Mr. Romain Nouzareth reports

SATO TECHNOLOGIES CORP. PROVIDES STRATEGIC REVIEW AND OPERATIONAL UPDATE

Sato Technologies Corp. today provides an update on its continuing strategic review and operational initiatives focused on maintaining financial and operational flexibility and enhancing long-term shareholder value.

Market context

Digital asset markets have experienced heightened volatility over recent quarters, alongside sustained increases in bitcoin network hashrate and difficulty. These dynamics, combined with the April, 2024, halving, have resulted in underperformance across the sector. As a result, Sato continues to actively manage its operations in response to these industry-wide conditions.

Strategic review and asset optimization

In light of evolving market and capital conditions, Sato's management and board of directors are conducting a review of strategic and financial alternatives to preserve flexibility and manage the company's liquidity. The strategic review includes:

• Center One strategic review: The company is evaluating a range of potential strategic outcomes for its flagship Center One facility, including sale, partnerships, hosting arrangements, joint ventures or other value-enhancing structures. This review is exploratory in nature and intended to preserve optionality as the company advances its longer-term strategy.
• Non-core asset review: The company is reviewing opportunities to monetize non-core or surplus assets to support liquidity. Any such actions are not expected to impact the company's core operations.
• Capital market flexibility: As part of the strategic review, the company continues to evaluate capital market and strategic financing alternatives, alongside operational and asset-level initiatives, to support its long-term strategy.

Operational discipline and financial flexibility

The company continues to take pro-active measures to optimize operations and maintain financial flexibility:

• Lender engagement and Sygnum forbearance agreement: On Dec. 1, 2025, Sato entered into a forbearance agreement with Sygnum Bank AG, pursuant to which Sygnum agreed to forbear from enforcing payments owed under the master loan agreement dated July 15, 2022, as amended on July 19, 2023, from Nov. 1, 2025, to Jan. 31, 2026. The company continues to engage with Sygnum regarding the deferral of payments owed under the loan agreement and Sygnum has not enforced payments owed under the loan agreement.
• Fleet optimization: The company has temporarily downclocked approximately 15 per cent of its mining fleet to reduce operating costs and improve efficiency during periods of compressed margins.

About Sato Technologies Corp.

Sato, founded in 2017, is a publicly listed company providing efficient computing power. The company currently operates one data centre tailored to provide computing power for bitcoin mining, but may look to expand or add additional data centres for computing power for bitcoin mining, high-power computing (HPC) and artificial intelligence (AI). The company is listed on the TSX Venture Exchange under SATO and OTCQB under CCPUF.

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