CryptoStar Corp. Terminates Letter of Intent with Kansas Partner and Provides Update on Operations

TORONTO, Oct. 7, 2022 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, announces that it has terminated the letter of intent (the "LOI") with a Kansas, USA based energy company (the "Kansas Partner") effective October 6, 2022. The Company also provides an update on operations.

Self-Mining Operations

• As at October 7, 2022, the Company has an aggregate self-mining Hashrate of 92.24 PH/s from ASIC miners running at its data centres.
• The 92.24 PH/s of existing self-mining Hashrate currently contributes USD$227,247 per month in self-mining revenue for CryptoStar. (Source: https://whattomine.com/ Mining metrics are calculated based on a BTC – USD exchange rate of 1 BTC = $19,985.68 updated at 2022-10-07 11:42:12 UTC).
• 160 high performance ASIC miners of the previously announced purchase of 600 high performance ASIC miners remain to be deployed. This will increase the Company's self-mining Hashrate from ASIC miners by a further 14.1 PH/s. The Company anticipates deploying these ASIC miners as expeditiously as possible upon expansion of its operations in Quebec, Canada.
• Since the completion of Ethereum's merge to proof of stake, the Company is actively exploring opportunities to utilize its GPU computing power.

Hosting Operations

• As at October 7, 2022, the Company has Equipment Hosting Agreements for an aggregate mining capacity of approximately 12 MW located at its award-winning data centre facilities in Utah, USA, contributing annual hosting revenues for the Company of USD$2.1 million.

LOI with Kansas Partner

• On October 6, 2022, the Company terminated the LOI with the Kansas Partner previously announced on February 10, 2022 as a result of its due diligence investigations.

Expansion in Quebec

• The Company, through a subsidiary, continues to make progress on its expansion of operations in Quebec, Canada, and on its application with Hydro Quebec to secure an additional 5 MW of power at its data centre.

Alberta Operations

• The natural gas power generation site of 611890 Alberta Inc. DBA Avila Energy (the "Alberta Partner") remains shut down. Litigation against the Alberta Partner et al. is ongoing with respect to the non-compliance with terms of the power supply agreement for up to 30 MW and damages arising therefrom.

Future Growth

• The Company plans to continue to further expand its self-mining inventory of mining hardware. Further orders for mining hardware may be placed using astute capital management strategies based upon prevailing market conditions.
• The Company plans to continue to further expand its data centre operations in North America by partnering with large cryptocurrency miners seeking operating locations in North America. The Company continues to consider and perform diligence on several potential transactions and opportunities.

Financial Position

• The Company is in a strong financial position and is well capitalized.
• As at October 7, 2022, the Company held 550.64 ETH, 80.05 BTC and USD$2.1 million (CAD$2.9 million) in cash.
• The Company has made payments and deposits for buildings and infrastructure equipment of USD$3.9 million (CAD$5.4 million).
• Additionally, effective October 1, 2022, the Company extended its lease for a further five years at one of its award-winning data centre facilities in Utah, USA and made security deposit payments of USD$340,000 (CAD$466,500) in relation to the extension of the lease.

About CryptoStar Corp.:

CryptoStar has cryptocurrency mining operations with data centres located in the U.S.A. and Canada. CryptoStar is currently dedicated to becoming one of the lowest cost cryptocurrency producers in North America and a major supplier of GPU and ASIC miners worldwide.

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

Forward-Looking Statements

This news release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as, "expects", "is expected", "anticipates", "intends", "believes", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be achieved. Forward-looking statements include those relating to CryptoStar's expected revenue generating capabilities of its ASIC miners, expected increase in self-mining Hashrate, the time to deploy the ASIC miners, assumption that damages will arise from its litigation with the Alberta Partner, CryptoStar's plans to continue to expand its self-mining inventory of mining hardware, expand its data centre operations in North America, to partner with large cryptocurrency miners and CryptoStar's plans of becoming one of the lowest cost cryptocurrency producers in North America and a major supplier of GPU and ASIC miners worldwide. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances. Actual results, performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this press release, and, accordingly, you should not place undue reliance on any such forward-looking statements and they are not guarantees of future results. Forward-looking statements involve significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements. Except as required by law, CryptoStar undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE CryptoStar Corp.

CryptoStar Corp., Attention: David Jellins, President and Chief Executive Officer, Investors: [email protected], Sales: [email protected], W: www.cryptostar.com