware. This partnership allows us to do what we do best, reduce costs and streamline procurement, while supporting Hydaway's growth across both their compute rental and RealityChek platforms."

Hydaway will provide further updates as the first-choice provider relationship develops and as significant hardware procurement milestones are achieved.

The company also announces that it has entered into various loan agreements with two non-arm's-length parties and one arm's-length party whereby the lenders have advanced a total of $75,000 to the company.

The loans will bear interest at a rate of 20 per cent per annum and be due and payable one year from the date of advance. Additionally, as a bonus to the lenders, the company will issue to the lenders up to 130,434 common shares of the company at a price of 11.5 cents per share.

Certain insiders of the company, being Madjak Management Ltd., a company controlled by Mr. Kottmeier, and Hatchette Holdings Ltd., a company controlled by Rob Gamley, each loaned $25,000 to the company. Under these loan agreements, each insider will receive a total of 43,478 common shares of the company as a bonus for its respective loans. Such participation would be considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The loans are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as they are less than 25 per cent of the market capitalization of the company.

The proceeds of the loans will be used for working capital purposes. The loan agreements, including the issuance of the bonus shares, are subject to TSX Venture Exchange approval.

About Hydaway Digital Corp.

Hydaway is a North Vancouver-based artificial intelligence infrastructure and compute service company. The company operates a GPU rental platform providing bare metal compute capacity for AI training, inference and high performance workloads. Through its acquisition of RealityChek, Hydaway also offers a multimodal AI detection and content verification platform powered by blockchain-anchored authentication. Hydaway is focused on expanding access to scalable, cost-effective compute power and building the infrastructure to support the next generation of AI applications.

We seek Safe Harbor.