Hut 8 Mining Corp. Announces Electricity Supply Agreement with City of Medicine Hat

Electricity Supply Agreement, together with a land lease, supports
the fully funded expansion of Hut 8’s
mining facilities in
Alberta and the creation of more than 42 full time jobs in the region

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES

VANCOUVER, British Columbia–(BUSINESS WIRE)–Hut 8 Mining Corp. (TSXV: HUT) (“Hut 8” or the “Company”),
is pleased to announce today that it has entered into definitive
agreements with the City of Medicine Hat (“CMH”) for the supply
of 42 MW of electric energy and the lease of land upon which Hut 8 will
construct and operate its mining facilities near the City of Medicine
Hat’s new Unit 16 power plant. The expansion marks Hut 8’s commitment of
a $100 million construction investment in the community, all of which is
fully funded.

Under the terms of an electricity supply agreement, CMH will provide
electric energy capacity of approximately 42 megawatts to the new Hut 8
facilities, which in conjunction with the Company’s existing 18.7 MW in
operation in Drumheller, will allow Hut 8 to meet 60.7 MW of a fully
funded 62.7MW of power capacity by September 2018. The electricity
supply agreement and the land lease both have a concurrent term of 10
years. The delivery of electric energy under the electricity supply
agreement will commence upon the receipt of certain regulatory approvals
and the commissioning of Hut 8’s BlockBox Data Centres, which are slated
for delivery in Q2 2018.

Through its partnership with the Bitfury Group, the world’s leading
full-service blockchain technology company, Hut 8 has secured
world-leading technology and operational expertise. This partnership,
together with the success of Hut 8’s recent capital raising efforts and
the provision of land and electricity through CMH, will enable the
Company to service the full complement of 57 BlockBox Data Centers with
an aggregate power capacity of approximately 60.7 MW. As of March 16,
2018, Hut 8 has mined 750 bitcoins through its mining facilities in
Drumheller, Alberta.

Bill Tai, Chair of the Board of Directors of Hut 8, stated, “The signing
of the electricity supply agreement and the land lease represents a key
component in achieving our business plan for the roll-out of our
BlockBox Data Centers in low-cost energy jurisdictions. CMH offers
stable cost-competitive utility rates and has been very welcoming and
supportive of Hut 8’s fast paced growth plans. We’re excited to work
with the City of Medicine Hat to introduce a new industry, with new
revenue channels for the City and its residents.”

Hut 8’s partnership with CMH will serve as an economic stimulator for
the region and will include a construction investment by Hut 8 of
approximately $100 million. Site construction activity, which will
commence now and is to be completed in Q3 2018, is expected to peak at
about 100 well-paid jobs. Thereafter, more than 42 direct operational
roles will continue on site, with some advance training at Hut 8’s
existing mining facility in Drumheller, Alberta, which currently
operates at 18.7 MW. These roles will include electricians, general
labourers, systems technicians and security staff. In line with its
corporate governance mandate, Hut 8 will seek to recruit from the local
community in filling these roles.

Hut 8 resources will also be used to improve infrastructure to the area
surrounding the data centre site and in the funding of technology
programs and grants in local educational institutions to ensure that the
local job force has the skills needed to participate in this new
industry.

Ted Clugston, Mayor of the City of Medicine Hat, stated, “As a utility
owner, City of Medicine Hat provides a sustainable, competitive
advantage with low cost and reliable service that is attractive to our
customers. We’re committed to growing and diversifying our economy and
welcome Hut 8 and the Bitfury Group as a new customer and business in
our community.”

For more information, visit www.hut8mining.com.

About Hut 8

Hut 8 is a cryptocurrency mining and blockchain infrastructure company
established through an exclusive partnership with the Bitfury Group, the
world’s leading full-service blockchain technology company. Through its
partnership with the Bitfury Group, Hut 8 has access to a proprietary
mix of hardware, software, and operational know-how to construct,
optimize and manage datacenters in low-cost and attractive
jurisdictions. Hut 8 is led by a team of industry experts and intends to
provide investors with exposure to blockchain processing infrastructure
and technology along with underlying cryptocurrency rewards and
transaction fees.

Forward-Looking Statements:

Certain information in this press release constitutes forward-looking
information. In some cases, but not necessarily in all cases,
forward-looking information can be identified by the use of
forward-looking terminology such as “plans”, “targets”, “expects” or
“does not expect”, “is expected”, “an opportunity exists”, “is
positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does
not anticipate” or “believes”, or variations of such words and phrases
or state that certain actions, events or results “may”, “could”,
“would”, “might”, “will” or “will be taken”, “occur” or “be achieved”.
In addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances contain
forward-looking information. Statements containing forward-looking
information are not historical facts but instead represent management’s
expectations, estimates and projections regarding future events.

Forward-looking information is necessarily based on a number of
opinions, assumptions and estimates that, while considered reasonable by
Hut 8 as of the date of this press release, are subject to known and
unknown risks, uncertainties, assumptions and other factors that may
cause the actual results, level of activity, performance or achievements
to be materially different from those expressed or implied by such
forward-looking information, including but not limited to the factors
described in greater detail in the “Risk Factors” section of the Filing
Statement relating to the Qualifying Transaction of Oriana Resources
Corporation and Hut, which is available at www.sedar.com.
These factors are not intended to represent a complete list of the
factors that could affect Hut 8; however, these factors should be
considered carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. The forward-looking statements
contained in this press release are made as of the date of this press
release, and Hut 8 expressly disclaims any obligation to update or alter
statements containing any forward-looking information, or the factors or
assumptions underlying them, whether as a result of new information,
future events or otherwise, except as required by law.

This press release is not an offer of the securities for sale in the
United States. The securities have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an exemption from registration.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale would
be unlawful.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this press
release.

Contacts

Hut 8 Media:
Brix Media Co.
Natalie Davidson,
604-215-2749
Natalie@brixmediaco.com
or
Kyle
Appleby
Chief Financial Officer and Corporate Secretary
kyle@hut8mining.com